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ALG asks, "Is the Fed Insolvent?"

I dunno: Does a bear pray in the woods? Does the Pope shit Pope shit in the Vatican crapper?

I mean, what’s with the rhetorical questions? Why so coy?

Just say it, brother! The Fed is nothing but a bad bank that we refuse to audit!

There. Was that so difficult?

8 Replies to “ALG asks, "Is the Fed Insolvent?"”

  1. Bob Reed says:

    By the measures that the FDIC uses to rate other banks? Yes it is. They have so much shinola off the balance sheet that it would make all of our heads swim.

    And all of that sub-prime paper they bought from the banks? Might as well write it off…

  2. JHoward says:

    They have so much shinola off the balance sheet that it would make all of our heads swim.

    Exactly. FRN money is debt because it is projected into existence where it exists as an interest-bearing entity until paid. It is an artificial leverage, first and foremost. It is not accountable to the terms everything else must balance by.

    It is not free and honest trade. These banks dictate to the formerly free market and have blown it entirely out of shape time and again. During the system’s lifetime it transfers wealth because it can be used to manipulate virtually anything. That is its primary function.

    It’s time the topic hit the mainstream: The Fed is an artificial construct that together with its dependent banks operates largely without congressional control, it congress even cares to understand what it does, which is debatable.

  3. serr8d says:

    Fed distrust: the only thing worth distilling from Ron Paul. His other pet issues are teh crazee.

  4. mojo says:

    GLAVIN!!

  5. McGehee says:

    In 20 years we’ll all be on the Bitcoin standard anyway.

  6. LBascom says:

    The way I understand it, the fed will never be insolvent as long as the dollar is the world standard. They can always print more dollars.

    If that changes, say the yen or pound(for example) becomes the new global currency, then the fed can’t print dollars at will. They will have to have something backing up any new issue of money.

    Is that right?

Comments are closed.