"Never before in its history have operating losses stopped the Fed from making payments to the Treasury for a significant period of time"
Current losses are $133 Billion and growing, and these losses need to be reversed and the debt repaid before the Fed contributes to Treasury again. Apart from the highest loss ever, this long losing streak will be another historical event. Am I right that the Federal Reserve actions are to keep interest rates artificially low, and the longer this goes on the worse the recovery will be?
It appears to me that the economy is being kept afloat this year, making the impacts worse next year. Election timing?
Maybe those with Economics as a background could comment.
-- Edited by Are We Lost on Wednesday 17th of January 2024 11:51:24 AM
Whenarewethere said
01:06 PM Jan 17, 2024
There was a very interesting program on ABC RN about how governments create money out of thin air.
Don't worry about it.
Are We Lost said
11:45 AM Jan 19, 2024
The CEO of the world's largest bank has a different opinion.
It is the printing of all the money from thin air that is the main driver for this high inflation and high interest rates. Those inflationary forces are being artificially suppressed and now for the first time in history, the Fed will not be paying the Treasury. The more money that is printed to overcome this, the worse the disaster when it happens ... as it will at some time.
BarneyBDB said
09:13 PM Jan 19, 2024
As it did about 100 years ago, has happened before but may not happen again after this time....
Federal Reserve payments to banks trigger largest ever operating loss
"Never before in its history have operating losses stopped the Fed from making payments to the Treasury for a significant period of time"
Current losses are $133 Billion and growing, and these losses need to be reversed and the debt repaid before the Fed contributes to Treasury again. Apart from the highest loss ever, this long losing streak will be another historical event. Am I right that the Federal Reserve actions are to keep interest rates artificially low, and the longer this goes on the worse the recovery will be?
It appears to me that the economy is being kept afloat this year, making the impacts worse next year. Election timing?
Maybe those with Economics as a background could comment.
-- Edited by Are We Lost on Wednesday 17th of January 2024 11:51:24 AM
There was a very interesting program on ABC RN about how governments create money out of thin air.
Don't worry about it.
The CEO of the world's largest bank has a different opinion.
JP Morgan CEO warns of the most dangerous time in decades.
It is the printing of all the money from thin air that is the main driver for this high inflation and high interest rates. Those inflationary forces are being artificially suppressed and now for the first time in history, the Fed will not be paying the Treasury. The more money that is printed to overcome this, the worse the disaster when it happens ... as it will at some time.