Jerome Powell can’t be this stupid; Everything he touches turns to poison
The Federal Reserve’s accumulated operating losses reached $234 billion as of July 2. A mind-boggling sum. Subtracting these losses from its paid-in capital and retained earnings, which together total $46 billion, shows the central bank’s real capital is negative $188 billion.
Meaning — its losses have run through all the capital its private bank shareholders invested and the associated retained earnings five times. This is embarrassing for the greatest central bank in the world, which certainly did not plan to lose this much money. Neither were these huge losses expected by Congress or by American taxpayers.
The Fed’s losses in excess of its capital are a cost to taxpayers. Its negative capital means it has borrowed and spent nearly $200 billion dollars of public money without the approval of Congress, solely to which the Constitution grants the power to borrow money on the credit of the United States. The Fed took an enormous financial risk without the approval, and perhaps without the awareness, of Congress.
The Fed’s losses reflect the simple fact that the interest expense it pays, primarily on the deposits held with it by private banks (often called “reserves”), is far greater that the interest income it earns on the $6 trillion of investments it bought mostly at the top of the market in bond prices, a market top created by its own massive buying. This means that the Fed bought at the bottom of yields on those bonds.
The result is that in, say, 2024 the Fed had $159 billion in interest income, but $227 billion in interest expense, of which $186 billion or 82 percent of this expense was interest paid on its deposits from banks. It lost $68 billion even before paying any of its operating expenses, and had a net loss of $77 billion for the year.
A temptingly simple solution to the losses comes to mind. As suggested by Senator Cruz, just stop paying interest to the banks on their deposits. In 2024, this would have reduced the Fed’s expenses by $186 billion, flipping its $77 billion loss to a pro forma net profit of $109 billion.
As Mr. Cruz rightly points out, for most of its history the Fed paid no interest on its deposits. Indeed, from its founding in 1913 to 2008, or for 95 years, the Federal Reserve Act prohibited Federal Reserve Banks from paying any such interest, so the private banks automatically got zero interest on their Fed accounts.
Naturally, the banks did not like this, viewing it not unreasonably as a tax. They finally succeeded in getting the law changed, then the change accelerated with the support of the Fed, which was about to launch an unprecedented expansion of its balance sheet and wanted the banks to be happy holding far bigger deposits with it than ever before.
The banks now have about $3.3 trillion in deposits at the Fed. In June 2008, still under the old system, the total Fed deposits from banks were only $13 billion. The banks’ deposits with the Fed are now more than 250 times what they were then.
At this point, the Fed is paying on its $3.3 trillion in deposits from banks at an interest rate of 4.4 percent. This means it incurs an annualized cost of $143 billion; dropping that expense would easily make the Fed profitable again going forward. In the first instance, the government would like the Fed, and therefore the government, to keep that money.
Then what would happen, though? If the banks didn’t like getting no interest on $13 billion, imagine how they would hate getting none on $3.3 trillion. Their income would just have dropped by $143 billion a year.
Each individual bank would try to get out of its now zero-income deposits by investing in something else. It might buy Treasuries or other securities, invest in mortgages, make new loans of all different kinds, or all of the above.
As all of the banks did this together, interest rates would fall in an inflationary credit expansion. The Federal Reserve would have lost control of interest rates, which it would not accept, since one of its essential roles is to be the national price-fixing committee for interest rates.
Because of the magic of a fiat currency central banking system, no matter how much the individual banks reduce their individual Fed deposits, the aggregate banking system cannot reduce its aggregate Fed deposits. They would still be $3.3 trillion unless the Fed itself reduced them. The government would have forced the banks as a whole to provide it with $3.3 trillion of free funding. It would be fair to call this financial oppression.
The Fed could reduce its deposits by selling its own investments and shrinking its balance sheet. Yet the Fed has a nearly $1 trillion unrealized loss on its investments. By selling it, the central bank would realize large losses — not to mention driving the market against itself.
The Fed will not do this. So in sum, considering Mr. Cruz’s idea leads to the conclusion that there is no easy way out of the upside-down financial position the Fed has gotten itself in.
Link to original article;
No Easy Exit Emerges for the Federal Reserve as It Runs Up Mind-Boggling Losses
PPI data coming in lower than expected. Last month’s revisions ticked higher. Overall, good stuff.
Core PPI (MoM) (Jun)
Act: 0.0% Cons: 0.2% Prev: 0.4%
Core PPI (YoY) (Jun)
Act: 2.6% Cons: 2.7% Prev: 3.2%
PPI (YoY) (Jun)
Act: 2.3% Cons: 2.5% Prev: 2.7%
PPI (MoM) (Jun)
Act: 0.0% Cons: 0.2% Prev: 0.3%
PPI ex. Food/Energy/Transport (YoY) (Jun)
Act: 2.5% Cons: Prev: 2.8%
PPI ex. Food/Energy/Transport (MoM) (Jun)
Act: 0.0% Cons: Prev: 0.1%
DoD states in aftermarket that they are seeking to greatly increase domestic drone production. Lift off…..
Pentagon to Increase Low-Cost Drone Production in U.S.
July 16, 2025 | By David Vergun, DOD News
The Defense Department, with help from industry, will ramp up production and fielding of drones to maintain battlefield superiority.
https://www.defense.gov/News/News-Stories/Article/Article/4246987/pentagon-to-increase-low-cost-drone-production-in-us/
Here is an ad from Palantir on their drone technology.
m.youtube.com/watch?v=-VHBfTzNhKQ
BTM just named a new Zack’s new #1 this morning. Just scooped up a thousand shares.
I thought Greg would want to know.
DPRO just announced a deal with the DoD for their drones. The stock is flying this morning. I looked at how UMAC performed subsequent to its discounted secondary offering and saw that as a clue as to how powerful this sector is right now.
For those interested, take a look at the chart and market action at UMAC over the past several days to see what I’m talking about.
I bought a thousand DPRO shares at 7:00 a.m.
I didn’t see that zacks rating coming, I should have held, has more room to run. Bitcoin isn’t going away and looks like it’s going to be implemented in our communities even more. Now we can look back at the years 2011-2013 and see why it was being slowly, and very vaguely introduced. Great morning dip setups for those 10, 20 cent scalps and same for those drone stocks you mentioned. Very high off the lows, so I assume offerings are on the way, but any more AI autonomous software PR’s and they will pop. Kinda like the quantom stocks QUBT, RGTI etc. all time lows, then boom, the news pump hype came all of a sudden.
UAVS put out a press release this morning. The stock took off. I wasn’t holding.
Take a look at DPRO this morning. This is why I don’t hold these stocks for more than a day.
Chinese Buyers Grabbing Up American Homes
Between April 2024 and March 2025, Chinese investors snapped up nearly twice as many U.S. homes as they did the previous year, according to a new report from the National Association of Realtors (NAR).
The NAR report showed an 83% surge in Chinese residential real estate purchases relative to the same period a year earlier, with spending increasing from $7.5 billion in the year prior to $13.7 billion. Chinese nationals purchased 11,700 U.S. homes, making them the largest group of foreign buyers, followed by 10,900 properties purchased by buyers from Canada, 6,200 from Mexico and 4,700 from India.
The average price of homes bought by Chinese purchasers was $1,168,800, and Chinese buyers “were more likely to pay in all cash than any other buyer group,” Kashif Ansari, co-founder of Juwai IQI, a real estate technology group, told Bloomberg. By contrast, 75% of U.S. households are currently unable to afford the median-priced new home of $459,826, according to the National Association of Home Builders.
Thirty-six percent of Chinese buyers purchased properties in California, followed by 9% in New York.
While total Chinese spending on U.S. homes remains below the 2017 peak of $31.7 billion, the rebound underscores how wealthy Chinese investors continue to view the U.S. housing market as a safe haven, according to Ansari. Meanwhile, the Chinese property sector has faced a downturn due to oversupply in recent years, with new home prices falling 4.7% from the previous year in June.
Foreign investment in U.S. real estate is also rising across the board. International buyers spent $56 billion on U.S. homes over the past year, a 33% jump, marking the first year-over-year increase since 2017, according to the NAR report.
In recent years, numerous states have implemented restrictions on foreign nationals’ ability to purchase properties within their state. For instance, Texas passed a law in late June that prohibits those from countries identified as security threats — which include China, Russia, Iran and North Korea — from purchasing agricultural land, commercial or industrial properties, residential properties and land used for mining or water use.
At the federal level, the Trump administration’s Department of Agriculture announced on July 8 that it will look to block Chinese nationals from purchasing American farmland and end departmental “agreements going to people and entities in countries of concern or other foreign adversaries.” Chinese firms and investors owned over 383,000 acres of farmland in the U.S. as of 2021.
Content is created by the Daily Caller News Foundation, an independent and nonpartisan newswire service
More Russians are losing hope and are passing on having children. All of those westerners who think Russia is some great place comes up with their opinions by tapping on their keyboards. Russians have a different view. Many of them no longer want to have children.
__________
Russia’s population crisis is so dire, it’s staring down a labor shortage of 11 million people by 2030, a minister told Putin
Russian President Vladimir Putin is trying to boost his country’s falling birthrate.
•Russia could face a labor shortage of nearly 11 million people by 2030, its labor minister said.
•Birth rates have plummeted, and labor shortages have worsened because of the war in Ukraine.
•The demographic crisis is threatening the country’s long-term economic stability.
Russia is staring down a long-term economic threat that could outlast both the war in Ukraine and Western sanctions: a deepening demographic crisis.
On Tuesday, Labor Minister Anton Kotyakov underscored the scale of the problem during a meeting with President Vladimir Putin.
“Today, according to our estimates, by 2030 we need to involve 10.9 million people in the economy,” Kotyakov told Putin, according to a post from the Kremlin.
Kotyakov said the number is required to replace 10.1 million people who will reach retirement age, and 800,000 new jobs.
Kotyakov warned that if productivity growth falls short of the assumptions built into the current forecast, there could be “an additional shortage of personnel.”
The remarks came during a Kremlin meeting focused on demographics and healthcare. Members of Putin’s cabinet discussed efforts to boost birth rates, including financial incentives like cash payouts and tax breaks for large families.
Putin has made population growth a national priority, calling it a matter of “ethnic survival” and encouraging women to have as many as eight children.
In 2024, births in Russia fell to 1.22 million — the lowest level since 1999 — while deaths increased by 3.3% to 1.82 million, according to official data. The country’s population was about 146 million last year.
But boosting birth rates isn’t Russia’s only challenge. The war in Ukraine has exacerbated labor shortages, with battlefield injuries and deaths cutting into the working-age population and a brain drain pulling younger, educated professionals out of the country.
The demographic outlook is so bleak that the country’s population could halve by the end of this century, per a report from the Atlantic Council, a think tank, in August.
Businesses are already feeling the heat. Employers are increasingly turning to retirees and even teenagers to fill roles.
The labor shortage has driven up wages and fueled inflation, adding strain to an economy already distorted by wartime spending.
By the end of 2023, Russia’s economy was running so hot that the central bank warned of overheating.
The momentum may be fading.
Just last month, Russia’s economy minister, Maxim Reshetnikov, warned that the country was “on the brink” of a recession.
It seems every country is facing the same problem – no marriages or family formation.
I believe this is why China altered their divorce law, to encourage young men to seek marriage again, form families and select women who behave in a more moral way. Apparently they had the same problem developing with dating apps and hypergamy as in the West and elsewhere so the men opted out.
This change does not invalidate Ezekiel 38-39, but it might change how it goes down. If the entire Japheth confederacy adopts this legal change, they will have the upper hand by numbers alone in a generation or two. It might only be then that they will think to take the land of unwalled villages a prize.
The continent of Africa is still pumping out off spring! That figures!
I can’t bring myself to thinking in terms of generation’s at this point
I heard that African demographic stuff from my younger sister, she is a senior bureaucrat. It was Nigeria with a birthrate of 6.7 children per woman – but it turns out the numbers were fudged and there was an epidemic of fraudulent claims. Not a surprise when incentives are perverse – it always leads to malevolent behaviour.
A couple of years back, Melinda French Gates and Esther Duflo went on a campaign to 75 African countries to have inheritance laws changed using World Bank studies as a guide. They wanted for women to be inheritors of marital property in an effort to “raise women up out of poverty”. Pretty clear what was required to trigger the condition for inheritance.
A mixed bag of data. Okay overall.
Core CPI (MoM) (Jun)
Act: 0.2% Cons: 0.3% Prev: 0.1%
Core CPI (YoY) (Jun)
Act: 2.9% Cons: 3.0% Prev: 2.8%
Core CPI Index (Jun)
Act: 327.60 Cons: Prev: 326.85
CPI (MoM) (Jun)
Act: 0.3% Cons: 0.3% Prev: 0.1%
CPI (YoY) (Jun)
Act: 2.7% Cons: 2.6% Prev: 2.4%
CPI Index, n.s.a. (Jun)
Act: 322.56 Cons: Prev: 321.46
CPI Index, s.a (Jun)
Act: 321.50 Cons: Prev: 320.58
CPI, n.s.a (MoM) (Jun)
Act: 0.10% Cons: Prev: 0.21%
NY Empire State Manufacturing Index (Jul)
Act: 5.50 Cons: -8.30 Prev: -16.00
Real Earnings (MoM) (Jun)
Act: -0.4% Cons: Prev: 0.3%
I was sent this link from a reader. It is below.
While I think it’s somewhat exaggerated in nature, I mean I doubt it will ever get to that point without drawing the interest of Russia and China, there is some sense to it.
The most important aspect to this gentleman’s article is that we are to avoid all blue states and/or blue areas. The people living there are totally poison. They get offended so easily, they hate the European caucasians, and will rage over the petty stuff.
Keep in mind that these people aren’t open to reason, because they have been engineered and bred since kindergarten in the early 1980s to hate themselves if they are European Caucasian and to hate Caucasians if they aren’t. They lack morality to understand what they are doing.
I went the kindergarten in 1971, and back then, we glorified the country and its founding. Blacks actually lived much better back then with intact homes and families. They worked side by side with the whites with good-paying jobs. They owned their own homes and acted like the local White people.
I have first-hand knowledge of this as a property manager and landlord. Several of my schvartze tenants became openly hostile and recalcitrant since the George Floyd riots and with covid destroying there financial futures. I’ve gone from eight black tenants all paying below market rent, to only two. Everyone else is white. White is right. I can charge full market rent and I can lay down the law, so to speak, without being considered racist.
Niggers be crazy! They are communist and don’t even know it. They claim not to trust government, yet they look to it and generate it all the time. Talk about intellectual inferiority….
____________
When The Music Stops – How America’s Cities Will Explode In Violence
https://steelcutter.substack.com/p/when-the-music-stops-how-americas-a95
Because of the unfolding circumstances in Ukraine and based on the prospects of what this article discusses, I would look to stocks of drone manufacturers. Pete Hegseth is now promoting drone manufacturers here in the states. I would definitely keep them in mind and think they have more room to run. For the intermediate term holders, I would buy on dips. Drone manufacturing is set to explode, especially those that are easily dispensable.
ONDS UMAC ZENA KTOS RCAT UAVS DPRO
You read my mind.
Looks like J. Powell might be going bye bye sooner than he thinks!
Another reason to think inflation will turn up again?
In a society where people increasingly no longer own anything, including rent and utility payments on credit scores is of paramount importance….
NAR Applauds FHFA Move to Expand Credit Scoring Models for Mortgage Underwriting
WASHINGTON (July 9, 2025) — National Association of Realtors® Executive Vice President and Chief Advocacy Officer Shannon McGahn released the following statement in response to yesterday’s announcement by Federal Housing Finance Agency (FHFA) Director Bill Pulte that, effective immediately, Fannie Mae and Freddie Mac will allow mortgage lenders to use VantageScore credit ratings—alongside or in place of traditional FICO scores—when assessing borrower creditworthiness:
Continues…..
https://www.nar.realtor/newsroom/nar-applauds-fhfa-move-to-expand-credit-scoring-models-for-mortgage-underwriting
Ag and Pt on fire 🔥🔥🔥
Xi’s Price-War Campaign Creates a Buzz in China’s Stock Market
For strategists at JPMorgan Chase & Co. and Goldman Sachs Group Inc. as well as money managers in Hong Kong and Singapore, an opaque term has suddenly emerged as the catchphrase for deciphering Chinese policy intentions and navigating the stock market.
https://financialpost.com/pmn/business-pmn/xis-price-war-campaign-creates-a-buzz-in-chinas-stock-market
Looks like China better figure out how to develop a consumer based economy.
Niggas be crazy!🌚🌚🌚🐵🐵🐵
I moved to CT to help my mother. One of the towns here hired a private investigative firm to locate out of state vehicles and scan their license plates to do a check to see if they are here permanently. In CT you pay a yearly tax on your car. These liberal lunatic politicians are so lust crazy for money to fund all their outrageous salaries.
Virginia has the same type of scheme. Here it’s called personal property taxes and most residents just pay an annual ad valorem tax on their cars. However, businesses have a similar tax based on their equipment.
In Virginia, I guess it’s harder to enforce these things. Connecticut is a different libtard animal.
China made a move in their legal system 1 February 2025. They changed the divorce law from 50/50 split of assets to “whoever paid for it, owns it”.
This has consequences as well for inheritance and future family wealth building, the effects of which will be undeniable in another generation – if we make it that far.
The west would do very well to adopt the same legal change, and make no mistake – the elites are aware the legal change was made in China.
China has got that one right. Whoever comes into the marriage with the assets should get those assets upon separation. The spouse that pays for the assets should get those assets after separation.
In most of the USA the spouse gets 50% even if that spouse came into the marriage with nothing. Basically in the USA the hardworking spouse who provides most of the assets gets screwed in a divorce as he or she has to give up half. In addition to the 50% given up, the wealthier spouse has to pay hefty alimony and child support. What is worse is that there is no accountability on how that child support gets spent. Most of the child support does not get spent for the benefit of the children,
Marriage in the USA is a racket for the lawyers and the mooching spouse. My recommendation is don’t get married in the USA if you care to stay wealthy. There are too many honey traps out there.
Joel Skousen discusses Russia, China, Middle East, and the upcoming conflict against the West and US.
https://www.youtube.com/live/F3gUH59p-mw?si=4h9F6L-puvOgsX4c
Interview starts at the 59 minute mark. His analysis is largely congruent with mine.
Prepare. My last PG condo is under contract and due to close on 7/24. My replacement property will be located in the Shenandoah valley area. A red area. My cash out on another property to facilitate the exchange was for a 5-year arm @ 6.375% with a three year prepay. The amount was 250k.
“Neither were these huge losses expected by Congress or by American taxpayers”
I think many Americans expected it. Keeping in mind that discussed in past articles on this forum, that the national debt can very easily be tripled from this point with no collapse, just can kicking well past 2027.
In that interview with Mr. USA ice cold beer sixpacks, Joel does make statements that gels, however this forum including your articles and info within the comment sections already covered everything he says in that interview.
Interesting Joel mentions how the fall of the Soviet Union was a staged event from the top down. But he doesn’t venture into other staged events and goes along with the mainstream narratives, like Epstein, Ukraine and nukes.
If Joel can fart out this type of vague interview to plug his $40 holla annual subscription fee, then Stone maybe you should start doing interviews. As your articles, our comments and even stock picks, have beaten many of these well known hacks in the alt media to the punch.
The Federal Reserve Bank is a sinking ship and the rats(owners) are jumping ship.
The Fed is carrying out its orders to sink the governments.
Yes, plural. The USS dollar which most currencies are tied to or reliant on is sinking! We are now, it seems, rearranging deck chairs on the Titanic!
The dollar isn’t sinking. The government is sinking. The Federal Reserve is making certain that all the governments sink.
Q3 2027. Get ready for the force majeure. It will be the only viable solution. the table is being set and the tableau is emerging.
President Trump will be the president of record during World War 3. All the bridges have been burned and there is no going back.
President Trump has impressed me with his callousness. I miscalculated on his timidity. I actually think he’ll be a good president during World War 3. A lot of bodies will pile up under his watch.
That is a good point about governments failing. When one looks at Revelation 17:12, there will eventually be 10 kings or provinces that will join forces with beast for one hour or 3 1/2 years. The current government structure will have to go. This is something the technocrats are working toward now.
Yes. You are finally getting it here. That’s what it’s all about. Undermine the governments. Undermine all the governments and when it’s time to finally put a fork in it, there will be a global war and the floor will be pulled out from underneath the platform on The gallows.
This is how we can use the written word to make predictions.
This is an explanation of how we got into this “temporary” mess. Kicking the can down the road only works for so long! Or did it?
http://www.stlouisfed.org/open-vault/2018/april/why-fed-pays-interest-banks-reserves
The reason why the Fed is paying high interest on the deposits from member banks is that the banks are squeezing every last dime from a failing institution. The investors are bailing out of their investment in the central bank. If the federal reserve bank fails then the dollar will crash and/or another war will start to divert from the problem.
The other possibility is that congress could pass
another TARP bailout of the Federal Reserve like they did for the big banks in 2008 under the threat of martial law.