When you don't succeed, it is easiest to change the rules. This is what the Fed did in regards to the metrics they are using to determine when to start tightening.
In this video I discuss how the shift from the U3 to U6 is a big deal which assures they will not hit the 5% level to stop easing. This is going to continue the money printing for the foreseeable future.
▶️ 3Speak
I am not surprised. The Fed wanted to stress test by 55% according to the tweet I saw and I think it was just to check the treasury bond stockpile. If they failed, I think they would just prevent stock buybacks as it doesn't help money circulating in the economy.
I completely agree that the economy will probably collapse once the measures in the economy are removed. There just isn't anything they can do because costs accumulate and eventually someone has to pay it back.
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The Fed is well aware of where the pitfalls are. They are holding out hope (desperation) that their money printing will turn into inflation but it is not looking good for them. They will get a bit of a tailwind for a couple years as commodities inflate due to supply issues. However, that is market corrected which happens in a few years.
Long term, ie 4 or 5 years (+) they are screwed.
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Welcome to my world. This is happening in many countries, mine especially for years. Doesn't even surprise me. It may be surprising in countries where it's not common.
Anyway, sorry it's happening over there.
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Ah the fed always looking out for us lol
I think they have dug such a huge hole that it's impossible to get out of. Legit we need to stop paying for everyone else and refocus on our country.
It wont matter. They are in a liquidity trap they cant exist.
Also the US has to support the global economy because as impotent as the Fed is, other central banks are even worse.
Ultimately, global collapse ends up affecting the US economy because the flow of capital is such that it all eventually ends up in the US.
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This is why I always enjoy reading your stuff and watching your videos. I always find it interesting and new perspectives on things as I myself simply can't keep up with it all. Plus I honestly find all of this fascinating but a bit scary at the same time. Gets my butt in gear to be more prepared.
In other words,they have no choice than to take such action immediately if they do not want more problems....
100% agree and Worth trying it for sure.
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Hyperinflation, here we come...
Care to give an enlightenment??
Not really. Four decades taught us Keynesians economics is a fraud.
Thus the money printing leads to inflation was proven wrong. The money printing is causing the economy to collapse.
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Wow four decades of deceits,that's really awful though...thanks for pointing that facts out....@taskmaster4450le
@taskmaster4450le I think the FED are having shortage of ideas on how they can make everything move forward...we need experts there....but at least they are finally admitting to the fact that they might need to change the rules...
There is very little they can do. They were boxed in for two decades.
Simply put, they are in a liquidity trap. If they stop the printing, thing collapse. Thus they have to keep printing which is slowly crushing things.
The only true solution is austerity which neither the fed nor politicians will opt for.
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Well change is constant and sometimes we need to make some changes in order to achieve some certain goals or aims...I am not sure what the future holds for the FED though....
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I think this has always been inevitable. My feeling was we crossed the point of no return a few years back but Covid definitely ended all chance of ever getting out of it. Now, it's just keep pumping air into the balloon and pray for a miracle. In the back of my mind, I still see war as a "solution" desperate politicians might turn to. I hope I'm wrong.
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