federal reserve thread series part 2 of 4  this thread summarizes the second of a series of four recent separate economics papers examining the current insolvency of the 12 regional federal reserve franchises (aka fed bank/s itt). this paper uses ordinary least squares (ols) linear regression analysis to examine how shocks from three variables: federal debt, the federal reserve assets and/or real gdp affect cpi (chosen to represent prices and inflation).  mr. websters paper describes how quickly prices respond to shocks in the above three variables and how quickly a new (often higher) price equilibrium is found and how the rest of the system converges to support this new price equilibrium. this paper seeks to measure how quickly the now-insolvent fed banks enable or accommodate the deficit-ridden us government by purchasing securities and how this accommodation then contributes to inflation and price hikes, as measured by cpi.  the fed banks accommodative qe purchases of excess us marketable debt make room for even more new debt to be issued and sold. this is called fed accommodation and is now becoming a debt death spiral, which is when a nation (or corporation) has to issue new debt to raise the funds to pay the interest on its old debt. unfortunately, this new constant debt issuance floods the economy with new federal reserve notes, mostly enriching the proximal investment class and exacerbating inflation for the rest of us. these qe policies have also led to the insolvency of the federal reserve today, massive capital losses and full balance sheets with no room for the fed regional banks to move, further handicapping the debt-based central banking system. the myth of fed political independence thomas j. webster, professor emeritus, lubin school of business, pace university, new york, ny    .cfm?abstract_id=4916388
United States