Billionaires are hoarding piles of cash

Why are they at the limit? They have no need to borrow. They can create money at will.

You seem to have much more confidence in the Fed than I do. That's fine - we can agree to disagree, and do it on friendly terms.

I will say this: I believe in the Bible, and in Biblical prophecy. Revelation 13 will come about, someday.

That chapter strongly implies a global, single, (perhaps) electronic currency.

I see events rapidly unfolding where the Dollar is finished, and the SDR (they call it that because it is too creepy to call it "Global Money", which it is and will be), will arise, backed by the IMF.

Rickards has done dozens of interviews, and I believe he is sincere and the real deal. The Fed officials he talks to admit that if there is another crisis, they cannot do more. They can create some nightmare hyperinflation scenarios, but even that won't be enough.

Insolvent? That's when you can't pay your bills. What bills does the Fed have? Why can't they pay them?

Respectfully, I think you are failing to see the relationship between the Fed and the Treasury. While separate entities, they are tied together in this death spiral we find ourselves in.

You seem to have much more confidence in the Fed than I do.

I simply understand the silliness of using the words leverage and insolvent when discussing a central bank. If they retain $80 billion in earnings this year, their "leverage" would drop to 30-1. Crisis averted?

Rickards has done dozens of interviews, and I believe he is sincere and the real deal.

I've seen many sincere people who don't know what they're talking about.

The Fed officials he talks to admit that if there is another crisis, they cannot do more.

Right, because they'll run out of electronic ink when they create electronic money in their computer.

Respectfully, I think you are failing to see the relationship between the Fed and the Treasury.

Respectfully, you should look up the definition of insolvent.

As collectibles, they are worth more than face value. But if there is an economic crisis, I would not try to use them as currency, for the odd reason that many people do not know they exist, and would be very suspicious.

This paranoia is so pervasive that it is even difficult to use $2 bills, and younger retail clerks, having never seen one, automatically call the police. A $500 or $1000 bill? They might hold you at gunpoint.

in·sol·vent inˈsälvənt/: unable to pay debts owed.

Fed Insolvent, Dollar Will Collapse 90% or More-James Rickards

On the Fed engineering another 2008 type bailout, Rickards claims, “The last crisis was barely enough for the Fed to contain. They have used up all their dry powder. They can’t take the balance sheet any higher. They are already insolvent. . . . The Fed is insolvent. If you mark their assets to market, they are leveraged 80 to 1, and interest rates have been going up. So, a very small decline in the market value of their assets and it wipes out their capital. It’s a very simple math. So, we have an insolvent central bank. The next crisis is going to be bigger. You can see it coming. It is going to be too big for the Fed. They have taken their balance sheet to $4 trillion. What are they going to do, take their balance sheet to $8 trillion and leverage 200 to 1? The game is up. This has become very apparent. They are insolvent on a mark to market basis today, not like next year or the year after. They are insolvent today.”

__________________________________________________________________

Can the Fed Become Insolvent?

Could the Federal Reserve itself become insolvent? In this article I'll explain these fears and I'll argue that the Fed, with its printing press, cannot really go bankrupt the way other corporations can. However, if the Fed should become insolvent from an accounting standpoint, more of the public would begin to realize just how nihilistic our central-bank, fiat-currency system really is.

So while technically they can't "go broke" because they can always "print money", you are missing the larger point. The Fed still has a balance sheet, and because it is so bloated the entire US Dollar and our financial system is now in jeopardy.

That's what Rickards is saying.

The Fed still has a balance sheet,

And they're still going to make about $80 billion this year.

To claim an entity that can print money, makes $80 billion annually and only owes "shareholders" about $1.6 billion a year, is in any way insolvent is idiotic.

They are insolvent on a mark to market basis today, not like next year or the year after.

Only if you failed accounting.

That's what Rickards is saying.

That's why I'm pointing out his error.

Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.