Since December 2015, the Federal Reserve committed to increasing interest rates. They were very hesitant as to not spook the markets which had been fully supported by 0% interest for so many years. Then they promised to “normalize” their balance sheets and finally began doing so in late 2017. They allowed an extremely small amount to mature on a regular basis and the markets didn’t like it. Suddenly the fear came over the traders and they reacted accordingly. Throughout 2018 we witnessed the first bad year since the Financial Crisis for nearly all assets. Today there are rumors floating around that the Fed is now considering to halt their Quantitative Tightening policy and leave interest rates where they are. It is now undeniably clear that the Fed is supporting the market entirely and without their Quantitative Easing program, the markets will crash.
Current size of balance sheet over $4 trillion dollars.
Many argue that the amount they have printed isn’t much when compared to the overall quantity of investments therefore it’s not a big deal. However, with just $400 billion rolled off the balance sheet, it’s very clear that the markets are extremely fearful.
It is absolutely clear that what has been now understood is very clear: Central banks control the markets entirely. Their liquidity is essential for the positive function of markets today. Without their monetary easing on a consistent and increasing basis, the market will fall. FACT.
Interest rates have been near record low and extremely accommodative. Yet, the market depends on this to continue forever. Just this extremely small increase so far has been incredibly painful for investments, notably through 2018.
Interest rates don’t have much room to go down in the next recession. Typically, you would have a lot of play with interest rates to ease the markets. This time, they may have to go into the negative.
In order to keep interest low, it doesn’t come without consequence. The central bank must engage in Open Market Operations. This is not just a simple setting on a computer. They must actively print money to do this.
Overall objective has always been for the central banks to not only buy up the assets. But to be given permission to do so by the public. These foreign profit-seeking institutions will gather more support and print money out of thin air, buy the assets of your country, and have more and more leverage over what happens to you.
If you care about sovereignty. If you care about your country. If you care about your freedom. You should oppose all actions and even the existence of the central banks.
Fed reportedly moving closer to ending balance sheet reduction
https://www.cnbc.com/2019/01/25/fed-reportedly-moving-closer-to-ending-balance-sheet-reduction.html
Fed Officials Weigh Earlier-than-Expected End to Bond Portfolio Runoff
https://outline.com/djANg9
▶️ DTube
▶️ IPFS
Central banks control the markets entirely. Their liquidity is essential for the positive function of markets today. Without their monetary easing on a consistent and increasing basis, the market will fall. FACT.
CB print money out of thin air, buy the assets of your country, and have more and more leverage over what happens to you. FACT.
This is very very big problem, i notice that since I'm start study economics in early of 2014.
In the next recession 1-3years? The middle class will suffer so much that is so hard to even imagine that. If we let Central banks to keep printing "currency" it will rise inflation more and more. in some point we move into hyperinflation levels - because history always repeat it self.
SOLUTION:
Only two options left:
One. Sound money (Gold and Silver) -Can't be printed. mineable
Two. Cryptocurrencies (Bitcoin and Litecoin) -Can't be printed. mineable (Limited supply).
I wish all the best for everyone and all your families.
I Urge you to prepare for upcoming events.
option three: Both.
Karatbit.exchange
Wow! This is a very interesting topic!
another excellent analysis, this is a major problem that needs to be dealt with eventually. Once the cards fall, and the so called "Gods" that run the ponzi scheme close up shop because of riots and bankruns, they will see who really holds the power.
Thank you 🙏 maestro 🍎 .