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Yup. The point of the Fed is to ensure consumers can stick their money in banks without being experts in the banks' financial position themselves From the poin

Yup. The point of the Fed is to ensure consumers can stick their money in banks without being experts in the banks' financial position themselves From the point of view of the Fed, it is different though; the reason it offers banks special privileges like banking licences, deposit window lending access and [only recently, not uncontroversially] interest on reserves is because they perform complex and risky operations like lending businesses and homebuyers money the economy needs. If they didn't do this, the Fed wouldn't have come into existence, never mind having agreed to pay interest on reserves banks hold so it could maintain a positive interest rate after flooding the system with reserves with QE. So there isn't an obvious imperative for the Fed to extend privileges it designed for lending institutions to an institution designed with the explicit intention of not performing that function, and simply earning a risk free margin on interest from the Fed. It's not too different to the situation where its difficult to register for charity tax breaks if the purpose of your organisation is in fact, not charitable.

tialaramex 4y ago
> It's not too different to the situation where its difficult to register for charity tax breaks if the purpose of your organisation is in fact, not charitable. Not really in the US. Just say you're a Church. Especially with the current US Supreme Court.
- PopAlongKid 4y ago
  This is correct. The IRS has a list at its web site[0] of all the charities where you can get a tax deduction for making a donation -- except churches, which they do not list. Church charities are given much less scrutiny before allowing deductions. The law also makes it extra hard for the IRS to audit the qualifications of churches to be treated as exempt charities for tax purposes.[1] [0]https://www.irs.gov/charities-non-profits/contributors/other-eligible-donees https://www.irs.gov/charities-non-profits/contributors/other... [1]https://www.irs.gov/charities-non-profits/churches-religious-organizations/special-rules-limiting-irs-authority-to-audit-a-church https://www.irs.gov/charities-non-profits/churches-religious...

tialaramex 4y ago

> It's not too different to the situation where its difficult to register for charity tax breaks if the purpose of your organisation is in fact, not charitable. Not really in the US. Just say you're a Church. Especially with the current US Supreme Court.

PopAlongKid 4y ago
This is correct. The IRS has a list at its web site[0] of all the charities where you can get a tax deduction for making a donation -- except churches, which they do not list. Church charities are given much less scrutiny before allowing deductions. The law also makes it extra hard for the IRS to audit the qualifications of churches to be treated as exempt charities for tax purposes.[1] [0]https://www.irs.gov/charities-non-profits/contributors/other-eligible-donees https://www.irs.gov/charities-non-profits/contributors/other... [1]https://www.irs.gov/charities-non-profits/churches-religious-organizations/special-rules-limiting-irs-authority-to-audit-a-church https://www.irs.gov/charities-non-profits/churches-religious...