The Fed is BROKE

Lyn Alden explains why they won't let you create an alternative to fractional reserve banking.

[eugenetoone]

Well said by Thomas Jefferson when he stated that the Federal Reserve bank is more dangerous than a standing army. Fiat currency systems all eventually fail.

[benhendricks]

If you have full reserve banks, you don’t need the FED.

[ProductBasement]

So the government won't let banks that don't do fractional reserve banking because they are afraid that people will take their money out of banks that do?

"Customers of other businesses might prefer your proposed business. Therefore, you may not open your business."

[hpdpco]

Fiat money is the root cause of all of this.

[bobzenx]

When we run out of food, can't we just print currency and eat that???😂

[zorfaV-ziqtys-nofda]

So, it's a 2008 bank bailout without the drama starting 6 months ago except the central bank, rather than commercial banks, are being bailed out by taxpayers.

[YenDiki]

Lyn has done all homework, knows what is going on and can explain it understandable for everyone... excellent report!💥💥👍👍🙏🙏😎😎

[JonFrumTheFirst]

When a bank that promises to give you back your money when you ask for it can't be allowed, you know there's a problem.

[CJinsoo]

most large banks, the “good ones” offer 50 basis points on deposits, while the bank buys a 1 year Treasury at 4.5%. it’s a money machine for banks with such low rates for deposits. medium and regional banks should offer higher interest on deposits to help keep money in and draw in some more deposits.

[ardentenquirer]

Lyn Alden has a great mind ... Lyn is an asset in her education of the public on youtube

Reason, might consider having Lyn Alden on a little more ---

Cheers Lyn and Reason

[georgegomezgomez]

Lyn. You are a different class. Great. Your analysis has made money for me .Thank you

[slovokia]

The irony is there is a potential that the assets deemed to be safest may turn out to have liquidity risks themselves. Given the antics of raising the debt limit it is concievable that the US Treasury might be late in paying off investors in Treasury bills - the most liquid securities that are deemed to be safest (only deposits at the Fed would be considered safer). If that were to happen the machinery of our financial markets / banking system would likely grind to a halt. So for all the problems we have been having with certain banks, the debt limit issue while not high probability is infinitely more dangerous.

[EndoftheBlock]

The FED has been broken ON PURPOSE. This is not that complicated. They can print money forever but all that does is devalue your cash money.

[albionicamerican]

Right now about 200 million or so Americans don't have enough fiat dollars to pay their bills. But they certainly don't have enough gold to pay those bills, either, so how would restoring the gold standard make their economic situation better? For some reason gold-standard obsessives don't want to talk about this obvious problem with their fantasy solution to the nation's money crisis.

[BasementBerean]

The Fed holds it's MBS and Treasuries to maturity, at least so far. Did it occur to you that with QT there are tens of billions of dollars worth of Treasuries maturing (most treasuries held by the Fed are one to three years to maturity) each month, and the monthly return of capital on these maturities far exceeds the interest being paid by the fed on the Reverse Repo facility and on the deposits bakes make at the Fed? I did the math. The Fed isn't going broke.

[dag]

In early 2021, I purchased a large part of my portfolio in government bonds. I realized this was not a good investment due to two things US bond yields, M2, household debt to income ratios, and all time highs in equities. In the late summer of '21 I bet on bond yields and market shorts. By mid October of '22, I was up 64% and I sold a major majority of the portfolio. In Late October to mid November, I bought TLT and ZROZ and starting shorting financial companies. By February I have a major position in US bonds and money market accounts.

Sold all gold in January and February... POSITIVE returns of 11%, but am missing out.

Investment in natural gas and oil commodities in January... DOWN 16%

Short on oil & gas companies up 30% YTD.

Started preparing for recessionary markets (commodities, packaged foods, and utilities) not working... DOWN 2%

Shorting REITS and commercial property development & management... UP 27%

Thinking about looking into Auto lenders and credit card lenders [banks, cedit unions, and auto manufacturers] ... but I am not sure.

I see a total western market bubble, maybe emerging markets?

I am at a loss. Any ideas?

[willl]

its odd that banks bought treasury bills and thought interest was not going up...i mean after covid and the trillions put into the economy i knew they were going to raise interest....what crazier is i could run svb better then they did...thats actually scary...

[johnslugger]

*This is a model of the GREAT DEPRESSION of 1929. The people have NO LIQUIDITY ANY LONGER! You can't play "Poker with no chips on the table! This is BAD!!!"*

[BMWWolf]

Love lyn alden. She is an excellent analyst of financial conditions. Especially at the macro level.

[DavesArtRoom]

Does not matter if there is more cash deposits. As you know, nothing backs fiat money.