Who Owns Federal Reserve Losses and How they Impact Monetary Policy?; Revenge of the Locked-Down Voters; San Francisco school board votes for merit-based admissions after recall of left-wing board
BLM Supporter Sentenced To 10 Years Prison For Violence During Portland Riots; Paul Krugman-Keynesian prediction
Who Owns Federal Reserve Losses and How Will they Impact Monetary Policy?
Paul H. Kupiec Alex J. Pollock
“The Fed is losing a lot of money. The Fed's stated plan is to monetize these losses and still report a positive capital and surplus position through the use of ‘creative accounting.’”
“Among Federal Reserve officials and many economists, it is fashionable to argue that any losses the Federal Reserve should suffer, no matter how large, will have no operational consequence. Is this true? If so, how does the Fed account for its losses and stay solvent? And who ends up paying for these losses? As the Fed executes its strategy to reign in run-away inflation, the answers to these questions take center stage as the Fed has already experienced mark-to-market losses of epic proportions and will soon post large operating losses, something it has never faced in its 108-year history.”
‘Unlike banks and other financial institutions, no matter how big the losses it may face and how negative its true capital position, the Federal Reserve will not fail. But if losses, however large, can’t end the Fed, who pays for these losses? Will the Fed’s shareholders be hit in some fashion or will the losses be monetized and contribute to spiraling inflation? Should member banks be paid interest when the interest payments cause Federal Reserve losses? In recent years, questions like these have been irrelevant because the Fed has made very large profits. But this year is different.”
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Revenge of the Locked-Down Voters
“You might have noticed a certain political instability in the air, not just in the US but all over the world. In a world in which people generally care about rights and freedoms, surely this was inevitable, however much the expert managerial class failed to anticipate it. Beginning in March 2020, much of the world embarked on a wild experiment to treat peoples of the world as lab rats in an experiment in virus control. The experiment failed and has left chaos in its wake.”
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San Francisco school board votes for merit-based admissions after recall of left-wing board members
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BLM Supporter Sentenced To 10 Years Prison For Violence During Portland Riots
"Anyone who thinks they can get away with trying to murder police officers and destroy this city should think again..."
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Paul Krugman, the lead Keynesian, and his extremely wrong prediction:
