RE: Why Isn't the Fed a Burnt Pile of Rubble?
The run happens when that money, that is supposed to be kept safe, is not really there, it is somewhere else. It is a giant shell game, where you are the mark.
The run happens because the bank is over leveraged with monetized debt based assets that drastically declined in value as was the case for Silicon Valley Bank after their MBS and 10 year T bonds collapsed. Almost no bank is even keeping fractional reserves post 2020 and its highly unlikely to come back now that they are introducing stable coins.
Now, the Fed is not supposed to actually buy anything. That is why they have their bestest friend, Black Rock, buy everything. And their bud, Billy Gatez (a very poor person) buy up lots of farmland.The FED actually owns over $2 trillion in MBS right now. I agree with your larger point that fiat money is only as good so long as people keep believing in the promise that USD is a good store of value for their labor and investments. Once people lose faith in that promise we'll see a rapid collapse.