The US Should Not Be Giving Money to Foreign Banks

The Federal Reserve Pays Excessive Interest to Foreign Banks: Yet Another Reason to End the Fed

Every year, the Federal Reserve continues to slowly destroy the purchasing power of the American middle class.

Meanwhile, politicians, arms manufacturers, banks, and other inside club members stand to benefit from these reckless policies. The Federal Reserve is the number one enabler of wasteful government spending, and it’s no wonder these career politicians haven’t lifted a finger to block its unconstitutional actions.

Most Americans are aware of how banks have benefited from the Fed’s lax policies, particularly during the Great Financial Crisis. Yet Rand Paul has recently revealed a lesser-known fact, which shows that over 40% of the interest that the Fed pays goes to foreign banks.

Who decided that foreign banks should benefit from the Fed’s policies while the middle class continues to struggle amid rising inflation?

Rand Paul Slams the Fed for Aiding Private Banks

The Federal Reserve is easily the most powerful force working against the prosperity of the American population. Its actions have consistently eroded the wealth of the middle class and debased the power of the USD globally.

Rand Paul recently pointed out a disturbing trend, which shows that the Federal Reserve sends over 40% of its interest payments to foreign banks. This is a disturbing fact for many Americans who have struggled in the current economic state in the 2020s.

American consumers have very few options to protect themselves against inflation. Investments that perform in line with inflation are still subject to capital gains taxes. Meanwhile, the government is heading towards bankruptcy as the Fed enables it to continue spending money like a drunken sailor.

The Federal Reserve shouldn’t be empowering domestic and foreign banks at the expense of the American population. It has been shielded from audits and accountability and needs to be eliminated before it destroys the USD and makes life even worse for the American middle class.


No Limit to the Fed’s Insanity

The Federal Reserve answers to no one and has been given the freedom to create global chaos and exploit the power of the USD’s reserve status. It has sustained this power despite causing economic and financial issues. During every cycle, the Fed has failed to predict even the most basic macroeconomic trends.

How did we hand the world’s most powerful position to these incompetent and arrogant clowns?

Jerome Powell, its head, only had a brief career in law and investment banking before gaining this position. It’s no wonder that Powell and Yellen were unable to predict the surge of inflation in 2022, at a time when other global Central Banks were awake to the new supply-driven inflationary trend.

Even worse, these Fed employees are arrogant. Federal Reserve Chairman Jerome Powell, who will hopefully be fired soon, has stated that there is no limit to how many dollars the Fed can create.

Economics 101 classes teach about the risks of printing too much money, highlighting the risks previously seen in countries like Zimbabwe. Yet the Federal Reserve ignores these basic facts while asserting its intellectual superiority.

In its latest move, the Fed has sought to further destroy the power of the USD by sending massive payments to foreign banks that hold USD deposits. The Federal Reserve has continued to open new swap lines in other countries, allowing these countries to swap their currencies so they can hold US dollars.

At the current moment, many banks view the US dollar and treasuries as risk-free investments, but this trend is slowly changing as the Fed continues to show the world its folly and arrogance.

The price of gold has nearly doubled from its five-year low, as many countries have wised up and realized the Fed has no clue what it is doing.

The only reason the Fed can continue is the spineless legislation in the United States, which allows the Fed to continue on its unconstitutional path.

We are not even allowed to audit the Fed to take a closer look at these nefarious international transactions.

Rand Paul has been pushing for a reasonable audit of the Fed for many years, but the Fed still maintains its unquestioned hegemony in the market.

Trump has also been trying to replace Jerome Powell this year, yet Powell has arrogantly stated he can’t be replaced, even after all of the disastrous policy mistakes he has made since 2022.

The Collusion of Big Banks and the Fed

For decades, Americans have had their purchasing power destroyed while the Fed enriches big banks. These banks have access to Fed funds at an artificially low rate and have been bailed out by bankers after they recklessly gambled with these funds on speculative investments.

2008 was a slap in the face to the American public, and nothing has improved since then.

The Federal Reserve fails to realize how much credibility the USD lost in 2008, and how much this crisis cost the American taxpayer. The United States’s image in the world has declined significantly after this crisis, which spread to other markets with no exposure to the mortgage-backed security market.

A family of four had to pay around $10,000 in taxes to cover the bailout of these banks during the Great Financial Crisis.

Rational observers around the globe noted this event, as well as the insane QE policies that followed from the Fed, and have decided to create alternatives. The USD has slowly begun to receive threats from alternative countries, such as BRICS, which want to establish their own system.

Auditing the Fed and ending its nefarious relationship with its crony banks is the best step to aid the middle class and boost the United States’ image.


Rand Paul has been pushing for new legislation that will end the Fed’s bailout of large banks.

“At a time of persistent and self-imposed worsening losses at the Fed, the manipulators of the American economy continue to pay banks to do nothing but have their funds sit in a safe. How can anybody, especially the populist Republicans and the entire Democratic Caucus, defend such a subsidy when supposed income inequality and the national debt is at the top of the political agenda?”

We shouldn’t be paying foreign banks simply to hold USD deposits, and American taxpayers shouldn’t have to indirectly pay for this through inflation. Banks that hold US dollars now receive much more interest, further adding to our financial strain.

If the United States continues down this destructive path, foreign countries will be less likely to view the USD as a safe haven investment.

The Fed is Crushing US Consumers

Ever since Ron Paul created the End the Fed revolution, the Fed has continued to destroy the middle class and debase the power of the USD. The Uniparty has continued to allow the Fed to have unquestioned power.

There is no constitutional basis for this private entity to enjoy this unchecked power, and it is the duty of our government to eliminate the Federal Reserve. At the very least, we should begin a full-scale audit of the Fed, which would then fully reveal the extent of its corruption.

Previous social movements, such as Occupy Wall Street, have miserably failed to address the core issue that the American economy is facing. The Federal Reserve is the greatest enemy of the country. The inflation experienced during the 2020s was a result of the Fed’s destructive policies. It wasn’t related to corporate greed or other economic policies. No political party is ever going to fix the US economy until they go after the Fed.

Every year, the American public is forced to pay an indirect tax to these private elites who don’t understand economics and think they can’t be fired after failing miserably. The government needs to take back control of our monetary policies and ensure that corporations don’t collude with the Fed under a crony and risky system.

Quantitative easing alone is bad, but the enrichment of banks at the expense of the middle class is theft and needs to be addressed by our political system. No private system should have more power than the government and the people.

American consumers have paid a lot of money to bail out US banks. These banks were all enabled by the Federal Reserve. They also shouldn’t have to struggle with inflation because the Fed decides to print more money and enrich foreign banks.