How The Fed Went Bankrupt But Carries On Like Nothing Happened

in crypto •  2 years ago 

How the Fed “Went Broke” with Lyn Alden

Chat based on this article: How the Fed “Went Broke”.

The U.S. Federal Reserve is now operating at a financial loss, and is months away from having negative tangible equity for the first time in modern history.

This article explores how we got here and to what extent any of this matters for savers and investors.

However, a central bank cannot actually go bankrupt, in the way a commercial bank can, and it starts to lend money to itself. The banksters are all happy; the structure that gets totally screwed over is government, and its people.

Right at the end of the talk, without the time for Alden to explain it more deeply, is that "inflation" is a deeply annoying word as it means multiple things. As I've been saying, this steep rise in "inflation" means price inflation, measured by a consumer price index. But this is not due to some organic economic growth, it has been synthetically created by banksters inflating the money supply. To confuse most people, this is often referred to as "monetary expansion" rather than what it is, which is "monetary inflation". Having more money chasing the same goods leads to increased prices - without even going into the deliberate contraction in supply due to the synthetic plandemic.

So, as current price inflation is largely due to monetary inflation, raising interest rates, as taught on TV news around the world, as the central banksters' one hammer, may actually further increase price inflation!!

What does get decimated are governments and the value of their currencies. Hail the CBDC!

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  ·  2 years ago  ·  

Perfect example of monetary stupidity:

Bitcoin’s inflation rate is now three times lower than U.S. dollar’s

They compare Bitcoin's monetary inflation rate with the US CPI!!
Even their legend is stupid - it isn't the inflation of the dollar money supply.

  ·  2 years ago  ·  

If you wish to see the dollar monetary expansion, then look at M2 - M3 hasn't been available for years so the Fed can try to hide their massive inter-bank expansion.

https://tradingeconomics.com/united-states/money-supply-m2

  ·  2 years ago  ·  

strangely, M3 data still exists, altho no link is available on the site!

https://tradingeconomics.com/united-states/m3-for-the-united-states-fed-data.html

$21,207,400,000,000 in Dec 2022.
that's 21T
mmm... fishy... identical to M2 figure!

https://www.investopedia.com/terms/m/m3.asp

what they seem to be hiding are certificates of deposit.

  ·  2 years ago  ·  

Just to prove that M2 and M3 are different, for the UK

https://tradingeconomics.com/united-kingdom/money-supply-m2
and
https://tradingeconomics.com/united-kingdom/money-supply-m3

M3>M2 by about 17%

  ·  2 years ago  ·  

Great video!