...The ownership capital of the US Federal Reserve in relation to the value on the Federal Reserve’s balance sheet is just 1.3 per cent. And this symbolic capital is not represented by gold or anything else of actual value, but by electronic records. It is clichéd financial black magic. From the point of view of the capital adequacy ratios developed by the Bank for International Settlements (BIS) for ordinary (commercial) banks (Basel II, Basel III), the US Federal Reserve System is completely bankrupt...
D.Sc. (Economics), Economist and the chairman of the S.F. Sharapov Russian Economic Society