Free Republic
Browse · Search
Bloggers & Personal
Topics · Post Article

To: Degaston
I don't have those numbers. Their Nov 10 release shows an unamortized premium of $319.7 billion and an unamortized discount of $27.1 billion.

Whether that is healthy or unhealthy, the Fed can't be considered insolvent, they can literally create money.

25 posted on 11/14/2022 8:59:05 AM PST by Toddsterpatriot (TANSTAAFL)
[ Post Reply | Private Reply | To 24 | View Replies ]


To: Toddsterpatriot

The ability to print up infinite amounts of notes doesn’t change the fact that they are insolvent when liabilities exceed assets. Every dollar that’s printed becomes both an asset (while they have physical possession) and a liability (responsibility to exchange note for money) on their balance sheet.

Now what changed in August 1971 “temporarily” was that they’d no longer exchange the Federal Reserve notes for money. Instead if a customer gives the Federal Reserve one of their notes back they get an electronic entry on their ledger that they have funds in the amount of that note in the system.


26 posted on 11/14/2022 11:32:48 AM PST by Degaston (odds)
[ Post Reply | Private Reply | To 25 | View Replies ]

Free Republic
Browse · Search
Bloggers & Personal
Topics · Post Article


FreeRepublic, LLC, PO BOX 9771, FRESNO, CA 93794
FreeRepublic.com is powered by software copyright 2000-2008 John Robinson