The TRUE Fed balance sheet, obfuscated like hidden losses by financial companies, says that out of $8.6 trillion in liabilities, $1.25 trillion are unrealized losses. Weimar is well underway.

submitted by [deleted] from self.collapse

sorted by:
top
newinsightfulfun
you are viewing a single comment's thread.

view the rest of the comments →

[–]BISH 1 insightful - 1 fun1 insightful - 0 fun2 insightful - 1 fun -  (2 children)

Central bank insolvency is when they cannot buyback all liabilities, US Dollars.

They can create more dollars if others are willing to purchase the Treasury bonds they issue.
Bonds, as in, Bondage of the US citizen tax payers.

Insolvency occurs at the Fed, when no one is willing to purchase US Treasury Bonds.
That's game over.

[–]Alphix 1 insightful - 1 fun1 insightful - 0 fun2 insightful - 1 fun -  (0 children)

How it works is the US Treasury emits bonds, and the Fed invents money to buy those bonds. With this system the Fed can LITERALLY NEVER become insolvent. It can always invent more money to buy more things. Yes, the FED can accrue losses but they can always print more money, so they can effectively never go belly up, unless the Treasury doesn't want to borrow using bonds, which is NEVER.