Wolf Street/Wolf Richter/12-9-2022
“A collapse-chart has been making the rounds in the social media, financial blogs, and the like. It’s being handed around without context, as if self-explanatory, sort of like, look, the world is collapsing. It’s from the St. Louis Fed’s data depository. The title of the chart says, among other things, ominously, ‘Liabilities: Remittances Due to the U.S. Treasury.’ Whatever this is, it’s violating the WOLF STREET dictum, ‘Nothing Goes to Heck in a Straight Line.’”
USAGOLD note: The Fed’s losses resulting from its bloated balance sheet have been a subject of interest in recent weeks. Remittances, as shown in the chart, have turned into a drain. Richter explains what it all means and how the Fed and Treasury Department account for it. “The net loss for the Fed could be north of $260 billion in 2023,” he says. For those with an interest, this article provides essential background.
Sources: St. Louis Federal Reserve [FRED], Board of Governors of the Federal Reserve System (US)
