175 The Federal Reserve is technically bankrupt. In 2023 the Fed will post its first annual operating loss of $80 billion since 1915. It will have a negative capital of $38B. This loss does not count the $1.3 trillion unrealized loss on its portfolio. (twitter.com) posted 1 year ago by penisse 1 year ago by penisse +175 / -0 19 comments share 19 comments share save hide report block hide replies
Didn't some talking head claim just yesterday there is infinite cash at the federal reserve?
Are they limited some how as to how much money they can print?
My understanding is that it is mostly dependant upon our status as the world's reserve currency or petro dollar.
Once we no longer hold either status, the printers can no longer print indefinitely.
Petro dollar - No country would need to hold dollars to buy oil from the Saudis or most oil producing countries.
Reserve currency - trading between countries usually happen in $$ due to it's stability.
If we lost that status, we would lose the exorbitant privilege that goes will it and move beyond hyperinflation and into Weimar republic territory.
Too many dollars chasing too few goods.
This brings American hegemony, BRICS, and geopolitics into focus and on a collision course.
Edited for clarification.