Not really; the author is precise about that being a technicality based on the ratio of assets to liabilities on the books.
The question he explores in quite some depth is how the central banks can get back into balance, and preferably excess assets rather than excess liabilities.

Small commercial enterprises are technically insolvent temporarily when payments due are greater than expected receipts at that particular moment, but the discrepancies are regularly resolved through the play-out of the actual cash flow through the outgo/income cycle.
[that’s a rough statement of my rudimentary knowledge of business economics]

If I understand correctly, the article is about the same kind of thing on a bigger scale, including assets other than just cash-on-hand as in my example.
I found it very interesting.

Behind the battle to convince everyone that price inflation is not a lasting problem is the necessity to keep interest rates and bond yields suppressed. In the past, the interest rate cycle was entirely due to the expansion and contraction of commercial bank credit. But that was before central banks built up bond portfolios through quantitative easing.

Not only does this expose them to the interest rate cycle, but they have not increased their capital base to keep pace with the expansion of their balance sheets. Hence the problem with rising interest rates and bond yields: on a mark-to-market basis the major central banks are insolvent with balance sheet liabilities now exceeding their assets.

This article finds this condition true of the Bank of England, the Federal Reserve Board, the Bank of Japan, and the entire euro system. Other central banks are not examined.

Doubtless this will be resolved in the short term by governments investing more equity in their central banks. But there is one major exception, which is the ECB and the euro system, with all its shareholders sinking into negative equity with the only minor exceptions of the Irish, Maltese, and Slovenian central banks.

Consequently, with the interconnectedness of the global financial system, the ability of central banks to guarantee the survival of their own commercial banking networks has almost certainly ended due to a collapse of the euro system. The precedent is the failure of a prototype central bank in 1720, John Law’s Banque Royale. That experience allows us to see how this is likely to play out.

This is a nonsense statement.

IOW, elites getting bit on their backsides by their sheer stupidity. And cupidity…

I do. And thanks.

It’s no paradise but it’s not half as bad as it’s made out to be. Virtually zero violent crime, no Drag Queen Story Hours for kindergarten kids. And there’s only one thing I could say which would get me cancelled. Pretty decent odds.

Glass half full. Although nothing is certain in life. TW Strait fun times could conceivably harsh my mellow.

Best wishes to you too!

It seems you live in Hong Kong. I wish you well and hope you will always be so.

neo (and also charles):

“I think in most cases their main motivation is to not lose their jobs.”

It is a strong motivation indeed. (It’s the rationale I give for Jefferson not freeing his slaves). I wonder if any of the policed have followed the practices of a good bureaucrat and did the minimum – genteel shoves or small pushes instead of strong, hard ones (as with what happened to the Rebel News reporter). Perhaps many police do this and aren’t on tape because precisely nothing is happening and thus it’s not video worthy.

What’s happening in Canada has brought about a deeper appreciation of the American Revolution. The Canadian truckers remind me of how the American colonists must have felt when they were still loyal to the British Crown. The leaders (the “elite”) in America, in order to strengthen their case and their tactics set up an infrastructure (such as the Committees of Correspondence). They also debated and argued which helped to shape and sharpen the principles involved. I haven’t read of anything similar in Canada, especially of the latter. Perhaps it’s all understood by saying the “Charter of RIghts”, but I think there needs to be a strong affirmation and confirmation of what it means in this situation. “Freedom” is such a vague concept by itself. Thomas Jefferson, where are you?

The founding fathers (getting back to not losing your job) were extraordinary men because unlike the police I’ve been thinking of, they believed in and lived by their principles. One only has to read this last line from the Declaration of Independence:

“And for the support of this Declaration, with a firm reliance on the protection of divine Providence, we mutually pledge to each other our Lives, our Fortunes and our sacred Honor.”

Our sacred Honor.

No, it may have been the Ottawa cavalry called in to rescue Brandeau.

https://redstate.com/nick-arama/2022/02/20/heres-more-on-the-ottawa-freedom-convoy-woman-run-over-by-police-with-their-horses-n525440

Obviously there are other avenues for the Mainland Elite and their children to take up residence in HK for business and other reasons. Generally they don’t want to live here permanently though as if you come from the right kind of background and have a Beijing or Shanghai residence permit, you’re almost certainly better off there in terms of living the good life.

@Charles: Having said all that, I can assure you that there were plenty of HK Born police and even some remnant pre-97 recruit Western senior officers who went at quelling the protests with more than just gusto. It’s called Esprit de Corps, you know.

And there will be ever increasingly more of it. Do you think a policexirson in the West today can be promoted without undergoing all kinds of pure straight out woke indoctrination? Guess who invented on the job political indoctrination? 🙂

The HKP are not ‘hired from Mainland China.’

But they are increasingly recruited from young mainland immigrant HK residents. Men (none of this PC crap from me) who came to HK as boys who had already had 6 or 7 years of Mainland kindergarten and Primary School. You don’t need to be a Jesuit to own the child if you have him until ~10 or 12. Plus of course they grow up in their mainlander parents’ households in HK watching plenty of mainland media and many of them have to learn Cantonese on the fly just to get by –> bit more alienation and bile added to the mix. When they join the force, they’re all set to rock and roll.

Ever since the 1984 Joint Declaration on the return of HK (1997) China has had the right to send 150 immigrants per *day* 365 days per year to HK. No vetting permitted by the HK Side. So 150 every day since the mid 1980s. The only time this has stopped has been due to Covid restrictions. Think on the numbers.

The Chinese understand and have always understood Great Replacements even if ConservaCucks refuse to: see Tibet and Xinjiang. They act with great finesse. A good deal of the new arrivals are Fujianese — deliberately chosen because tend to be one of the most hyper-patriotic groups.

The local people here have had to live for nearly 40 years now with new strange faces arriving daily and magically swanning into public housing in one of the most expensive real estate markets on the planets while locals born and bred here are reduced to living some of them in ‘Cage Homes’. They get to see the physiognomies of their beat policemen become recognisably more alien as time goes by… and a thousand other little signs which all add up to the message: ‘You People are History.’ They also get to watch their ‘Elites’ sell out in real time and prosper by doing so.. Never a pretty or encouraging sight.

This Great Replacement was one of *the* major driving factors for what were sold to the West by lying Western media as pro-Democracy protests. There was of course a strong element of anti-local Quisling officials to the protests but the major underlying cause of anger and despair is this Great Replacement. Of which you have heard nothing because it is being done to you, too.

The WEf revelations, if they ever manage to get out to a wider audience, will likely be huge.
(Looks like just one more “thing”—or coup?—to cover up massively and spin about hysterically…)
“WEF ‘Infiltration’: Rogan Redpilled, Canadian MP Cut Off For Asking – Accused Of Spreading “Disinformation”
https://www.zerohedge.com/covid-19/wef-infiltration-rogan-redpilled-canadian-mp-cut-asking-accused-spreading-disinformation
Key grafs:
‘…Other [than Trudeau,] notable Young Global Leaders include: New Zealand Prime Minister Jacinda “this will never end” Ardern, French President Emmanuel Macron, and other high ranking officials from Germany, Finland, Greece, the Netherlands and Denmark. It might even explain Pete Buttigieg’s odd success-to-competence ratio….
‘Three years after Schwab bragged about having ‘penetrated cabinets’ of world governments, he wrote in a June 2020 publication titled Now is the time for a ‘great reset’ how the pandemic presented a “rare but narrow window of opportunity to reflect, reimagine, and reset our world to create a healthier, more equitable, and more prosperous future.”….’