Saturday, February 27, 2021

👉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 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

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“Control oil and you control nations; control food and you control the people.” Henry Kissinger

once a standing army is established, in any country, the people lose their liberty.”
George Mason

“Military men are dumb, stupid animals to be used as pawns for foreign policy.”
Henry Kissinger

“If you are an ordinary person, then you can prepare yourself for war by moving to the countryside and building a farm, but you must take guns with you, as the hordes of starving will be roaming. Also, even though the elite will have their safe havens and specialist shelters, they must be just as careful during the war as the ordinary civilians, because their shelters can still be compromised.”
Henry Kissinger

"We don't let them have ideas. Why would we let them have guns?" Joseph Stalin

The people who cast the votes decide nothing. The people who count the votes decide everything.
Joseph Stalin

Governments keep a lot of secrets from their people . . .
Why aren't the people in return allowed to keep secrets
from the government?


“Some call it Communism, I call it Judaism.”

Rabbi Stephen Weiss

“Anti-Communism is Anti-Semitism.”
Jewish Voice, July - August 1941

Taxing People is Punishing Success

There's the rich, the poor, and the tax payers...also known as the middle class. Robert Kiyosaki

The Tax you pay is The Bill for Staying Stupid

Stefan Molyneux

“The modern banking system manufactures money out of nothing. The process is, perhaps, the most astounding piece of sleight of hand that was ever invented. Banks can in fact inflate, mint and un-mint the modern ledger-entry currency.” Major L L B Angus

The few who understand the system will either be so interested in its profits or so dependent on its favours that there will be no opposition from that class, while on the other hand, the great body of the people mentally incapable of comprehending the tremendous advantage that capital derives from the system will bear its burdens without complaint and perhaps without even suspecting that the system is inimical to their interests.
The Rothschild Bros

"Debts must be collected, bonds and mortgages must be foreclosed as rapidly as possible. When, through a process of law, the common people lose their homes they will become more docile and more easily governed through the influence of the strong arm of government, applied by a central power of wealth under control of leading financiers.

This truth is well known among our principal men now engaged in forming an imperialism of Capital to govern the world.

By dividing the voters through the political party system, we can get them to expend their energies in fighting over questions of no importance. Thus by discreet action we can secure for ourselves what has been so well planned and so successfully accomplished."

USA Banker's Magazine, August 25 1924

Cutting Tax Rates stimulates Economic Growth creates more Profit , more Jobs and therefore The Treasury ends up with more Tax Money

Taxation is legalized Theft

"The Objective of the Bank is not the control of a conflict , it's the control of the debt that a conflict produces . The real value of a conflict , the true value is in the debt that it creates . You control the debt , you control everything . this is THE VERY ESSENCE OF THE BANKING INDUSTRY , to make us all , whether we be nations or individuals , SLAVES TO DEBT " An UNKNOWN Banker

Patriotism is the last refuge... to which the scoundrel clings .... Steal a little and they throw you in jail ..steal a lot and they make you king ....

Bob Dylan

"Corporations are stealing billions in tax breaks, while the confused, screwed citizenry turn on each other. International corporations have no national allegiance, they care only for profit." Robert Reich

There is NO political answer to a spiritual problem!
Steve Quayle

litical Correctness is a Political Stand Point that does not allow Political Opposition , This is actually The Definition of Dictatorship
Gilad Atzmon

The modern definition of racist is someone who is winning an argument with a liberal
Peter Brimelow

When People lose everything and have nothing left to lose , They Lose It !


Your Greatest Teacher is Your Last Mistake

The one who Controls the Education System , Controls Perception

"The world will not be destroyed by those who do evil, but by those who watch them without doing anything."

Albert Einstein

In The Left Nothing is Right & in The Right nothing is Left

No man escapes when freedom fails; The best men rot in filthy jails. And those that cried 'Appease! Appease!' Are hanged by those they tried to please

Freedom is not Free

Don't Steal The Government Hates The Competition

Ron Paul

"Buy The Rumor , Sell The Fact " Peter Schiff

You can love your Country and not your Government

Jesse Ventura

" The Government Works for ME , I do not answer to them They Answer to ME "
Glenn Beck

"Tyranny will Come to Your Door in a Uniform "
Alex Jones

"The Government is not The Solution to our Problems , The Government is The Problem "

Ronald Reagan

"The price good men pay for indifference to public affairs is to be ruled by evil men." Plato

The world is a tragedy to those that feel, and a comedy to those that think...Beppe Grillo

"The people should not fear the government for it is the government who should fear the people" UNKNOWN

"If You are looking for solutions to the world's problems , look in the Mirror , You Are The Solution , You have the power as a human being on this planet " UNKNOWN

"They don't control us , We empower them " UNKNOWN

"Serial Killers do on a Small Scale What Governments do on a large one..."

Serial Killer Richard Ramirez

There is a Class War going on in America, & unfortunately, my class is winning." Warren Buffet

"When the people fear their government, there is tyranny; when the government fears the people, there is liberty."

Thomas Jefferson

"College is a waste of Money"
Albert Einstein

Schools manufacture people who think that they're smart but they're not.
Robert Kiyosaki

Education is what you learn after you leave School
Robert Kiyosaki

" ‏Schools were designed to create employees for the big corporations."
Robert Kiyosaki

"If a law is unjust, a man is not only right to disobey, he is obligated to do so" Thomas Jefferson

Dissent is the highest form of patriotism
Thomas Jefferson

“True education makes you feel stupid. It makes you realize you have so much more to learn.” Robert Kiyosaki

"One day your life will flash before your eyes. Make sure it's worth watching." - Gerard Way

"Aspire not to have More but to be More "

The losers in life think they have all the answers. They can’t learn because they’re too busy telling everyone what they know.
Robert T. Kiyosaki ‏

"Failure is simply the opportunity to begin again. -This time more intelligently." Henry Ford

What You Own Owns You

If you expect the government to solve your problems, you have a problem. Robert Kiyosaki

"Those who give up their liberty for more security neither deserve liberty nor security." Benjamin Franklin

"None are more hopelessly enslaved than those who falsely believe they are free.” -
Johann Wolfgang von Goethe

"Always trust someone who is seeking the truth , never trust someone who found it" Jordan Maxwell

Be The Change you want to see in The World

Failure inspires winners but defeats losers
Robert Kiyosaki ‏

“If you are planning for a year, sow rice; if you are planning for a decade, plant trees; if you are planning for a lifetime, educate people” A Chinese Proverb

"First they came for the Socialists, and I did not speak out--
Because I was not a Socialist.

Then they came for the Trade Unionists, and I did not speak out--
Because I was not a Trade Unionist.
Then they came for the Jews, and I did not speak out--
Because I was not a Jew.
Then they came for me--and there was no one left to speak for me." UNKNOWN