Posted on 06/26/2024 10:12:41 PM PDT by delta7
According to Federal Reserve data, for the first time in its history, the Fed has been losing money on a consistent monthly basis since September 28, 2022. As of the last reporting date of June 19, 2024, those losses add up to a cumulative $176 billion. As the chart above using Fed data shows, the losses thus far in 2024 have ranged from a monthly high of $11.076 billion in February to a low of $5.674 billion in May.
(Excerpt) Read more at wallstreetonparade.com ...
Not quite yet, the Treasury has one last trick up its sleeve.
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Good to see someone who watches closely and has understanding. They are spoon fed by a corrupted MSM and fail to see the “ bigger picture” that takes down the US.
What you are describing is what many noted financial experts are warning about- The coming Great Reset. The West is broke, bankrupt and the debt of western countries is unpayable.
Russia, China, the Brics all know this and are preparing……and the credit goes to senile Joe for weaponizing the USD and Sanctions ( and stealing a sovereign nations assets).
There is no doubt it is coming, trillions will be wiped, and only the very few that see it and prepare accordingly will prosper, or at the very least not be affected.
Interesting time in history.
Most don’t realize the mess we had before the Fed was created, three major economic recessions ( depression s) and panics and an event that officially bankrupted our government- until a deal was struck where JP Morgan( and Rothchilds) bailed the government out. Repayment was made through sweetheart deals.
Most don’t realize the Fed can only issue out money that Congress authorizes. The coming collapse lies squarely on Congress’s shoulders. That said, the Fed has been given various powers to “ intervene” in policy- and some terrible decisions by the Fed make things worse.
The Fed is not the terrible monster some people think, Congress has been. The thirty five trillion of debt was all approved by Congress- the Fed had no hand in creating it, but charged with managing the mess Congress created.
The end game is here, and the Fed knows this ( read Powell’s last speech). Nothing in the Fed’s power can erase $35 trillion in debt- mathematically impossible.
The last time the US was officially declared bankrupted. Fact is there is no one to come to our rescue today, default WILL come, a mathematical certainty.
The True Story Of The Time JP Morgan Saved America From Default By Using An Obscure Coin Loophole
Read the article: in essence, what saved America? Gold. Not promises to pay, not equities, not USD’s, not printing,…..exactly why the Brics are backing their infant financial alliance partially in Gold holdings…...note the entire worlds Central Banks are now buying HISTORIC amounts of Gold- why?
They know what is coming…..history repeats. When Nixon took the USD off the Gold standard in 1972, the great new monetary experiment was launched- and fifty years later failed.
We have now entered the “ Reckoning” phase. Nothing lasts forever. Grasp firmly what is happening, you may even Prosper, but more importantly, Pray for Discernment, and you will at the very least be “ Provided” for.
Exciting times, “ it’s “ coming.
Well, those bags of white powder found around the WH don’t come cheap.
My hope is that everyone realizes any loss will be covered by additional printing.
It’s all funny money, and it’s not real.
It’s analogous to battles in comic books.
Ukraine, Illegals, and fake Green junk.
Not sure what you mean, but it was announced overnight the US debt to GDP ratio has risen to a whopping 137 percent! …..rising at lightening speed….far greater than forecast…..I am starting to hear the waterfall……
* “ Waterfall Event means the occurrence of (a) failure by Borrowers to repay all of the Obligations as of the end of the Term or after the Obligations have been accelerated, or (b) an Event of Default and the election by the Agent or the Required Lenders to require that payments and proceeds of Collateral be applied pursuant to Section 11.2(b)”
D.E.F.A.U.L.T.
Government default will be avoided by additional QE.
There will be no default. The fed will print and buy US bonds for as long as it takes...as long as it can.
The looming disaster is hyper inflation followed by repudiation of the national debt and the issuance of The New Dollar.
Yeah, right, take everything you and I own to pay for it.
You might be overlooking that we have wised up and will no longer accept fiat currency from criminal organizations operating outside the bounds of the US Constitution.
There is no need to eliminate debts when you can just inflate them away.
If you owe a million dollars on a mortgage and the minimum wage is a million dollars an hour you can work one hour as a retail clerk and pay your mortgage!
The “carrot” for redeeming old currency is a solid approach widely used in the third world.
The main problem the elites face with this is that the dollar is still the international reserve currency for international trade.
Eventually the domestic peons will figure out the problem when imports explode in price.
Foreigner debt holders and foreign exporters may not be happy with this approach. This is the kind of stuff that starts wars—even between former allies.
Under normal conditions you would be correct, but recall the The Fed did something unusual when SVB collapsed with a few others that followed, it set in place a ‘special’ program for banks. That program ended in March.
Now...it is only a matter of time...months likely, that the digital move will happen. It has to happen due to the sovereign debt. My guess...it will be after the election or real close to it.
And it won’t matter who wins...this di has already been cast.
Is it? Or is that just what Americans are supposed to think right now.
You won’t, I won’t and some States have already put in place changes in their laws, back to real money.
But my post acknowledges this and the elites are not worried about this because the masses will cling to the new fiat in hordes.
It is going to be an interesting time. Nixon took us off the gold standard and honestly very little seemed to change on the surface. This change will be visible and palpable.
International trade transactions are not that hard to follow.
If the dollar is no longer the “major player” it will be obvious.
Inflation will explode—quickly and catastrophically.
We are still living in the “good times” compared to what will be.
The Bank Term Funding Program (BTFP) is a lender of last resort facility. It was created in March 2023, after the failures of Silicon Valley Bank and Signature Bank, to lend to other banks that had big unrealized losses on their holdings of government bonds and were, therefore, at risk of large-scale withdrawals of deposits.
The facility allows banks to exchange assets such as U.S. Treasuries for cash at their full-face amount, regardless of the current market value. These loans are for up to one year at an interest rate equal to the one-year overnight index swap (OIS) rate, plus 0.10 percentage points.
This rate varies daily. As of April 28, the BTFP rate was 4.92%. As of May 8, the BTFP rate was 4.81%. As of May 3, banks borrowed $75.8 billion through the Bank Term Funding Program, down from $81.3 billion the week before.
The Treasury has earmarked $25 billion to backstop the BTFP, but the Fed said it does not anticipate it will have to draw on that.
The Fed said in January 2024 that the BTFP would stop making loans, as scheduled, on March 11, 2024. It also adjusted the interest rate on any new loans to be no lower than the interest rate that the Fed pays on bank reserves. Until that change, some banks borrowed heavily at the BTFP and deposited the funds as reserves at the Fed at a higher interest rate to make a profit. As that maneuver became more attractive, bank borrowing from the program rose from about $100 billion in June 2023 to $161.5 billion in mid-January 2024.
This program did not take losses off of banks' books.
They were short-term loans to improve liquidity so they didn't have to panic sell bonds and declare losses.
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