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 ...
Yet the same people attack Donald Trump over the same concept.
If the Federal government gets 100% of the profits, it’s owned by the Federal government.
The kind of article that results when you know nothing about your subject but soldier on anyway.
The writer obviously imagines that the Fed is another commercial bank and has no idea what a monetary authority does.
Interest paid to the Fed reverts to the Treasury Department. The Fed doesn’t get to keep anything above basic expenses. The Fed doesn’t own their bond holdings. They use them for adjusting the money supply in the banking system.
You’re confusing the Fed and the Income Tax.
Income Tax required an Amendment. The Fed was created by a regular Congressional bill.
OH ok thanks for the correction
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