In Essence, the FED is Bankrupt

The Fed’s debts are greater than its assets. In this regard, the Fed’s true financial condition is not much different from many of the large banks around the world when eliminating the accounting gimmicks that enable banks to sidestep the true market value of the assets they hold.

These banks keep their doors open for business because they have sufficient liquid assets to provide the illusion of solvency, but they are essentially the ‘walking dead.’ In essence, the Fed is bankrupt. What’s worse, they will become even more bankrupt if interest rates continue to rise because the true market price of any fixed rate assets they own - like bonds and mortgages - will decline as interest rates rise.

- Source, James Turk via King World News:

http://kingworldnews.com/kingworldnews/KWN_DailyWeb/Entries/2014/3/17_This_Is_Why_The_World_Is_Headed_For_A_Frightening_Implosion.html