1. The Fed cannot be insolvent for the very reason it exists; to print money. How can one be insolvent if you create currency? Simply Ctrl+P and pay back

2. Deflation is required as part of the natural boom and bust cycle. Household debt in the US is extreme and has to be either (a) paid back or (b) written off. These 2 options will decrease the money supply resulting in deflation. US private household debt totals $42 trillion... mainly to a generation heading on to retirement. Paying back there debts is going to be number 1 priority. The force of this will far outweigh QE measures. Since 2010 Fed has printed $2 trillion to try and artificially stimulate growth. People don't make decisions based on economic theory like the Fed does. Time to bring in the helicopters Ben