I liked the part about gimmickry and modified accounting rules. Just book it as a Treasury liability, sorta like those trust funds?
The 2.7 Trillion is all the 4% government guaranteed mortgage bonds, and other bonds that are sure to drop in market value when rates rise.
Today, the Fed has $52.5 billion of capital backing a $2.7 trillion balance sheet.
The Fed acknowledged this insolvency risk on January 6th when it modified its accounting rules to ensure that it never technically runs out of capital. In a system that would make Enron jealous, the new gimmickry allows Fed losses to be booked directly as Treasury liabilities. In other words, just throw it on the deficit pile with the rest of the Federal red ink.
If you want to be, press one. If you want not to be, press 2
Republicans are red, democrats are blue, neither of them, gives a flip about you.
Looking at the income coming in and the spending going out, I don't see how we are ever going to get the debt under control. And little accounting tricks sure don't help.
Thomas Sowell: There are no solutions, just trade-offs.
