Ep. 603 – Slow ‘n Steady ‘n Never

The Kapital News
The Kapital News
Ep. 603 - Slow 'n Steady 'n Never

The Federal Reserve claims that they will begin to unwind their holdings of corporate bonds. This amounts to $14 billion and is a drop in the bucket in the grand scheme of things. However, what this really is, is a move by the Fed to see how markets respond to any form of “tapering.” This amount is quite laughable, considering the Fed has more than doubled their balance sheet since the onset of the pandemic where it now stands at $7.9 trillion. Even the run-off of the $14 billion is expected to run through the end of the year. We witness larger increases and sometimes decreases to their balance sheet on a week-over-week basis. This is an utter joke, but simply goes to highlight how fragile the markets and the system are, when $14 billion may cause a problem. The Fed had no business getting involved in the corporate debt market to begin with, but they used the pandemic as an excuse and Congress obliged. This policy along with many others implemented by the Fed and federal government have only served to create and prop up zombie companies. These walking-dead firms are only serving as a façade that hides the true fragility of the economy. In fact, such firms stunt current and future growth and prosperity and thus they are stealing such growth and opportunities from younger generations. This will lead to negative fallout across the economic, political, and social spectrums. Stay diversified, stay vigilant, and stay with The Kapital News. #Economy #Inflation #Gold #Silver #EndTheFed #bananarepublic #FireCongress #USA #Liberty #Revolution #Leadership

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