The Fed Will Stop At Nothing, Even The Law! Understanding The Fed’s Money Printing Schemes! (Video)
The Fed Will Stop At Nothing, Even The Law! Understanding The Fed’s Money Printing Schemes! Video by Silver Report
Recently the fed has taken some new authority in terms of bond purchases. I have been discussing this topic and some of you had some questions since I have been vague on this subject. Regulations were put in place following the great recession to protect the taxpayers from unnecessary risks and to keep the banks from what they called moral hazard. Among those were regulations that prevent the Fed from any purchases that could cause the taxpayers to incur losses.
All of this remained intact until the Fed unveiled a plan to begin purchasing Junk Bonds. The economic activity has collapsed in the US yet the stock market has been rising but the reason why is not a change in sentiment seeing how consumer sentiment just experienced the largest drop in history. Wealthy investors have been front running the Fed’s purchases including investments that are almost guaranteed to incur losses. Many of these companies have exhausted their cash to prop up the endless rise of stocks and to benefit their wealthy investors and this program encourages the same risky behavior that has changed a stock market correction into the Greatest depression.
This is a simple exchange utilizing the US treasury to transfer wealth to those who chose to partake in speculation of the riskiest kind. This is not to support the general economy but is money printing gone wild.