Oddbean new post about login | logout Nothing says "Broken Money" quite like a central bank that is operating at structural losses now and has negative capital. For the first time in modern history, the central bank of the world reserve currency is just structurally unprofitable. https://m.primal.net/HYVX.png
"Combining those New York Fed projections with the latest data on net income, we estimate that the Fed will carry this deferred asset until mid-2027, after which it will resume transfers to the Treasury."...🤔 https://www.stlouisfed.org/on-the-economy/2023/nov/fed-remittances-treasury-explaining-deferred-asset
Yep given a very long time they can eventually dig themselves out of the hole. Depends how high interest rates are by then though.
Bitcoin propaganda wants me to believe that the government "can just print money". Why is there a shortage then.
The truth is not memeable. There's more nuance.
what happened to make the cumulative curve negative before 2011?
Why do statistics like this start in 2011?
I'm sure Biden will fix this in his next term. We should just sell national mounments to China.... *See movie Americathon via 1979 https://void.cat/d/yCVp9fLkBSTtKgYJNYSCz.webp
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There is an infinite amount of money at the federal reserve.
Insane. But everything's gonna be OK right?? 😂😂😂 right?? #bitcoin
Yes, because why should banksters make profits?
SOUNDS LIKE IT'S TIME TO @VOTE FOR BETTER MONEY
I don’t get negative or positive capital at central banks. Isn’t it always infinite capital?
The Fed thinks it will pay this off in 2027!! Imagine any business that operates in a loss that long! “But what happens when its costs exceed its income? In this case, the Fed creates a “deferred asset,” which is a negative liability whose value is the cumulative value of the shortfall in earnings. Once the Fed returns to earning a positive net income, it will pay down the value of the deferred asset until it reaches zero, at which point the Fed will resume sending remittances to the Treasury. As of Nov. 8, 2023, the Fed had accumulated a deferred asset of $116.9 billion. In April 2023, the New York Fed estimated that the Fed will return to positive net income in 2025. Combining those New York Fed projections with the latest data on net income, we estimate that the Fed will carry this deferred asset until mid-2027, after which it will resume transfers to the Treasury.” https://www.stlouisfed.org/on-the-economy/2023/nov/fed-remittances-treasury-explaining-deferred-asset#:~:text=For%20most%20of%20the%20past,2022%2C%20remittances%20due%20became%20negative.
One of the characters in my book remarked on this. Not sure if this link will work, fingers crossed: https://iris.to/note1dsx2urd0l5jf637yjd69aqkm2qy3s0rx4cg7j5rnx30wp5hakumqzu6vkv
Crazy! Makes you wonder how much worse would things be if a 2007 style financial crash happened in this decade of print money like there’s no tomorrow.
