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. image

Replies (28)

The cumulative scale is on the righthand side whereas weekly remittances is left. 2011 looks to be the base year of the graph, so zero on the cumulative.
frphank's avatar
frphank 1 year ago
Bitcoin propaganda wants me to believe that the government "can just print money". Why is there a shortage then.
Wait, what? Is it true or not true that any interest paid between the treasury and the fed is zeroed out every year? Does this mean the treasury is bailing out the central bank?
Alex's avatar
Alex 1 year ago
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.”
That does not sound good. Facing some out of this world Black Swan soon. I can only imagine we can not imagine what unimaginable consequences this will bring.
Lets see how long can the globalist loose money over power , the funny part with reality is it always slap you in the face
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.