The Fed Is Insolvent and So Are the Banks: Rickards

The ongoing banking crisis, worsened by fluctuating asset valuations and high-interest rates, has left many banks potentially insolvent. This is particularly true when assets are evaluated on a mark-to-market basis, as current higher rates significantly devalue the bonds many banks hold. The Federal Reserve, using historic cost accounting, masks its own technical insolvency, notably not reflecting the true value of gold.Investors should be wary of this precarious situation, as it could escalate into a more severe crisis. In this context, gold stands out as a more stable investment option amidst the potential for further banking system turmoil.