Ep. 125A – The Fed: Out of Ammo, but Firing Anyway

The Kapital News
The Kapital News
Ep. 125A - The Fed: Out of Ammo, but Firing Anyway

Chairman Jerome Powell of the Federal Reserve made remarks this afternoon informing us of what we here at The Kapital News already knew. And that is the Fed is expanding their balance sheet, again. However, as we have been noting for months, while this is QE, the Fed would not call this QE, and guess what? – they’re not calling it QE. The reason why they’re not admitting that this is another round of QE is the fact that this monetary experiment was supposed to be temporary. Well it’s been 10 years and it looks like they’re going to begin another round. Should the Fed actually call this QE4, the markets might have a flash of genius, scratch their heads, and say, wait a minute – if everything is so great, then why is the Fed utilizing a monetary tool reserved for emergencies? Good question. The Fed, along with other central banks have boxed themselves in and are now trapped. Exactly as we noted back in July with our Kapital Economics presentation. With a “complete” US/China trade deal seeming less and less likely, the only hope for the markets is that the Fed can pull a rabbit out of its hat. However, this trick has been seen before. The magician has been doing the same trick for 10 years and the audience is on to how the trick is performed and wants something new. It’s unlikely that the Fed can deliver the goods with a new trick of substance. However, also remember that markets can remain irrational longer than we can remain solvent. This is a flawed and fraudulent monetary experiment that has reached its limits, and with fundamental economic conditions deteriorating both domestically and abroad – look out below. Stay diversified, stay vigilant, and stay with The Kapital News. #EndTheFed #Recession #Economy #Invest #Money #Debt #Politics #Truth #Peace

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