Make No Mistake... the Fed is Preparing For NUCLEAR Levels of QE

Since the late ‘90s, the US has increasingly financed its “growth” with debt.

As a result, the amount of debt in the system, relative to GDP, has skyrocketed.

Total Debt Securities Vs. GDP

The notion that we can “grow our way” out of this is ridiculous. The US Government has brought in RECORD amount of taxes since 2014… and the Government has STILL runs $400+ Billion deficits Every. Single. Year.

US Deficit in Billions $USD

Put another way, the US Government is spending an extra $400 billion every year DESPITE it bringing in a record amount of cash.

Now, the Fed claims it’s taking advantage of the current economic stability to tighten policy, but this is a joke. The Fed balance sheet has dropped only $80 billion in TWO YEARS.

And the second the credit cycle turns, the Fed will face a choice… let the system reset (as it almost did in 2008) or monetize everything.

Which option to you think it will go for?

With that in mind, there is only one course forward: printing more and more money. The outcome of this will be inflation… and not the good kind.

On that note, we are putting together an Executive Summary outlining all of these issues as well as what’s in terms of Fed Policy when The Everything Bubble bursts.

It will be available exclusively to our clients. If you’d like to have a copy delivered to your inbox when it’s completed, you can join the wait-list here:

https://phoenixcapitalmarketing.com/TEB.html

Best Regards

Graham Summers

Chief Market Strategist

Phoenix Capital Research

 

Comments

VWAndy Jan 9, 2018 10:30 AM

 They need cryptocoins because there aint enough trees for the amounts of printing they would like to do. Its a crackhead thing. Same as the trillion dollar coin idea.

 

William Dorritt Moe-Monay Jan 9, 2018 11:42 AM

or......let the banks and their owners fail spectacularly.

Temporarily nationalize the banks after zeroing out the owners and clawing back their bonus and other stolen assets.

At the same time, save the middle class from extinction, have local judges do local mortgage knock downs to the real value of the houses.

In reply to by Moe-Monay

East Indian VWAndy Jan 9, 2018 11:33 AM

 Same as the trillion dollar coin idea

 

Trillion dollar is less crackhead than the present idea. Right now the Fed is conjuring money out of thin air and you are paying interest for it. $1T coin will at least save you the interest on the thin-air money.

In reply to by VWAndy

LawsofPhysics Jan 9, 2018 11:31 AM

Hey Graham, every government on the fucking planet has financed growth with DEBT!!!!!

Better learn a trabable skill you useless fucking paper-pushing douchebag.

To Hell In A H… Jan 9, 2018 11:34 AM

I called this years ago. Logic dictates if you believe our financial system and our FIAT money is a Ponzi scheme(which it is), and if you understand the origins of the crash, our bogus financial instruments especially derivatives, then it is impossible to taper the Q.E. Impossible.

Tapering Q.E is about as believable as man can live without water and food for 10 weeks. Another direct consequence of Q.E has been the speeding up and exposing our Pension scheme as unsustainable and guess what? Just another Ponzi scheme. 

William Dorritt Jan 9, 2018 11:39 AM

WESTERN GOVT FORMULA FOR BALANCING THE BOOKS

Bring in millions of low IQ, low skill,  low education, disease ridden immigrants legal and illegal and put them on welfare and subsidize them to breed like flies, and exempt them from paying most taxes.

 

As long as they vote Socialist.