It looks like you're using an Ad Blocker.

Please white-list or disable AboveTopSecret.com in your ad-blocking tool.

Thank you.

 

Some features of ATS will be disabled while you continue to use an ad-blocker.

 

Accounting Tweak Could Save Fed From Losses

page: 1
9

log in

join
share:

posted on Jan, 21 2011 @ 08:21 PM
link   

Accounting Tweak Could Save Fed From Losses


www.cnbc.com

Any future losses the Fed may incur will now show up as a negative liability as opposed to a reduction in Fed capital, thereby making a negative capital situation technically impossible," said Brian Smedley, a rates strategist at Bank of America-Merrill Lynch and a former New York Fed staffer.
(visit the link for the full news article)




posted on Jan, 21 2011 @ 08:21 PM
link   
so the very agency charged with control of the nations finances are now able to fiddle the books openly and in public. this was kept quiet in the msm but deserves a long hard look.

the "accounting" changes effectivly allow the fedaeral reserve to keep the money and just set up a "loss" account

how cool would it be if we the people could
"put our debt purchases in a fake account" and continue to spend?

at what point does looking after your money mean the fed can effectivly make up rules as they go along, i guess if no one knows you could just do any thing right?

why cant people just do the same?

is the fed really doing this?

outrage?

xploder

www.cnbc.com
(visit the link for the full news article)



posted on Jan, 22 2011 @ 01:37 AM
link   
reply to post by XPLodER
 


So basically Fed capital now becomes negative liability and instead of these negative numbers being bad, these negative numbers are now good.



This enhances transparency by providing clearer, more frequent, snapshots of the central bank's finances, analysts say. The bonus: the number can now turn negative without affecting the central bank's underlying financial condition.


It is good that more transparency is getting applied to the problems. A problem still remains with the nations underlying financial condition which is based on the Fed's management. This does not address the problems of inflation that flooding the market with money causes. As for if this addresses the problems of fiscal accountability time will tell. I do hold some reservations as creating a pool to absorb debt that can lead to even further issues of accountability if not managed responsibly. On the surface this does look like creating another bubble that will eventually burst, I may be wrong but it is in the details where the answers are.

edit on 22-1-2011 by kwakakev because: spelling 'on'



posted on Jan, 22 2011 @ 03:00 AM
link   
reply to post by XPLodER
 


Uhhhm... ok....

So does this mean that instead of saying murder, we can call it life expiration?

If it looks like a duck, walks like a duck, and quacks like a duck.....



posted on Jan, 22 2011 @ 05:55 AM
link   
Spending a bit more time thinking about this, it does sound like a way to get even more money out in the economy faster. The printing presses are already running at full speed and congress is already onto the tricks of releasing more digital currency. By absorbing the debt of other organisations without going through the processes of usual accountability it quickly makes fiscally irresponsible organisations look good again and have more money to play with.

I know a lot of states are also in trouble money wise, but how the federal government shares its tax and other income has always been a up hill battle for the states to get their fair share.



posted on Jan, 22 2011 @ 03:15 PM
link   
reply to post by kwakakev
 


it gets worse, much worse


But they are averting asking the Treasury for money in the future by an accounting gimmick that will simply dump the debt off its own balance sheet and onto that of the Treasury. More from Reuters:

[According to]Raymond Stone, managing director at Stone & McCarthy in Princeton, New Jersey, "An accounting methodology change at the central bank will allow the Fed to incur losses, even substantial losses, without eroding its capital."

The change essentially allows the Fed to denote losses by the various regional reserve banks that make up the Fed system as a liability to the Treasury rather than a hit to its capital. It would then simply direct future profits from Fed operations toward that liability...



blacklistednews.com...

so their (private losses) are yours
and gains (private gains) are theirs

is this acually fascism?
private company shifts their losses onto the people
but continues to profit
WTF

who are these clowns?
why is this not front page news?

xploder



posted on Jan, 22 2011 @ 03:20 PM
link   

Originally posted by Xcathdra
reply to post by XPLodER
 


Uhhhm... ok....

So does this mean that instead of saying murder, we can call it life expiration?

If it looks like a duck, walks like a duck, and quacks like a duck.....


quack quack

But they are averting asking the Treasury for money in the future by an accounting gimmick that will simply dump the debt off its own balance sheet and onto that of the Treasury. More from Reuters:

"[According to]Raymond Stone, managing director at Stone & McCarthy in Princeton, New Jersey, "An accounting methodology change at the central bank will allow the Fed to incur losses, even substantial losses, without eroding its capital."

"The change essentially allows the Fed to denote losses by the various regional reserve banks that make up the Fed system as a liability to the Treasury rather than a hit to its capital. It would then simply direct future profits from Fed operations toward that liability...



basically this is treason
give free money to private banks and the people
get the bad debt

this is insane and will allow the fed to drain more out of the system before sending the treasury broke

xploder



posted on Jan, 22 2011 @ 05:03 PM
link   
reply to post by XPLodER
 


Completely agree with you on this one. This is looking like nothing more than a street shell game. You know, 3 cups, a ping pong ball, the quick movement with the distraction...

I am more and more in favor of ending the FED and forcing Congress to be accountible for the spending. The last election, to me anyways, demonstrated that pissed off citizens still matter and can affect change. I say we demand and end to the FED, and support candidates who share that view.

With Ron Paul over that committee now, we might see some positive movement.

But yeah.. This idea is a joke..

God forbid we actually address the problem, which is spending what we dont have.


edit on 22-1-2011 by Xcathdra because: (no reason given)



posted on Jan, 22 2011 @ 05:08 PM
link   
reply to post by XPLodER
 




why is this not front page news?


That is a good question. Inflation will continue to rise as all reason to the meaning of money is lost. It is raising the debt ceiling by stealth. Corporations on the pay role will do ok for a little while, people will find it more difficult to meet the basic costs of living. Internationally there will be more hesitation to the USD as fiscal responsibility is declining. It sounds like the Fed is going rogue. This is not good news.



new topics

top topics



 
9

log in

join