Thread by @BanksterSlayer

"In September 2022, the Federal Reserve began operating at a loss....The Federal Reserve is now paying out more interest on its liabilities than it is earning on its assets." via @LynAldenContact 🔻

It's not the debt; it's the INTEREST. #Unsustainable

lynalden.com/broke-federal-…

2/ "When the Fed/s net income is positive, the amount of money that they owe to the Treasury is listed as a liability, since they are about to hand it over as a remittance. However, by accumulating losses, this liability becomes negative. What is a negative liability? An asset!"

3/ "So, the Fed’s cumulative losses become negative liabilities, and thus are referred to as deferred assets. These deferred assets represent the total amount of money that the Fed gets to pay themselves back if they ever become profitable again."

4/ "In a matter of months, the deferred assets will exceed $41.8 billion, meaning that the Federal Reserve will have negative tangible equity....the Federal Reserve can pay itself back first before resuming remittances, if it ever becomes profitable again."
#LynAlden

5/ "... those gold certificates kept the Federal Reserve solvent by avoiding any reduction in official value from the asset side of their balance sheet, and have been held by the Fed for almost 90 years now."
#LynAlden

6/ "Due to decades of inflation, the gold certificates which were once a core part of the Fed’s balance sheet, are now a tiny component of the balance sheet and don’t matter anymore.

Deferred assets are the modern equivalent of non-redeemable gold certificates."

#LynAlden

7/ "The financial system in the U.S., and for most of the rest of the world, can basically be thought of as an Excel spreadsheet managed by the Federal Reserve. That’s all. Some of the cells on the spreadsheet are assets, and some of the cells are liabilities."
#LynAlden

8/"By the end of the decade, I have considerable concerns regarding a fiscal spiral occurring in the United States and other developed countries, meaning that a combination of high deficits, high debts, and high interest rates on those debts, will all work together..."+
#LynAlden

9/ +"... to create structural inflation and money supply growth. The Federal Reserve entering into negative tangible equity is just another piece of that process unfolding, since it contributes to larger federal deficits by taking away Treasury remittances."
#LynAlden podcast👇

10/ See the @WhatBitcoinDid podcast with Lyn Alden. The show re-visits the above blog by @LynAldenContact.🔻

Summary: the Fed's remittances to Treasury have now turned NEGATIVE. Worse: those remits will not return until the Fed pays itself first.

unroll @threadreaderapp Lyn Alden's fantastic blog explains WHY the FED IS BROKE.

Summary: the Fed's remittances to Treasury have turned NEGATIVE. Worse: those remits will not return until the Fed pays itself first.

The Banksters are NAILING THE COFFIN over the U.S. Treasury.