UT NOTE: If we look close and deep into this “predicament” will we find bonuses paid to the decisionmakers who allowed even facilitated the losses? Payouts to the boardmembers?

TYLER DURDEN OCT 25, 2023 READ

And yet, as everyone knows by now, the Fed will never go bankrupt thanks to printing the world’s reserve currency. That’s right: the accounting treatment of record income or balance sheet losses is, well, none: they just assume that the Fed will merely print enough to plug any hole, and so the Fed is exempt from the ordinary rules of capitalism where a big enough loss will eventually put you out of business. Which is a bit of a philosophical paradox: on one hand, the Fed by default remits its profits to the Treasury, be they $1 or $1 trillion… yet when it has a net loss at the end of the year, the Treasury is not bound to bail it out, which is the sweetest form of crony capitalism ever conceived, and is by far the biggest benefit to whatever nation is the issuer of the world’s reserve currency du jour.