There’s evidently no end in sight as to how many assets the Federal Reserve is prepared to purchase. With one alphabet soup facility after another and still yet on top of this, the Fed announces today they’ll be utilizing another $2T to “stabilize” the markets and lend to businesses. All of this as the Fed’s balance sheet is now above $6T. Where is all of this money coming from? They just print it of course. What’s the cost of all of this? Well the American people are going to learn the hard way how expensive all this “free” money actually is. The one asset that the Fed is stopping short of buying is that of US equities. They are barred by their charter from purchasing equities. However, there is already some talk on the down low that Congress may look at amending the charter so that the Fed can purchase equities outright. This would literally lead them to owning (at least a piece) of everything. Welcome to the Nationalized States of America.
This is not free-market capitalism. This is bailout nation. This is not a Constitutional Republic, this is a banana republic. And on top of this, we have an additional 6 million Americans filing for unemployment benefits. So, over the last three weeks, over 16 million Americans have filed their claims. Logically extrapolate what this means over a country of 330 million people with a GDP around $20T. These effects will be long lasting as a stand alone. Now take into consideration the behavioral changes that are all but certain to ensue following the “re-opening” of the economy as a result of COVID19. The US economy in conjunction with the global economy will not be returning to “normal,” and it shouldn’t – normal was completely unsustainable. Stay diversified, stay vigilant, and stay with The Kapital News. #Economy #Bailouts #Debt #Recession #Republic #EndTheFed #Depression #USA