Australia central bank is insolvent

Surprisingly little coverage of recent financial news out of Australia. The Australia central bank has technically failed.

Australia's Central Bank Says It Is Bust

Australia’s central bank has equity wiped out 

Reserve Bank of Australia reports loss of $37bn 

hmmm. so the lender of last resort is itself insolvent. what to make of all this.

ah no worries mate we're assured

• bank of Australia losses are apparently backed by the people of Australia
• the bank of Australia is apparently free to just print money to meet its obligations
• if they hold the bonds to maturity, as they say they intend to, and the borrowers make good (by rolling over into newly printed bonds on payment day no doubt), then it's just an unrealized accounting loss
  

I'm sure the taxpayers of Australia will be thrilled to hear that first point.

For the second point, I'm shocked at such a flip attitude toward printing money. For years we've been assured by such as the Bank of Canada that there's no printing to see here. The money is all "backed" by gold or "other" assets AAA bonds (i.e. the money is backed by itself, money). But now all of that is weakened, thrown into some doubt.