Source: Law & Liberty
by Paul H Kupiec & Alex J Pollock
“The Federal Reserve System has unique powers among Congressionally-chartered government bodies, and yet its powers do not include the authority to borrow money at taxpayer expense to pay for huge accumulating losses without Congressional approval. The Fed has invented its own unique financial accounting standard to disguise the fact that, under normal accounting rules, the system is deeply insolvent. From 2022 through 2025, the Fed system’s accumulated losses have completely consumed the system’s capital and forced the Fed to borrow over $185 billion more than the Fed owns in assets just to pay its bills — a fact it intentionally tries to hide from the public. Rather than earning seigniorage profits for taxpayers, something the Fed did for more than 100 years, the present-day Fed has instead accumulated losses of the staggering amount of $231 billion.” (07/02/25)