If you thought SVB was bad ... The Fed is sitting on unrealized losses of ~$1.2 trillion on their $8.3 trillion bond portfolio. And the Fed is losing money every day by paying $$$ to commercial banks via reverse repos.

@WallStreetSilv "The budget should be balanced, the treasury should be refilled, public debt should be reduced, the arrogance of officialdom should be tempered and controlled, and the assistance to foreign lands should be curtailed, lest Rome become bankrupt." - Cicero

@WallStreetSilv The whole US needs to file for bankruptcy lol 😆

@WallStreetSilv Yes, BUT the Fed doesn't have to worry about withdrawals or a bank run, right? They can just sit on everything until maturity (?) Or am I missing something?

@WallStreetSilv Federal Reserve Note on USdebtclock org has today been change to US Treasury dollar

@WallStreetSilv These are unrealized losses though. As long as they hold to maturity there is no loss. It is not like being underwater w equities. Plus, if the government needs more money they will print. Inflation a concern in such a case. It's not like they sell like a corporation would do.

@WallStreetSilv Yes but those will become gains when rates go lower in the future or the bond market reprices so it doesn’t really matter.

@WallStreetSilv The Fed in practice is fully utilizing MMT, and we have thousands of Nukes. Who cares?

@WallStreetSilv You don't seem to understand how this works

@WallStreetSilv The Fed sends profits to Treasury. If they have a loss, they have deferred asset to treasury, similar to when companies have a loss and get a tax credit. In the future, if the Fed is profitable again, they can claim that credit and wouldn’t have to send profits to treasury.