👉Fed is Trapped as QE Assets Hit $7.6 Trillion & Wall Street Wants More QE

👉Fed is Trapped as QE Assets Hit $7.6 Trillion & Wall Street Wants More QE https://youtu.be/klbo4AXXqnI Fed is Trapped as QE Assets Hit $7.6 Trillion and Wall Street wants More 1.9 trillion$ is only the amount from the current proposed stimulus bill. As a result, the deficit will balloon to eye-popping amounts. The U.S. national debt will swell to nearly $30 trillion. The $1.9 trillion spending package will grow the U.S. budget deficit to $4.2 trillion in 2021 and put the government on a path to spend more money in one year than the previous 200+ years. Biden and company are set to borrow more money over the next 12 months than the U.S. government borrowed to finance the Revolutionary War, the Civil War, World War I, World War II, and the Cold War,” Stephen Moore, former economic adviser to President Trump, wrote in his Committee to Unleash Prosperity newsletter. It is estimated that the current deficit ( without the 1.9trillion ) will be 2.3 trillion, so the total for 2021 will be 4.2 trillion $. The question that I consistently ask is, who is going to buy this debt at current interest rates when any buyer is guaranteed to lose money in real terms! Only one, and that is the FED. And when this happens, we will be on a slippery slope to a currency collapse. Bonds are signaling inflation. The Fed continued to add to its heap of Treasury securities at a steady rate, thereby monetizing that portion of the US government debt. It also added to its pile of Mortgage-Backed Securities (MBS). In total, the assets on the Fed’s weekly balance sheet through Wednesday, February 24, rose to a new record of $7.59 trillion. This is a mind-boggling amount of QE designed to repress long-term Treasury yields and mortgage rates – which have nevertheless been surging and sending the crybabies on Wall Street squealing for more QE. The Federal Reserve has created trillions of dollars out of thin air and injected it into the economy over the last year. As a result, the money supply has grown at a record pace. This is, by definition, inflation. Signs that this inflation is finding its way into prices are all around us. Starting last March, the US Treasury borrowed something like $4 trillion by issuing $4 trillion in Treasury securities. It spent some of the proceeds on stimulus programs, bailouts, and regular government deficits, and it parked the remaining cash in its checking account. The Fed is the bank of the US government, so that’s where the cash sat. The US Treasury General Account is a liability on the Fed’s balance sheet. The government has now decided to spend down this balance in its checking account and bring it back to near-normal levels. “Normal” used to be in the $100 billion to $350 billion range. In other words, the government is going to spend this cash it had borrowed a year earlier. I see the fed as a cartoon riding a train headed straight for a brick wall while painting a fake tunnel up ahead. Yellen and Powell claim they know how to stop hyperinflation from occurring, but I have a sneaking suspicion they aren’t being straight with us on a few issues. Welcome back to The Atlantis Report. You are here for your daily dose of the truth, the whole truth, and nothing but the truth. Please take a second to hit the like button, hit the subscribe button, and don't forget to also hit the notification bell. My guess is if the US Dollar is devalued, then the “nominal” prices of real things like real estate will go up when priced in US Dollar. That does not mean the value of the real estate will go up. It just merely means you will need a bigger wheelbarrow full of paper money (worth less) to buy the same house! I do know the US government can not afford to let interest rates rise because they are the biggest debtor. How they go about keeping interest rates low or even drive them negative remains to be seen. For sure, we will pay the price for all of this because they sure aren’t planning on paying! The biggest winner of debt money is government. Government spending in the United States has steadily increased from seven percent of GDP in 1902 to almost 40 percent today. Back in 1900, government spending was a modest affair. Government pensions were almost non-existent, health care was 0.26 percent of GDP, education was 1.1 percent of GDP, the defense was 1.6 percent of GDP, and welfare was 0.11 percent of GDP. Over a century later, in 2018, the five major functions dominate government spending in the United States. Government pensions: 6.70% GDP; health care: 7.77% GDP; education 5.32% GDP; defense: 4.20% GDP; welfare (other than health care): 2.16% GDP. That is 26 percent of GDP out of the total government spending of 34.9 percent GDP. Back in 1900, all government programs other than pensions, health care, education, defense, and welfare amounted to 4.6 percent of GDP. Today, police, fire, infrastructure, and all the rest take 9.1 percent of GDP. The defense establishment that sent the White Fleet around the world before World War I was tiny compared to the defense establishment of mid-century. It was about 1.25 percent of GDP. Leonard E. Read, the founder of the Foundation for Economic Education in 1946, used to say that Americans live in a country in which various levels of government extract over 40% of their productivity, yet they call this system freedom. “They don’t know the difference between freedom and coercion.” The Fed started in 1913 or so, with the balance sheet accelerating through World War 1 and stabilizing from 1917-1933. The Great Depression led only to a gentle, steady ramp upward through the end of WW2. There was stability in the Fed balance sheet from ~1945-1960 except for a tiny ripple associated with the Korean Conflict. Then in 1960, a second steady ramp upward began, which lasted for nearly 50 years, through 2008. Amazingly enough, there were no ginormous Fed-financed bailouts during the entire Great Depression, World War 2, or all the oil/inflation crises of the 1970s. Something did, in fact, change recently, in August 2008, and not for the better!! I think history will show that the recent “printing up credit to deal with adverse economic events” is a huge mistake. For a while now, I have been wondering why Joe was putting Yellen into Treasury. Clearly, Joe and Janet are up to no good. That is a given! I think it is becoming more clear what Janet is planning to do. At the end of March, the Treasury is planning on reducing its balance sheet at the Fed to less than $1 trillion from over $1.5 trillion. This means about $800 billion or so of short-term US T-bills will not be renewed and will be allowed to expire. What this means is whoever currently owns these T-Bills will not be able to safely park money at the Fed. They will have to find another home to park their unloved cash. Probably they will try depositing this cash with commercial banks. The commercial banks will probably not want the cash. At the end of March, special commercial bank exemptions for parking excess reserves at the Fed will supposedly end. The likely upshot of this is that the commercial banks may refuse these deposits to avoid getting into trouble with their capitalization ratios with respect to their excess reserves held at the Fed. I think the commercial banks got into trouble with these ratios during the repo crisis a while back. They got the temporary special ratio exemption during the repo crisis. Right now, only Britain and the US do not have Negative Interest Rates, NIRP. The bank of England has said it expects NIRP later this year. Clearly, Janet wants NIRP too, but she has a problem in that all commodities are priced in US dollars. She can not allow the Fed’s interest rate to nominally go NIRP because it would instantly put the entire commodity market into “backwardation”! She does not want to give this unloved cash a new home in the commodity market! She is trying to trap this money and force it into riskier financial things. Of course, the owners of this cash want safety and no third-party risks! I told you she is likely up to no good! Since the Fed can’t officially go NIRP, her moves at Treasury are designed to have the commercial banks impose negative interest rates on large deposits of US Dollar that can’t find a home in a suddenly reduced world of US T-Bills! Naturally, foreign holders of the US Dollar will sell US Dollar to try and find a safe harbor elsewhere, reducing the value of the US Dollar, another of her objectives! I am still not sure exactly what the recent rise in US interest rates plays in this scenario. Maybe the markets have already sniffed Joe and Janet out, and we peons are only finding out after the fact. Only time will tell if this is her plan. If it is, then the commercial banks are really going to have more to be pissed off about! It is just unbelievable how reckless central banks and governments have become. Parts of the economy are already overheating, but $1.9T stimulus is coming (most of it has nothing to do with the pandemic), and central banks worldwide are still pedal to the metal while real rates are negative while having bubbles in the stock market, housing, junk bonds, crypto and well, basically everything. Keeping the treasury bills’ interest rates below the real inflation rate, as they are now, can only be done by monetizing more and more of the national debt as it has to be rolled over. In other words, the “Fed” has to buy enough of it that its rates remain low. Otherwise, investors may demand higher rates as they start to notice the inflation ongoing, e.g., from the (not federally owned) “Federal” Reserve banksters' cartel’s bailout of the banksters by purchasing their $2 TRILLION in MBS in 2019-2020. If they notice it, and Shadowstats’s Alternate Inflation Charts show the real annual inflation rate at 9% to 7.5% currently, and hyperinflation then begins from all the money printing (see what happened to Zimbabwe and the Weimar Republic). The Fed cannot monetize all of the debt. If it tries also, investors may demand even higher interest rates for all other bonds, so hyperinflation may kick off the corporate collapse prematurely as huge numbers of corporations cannot pay the interest rates demanded to roll over their gigantic debts. This was The Atlantis Report. Please Like. Share. Leave me a comment. Subscribe. And please take some time to subscribe to my backup channels; I do upload videos there too. You'll find the links in the description box. You will also find a PayPal link if you want to make a donation. Thank you wholeheartedly to all those of you who have already donated. Stay safe and healthy friends! The Financial Armageddon Economic Collapse Blog tracks trends and forecasts , futurists , visionaries , free investigative journalists , researchers , Whistelblowers , truthers and many more