Posted on 05/28/2022 11:18:09 AM PDT by Browns Ultra Fan
Yikes! One of the unmentioned costs of Fed monetary tightening is the one to US taxpayers.
Fed carrying $330B in unrealized losses on its assets according to Q1 financial statement. Which US tax payers are on the hook.
Adjusting for the appreciation in its assets the Fed had seen through the end of last year, the unrealized losses were an even larger $458 billion.
This makes the Ukrainian relief bill of $30 billion look like chump change. Although it is about the same amount as Biden’s student loan forgiveness plan which would about to $321 billion.
Nobody spends other peoples’ money like politicians and now The Federal Reserve. Who are also DC-based politicians.
And yes, the purchasing power of the US Dollar and M2 Money Velocity (GDP/M2) appear to be collapsing like a dying star.
(Excerpt) Read more at confoundedinterest.net ...
ESL?
Why are you pimping this 3rd rate blog?
Biden isn’t qualified to run a lemonade stand. Not sure about Powell, but he does seem to be the product of family connections - and thus at risk of being unqualified.
how is it the fed is a non-government entity?
i have always believed Andrew Jackson had the right ideas about banks.
i also believe that in the near future, we will see the public hatred of banks, and, a new millenium version of the Coles, Youngers, James, and Daltons, especially with the eunich present day FBI.
This guy just screeches hair on fire drama noise constantly.
“M2 Money Velocity Collapsing Like Dying Star”
Drama queen looks at a very long term chart of M2 money velocity and then make that noise. But the big drop on the chart in 2020 was due to the economy locking down for covid, AND a May 2020 change of what constitutes M2. If you look at a chart of M2 velocity from Q2 2020 to now, it has been flat.
Feds don’t have to mark to market like everyone else.
“Feds don’t have to mark to market like everyone else.”
I don’t mark-to-market. I file my gains and losses as traded.
If Fed holds to maturity, there are no loses.
“If Fed holds to maturity, there are no loses.”
Inflation creates the loss as the dollars received at maturity are worth less than the dollars loaned.
Central Banks are one of the greatest evils ever inflicted upon mankind. They are wrong on virtually every issue and create untold misery for millions.
$40 trillion National Debt soon. Who cares? It is just a ledger entry. It is not real. /sssaaarrrccc
A catastrophic financial collapse is guaranteed. I used to be so certain I would die of natural causes before there was any chance of it. Now, I am almost certain I won’t. Everything is moving extremely fast today.
We are so screwed.
But how else can the rich get richer so easily?
Countries all around the world hoard dollars because it is the most attractive option for them. But, if we continue to erode the currency through inflation, eventually, there will be a tipping point when, maybe, other things are more attractive. When that happens, as countries unload their reserves, it will start as a trickle, then when the dam breaks, it will be an all out disaster. The trillions of dollars that would be put in circulation would be devastating.
Our current crop of leaders had better take this inflation threat very seriously.
“Our current crop of leaders had better take this inflation threat very seriously.”
Why should they?
Nothing bad is going to happen to them—they will just flee to their hideaways and leave the peons to deal with it.
Yeah. Certainly the most likely scenario.
.
It's already peaked. The Fed funds rate increase narrative is already starting to shift.
Yeah. but it is going to take more than rate hikes. At least in my opinion. We had Quantitative Easing. We may need “Quantitative Tightening”. I doubt that anyone in power has the stomach for that
Why are taxpayers on the hook?
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