The stock market is at an all-time high. Credit spreads are near all-time lows. And inflation has been above the Fed’s target level for 61 consecutive months, averaging 4% per year since 2019. So why is the Fed expanding its balance sheet (QE)?
The #1 cause of the "affordability crisis" is the Fed's debasement of the currency with Money Printer Go BRRRR.
https://i.redd.it/e9oo44vvsjxg1.png
Posted by Key_Brief_8138
8 Comments
Complex_Sherbet2 on
Hmm, seems a shame you shilled for Trump all 2024, now are having major regrets about his policy choices…
Edit: may also have regrets about the foul language comment that cost him his fourth Reddit account…
Boo_Randy,
Simian_Stacker,
Boo_Randy_II,
and now u/Key_Brief_8138
RIP
Key_Brief_8138 on
The Keynesian fraudsters at the Fed have just one “tool” in their “tool box”: Money Printer Go BRRRR. Converting our debauched Fed confetti-currency into REAL money – physical silver & gold – is literally the 99 percents’ only defense against the Fed’s fiat currency fraud.
Because SOFR started to look like it was having heart palpitations in November: [https://fred.stlouisfed.org/graph/?g=1rWfD](https://fred.stlouisfed.org/graph/?g=1rWfD)
Arthur_Wellesley1815 on
You’re more mad about this than Don enriching himself, his family, banking CEO’s, ultra-rich, and anyone who will touch his cheeto dick?
GhostWrex on
The Audacity of thinking you’re smarter than everyone else
manhattanabe on
Because the average inflation rate since 2019 is irrelevant. Inflation rate has been under 3% for the last 8 months, (though estimate for Feb 26 is 3.3%). The Fed is looking at the future, not the past. Besides, the Fed has a dual mandate. Inflation 2% and maximum employment. Sounds like the Fed is working on employment.
Redd868 on
>So why is the Fed expanding its balance sheet (QE)?
I would think that by now, we would have that answer. https://www.federalreserve.gov/newsevents/pressreleases/monetary20260318a1.htm
>”Effective March 19, 2026, the Federal Open Market Committee directs the Desk to:
Undertake open market operations as necessary to maintain the federal funds rate in a target range of 3-1/2 to 3-3/4 percent.
The Fed prints up (digitally creates) new money in order to buy treasuries from secondary debt markets. This reduces the supply of debt chasing funding, which lowers the interest rate. That’s what the “open market operations” is all about.
It’s called “yield curve control”. We don’t have free markets anymore, we have government managed price discovery.
The problem is, if the government finds that it has to endlessly print in order to keep yields on government debt manageable, that’s a Ponzi, defined as a need for new money to roll over existing debt and incur new debt.
It seems that in order to have negative real interest rates as President Trump desires, that’ll require firing up the printer.
If this total reached new highs, I see Ponzi. While we’re not there now, *trajectory* of the deficits suggests that we will see new highs. https://fred.stlouisfed.org/series/WALCL
optimaleverage on
Because we’re currently way below that 4% average so they think we have breathing room to make efforts in staving off unemployment.
8 Comments
Hmm, seems a shame you shilled for Trump all 2024, now are having major regrets about his policy choices…
[https://www.reddit.com/r/Wallstreetsilver/comments/ybkrv7/i_see_what_you_did_there_brandon/](https://www.reddit.com/r/Wallstreetsilver/comments/ybkrv7/i_see_what_you_did_there_brandon/)
[https://www.reddit.com/r/Wallstreetsilver/comments/y4vw0o/serious_question_once_the_brandon_regime_boxcars/](https://www.reddit.com/r/Wallstreetsilver/comments/y4vw0o/serious_question_once_the_brandon_regime_boxcars/)
Edit: may also have regrets about the foul language comment that cost him his fourth Reddit account…
Boo_Randy,
Simian_Stacker,
Boo_Randy_II,
and now u/Key_Brief_8138
RIP
The Keynesian fraudsters at the Fed have just one “tool” in their “tool box”: Money Printer Go BRRRR. Converting our debauched Fed confetti-currency into REAL money – physical silver & gold – is literally the 99 percents’ only defense against the Fed’s fiat currency fraud.
[](https://www.reddit.com/submit/?source_id=t3_1sw9p7k&composer_entry=crosspost_prompt)
Because SOFR started to look like it was having heart palpitations in November: [https://fred.stlouisfed.org/graph/?g=1rWfD](https://fred.stlouisfed.org/graph/?g=1rWfD)
You’re more mad about this than Don enriching himself, his family, banking CEO’s, ultra-rich, and anyone who will touch his cheeto dick?
The Audacity of thinking you’re smarter than everyone else
Because the average inflation rate since 2019 is irrelevant. Inflation rate has been under 3% for the last 8 months, (though estimate for Feb 26 is 3.3%). The Fed is looking at the future, not the past. Besides, the Fed has a dual mandate. Inflation 2% and maximum employment. Sounds like the Fed is working on employment.
>So why is the Fed expanding its balance sheet (QE)?
I would think that by now, we would have that answer.
https://www.federalreserve.gov/newsevents/pressreleases/monetary20260318a1.htm
>”Effective March 19, 2026, the Federal Open Market Committee directs the Desk to:
Undertake open market operations as necessary to maintain the federal funds rate in a target range of 3-1/2 to 3-3/4 percent.
The Fed prints up (digitally creates) new money in order to buy treasuries from secondary debt markets. This reduces the supply of debt chasing funding, which lowers the interest rate. That’s what the “open market operations” is all about.
It’s called “yield curve control”. We don’t have free markets anymore, we have government managed price discovery.
The problem is, if the government finds that it has to endlessly print in order to keep yields on government debt manageable, that’s a Ponzi, defined as a need for new money to roll over existing debt and incur new debt.
It seems that in order to have negative real interest rates as President Trump desires, that’ll require firing up the printer.
If this total reached new highs, I see Ponzi. While we’re not there now, *trajectory* of the deficits suggests that we will see new highs.
https://fred.stlouisfed.org/series/WALCL
Because we’re currently way below that 4% average so they think we have breathing room to make efforts in staving off unemployment.