Fed Balance Sheet

[kilroy04]

 

http://www.cnbc.com/id/41198789

 

"Any future losses the Fed may incur will now show up as a negative liability as opposed to a reduction in Fed capital, thereby making a negative capital situation technically impossible," said Brian Smedley, a rates strategist at Bank of America-Merrill Lynch and a former New York Fed staffer.

Guess the federal reserve can't go bankrupt.......  I'm not a gold bug - partly because I don't think production correlates 1:1 with economic expansion and therefore there is a pure supply demand component to gold's assigned value.  But this is pretty interesting in terms of a slippery slope.