Double Talk And Cheating From the Federal Reserve

Government officials who are going along with this trick to obfuscate the truth deserve to be put away for the rest of their lives

By: Dorothy Littrell, CPA

It is very important that you understand what has just been done to you financially by U.S. government officials going along with the Federal Reserve Board members:

• Accounting Tweak Could Save Fed From Losses

The Federal Reserve is still bankrupt but a change of reporting liabilities covers up that fact. This change of accounting shows the Fed's losses not as a loss but in effect a liability owed to the U.S. Treasury. That way the Fed's Balance Sheet does not show a Negative Net Worth.

More deceit on the taxpayer so the government can keep doing what it has been doing, which is printing and spending money. This accounting terminology change only delays facing and solving the financial situation the United States government has created for all of us and our unborn children.

The actual facts have not been changed but only recategorized to continue on the same destructive path. Now interest rates will stay at less than 1% while U.S. debt continues to quadruple.

It is obvious that U.S. policy will to be to continue as is until the rest of the world refuses o buy U.S. debt which is the inevitable conclusion. There is no way the Federal Reserve is going to have profits to assign to this reclassification to ever eliminate it from the Fed Balance Sheet.

I hate what we accountants come up with in the way of creative "double-talk" and reclassification in order to mislead and confuse the true facts for the person who does not understand what is really going on.

Government officials who are going along with this accounting terminology maneuver to obfuscate the truth deserve to be put away for the rest of their lives. Instead, they will probably be considered heroes.

Update 1/22/11 2;30 p.m.: Per Dorothy:

Could the Federal Reserve Become Insolvent?

The U.S. Federal Reserve's journey to the outer limits of monetary policy is raising concerns about how hard it will be to withdraw trillions of dollars in stimulus from the banking system when the time is right.

• Could the Federal Reserve Become Insolvent?

I cannot overstress the importance of this article relating to your financial future. You must become aware of the latest accounting change by the Federal Reserve.

As a CPA I consider it fraud on the part of the Fed to make this change. I have seen nothing in the AICPA governing rules for Certified Public Accountants that acknowledges this change nor approves it.

-Dorothy