The Fed’s Vanishing Profits: How America’s Central Bank Is Running on Empty

The Federal Reserve is broke. Not “temporarily” broke. Not “technically” broke. Just flat-out, undeniably, and catastrophically broke. And yet, somehow, it continues funding government programs, paying dividends to the banking elite, and pretending everything is fine.

How does a bankrupt institution keep spending? The same way every failing empire does—through deception, manipulation, and money-printing. And the consequences? More inflation, more government dependency, and an inevitable financial reckoning that will leave millions of Americans scrambling to protect what’s left of their savings.

This is no longer a theoretical problem or a future concern. It’s happening now. The numbers don’t lie. $36 trillion in federal debt. $2 trillion in annual deficits. $6.5 trillion in assets on the Fed’s balance sheet. Billions in monthly losses. The entire system is being held together by smoke, mirrors, and the naïve belief that this charade can continue indefinitely.

Spoiler alert: It can’t.

The Fed Is Losing Billions—And You’re Paying for It

Most Americans understand that Washington has a spending problem. Decades of reckless fiscal policy have left us with a national debt so large that it can never be repaid. But what many don’t realize is that the Federal Reserve—the so-called “independent” central bank—has been running its own deficits.

Here’s how the scam works:

For years, the Fed made money by holding trillions in government bonds and mortgage-backed securities. The interest payments on these assets—along with fees from the banking system—allowed it to cover its expenses and send leftover profits back to the U.S. Treasury. Before 2022, this amounted to $5 billion to $10 billion per month, adding up to nearly $1 trillion over a decade.

But that gravy train has come to a screeching halt.

Thanks to rising interest rates, the Fed’s balance sheet is now a bottomless pit of losses. Instead of turning a profit, it’s losing $5 billion to $11 billion every single month. It has completely stopped remitting funds to the Treasury. In other words, an institution that was once providing money to taxpayers is now a financial black hole.

How does the Fed explain this? With an Orwellian accounting trick called a “deferred asset”—which is just a fancy way of saying “we’ll pay it back later” while knowing full well it never will.

If any private business tried this, its executives would be in prison for fraud. But when the Fed does it, the media calls it “necessary monetary policy.”

The Fed’s Magic Carpet: A Ride Paid for with Inflation and Debt

But here’s the real kicker: Even though the Fed is operating at a loss, it continues to fund the Consumer Financial Protection Bureau (CFPB), pay banks billions in interest, and hand out dividends to its member banks.

Let’s be clear—if the Fed has no earnings, it shouldn’t be funding anything.

And yet, the CFPB alone is receiving over $810 million from the Fed in 2025, despite the fact that the Fed is supposedly broke. How?

There are only two possibilities:

1. The Fed is borrowing from bank reserves. This means it’s essentially taking money from the banking system to keep government programs running—an action that is legally questionable at best.
2. The Fed is printing money out of thin air. If this is the case, then the Fed is actively devaluing the dollar and fueling inflation just to keep the illusion of solvency alive.

Either way, this is economic malpractice of the highest order.

Remember the inflation surge from 2022 to 2024? That wasn’t an accident. It was the direct result of the Fed monetizing U.S. government debt—creating new money to buy Treasury securities in the open market.

This is the same tactic that has led to hyperinflation in every failed economy throughout history. Argentina. Venezuela. Zimbabwe. And now, the United States is on the same path.

Seigniorage: The Fed’s Last Trick Before the Collapse

For those still clinging to the illusion that the Fed has things under control, consider this: The Federal Reserve has the power to literally print money without limit—a process known as seigniorage.

Here’s how it works: The Fed can print a $100 bill for about 12.6 cents. But that bill has a purchasing power of $100, giving the Fed an instant $99.87 in pure profit—at least until inflation eats away at its value.

This is the ultimate scam. It allows the Fed to create wealth out of thin air while reducing the purchasing power of every dollar you hold. And it’s exactly what’s happening right now.

Are You Ready for the Crash?

The Fed’s “magic carpet” ride of fake accounting and unchecked money-printing won’t last forever. Eventually, reality will catch up. The only question is how much damage will be done before the crash happens.

Will we see:

• A full-blown currency crisis, where the dollar collapses under the weight of excessive debt and inflation?
• A government seizure of retirement accounts, forcing Americans to “invest” in worthless Treasury bonds?
• A major bank failure, triggering a new financial panic and banking restrictions?

All of these scenarios are not only possible but increasingly likely.

So, what can you do?

1. Get your money out of the traditional banking system. If you’re relying on the Fed to protect your savings, you’re already behind the curve.
2. Move into hard assets. Gold, silver, Bitcoin—anything the Fed can’t print.
3. Educate yourself. The people who see the warning signs and act now will be the ones who survive the next crisis.

Bill Brocius has been sounding the alarm for years, and he’s laid out exactly what you need to do in his free ebook, “7 Steps to Protect Your Account from Bank Failure.” If you haven’t read it yet, now is the time.

The Fed is running out of tricks. The collapse is coming. The only question is whether you’ll be ready when it happens.

Download the ebook today. Because when the system finally breaks, only those who prepared in advance will come out unscathed.