Fed forking over millions to foreign banks through IOER scheme

With millions of American families financially distressed and living paycheck-to-paycheck, the Federal Reserve is handing out ‘free money’ to foreign banks through an Interest On Excess Reserves (IOER) arbitrage play.

David Stockman explains the process:
In recent years foreign banks have been tapping U.S. money market funds for very cheap short-term loans. Unlike domestic banks, foreign banks don’t have domestic depositors to tap for funds, so they turn elsewhere for dollars. Money market funds make the funds available for a few hundredths of a percentage point. The foreign banks in turn park those loans at the Fed for 0.25% interest. They earn profits on the spread between the cheap cost of funds available from money market funds and the higher rate they get at the Fed.
It’s a trade that domestic U.S. banks have been unwilling to make because they have to pay additional fees to the Federal Deposit Insurance Corp. on their borrowings, fees the foreign banks don’t have to pay.

Source:  “Why The Fed’s Outrageous Gift To Foreign Banks— Risk Free Aribitrage On IOER–Is Just The Tip Of The Iceberg”  –  by David Stockman

This is a risk-free arbitrage play, with the Fed forking over millions of dollars of U.S. taxpayer funds to ……. foreign banks.
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Meanwhile, in America today there are 47 million Americans on food stamps – and on top of that, millions of Americans are lining up at food pantries and ‘soup lines’ each week.

According to RealtyTrac (August 2014), “There are currently 1,089,253 properties in U.S. that are in some stage of foreclosure (default, auction or bank owned)…”

Real Median Household Income has been in a steady downtrend for a decade.

Big government social welfare programs dribble out benefits each week and disincentivize work in a way that perpetuates the underclass.

Central-planning and ‘government allocation of resources” dispense political favors and generate gross price distortions.

And our U.S. Federal Reserve is subsidizing foreign banks…

It is time for American families to be granted the same access to their own money that that foreign banks are have access to through the Fed’s IOER scheme.

It is time to get America moving again with a plan that restores economic freedom, reduces the scope and control of big government over citizens, and restores economic health in America – and pays for itself over a 10-15 year period.

The Leviticus 25 Plan.

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