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Comparing the figures with those of 2004 show that the Fed's total net income rose 10% to $23.521 billion, the biggest part stemming from a 30% rise in Open Market Operations to $28.959 billion. Other Income rose 17% to $386 million and Fee Income advanced 4% to $901 million. Operating Expenses rose 4% to $2.116 billion while the Treasury can enjoy an annual check that has grown 19% to $21.454 billion. The biggest relative winners are the private shareholders of the Federal Reserve. Remember, there is nothing Federal and not really that many reserves in the US central bank. The dividend payout to this exclusive circle of America's elite rose a staggering 34% to $781 million. Fed shareholders are guaranteed a 6% annual dividend. With the discontinuance of M3 data after March 26 the private owners of the Fed will certainly enjoy an ever bigger dividend for 2006. Saving $1.5 million by abolishing M3 data amounts to 0.00000699% of the Fed's annual net income of last year. These folks sure know where to save. For the alarming trend in M3 growth I refer you to the posts: Least You Can't Say You Didn't Know M3: This Is What Bernanke (And Others) Have To Say ECB: M3 Slows A Bit, Gold Sales Continue - Worldwide Interest in Burial Of US M3 Fed Says US M2 Resembles Eurozone M3 ECB Very Worried As M3 Growth Is Risk To Price Stability Fed Wants To "De-Emphasize The Role of M3" M3 - Deafening Silence In The MSM - And The Federal Reserve M3 - There Is Always A Funny Side To A Sad Story Unpleasant Trend - Fed Counters By Stopping Release of M3 Money Supply Data For a good read on the correlation between money supply and stock market performance surf to Robert McHugh's editorial "The Fed's Money Supply Armament Is Underway" here at FSU, just in case you wondered about the strong performance of the US stock market.
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