Yeah, Chase just bought my mortgage from Guaranteed Rate inc. Good thing I’m fat on equity and locked in a 15 year death(that’s what mortgage translates to) pledge @ 1.875 apr. last year.
Since the primary assets being purchased with the "printed" money are treasuries, what happens if the US Gov't. decides to default on just the Federal Reserve and not other creditors? Or would the current budget deficits make this a short-lived move?
I am going to keep repeating, do not assume that QT is a lie. The last few months of TREAST clearly shows that the Fed has virtually stopped purchasing assets.
I don't understand how people can't see through this & realize that there's NO WAY this will help inflation in any way EXCEPT by making things worse & harder for people to survive! And ONLY benefits the Fed Reserve by continuing to create a MUCH BIGGER MONSTER!!!
Yeah, I know. It's just so apparent & still BLOWS MY MIND that we have that many STUP I D people that can't even think or use any common sense. They've been trained for so long, people don't even see it. Such as Covid which was used to start & require certain actions on everyone,
It felt like a fire drill or tornado such as we had in school to teach us how to react in certain situations.
And also started social distancing, keeping us apart from each other. It is NEVER GOOD WHEN ANYTHING TRIES TO CUT YOU OFF FROM OTHERS.... I remember thinking that's what is was about & wondered if anyone else knew. react eoplereact& irritating!!! It's so irritating ....
So basically the fed is letting the rates rise a bit to give the illusion of a hawkish fed, while pumping money into securities and others like never before. The Decepticons never quit do they?
It may also be that the fed is buying student debt in some form or fashion not fully understood just yet. Either way it is unlikely that the feds printing press has been retired.
That is assuming that everything on the Feds balance sheet is bonds. Lets assume the Fed holds QQQ, who will buy it? With the current 20% discount, I'm sure there are some buyers.
I am a follower and an admirer of your work and it is comforting to have found a like minded individual. I have a question: Would it be worth wild to take into consideration the national bankruptcy rate to get a better picture of the economy as it relates to the demand for new debt creation and the money supply as all debts discharged in bankruptcy court essential severs any repayment obligations. It seem if the bankruptcy rate increases the need for new debt would decrease to keep the house of cards from falling?
True only if the Fed doesn't inflate. In case that you just mentioned, the more companies and individuals go bankrupt, the less the demand for new debt.
However, the Fed has been there buying those debt it has been creating. The fed has "indefinite" demand of debt.
After I followed your channel, the first thing I get up everyday is watching your updated videos and it become my habit already.
I am so appreciate that you are trying your best to drag us back from propaganda but I find the propaganda is so strong and everywhere is talking about QT.
One thing keeps rattling me…Can I ask you for more details…
In US history, there were 7 times of reducing balance sheet, what is the biggest difference u think will make FED not reduce balance sheet this time?
If next Fed keeps inflating, when or under what circumstances will Fed QT?
In the meantime, the S&P 500 Index is down (-14.7%) year-to-date (YTD). This performance is the worst start since 1939 when the Index was down (-17.3%) in the first four months. The year 1932 was the worst at (-28.2%). (Yep…The Great Depression era)
This is what we need the fed to do. Suppose everyone's wages double in diluted dollar term . Every price doubles ,. Our debt halves effectively.. so 20 trillions of debt effectively becomes 10 trillions without moving a finger ... This fed is great. That's free 10 trillions for the country
I think The Eurocrats and Central Banks are praying for a War because their Banking System is Failing Rapidly. These Fools in Washington are going to drag us into it with them. Wars cover up many Sins, Corruption, and Financial Malpractice ;-)
Through whom are they buying these assets with their counterfeit dollars. Is this the same way that the Chinese economy "expanded" so profoundly during the past 20 years? i.e. with the printing/electronic creation of domestic yuan through the mechanism of illusion. Then depositing this illusory wealth into each individuals' digital account while simultaneously buying all tangible resources with illusory digital currencies?
Exactly what assets are they buying? I’ve never figured that out.
Thanks
Treasuries, mortgage backed securities- among other things.
Yeah, Chase just bought my mortgage from Guaranteed Rate inc. Good thing I’m fat on equity and locked in a 15 year death(that’s what mortgage translates to) pledge @ 1.875 apr. last year.
Since the primary assets being purchased with the "printed" money are treasuries, what happens if the US Gov't. decides to default on just the Federal Reserve and not other creditors? Or would the current budget deficits make this a short-lived move?
Yes, they are still buying.
Look at that last few months of the chart, it is going flat. https://fred.stlouisfed.org/graph/?g=OGJd
I am going to keep repeating, do not assume that QT is a lie. The last few months of TREAST clearly shows that the Fed has virtually stopped purchasing assets.
I don't understand how people can't see through this & realize that there's NO WAY this will help inflation in any way EXCEPT by making things worse & harder for people to survive! And ONLY benefits the Fed Reserve by continuing to create a MUCH BIGGER MONSTER!!!
Because they are brainwashed by design compliments of msm and constant lies from?
Yeah, I know. It's just so apparent & still BLOWS MY MIND that we have that many STUP I D people that can't even think or use any common sense. They've been trained for so long, people don't even see it. Such as Covid which was used to start & require certain actions on everyone,
It felt like a fire drill or tornado such as we had in school to teach us how to react in certain situations.
And also started social distancing, keeping us apart from each other. It is NEVER GOOD WHEN ANYTHING TRIES TO CUT YOU OFF FROM OTHERS.... I remember thinking that's what is was about & wondered if anyone else knew. react eoplereact& irritating!!! It's so irritating ....
You are a breath of fresh air Elizabeth, sad so many can't see the truth.. Good luck and God bless...
So basically the fed is letting the rates rise a bit to give the illusion of a hawkish fed, while pumping money into securities and others like never before. The Decepticons never quit do they?
The current annualized rate of growth of the Feds balance sheet is near ZERO % (https://fred.stlouisfed.org/graph/?g=OKX0). Up next, NEGATIVE.
Assuming that the Fed is lying about QT is a dangerous game.
It may also be that the fed is buying student debt in some form or fashion not fully understood just yet. Either way it is unlikely that the feds printing press has been retired.
Who in their right mind would buy any of the fed's balance sheet particularly when the rates are now higher?
That is assuming that everything on the Feds balance sheet is bonds. Lets assume the Fed holds QQQ, who will buy it? With the current 20% discount, I'm sure there are some buyers.
Thanks for the interesting chart, maybe Greg can explain it.
Replace the old out of date weapons we are dumping on Ukraine in current prices turn QT to QE.
Yep
God Bless and Protect you for telling the Truth!!!
GREG, You are right on ! Aloha from Hawaii, Thank you Ian
I am a follower and an admirer of your work and it is comforting to have found a like minded individual. I have a question: Would it be worth wild to take into consideration the national bankruptcy rate to get a better picture of the economy as it relates to the demand for new debt creation and the money supply as all debts discharged in bankruptcy court essential severs any repayment obligations. It seem if the bankruptcy rate increases the need for new debt would decrease to keep the house of cards from falling?
True only if the Fed doesn't inflate. In case that you just mentioned, the more companies and individuals go bankrupt, the less the demand for new debt.
However, the Fed has been there buying those debt it has been creating. The fed has "indefinite" demand of debt.
Hi grey,
After I followed your channel, the first thing I get up everyday is watching your updated videos and it become my habit already.
I am so appreciate that you are trying your best to drag us back from propaganda but I find the propaganda is so strong and everywhere is talking about QT.
One thing keeps rattling me…Can I ask you for more details…
In US history, there were 7 times of reducing balance sheet, what is the biggest difference u think will make FED not reduce balance sheet this time?
If next Fed keeps inflating, when or under what circumstances will Fed QT?
In the meantime, the S&P 500 Index is down (-14.7%) year-to-date (YTD). This performance is the worst start since 1939 when the Index was down (-17.3%) in the first four months. The year 1932 was the worst at (-28.2%). (Yep…The Great Depression era)
https://www.google.com/amp/s/www.wsj.com/amp/articles/as-inflation-eases-public-debt-load-economists-sound-cautionary-note-11651397401
This is what we need the fed to do. Suppose everyone's wages double in diluted dollar term . Every price doubles ,. Our debt halves effectively.. so 20 trillions of debt effectively becomes 10 trillions without moving a finger ... This fed is great. That's free 10 trillions for the country
WSJ should let friends read for free.
Plus Higher Wages bring in More Taxes for the Government. Its a satanic Marriage made in hell and we pay the bill for the Wedding :-D
Or we just add a zero to all of of our fed notes and live high on the hog!
Off with their heads! How can you be powerful if you don't have a head?
As Bette Davis said in All About Eve..."Hang on, it's gonna be a bumpy ride"!!
Thanks Greg!
Excellent analysis Gregory thxu
I think The Eurocrats and Central Banks are praying for a War because their Banking System is Failing Rapidly. These Fools in Washington are going to drag us into it with them. Wars cover up many Sins, Corruption, and Financial Malpractice ;-)
Through whom are they buying these assets with their counterfeit dollars. Is this the same way that the Chinese economy "expanded" so profoundly during the past 20 years? i.e. with the printing/electronic creation of domestic yuan through the mechanism of illusion. Then depositing this illusory wealth into each individuals' digital account while simultaneously buying all tangible resources with illusory digital currencies?
Still on track