Why do we allow the Federal Reserve loan money to commercial banks at almost 0% interest, who then loan the tax payers this money at a much higher interest rate?

If you want to learn more about the Federal Reserve system and how it works, start with Wikipedia and then, for fun, consider asking targeted questions of the conspiracy theorists here on Fluther.

Interest is charging for a service. It’s not stealing. Stealing is when someone reaches in your pocket and takes something of yours. Interest happens when you choose to pay for the opportunity to borrow.

We don’t allow the Federal Reserve to do anything. In fact, the government has little say or influence in its affairs because there is nothing much Federal about the Federal Reserve. They probably have more power do what they want than they should because they are not a complete United States government entity due to them having private components as part of their make up.

Federal Reserve Sytem

I smell a conspiracy—and it stinks!

@robmandu
Thanks for the wikipedia link. I understand that interest is charging for a service. From your link, here are the services provided from the Federal Reserve:
Current functions of the Federal Reserve System include:[13][15]

* To address the problem of banking panics
* To serve as the central bank for the United States
* To strike a balance between private interests of banks and the centralized responsibility of government
o To supervise and regulate banking institutions
o To protect the credit rights of consumers
* To manage the nation’s money supply through monetary policy to achieve the sometimes conflicting goals of
o maximum employment
o stable prices, including prevention of either inflation or deflation[16]
o moderate long-term interest rates
* To maintain the stability of the financial system and contain systemic risk in financial markets
* To provide financial services to depository institutions, the U.S. government, and foreign official institutions, including playing a major role in operating the nation’s payments system
o To facilitate the exchange of payments among regions
o To respond to local liquidity needs
* To strengthen U.S. standing in the world economy

Why must we still pay interest, when the services are not being provided properly? If one of the services that they are providing, is to manage the monetary supply, which they do by the creation of debt, where does the money come from to pay the interest? Isn’t the monetary service they are providing, basically a service of creating a dollar out of thin air?