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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.

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.”

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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.