What is the Federal Reserve’s end goal? Follow the money and you will find no intention of tapering, out of control public debt, and financial steroids for stocks. Fed balance sheet up $55 billion in one week.
The Federal Reserve is known for producing convoluted and purposely hard to decipher messages. The media is driven by what the Federal Reserve says but fails to analyze what is truly happening. The Fed is driving in a car with no brakes. This is clear given that the Fed balance sheet increased by $55 billion in one week (or a rate of $220 billion in one month). Not only is the Fed not tapering but it appears to be accelerating Quantitative Easing. Follow the money and you are led down a path of no return. The Fed is juicing the stock markets and is perfectly fine with Wall Street creating another real estate bubble. Many poor and working class Americans are still deep in what appears to be a recession. Those with the ability to access the digital capital of the Fed are given an opportunity to gamble and speculate while low wage capitalism engulfs the middle class. What is the end goal for the Federal Reserve?
Fed balance sheet up $55 billion in one week
The Fed’s balance sheet is now up to $3.9 trillion:
I thought it was going to take longer before breaching the $4 trillion mark but we are not far from hitting this. The housing market is already showing signs of massive overheating. The main drive of QE is to provide artificially low rates in the market but all this has done is recreated mass speculation. It is hard to see how this is actually improving the underlying economy.
The increase of $55 billion came from:
Increase of $21 billion in bank reserves
Increase of $32 billion in other Fed liabilities
The bulk of the other liabilities are largely from QE. The Fed is betting on the law of large numbers. People will simply glaze over when they hear $4 trillion. In fact, on the other side of the aisle, we have our public debt that completely blasted through the $17 trillion mark without skipping a beat:
The US has no way of avoiding a soft default via a slow and methodical inflation. The costs of the bailout and the current artificial market are being supported by the working and middle class while a very small portion of the population continues to extract wealth from the real economy.
Read the rest at My Budget 360