Picture the Fed in Flames

Wait. Is the Fed broke? June 14, 2022 [UNSUBSCRIBE]( | [WEBSITE]( [Altucher Confidential] “Rickards believes the next big panic is closer than many people think. Here’s why.” [HERO IMAGE] Picture the Fed in Flames By Chris Campbell Bloodbath! 80% Dow Drop predicted. This little-known “[market doomsday indicator]( has appeared before nearly every major financial crash in recorded history. And now after years of silence, it has begun to ring out again… And if it chimes even just one more time… It could be game over for the markets. With some experts already predicting that we could see a Dow drop of 80% or more practically overnight. If you’re worried about a market crash… Or if you are holding any stocks, real estate or cryptocurrencies… Then I’m urging you to drop what you are doing and watch this now. Because if you miss [this warning]( now, once the crash comes… It will already be too late. [Click here to learn how to protect yourself.]( Tomorrow’s the big day for the Fed. As you know, expectations that the Fed will raise interest rates higher than previously forecast sent the markets roiling. In anticipation, the Bitcoin-based art auction house [Scarce.City]( just put this painting up for auction. It’s called, in case there were any doubts, “The Federal Reserve Bank in Flames, Los Angeles Branch.” [IMG 1] Alex Schaefer, the artist, gained fame in 2011 for his paintings of the Too Big to Fail banks on fire. This one of the Fed is his latest in this collection. On why the series resonates with so many people, he wrote: “The root of so many problems in the world today is the money itself, how it’s made, who gets it first and where it’s spent.” It’s hard to disagree. This is one place -- among many, I would argue -- that the gold and crypto bugs can find common ground. This painting is given even more meaning when we consider that, just yesterday, Jim Rickards presented the following question: Is the Fed broke? How Can the Fed Be Broke? “When you bring up the topic of the Federal Reserve going broke,” says Rickards, “most individuals react by saying, ‘That’s impossible! The Fed can’t go broke. They can just print more money.’” Though a common reaction, Rickards writes, “it displays a misunderstanding of what money is and how the Fed actually works. Yes, the Fed can print all the money it wants. But money is not an asset for the Fed; it’s a liability.” If you pull a dollar bill out of your pocket and read it, what does it say? “Federal Reserve Note.” A note, says Rickards, “is a form of debt; in other words, it’s a liability. That becomes clear when you look at the Fed’s balance sheet. (it’s publicly available on the Fed’s website).” Right now, says Rickards, “The Fed looks like a highly leveraged hedge fund. Printing money can be used to buy more securities, but all that does is leverage the balance sheet even more by piling more assets (securities) and liabilities (money and reserves) on top of the same sliver of capital.” But what if it’s worse than that? Famous Trader: “I Can’t Keep This Quiet…” [Click here for more...]( few years ago… After meeting with presidents… After getting featured in Forbes, Fox, Wired and even Playboy… This man stepped out of the limelight. Now he’s back with what could be [the most shocking prediction]( of his career. It could have a $16.8 trillion impact on the world economy. [It could also give you a chance to get very rich — click here to see how.]( Less Than Zero “If you evaluated the Fed on a mark-to-market basis the way you would with a hedge fund, its capital would be wiped out. It’s insolvent. I once had a conversation with a member of the Federal Open Market Committee who admitted this to me privately. I reached a conclusion on my own, but she confirmed it." The conversation went like this: “I said, ‘I think the Fed is insolvent.’ “This governor first resisted and said, ‘No, we're not.’ But I pressed her a little bit harder and she said, ‘Well, maybe.’ “And then I just looked at her and she said, ‘Well, we are, but it doesn't matter.’” In other words, a governor of the Federal Reserve admitted privately that the Federal Reserve is broke. But, according to the governor, it doesn’t matter. Why? Because central banks don't need capital. “Well,” says Rickards, “central banks do need capital. She may be right in the short term that it doesn’t really matter. Most people don’t even know what the Federal Reserve is let alone the inside accounting issues I described here. But in the next panic, it just might matter.” Rickards believes the next big panic is closer than many people think. In fact, he says, it could begin as soon as tomorrow. Our Publisher Doug Hill just conducted an interview with Rickards on this subject. It’s Jim’s LAST warning before tomorrow, June 15. At the video link below, you’ll see Rickards talk about: → What he sees coming → How bad it could get → And how to protect yourself and your loved ones [IMG 1]( [Click here to watch.]( Until tomorrow, [Chris Campbell] Chris Campbell For Altucher Confidential “The Situation Is Getting Worse By The Day” That’s what the President of the US Chamber of Commerce just said about the supply chain. If you thought the supply chain issues were over, think again… Things are about to get much, much worse. And everything from your local grocery store to your gas station could be impacted. That’s why I’m urging everyone I can to prepare now… [To see the #1 move to make before this problem gets any worse, click here now.]( Subsribe To My Podcast [The James Altucher Show]( [The James Altucher Website]( [Subscribe With YouTube]( [Subscribe On Messenger]( [Subscribe With iTunes]( [Connected on LinkedIn]( Add AltucherConfidential@email.threefounderspublishing.com to your address book: [Whitelist Us]( Join the conversation! Follow me on social media: [Facebook Group]( [Facebook]( [Twitter]( [Pinterest]( [Instagram]( [Three founders Publishing]( To end your Altucher Confidential e-mail subscription and associated external offers sent from Altucher Confidential, feel free to [click here](. If you are having trouble receiving your Altucher Confidential subscription, you can ensure its arrival in your mailbox by [whitelisting Altucher Confidential](. Altucher Confidential is committed to protecting and respecting your privacy. 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