New FED Accounting Rules

I find this all hilarious.  This should confirm to everyone that Bernanke and FED economists will fight to the end to prove that central banking, and their theories that go along with it, can work.  Anyone who thought they had to accept reality at some point was wrong.  They just keep getting crazier.

The new accounting 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.  This is convenient and better than the alternative of the FED facing insolvency, better for the FED and the banks that is.  


There is no market, it is simply a thing of the past.  It will not return until the FED destroys itself.  I strongly suggest considering this fact before putting too much money into something that does not reflect reality such as the stock market, a home, and any interest bearing assets.  Someone eventually has to eat these losses, don't let it be you.