Could the U.S. central bank go broke?

itcanbedone · Jan 16, 2011

Reuters) - The U.S. Federal Reserve's journey to the outer limits of monetary policy is raising concerns about how hard it will be to withdraw trillions of dollars in stimulus from the banking system when the time is right

http://www.reuters.com/article/idUSTRE7096FE20110111

5yrtrader · Jan 16, 2011

Almost by definition, the answer is no.

5yr

PocketChange · Jan 17, 2011

What? Are you kidding?

If and when he dollar loses reserve currency status its game over.
1990 Saddam petitioned OPEC to drop the dollar and trade oil in gold.
Present day concerns are escalating.

We are engaged in the middle east to ake sure the dollar is used to transact business period.

Martinghoul · Jan 17, 2011

Quote from 5yrtrader:
Almost by definition, the answer is no.

5yr

+1

Visaria · Jan 17, 2011

The Fed has a strong bias against raising short term interest rates since this is bound to push long term yields higher and bond prices down, thus decreasing the value of their bond portfolio.

Basically the Fed is a mess, it should declare insolvency and close down. It's more or less inevitable anyway, just a matter of when.

intradaybill · Jan 17, 2011

Something that it is in the head of every loser Marxist that will never happen by virtue of reality.

Visaria · Jan 17, 2011

Both predecessors of the Fed either went bust or were closed down.

zdreg · Jan 17, 2011

Quote from intradaybill:

Something that it is in the head of every loser Marxist that will never happen by virtue of reality.

what reality are you talking about? are u hallucinating?

RedDuke · Jan 17, 2011

The world will not end, things will be more
or less fine and fed is here to stay.

bond_trad3r · Jan 17, 2011

The Fed has an Excel spreadsheet that it can modify at will to improve its cash balance. This cash can then be converted into any and all assets. The Fed may be shut down, but it is impossible for it to go broke.