Here’s Scott Galloway, a clinical professor of marketing at NYU, speaker, author, and public figure, from a recent episode of the Julia La Roche podcast:
For the first time in our nation’s history, a 30-year-old is not doing as well as his/her parents were doing at 30. That’s never happened before.
An average 70-year-old is 72% wealthier than they were four years ago. The average person under the age of 40 is 24% less wealthy.
What we have in the quote-unquote “most prosperous economy in the world” is a generation of youth that is less well-off financially, more anxious, more depressed, more obese, and more likely to be addicted to opiates, and generally, feels shitty about America…
Younger Americans feel left behind financially and they’re angry about it.
Here’s a meme illustrating this sense of financial frustration/anger:
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A new round of "explosion" has begun
According to its financial statements released just last month, the Fed's unrealized losses totaled almost $1 trillion, or $948.4 billion to be precise, with the vast majority of unrealized losses coming from U.S. Treasury securities. So like Silicon Valley Bank, Signature Bank, First Republic Bank, and now Republic First Bank, the Fed is completely insolvent.
In fact, the total capital of the Federal Reserve is only US$51 billion, and its losses are as high as US$948 billion, which means that the Federal Reserve has gone bankrupt more than 19 times.
“Think about it, the largest and most important central bank in the world, the steward of the world’s reserve currency, is completely insolvent by market capitalization. You’d think this would be front-page news, but no one ever talks about it, not even People are willing to talk about it,” the report said.
"Of course, many people will insist that it doesn't matter, just like they insist that the national debt doesn't matter. But this is an even more ridiculous fantasy. Look at the facts. The FDIC released a report showing unrealized losses in the U.S. banking industry. More than $500 billion."
The Federal Reserve would theoretically bail out the banking industry, but it itself is unable to repay $900 billion in debt.
The U.S. government, which was supposed to rescue the Federal Reserve, was unable to repay more than $50 trillion in debt.
The report finally pointed out that just like the BTFP rescue tool, everyone wants to play a huge "pretend" game, pretending that the Fed's solvency is not a problem and the U.S. government's huge debt is not a problem. But on the contrary, they are huge challenges. The ultimate consequence will be that the US dollar loses its global reserve currency status.
by ZeroHedge
