Comments by "k98killer" (@k98killer) on "This Could Cause The Fed To Go Bust!" video.

  1. The Fed has mentioned that instead of incurring a loss when they sell assets at a loss, they will create a "deferred asset" which gets destroyed in lieu of remitting future profits to the Treasury. I think their plan is to paper over an insolvency with "deferred assets" the way they violated their charter in 2020 by funding special purpose vehicles at the Treasury. Whether they can do that to justify paying out IOR is yet to be determined, but I wouldn't put it past them to try it and then get tepidly reprimanded by Congress the next year.
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  2. I heard a persuasive argument that interest rates are not the price of money. It goes something like this: the price of a market good is inversely correlated with changes in supply, so you would expect the price of money to be 0% during hyperinflation due to the increased supply; the historical evidence of interest rates going hyperbolic alongside money supply succinctly refutes the claim that interest rates are the price of money.
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