Federal Reserve Liabilities, Solvency, and Risks

This chapter explores the liabilities of the Federal Reserve, the creation of money through quantitative easing, and the balance between assets and liabilities on the Fed's balance sheet. It discusses the Fed's income statement, its expanded role in supporting various sectors, potential risks in lending programs and buying corporate bonds, and the limitations of central banks in terms of liabilities and currency issuance. The chapter also delves into the potential insolvency of central banks leading to hyperinflation, the importance of real resources, and various methods of monetizing national debt.