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.

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[–]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.