I published a new macro article today: https://www.lynalden.com/broke-federal-reserve/
Since September 2022, the Fed has been operating at a financial loss. This article examines some of the ramifications of that. The main result is that money that would otherwise flow to the US Treasury now flows to US banks and money market funds instead.
Sharing it on Nostr today and Twitter tomorrow. ;)
Excellent article again, Lyn. Thank you. 🤙 These couple of lines helped a lot of this click in my mind:
The money that used to flow to the U.S. Treasury in remittances is now instead flowing to the U.S. commercial banking system.
They are basically “paying banks not to lend”
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