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Federal Reserve records massive losses, makes up fictitious value called ‘deferred assets’ to compensate
American Thinker ^ | 14 Feb, 2024 | Jack Hellner

Posted on 02/14/2024 4:55:53 AM PST by MtnClimber

Maybe the problem with all of the government can be summarized by what the Federal Reserve is doing.

The Federal Reserve lost $114.3 billion in 2023 and doesn’t seem to care. Maybe that is why the federal government has run up $34 trillion in debt, while they pretend government programs are paid for. They don’t care. They can always print more money.

So what does the Federal Reserve do on its books when it has this massive loss? It just books a fictitious asset and fictitious equity. It cooks the books. It has no justification to claim it has money coming but does it anyway. It just assumes it will make money in the future. It certainly is not based on generally accepted accounting principles. How many other fictitious assets are on the books at the Federal Reserve or other government agencies to intentionally mislead the public? If a company were to book a fictitious asset to pretend they had more equity than they do, they would be charged with fraud. So why is the government above the law? Here’s this, from Zero Hedge:

The Fed Says Its Record Losses Don’t Matter

The Federal Reserve recently disclosed its preliminary income and expenses for 2023, revealing an unprecedented $114.3 billion in operational losses. Somewhat surprisingly, Fed officials seem unconcerned about this financial performance. Their lack of concern may be even more worrisome than the losses themselves. Like any financial institution, the Fed receives revenue from the financial assets it holds and it must pay interest on its financial liabilities. Arguably, the last round of QE played a role in setting up current Fed losses.

One key aspect of the Federal Reserve Act is its obligation to remit its profits to the US Treasury. When the Fed experiences losses, however...

(Excerpt) Read more at americanthinker.com ...


TOPICS: Business/Economy; Society
KEYWORDS: federalreserve; leftism; ntsa; zerohedge
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1 posted on 02/14/2024 4:55:53 AM PST by MtnClimber
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To: MtnClimber

It should be withheld from federal employee paychecks.


2 posted on 02/14/2024 4:56:03 AM PST by MtnClimber (For photos of scenery and wildlife, click on my screen name for my FR home page. More photos added.)
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To: MtnClimber

Most of the ‘money’ doesn’t even exist.


3 posted on 02/14/2024 5:02:13 AM PST by ComputerGuy (Heavily-medicated for your protection)
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To: MtnClimber

The author of the article doesn’t realize that the “Federal Reserve” is a private corporation.


4 posted on 02/14/2024 5:03:29 AM PST by SecondAmendment (The history of the present Federal Government is a history of repeated injuries and usurpations ...)
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To: MtnClimber

Federal reserve, fictitious value, fiat currency. Taxation without representation. Representation without communication.


5 posted on 02/14/2024 5:05:47 AM PST by PGalt (Past Peak Civilization?)
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To: MtnClimber

That’s like Quantitative Easing that Ubama did to finance his Trillion dollar a year extra deficit spending (four times).

Create $1T of book money and take half and buy your own T-Bills to make it look like you’re solvent and take the other half and buy MSBs (Mortgage Backed Securities) or something to bail somebody out (or give to new illegal slags).


6 posted on 02/14/2024 5:09:11 AM PST by Gaffer (Ok. November is soon approaching and we'll see how steadfast Biden's UKR distraction holds.)
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To: MtnClimber

Stop paychecks going to all congressmen until they balance the budget.


7 posted on 02/14/2024 5:12:37 AM PST by SharpRightTurn (“Giving money & power to government is like giving whiskey & car keys to teenage boys” P.J. O’Rourke)
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To: SecondAmendment

The author of the article doesn’t realize that the “Federal Reserve” is a private corporation.

____________________________________________________________

There is a common misconception that the Federal Reserve System is privately owned. In fact, it combines public and private characteristics: The central governing board of the FRS is an agency of the federal government and reports to Congress. The Federal Reserve Banks that it oversees are set up like private corporations.


8 posted on 02/14/2024 5:13:02 AM PST by Bishop_Malachi (Liberal Socialism - A philosophy which advocates spreading a low standard of living equally.)
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To: MtnClimber

Stealing wealth from Americans.

Print from nowhere, loan to banks at low rate, banks engage in usury.
Too big to fail, repeat cycle.

If only someone had said something about central banks…


9 posted on 02/14/2024 5:17:25 AM PST by EEGator
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To: MtnClimber

What I don’t understand is why we still hold on to the idea that it is necessary for the government to “borrow” money.

We don’t pay it back. So what’s the point?
We need $500B? We borrow $500B. Now we owe the Fed $550B because interest jumps in, and we just lost an additional $50B. The Fed makes $50B and we have $500B in our pocket. Which we aren’t going to pay back.

Why not literally print the money without “borrowing” it and running up any interest payments?

As it is, I think we just shovel money at the Fed for no real benefit to ourselves.


10 posted on 02/14/2024 5:25:23 AM PST by ClearCase_guy
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To: MtnClimber

‘Deferred Assets’?

Money that you don’t now have, but you might get at some time in the future.........................

I’m a ‘Deferred Asset’ millionaire!,,,,,,,,,,,,,,,,,,,


11 posted on 02/14/2024 5:28:06 AM PST by Red Badger (Homeless veterans camp in the streets while illegals are put up in 5 Star hotels....................)
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To: MtnClimber

We owe China $859 billion dollars. What happens if we told them to piss off? Same with other countries not friendly to the US?


12 posted on 02/14/2024 5:33:28 AM PST by EQAndyBuzz (Trump/Jennifer-Ruth Green in 24)
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To: Bishop_Malachi; SecondAmendment
The central governing board of the FRS is an agency of the federal government and reports to Congress.

There is an even more common misconception that we have a federal government.

What we have had since 1871 is a corporation, titled UNITED STATES. The President is its CEO.

Before DJT, POTUS was the same as the CIC.

This is why these days we feel like the House, the Sinate, the executive and the courts do not work for The People.

13 posted on 02/14/2024 5:44:28 AM PST by C210N (Mundus vult decipi, ergo decipiatur.)
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To: ClearCase_guy
"What I don’t understand is why we still hold on to the idea that it is necessary for the government to “borrow” money."

Modern monetary theory. Government simply creates the money it needs or wants to spend. The Fed, is the tool, but old quaint notions of accountancy remain. Debits and credits to balance the books. The "goodwill" entry on the balance sheet must be a whopper.

14 posted on 02/14/2024 5:44:37 AM PST by buckalfa (Gut feelings are your guardian angels)
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To: EQAndyBuzz

“What happens if we told them”

About two-thirds of the shelves of Walmart would become empty and most of the Prime trucks would get sold off at less than prime pricing.


15 posted on 02/14/2024 5:48:46 AM PST by Brian Griffin
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To: MtnClimber

Sounds like the same language Enron used.


16 posted on 02/14/2024 5:49:01 AM PST by KC_Conspirator
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To: SecondAmendment

The Federal Reserve Banks are not a part of the federal government, but they exist because of an act of Congress. Their purpose is to serve the public. So is the Fed private or public?

The answer is both. While the Board of Governors is an independent government agency, the Federal Reserve Banks are set up like private corporations. Member banks hold stock in the Federal Reserve Banks and earn dividends. Holding this stock does not carry with it the control and financial interest given to holders of common stock in for-profit organizations. The stock may not be sold or pledged as collateral for loans. Member banks also elect six of the nine members of each Bank’s board of directors.


17 posted on 02/14/2024 5:49:38 AM PST by deport
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To: C210N

They work for The Pigs.


18 posted on 02/14/2024 5:51:45 AM PST by Brian Griffin
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To: Red Badger

Wimpy from Popeye.


19 posted on 02/14/2024 5:57:52 AM PST by EEGator
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To: EEGator

But we don’t even get the hamburger....................


20 posted on 02/14/2024 5:58:21 AM PST by Red Badger (Homeless veterans camp in the streets while illegals are put up in 5 Star hotels....................)
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