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Pam and Russ Martens: Fed loses billions while paying huge interest income to big banks
By Pam and Russ Martens
Wall Street On Parade
Monday, April 8, 2024
As of April 3 the Federal Reserve has racked up $161 billion in accumulated losses.
We're not talking about unrealized losses on the underwater debt securities the Fed holds on its balance sheet, which it does not mark to market.
We're talking about real cash losses it is experiencing from earning approximately 2% interest on the $6.97 trillion of debt securities it holds on its balance sheet from its Quantitative Easing (QE) operations while it continues to pay out 5.4% interest to the mega-banks on Wall Street (and other Fed member banks) for the reserves they hold with the Fed; 5.3% interest it pays on reverse repo operations with the Fed; and a whopping 6% dividend to member shareholder banks with assets of $10 billion or less and the lesser of 6% or the yield on the 10-year Treasury note at the most recent auction prior to the dividend payment to banks with assets larger than $10 billion.
(This morning the 10-year Treasury is yielding 4.41%.)
Operating losses of this magnitude are unprecedented at the of Fed, which was created in 1913. In a press release dated March 26, the Fed stated this: "The Reserve Banks' 2023 sum total of expenses exceeded earnings by $114.3 billion." ...
... For the remainder of the analysis:
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Guanajuato Silver Reports Best Ever Quarterly Production
Company Announcement
Friday, April 5, 2024
VANCOUVER, British Columbia, Canada -- Guanajuato Silver Co. Ltd. announces consolidated production results for the three months ended March 31, 2024. Production results are generated from the company's wholly owned El Cubo Mines Complex, Valenciana Mines Complex, and San Ignacio Mine in Guanajuato, Mexico, the El Horcon Mine in Jalisco, Mexico, and the Topia Mine in Durango, Mexico.
Production during the quarter of 987,312 silver-equivalent ounces is the best quarter in the company's history since production began at the company's El Cubo mines complex in Q4 2021. ...
James Anderson, chairman and CEO, said: "Q1 generated our best production performance to date and continues the trend of demonstrable quarter-over-quarter increases in precious metals production. ..."
... For the remainder of the announcement:
https://gsilver.com/news/2024/897-uanajuatoilvereportsestveruarterlyroduction20240405
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Wednesday-Thursday, May 15-16, 2024
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http://www.gata.org/files/GATA-4-wine-bottles.jpg
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