it won't be rolled out -- or even mentioned -- until absolutely needed as the very last backstop of a new currency system. The Fed has another next-level-up "ace in the hole", in contrast to regular banks with regular balance sheets. Its ONLY major liability, those green paper "notes", can't be cashed in for anything on the asset side. They're just supposed to be modestly printed, kept within a Friedmanian percentage of annual increase. The only thing the Green FRNs can be traded in for is goods and services, and not at the Fed, but by American workers. Pretty amazing, to call that a "Liability" of the Fed! Oh, and that's also what backstops the Tsys, those American workers, via taxation payments to the IRS. So -- the first order fallback position when the monetary system starts to come unglued: more Treasuries, as Ip mentions, until, within months or years, the burden of eventual taxation is too-obviously stretched thin. Then, more green paper becomes the second line of defense, until it, too, loses some of its credible effect. (The effectiveness of each of these is calculated at various inflection points, where shifts into the next realm -- along with its attendant propaganda barrage -- are phased in.) Then, thirdly comes the hint at some form or percentage of gold backing, still not redeemable with the green paper. Then, greater and greater degrees of physical gold backing. Now, each of these will be trotted out and used to optimal effect, and