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 Tue, 01/09/2018 - 10:30 Permalink

 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.

 

LawsofPhysics Tue, 01/09/2018 - 11:31 Permalink

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… Tue, 01/09/2018 - 11:34 Permalink

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 Tue, 01/09/2018 - 11:39 Permalink

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.

 

nsurf9 William Dorritt Tue, 01/09/2018 - 12:43 Permalink

And, so all those low-wage immigrants ensure that wage acceleration is fully depressed so the private, alien/non-citizen owned Not-Federal Rothschild Reserve Bank can justify making all those below 1% loans to their friends and inflate everything on earth to infinity - like their money printing.

PS:  Let me know when your introductory credit cards rate is permanently below 1%. 

In reply to by William Dorritt

rf80412 Tue, 01/09/2018 - 12:05 Permalink

Trump supposedly hates the Manhattan elite and their incestuous, self-congratulatory scene, so maybe he'll do the right thing and let it all burn down. Trillions of dollars in phantom wealth based on exotic financial instruments go poof.  Global contagion that takes London, Frankfurt, etc. down with Wall Street.

As long as you protect Main Street, there'd be no political downside.  Safeguard people's savings, keep them in their homes, short-term commercial lending to keep small businesses open, etc.

taketheredpill Tue, 01/09/2018 - 15:27 Permalink

"let the system reset (as it almost did in 2008) or monetize everything."

Option 1) "Well, we tried.  God Bless and Good Night"

Option 2) Helicopter Money.  Massive money printing and cheques sent directly to consumers.  Bye bye Treasury market! So long US Dollar!!

 

Remember the scene in Platoon where the CO calls an airstrike on his own position?

 

JailBanksters Tue, 01/09/2018 - 17:27 Permalink

Too bad ol yellen is going to miss her chance to play Oprah

And you get a Trillion, you get a Trillion and you get a Trillion .... Everybody gets a Trilliooooooon, well if your an AshkeNazi Jew and a Banker and working in America.

 

Gold Dog Tue, 01/09/2018 - 17:56 Permalink

This guy has been Chicken Little since the S&P was at 700. It was load up on puts then, no telling what it is now.

As they used to print on their tickets at the CBOT.....

 

Hey Asshole! Turn the card over. i.e. Make your sell a buy and versa vice is vice versa vice versa.

RichardParker Tue, 01/09/2018 - 18:09 Permalink

let the system reset (as it almost did in 2008) or monetize everything.

Politicians have a track record of enacting/proposing expedient "solutions" to the crises they facilitate 99.9% of the time.  Solutions, that "accidentally" fuck the plebes even worse later on.

Coincidentally, these same solutions always seem to enrich CONgress, the lobbies that donate to them, and the elites.

Short term to medium term; long wheel barrows.

Very long term, long pitchforks.  

MoreFreedom Tue, 01/09/2018 - 21:16 Permalink

On the other hand, the establishment hates Trump so much, they might let it blow up on his watch to blame it on him and get rid of him.  That financial reset will help them continue their theft via government force after he's gone.