ECB explains why it can't go bankrupt. Can someone at the Fed please explains this to idiots here?

Interesting stuff's been coming out of Bloomberg of all places. Very much "in-paradigm" columns. (A breath of fresh air after years of that moron, Caroline Baum.)

Here's the footnote:

"Central banks are protected from insolvency due to their ability to create money and can therefore operate with negative equity."

By the way, this applies to sovereign, currency issuing governments, too, but don't expect the idiots in the mainstream (economics, media, Wall Street, corporate, policy or otherwise) to understand or admit this.

I don't know what the Fed would do in a negative equity situation simply because Congress might get on their case about not remitting profits. The ECB doesn't have that problem. It is truly independent from the idiots in Brussels.

Read the article here.