Federal Reserve Balance Sheet 

I want my puts to go brrrrrrr

Trillions*

Everyone should understand this. This this their livelyhood!

Yeah, for big corporations.

So they went from less than 1 trillion here to 7 trillion and counting today, yep nothing to worry about they know what they're doing??

Dec 2021 - watching and trying it figure out if Fed is helping the people, banks, politicians, or themselves.

Wenting Liu it’s a ten year old video...

@@Redsoxvsyankees BOO

acually its more about youtube downgrading video quality of old videos, trust me back in 2009 this was actually visible

Ok

Muhammad M yeah, im kinda surprised 😲

this is conspiratorial nonsense

David Carr Federal Reserve Notes are collateralized by its assets (and yes, Treasuries are assets) and can be redeemed for lawful money (however, since federal reserve notes ARE lawful money, you won't get very far). The real reasoning is that if the U.S. decided to dissolve the Federal Reserve for some reason, it would get the assets being held and be able to exchange Federal Reserve Notes for whatever they replaced them with. P.S. The Federal Reserve doesn't own any gold. It owns gold certificates (which cannot be redeemed for gold); the Treasury owns gold.

JSavic Treasury securities are created and marketed by the U.S. Treasury, not the Federal Reserve. The Federal Reserve is prohibited from buying them directly from the Treasury, and must instead buy them through open market operations. It does so by crediting the accounts of member banks in exchange for the securities. Deposits are assets to the account holders (the member banks) and liabilities to the banking institution (the Fed). Actual cash is purchased from the Treasury at cost and then "sold" at face value, becoming a claim on Fed assets and thus a liability in the process. Coins are both purchased and "sold" at face value and do not become liabilities for the Fed. The Fed remits earnings to the Treasury after operating expenses and interest payments (including payments on what is effectively preferred stock).

If the FRN were not a liability but an income, then that is a moral hazard problem. The Fed (which is theoretically a bank) could print FRN and earn income. To avoid this conundrum, FRN is correctly treated as a liability. Even if the FRNs were extinguished, it cannot be treated as income, because then the Fed could keep extinguishing its liabilities and not honor up. Again a moral hazard problem. Therefore this accounting method is devised this way. Before 1913, other banks were allowed to print currency and this is how it was done. Today the Fed may have monopoly. But running roughshod with the historical accounting practises is not a good thing. (accountant from India)

Arun Kumar i have news for you - its still a moral hazard. just classifying as liability doesnt change the principle. a handful of unelected people are monetizing debt. they bail out failures with money they just printed. and a liability classification implies it needs to be paid back (or reversed). the fed hasn't decreased their balance sheet in any material way since its creation. it only goes up.

David Carr My friend. You are debating this only because you are seeing the number on the Balance Sheet, cause it's rightly put there. Had it been taken to Income Statement, the words moral hazard itself would be outside of monetary dictionary. I am saying the practice is centuries old. When before the Fed, individual banks carried it against gold backing, FRN was a liability. I know circumstances have changed. But we are not so dis-illusioned that we don't know which side is Up. You are conflating events post 2007, with something which has been around and accepted not only in US but in every other country.