A seldom mentioned phenomenon in these days of monetary madness is the ongoing spectacle of central banks actually losing money. Not a small amount of money either. More like $11 billion per month for the US Federal Reserve alone. But I’m sure that’s nothing to worry about.
Before 2022, the Fed remitted $5 billion to $10 billion per month to the US Treasury; between 2011 and 2021, the Fed’s remittances totaled over $920 billion. Since then, the Fed has run a monthly operating loss between $5 billion and $11 billion per month, and is thus unable to remit any funds to the Treasury. These accumulating Fed losses are classified as a “deferred asset,” a negative liability whose value is the cumulative amount of the earnings shortfall.
“I will gladly pay you Tuesday for a hamburger today.”
~Wimpy
Stop the presses!
And now Liberals want Carney, who was successful in creating failed economies in both Canada and in Britain. What kind of resume is that? He is worse than Trudeau, or Trump, for that matter.
Worse than Trump? What is wrong with Trump? Apropos of nothing the Turd peso is back to $0.69
What the Americans have not done (unlike Canada) is they have not assaulted their oil & gas industry which has flourished under Bush, Obama, Trump and Biden. You can’t promote climate change without a lot of money.
What Canada has done is listen to what the US has said and not watched what America was doing. Now it’s time to watch. Trump is securing new trading partners – yes Russia included. Canada needs to build an oil pipeline to the west coast, a natural gas pipeline to the east coast and start trading with Germany, China, Japan, France, India and the UK.
I think the bottom line is they’re paying market rates now, while continuing to earn locked in interest.
A lot of banks got into trouble when interest rates popped up! Depositors wanted current interest, and went to the banks for cash. Banks don’t hold a ton of cash, so had to sell assets (bonds, mortgages) at a loss to raise cash.
Such fun!
Steve Poloz as BoC governor did a bail out of Trudeau in 2020 (left Tiff Macklem with the mess).
BoC borrowed from the big banks at floating rates and locked in long term low rate GoC bonds.
When floating rates moved up from zero, BoC started losing money big. BoC is still losing money. BoC is a walking bankrupt only saved by the fact that its Act of Parliament prevents it from being put into insolvency.
BoC has been losing about $1 billion a quarter and now has a cumulative hole in its balance sheet of $8.3 billion and getting worse.
https://www.bankofcanada.ca/2024/11/quarterly-financial-report-third-quarter-2024/
Intentional bankruptcy: begun in US Nov 2008, in Can Oct 2015, an attempt to recreate Regan’s successful collapse of the USSR. It’s working.
The FED has completely eradicated inflation in America!! Yeayy for our soft landing … yeayyy!!! It seems as though everyone is celebrating by raising prices!!
I have been buying the same 6-rolls from the Safeway bakery, every 4-weeks, for years … $4.29 has been the price for a LONG time now. Went in last week and the price was $4.99 … a $0.70 price increase in one fell swoop. A 16% price increase?? The FED has tamed inflation with high rates? Economists Puhleeze!?
Indeed Kenji …. just this past weekend I was opening a new Kraft salad dressing bottle and thought it doesn’t feel right and sure enough when I compared it to a dressing bought a month ago it was 425 gm vs the old bottle at 475 gm.
Naturally Kraft rightfully assumes the average Canadian has the IQ of a turnip and won’t notice the 10.5 % smaller bottle …. and are stupid enough to vote Liebral yet again in a few months 🙁
I fear us Canucks are indeed doomed to be the hillbilly 51st state!
“I fear us Canucks are indeed doomed to be the hillbilly 51st state!”
I’ve always wanted to go shirtless with the suspender bib overalls. Now I want the whole look. Cut off below the knees, shoeless, straw hat, and piece of straw to chew on.
Make Hee Haw Great Again!
If Hee Haw was still on TV they would salute Canada from their cornfield.
It’s like a company issuing a bunch of share certificates, diluting the value of the shares already held.
Except that in the case of inflation, economists, bankers, and politicians pretend that the causes and cures for inflation are deep, dark, and mysterious. And at any moment might get worse without their intervention.
These are the deceptions those corrupt POSs use to hide the fact that they’re simply printing money out of nothing.
Once the money has been printed, it simply takes the market a while to adjust prices accordingly. And once done, the scum will trumpet that they helped “manage” the landing. And so long as the people are purposely kept financially illiterate, especially in regards to central banks, this scam will repeat.
Sorry, but John Titus has the Central Banks covered in his latest epic series:
https://youtu.be/tJslZmBKcio?si=6Mopkl1NA7MnpwFC