FED Balance Sheet

 Things just get worse by the day. The FED has a Treasury bloated BS along with a bloat of old Mortgage Securities left over from the last bust. 

Below is the breakout by percent as of yesterday.

All elements are below but they are dominated by Treasuries

One can see this below. If they had passed the recent funding it would have exploded even more.

In simple terms here is the problem and risks.

1. The debt has interest. On near $6 trillion and interests at say 3% that is a $180 billion a year! 

2. Now if the FED raises interest to combat inflation to say 6% then we get to $360 billion per year!

3. But that means raising more money to pay for it and it becomes a death spiral.

4. Now add the China problem of taking the dollar out of play. That eliminates many buyers, raises the rates, and puts massive pressure on the US economy.

Now I am just a dumb engineer but I understand systems and stability quite well. This is a grossly unstable system.