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To: FromLori
The change essentially allows the Fed to denote losses by the various regional reserve banks that make up the Fed system as a liability to the Treasury rather than a hit to its capital. It would then simply direct future profits from Fed operations toward that liability.

And what if the "future profits" fail to equal the liability? How many seats are left in this game of musical chairs? Look in the mirror to see who pays.

12 posted on 01/23/2011 10:17:16 AM PST by Oatka ("A society of sheep must in time beget a government of wolves." –Bertrand de Jouvenel)
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To: Oatka
And what if the "future profits" fail to equal the liability?

They keep allocating profits until it does.

13 posted on 01/23/2011 10:22:09 AM PST by Toddsterpatriot (Math is hard. Harder if you're stupid.)
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To: Oatka

“And what if the “future profits” fail to equal the liability? How many seats are left in this game of musical chairs?”

The FED is going to win at the cost of the rest of us. Period. Laws, rules and rule of law be damned.

“Look in the mirror to see who pays.”
You have got that right.

The laws of physics don’t apply anymore, Scottie. /s


16 posted on 01/23/2011 10:30:17 AM PST by TruthConquers (Delendae sunt publicae scholae)
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