The Federal Reserve of the USA is traditionally regarded as the most influential national central bank in the world.
Due to its latest decision to raise interest rates, and to the huge volumes of financial securities it purchased under QE in earlier times of lower interest rates, the book value of those securities has taken a significant hit. They don't pay as much, so they would sell for less, giving the Fed a loss should it either decide or need to sell them. Technically it could decide not to sell them until interest rates drop again, thus avoiding realisation of any loss, but a forced sale before then would realise the loss.
So will the Fed now run at a loss? Would it matter?
Might it even become insolvent? What would that mean?
These are a few of the most important questions of our time, and the AIER thoughtfully publishes an exploration of the implications.
Prof John Mearsheimer tells it as he sees it in this well-researched polemic. What is the history behind the invasion of the Crimea, later of the Ukraine, and Putin's ambitions for that country?
He presents a pretty comprehensive analysis of the politics economics and military situation, but this is founded on the traditional viewpoint that the Biden administration, comfortable in its political bubble of perceived invincibility, isn't about to collapse under the combined weight of the Bidens' alleged criminal activities in the Ukraine, and the possible decertification of the Nov 2020 election result.
That assumption, although unspoken and perhaps unfounded, is critical, since without Biden in place any new administration would likely...