Re: Seigniorage, Who, What, Why

From: Bill Ryan (william_b_ryan_at_hotmail.com)
Date: 08/19/04 

Date: 19 Aug 2004 02:50:05 -0700

gchand4059@aol.com (Lantern) wrote in message news:<20040818162250.21423.00001599@mb-m18.aol.com>...
> william_b_ryan wrote in part:
>
> >>The central bank is one bank in a system with many banks, in a financial
> sector with many firms, foreign and domestic. Only a small fraction of
> outstanding federal debt obligations are held in the portfolio of
> the central bank.>>
>
> Kinda interesting but where does the U.S. seigniorage profit go? Is there
> objective evidence that it actually gets there?
---------------------------------------
-----------------------------------

There is no seigniorage profit. The Federal Reserve
presumably makes a profit on the entirety of its
operations, a portion of which – we are told - is
credited to Treasury's account.

Federal Reserve notes are merely tokens for Federal
Reserve Bank credit already in existence.