Fed Losses Top $2 Trillion

Fed insists everything is fine and numbers don't matter because equations and math and whatever, which are also numbers, and for some reason THEY matter, but not the Fed's losses. Because.

• The Federal Reserve reported a net negative income of $114.3 billion in 2023, a record loss tied to managing short-term interest rates. Marked to market, balance sheet is down 27%.

• Bank reserves have fallen over $130B in the last two weeks, and though RRPs are back up to $600B, they will fall back down to around $400-$450B on Monday/Tuesday.

• Repo rate inches up to 5.33%, if it doesn't calm down into Tax Day, another repocalypse is possible.

• February 1796 in France, the assignat printing presses were publicly burned. This is what will happen to bitcoin rigs after the End Game.

Recommendation: Read Fiat Money Inflation in France

This is a quick 77 page pamphlet written in the late 19^th century about France's run-in with the stupid idea of issuing paper money securitized by stolen Church property. The idea to do that came only 70 years after the John Law hyperinflationary disaster of the Mississippi Bubble. Law escaped to Scotland I believe, avoiding a mob that wanted to lynch him, by dressing up as a woman. He was the first transgender hyperinflationist central banker. They should make a bitcoin with him on it dressed as a woman. Somebody should, at least.

Anyway, the pamphlet reads exactly like a the current Bitcoin era craze. It's the same thing, again, except that the French assignats were theoretically derivative of land, and Bitcoin doesn't even exist at all. So we've gotten even worse in our delusions, and they will crash all the harder.

Here's the pamphlet.

The inflationary experiment lasted from 1790 to 1796, and ended with a public burning of the printing presses cheered on by a mob of pissed off peasants. Here's a quote:

But on the 18th of February, 1796, at nine o'clock in the morning, in the presence of a great crowd, the machinery, plates and paper for printing assignats were brought to the Place Vendome and there, on the spot where the Napoleon Column now stands, these were solemnly broken and burned.

This is what will happen to all the bitcoin "mining" rigs that do nothing but waste energy mining something that doesn't exist. They will be melted down and destroyed, all of them, when this is all over, and we will not repeat this insanity again any time within generational memory. But then we'll do something even dumber (I'm not sure what could be dumber than mining for literally nothing), unless this really is the end of the world and human nature changes.