The Federal Reserve Is HEMMORAGING MONEY

Author: Public-Choice 1 year ago

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Topic's author

Public-Choice

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Posts: 1,065

Public-Choice

11.10.2023 05:47PM

From The Mises Institute:

Financial statements of the US Federal Reserve, which consists of the board of governors in Washington and twelve district reserve banks across the country, indicate that the consolidated system has generated both capital and operating losses for the past couple of years. The Fed was created in 1913 to issue and circulate an “elastic currency” that could respond to consumers’ demand for cash, end bank runs known then as “money panics,” and serve as a “lender of last resort” to the nation’s commercial banks. How is it possible that the Fed could be losing money after one hundred years of operation?

The debate has raged in the banking and finance communities. Two investigators, Paul Kupiec at the American Enterprise Institute and Alex Pollock at the Mises Institute, have analyzed Fed financial statements and presented their findings about these Fed losses in publications such as the Wall Street Journal and on the websites of the American Enterprise Institute, the Mises Institute, the Federalist Society, and Law and Liberty. The Wall Street Journal has produced a nontechnical video explaining how the Fed makes (and loses) money.

Link:

https://mises.org/wire/federal-reserve-running-losses-does-cost-anyone-anything

Athias

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Athias

11.10.2023 06:11PM

The Federal Reserve is a debt-spender. It prints money with impunity, knowing that by means of the 14th & 16th amendments the U.S. citizen was responsible for public debt. Those demons Franklin Delano Roosevelt (1933) and Richard Milhous Nixon (1971) have ensured that each United States citizen serves as collateral (or debt-slave) in their systematic removal of the gold standard.

Topic's author

Public-Choice

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Public-Choice

11.10.2023 07:52PM

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@Athias

Well, at least according to the Mises article, Banks are also responsible for the deficit by being mandated to have shares in their local Federal Reserve. So it could be either or a mixture of both.

They say:

Two candidates are likely to absorb the Fed’s operating losses:

American taxpayers as a whole. Now that the Fed is incurring operating losses instead of surpluses that would otherwise be paid over to the US Treasury, federal budget deficits are commensurately larger, requiring the Treasury to sell more debt in order pay its bills. This is an obvious cost to American current and future taxpayers.
Commercial banks that are members of the Federal Reserve system, which are required to buy and hold stock shares in their respective Fed district banks. The 1913 Federal Reserve Act specified that these member banks could be assessed for Fed system losses. If the Fed were to make this demand of its member commercial banks, they would be obligated to cover the Fed system’s losses. Again, there is no precedent for this.

Ehile there is no precedent for the second proposed solution, that doesn't mean it won't happen.

Honestly, the WEF has warned that banks are out of money. The usual suspects who dump money into the banking institutions have not done so in a while, and, iirc, new players are lower than usual. (I think they removed the article. I can't find it anymore and neither can AI lol).

Expect more inflation, I suppose, as the Federal Reserve prints more money at our expense to bail themselves out.

Athias

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Athias

11.10.2023 08:08PM

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@Public-Choice

The banks are out of money because they have a 10% reserve requirement. 10% of financial markets deal with actual money--the rest are securities which have yet to yield or most likely will not yield and i.o.u.'s. The Federal Reserve will of course, as you stated, bail itself out by printing more money until it can completely remove physical currency and implement digital currencies and online ledger systems, where it will just make up the amount of money it has. Saves on the cost of printing, I guess.

FLRW

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FLRW

11.10.2023 08:45PM

Wow, I would hate to be someone less than 75 living in the USA. Well, at least me, Trump and Biden will be ok.

Topic's author

Public-Choice

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Public-Choice

11.11.2023 01:54AM

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@FLRW

Well, as much as I love America, it's one of, like 200+ countries.

Best.Korea

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Best.Korea

11.11.2023 11:35AM

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@Public-Choice

Are you quoting Putin?

sadolite

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sadolite

11.11.2023 12:08PM

The fed has never made money or lost money. The fed exists to monitor and regulate the money supply based on the creation of new wealth. It then is supposed to tell the Treasury Dept to print additional cash for the public and inform govt as a whole how much debt is sustainable. It has failed at doing so in the most epic way possible. Pure corruption and incompetence at every level. The Fed creates nothing that generates wealth, therefore it cant make or lose money. It can however create inflation thru incompetence and corruption and destroy everyone's wealth.

Topic's author

Public-Choice

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Posts: 1,065

Public-Choice

11.11.2023 01:52PM

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@Best.Korea

Are you quoting Putin?

No... 🧐

#10

Best.Korea

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Best.Korea

11.11.2023 02:24PM

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@Public-Choice

Okay 🧐

#11

John_C_87

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John_C_87

11.11.2023 05:45PM

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@Public-Choice

Financial statements of the US Federal Reserve, which consists of the board of governors in Washington and twelve district reserve banks across the country, indicate that the consolidated system has generated both capital and operating losses for the past couple of years. The Fed was created in 1913 to issue and circulate an “elastic currency” that could respond to consumers’ demand for cash, end bank runs known then as “money panics,” and serve as a “lender of last resort” to the nation’s commercial banks. How is it possible that the Fed could be losing money after one hundred years of operation?

To answer the question directly the Federal Reserve Bank has not regulated the cost of servicing debt by the public. What does that mean. What you may or may not recognize but know is the Federal Note is a payment of all debt both legal and illegal foreign or domestic, here or in other countries, according to law, constitutional right or just plain criminal law. The 1st Amendment requires a state of the union as common defense against the loss of tranquility of the Fed in this connection. The cost of debt in payment of Federal Note can be regulated by changing the value of notes used to pay off debt. Credit is both an additional Federal and State Note with or without this security in writing to the holder of credit. This process, however, does have a limit for it comes at a cost and like debt is a balance on a moving scale between 1 and 40trillion. This number is even if the debt limit is to be frozen at 33 trillionour national debt and still may change over time, in fact our debt now can still be much lower than 33 trillion. do we or do we not in fact calculate the debt against time correctly as it relates to an economic practiceof GDP?

The debate has raged in the banking and finance communities. Two investigators, Paul Kupiec at the American Enterprise Institute and Alex Pollock at the Mises Institute, have analyzed Fed financial statements and presented their findings about these Fed losses in publications such as the Wall Street Journal and on the websites of the American Enterprise Institute, the Mises Institute, the Federalist Society, and Law and Liberty. The Wall Street Journal has produced a nontechnical video explaining how the Fed makes (and loses) money.

To be clear the Federal reserve does not lose money like a business of operationor standard bank. The primary loss of Federal notes can and often is literally Notes are held out of circulation permanently by destruction or hidden as to offset the loss from known illegal activity or just security. There is more to this,but you will need to read a response directed at a statement byAthias.

#12

John_C_87

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John_C_87

11.11.2023 06:25PM

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@Athias

The Federal Reserve is a debt-spender. It prints money with impunity, knowing that by means of the 14th & 16th amendments the U.S. citizen was responsible for public debt. Those demons Franklin Delano Roosevelt (1933) and Richard Milhous Nixon (1971) have ensured that each United States citizen serves as collateral (or debt-slave) in their systematic removal of the gold standard.

The only way a human is enslaved in America is by the courts upon conviction and well it can be something as simpleas a parking ticket that can be the cause to the loss of liberty. That aside as it is a complex argument of a different kind. We are not slaves to the Federal Note we can just be found guilty of a crime that might attempt to stop and retrieve payments of Federal Reserve Notes to us. Yes, that is nerve racking.

The banks are out of money because they have a 10% reserve requirement. 10% of financial markets deal with actual money--the rest are securities which have yet to yield or most likely will not yield and i.o.u.'s. The Federal Reserve will of course, as you stated, bail itself out by printing more money until it can completely remove physical currency and implement digital currencies and online ledger systems, where it will just make up the amount of money it has. Saves on the cost of printing, I guess.

First, I need to ask if you understand the nation American debt can be paid on without the use of Federal Reserve Note and strategic use of Taxation? If not, why not ?Also, federal notes can be tied up in court and moved to the states in such matters as United States Constitutional Rights. This includes but is not limited to criminal abortion and criminal discrimination litigation including female President when the executive office moves grievances between the state and federal courts. I have to take a break and say Rights Reserved as the investigation was made for the development of a better National Debt clock structured more in connection with the unbroken 1st Amendment and American Constitution. Not that the current clock is not unconstitutional, it is that it can be connected in a way which is more perfect to Preamble and1st Amendment.

12 days later

#13

IlDiavolo

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IlDiavolo

11.23.2023 09:08PM

I don't know about you, but I am really scared of how the global debt has gone up so far. The US and allies have created a fucking monster that is going to explode very soon.

The next economic crisis will be a public debt crisis.

#14

Lemming

Debates: 9

Posts: 3,439

Lemming

11.24.2023 06:39PM

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@IlDiavolo

Maybe,

When a problem is seen far ahead of time though,

Sometimes fixes are made,

Like that Year_2000_problem,

Though some argue there was little problem anyhow.

#15

John_C_87

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John_C_87

11.24.2023 07:16PM

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@IlDiavolo

The US and allies have created a fucking monster that is going to explode very soon.

1.) Debt isnot described as combustible enough in a way that ends in an explosion. Whoreally likes debt other than the few people who do not pay it. Debt when itreaches a limit of too much, we often say it has collapsed even when we feellike it might pop, boom! Blow up in our face, debt can also be interpreted toexplode as it grows bigger leaving behind visible damage created after animplosion or collapse, and not explosion we often by pressure of proximity donot know or care about the difference. When we say debt exploded we say it isgrowing very, very fast, it is rapidly expanding as if spreads like fire in theforce of an explosion. This basically means Debt has already economically explodedin American economy. If that is to be held true by us then how do we say in thebest way together what you had meant to say. The debt is orbiting economicchange slower by is creating a area which increases in size as it gross withoutbalance of advance forms of Capital to own.

2.) When taken togrowth without orbital momentum, and creation of mechanical torque debt implodes,and it slips backward as mass into one location. We as people simply do notwant to be in that location that is the return destination of debt. This masscauses our work efforts and rewards to be harmed by the damaging by the aftermathof collapse. Total or not.

3.) Debt might beless threatening to you when seeing it as a media advertisement for political reflection.A way to focus the observation of the magician’s way form the topic of AmericanUnited States Constitutional Right in America. Then idea of simply practicecriminal law is so much more fun than having a order to follow of what willkeep is right and not wrong in most things we do on a day to day basis.

#16

John_C_87

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Posts: 287

John_C_87

11.24.2023 07:36PM

4.) A question to ask might be why increase tax size to change the size of debt after all they are the same thing, are they not? Tax is debt. In the past a reason was said it is punishment written down to take control of a group of people who actout without the assignment of guilt by criminal accusation. This would mean that the process is to mimic a more perfect American United State Constitutional Right, imitate it by replacing right with taxation code written as criminal law accusation just like England had done for the American Colonies past establishment to justice leading us to independence. Tax Code is to be interpreted as something other than law the process only takes place when the code is by fact Right and not code at all, it is held in state of the union by American United States Constitutional Right. Meaning there is a establishment to the general welfare ensuring its tranquility. Also no as a connection to Constitutional Right everyone can be told and hold equally together as a United State. The admission to such wrong is not an admission to crime that might require a presumption of innocence till proven guilty. It is the terms for impeachment from a political officer forever or until charges are to be filed or not criminally and judge.

There is a lot of motive as to why many people would simply like American United States Constitution Right as law to disappear from the world completely. Instead of just a burden of cost levied by America alone as national Debt.

#17

Greyparrot