But why?
What is going to happen if we have a liquidity crisis next month or next year? They are at the limit of their balance sheet.
Why are they at the limit? They have no need to borrow. They can create money at will.
They are already insolvent on a mark-to-market basis. And again, that is not guesswork.
Insolvent? That's when you can't pay your bills. What bills does the Fed have? Why can't they pay them?
As far as mark to market, they've been buying bonds for 5 plus years, from when rates were higher. They have capital gains, not to mention income of $80 billion or more per year.
It's not guesswork, it's just wrong.
They are leveraged 80-to-1. They cannot do more.
Sure they can.
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.