Now that President Trump has his #trade deal with China, all is right with the US #economy, and the markets are poised for yet another bull run, right? Wrong. If the markets are healthy why is the Fed printing money? The answer, of course, is that the markets are NOT healthy, and the financial system is not healthy. Some banks in particular are decidedly unhealthy (*cough*Deutsche Bank*cough*). The financial markets are by now entirely dependent on constant streams of liquidity by central banks. The rise in the M1 money supply parallels the rise in both the S&P500 and the DJIA--meaning nearly ALL of the rise in asset prices is due to inflation. An addiction to new money and cheap money is decidedly NOT healthy. The markets will shoot up on the heroin of new money provided by the Fed. Eventually they will overdose, or they will crash--the binary outcomes for all addicts. https://www.zerohedge.com/markets/trade-deal-done-3300-next-stop-market #news #banking #finance

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A curious defense for Jay Powell: his money printing efforts and deceptions over the same are because he does see the warning signs and wants to get ahead of the curve. In other words, lying about Quantitative Easing is the best bad decision he can make. Suppose that's true. Suppose the Fed is stuck choosing between inflating asset prices indefinitely and triggering economic contraction and collapse. Since the collapse would be catalyzed by a failure to act, the choice to inflate is merely kicking the can down the road. When at last there is no more road, the contraction is then guaranteed to be collapse. In other words, Jay Powell is quite literally selling off the future to fund the present, and ignoring or hiding the fact that the future is tomorrow's present. Which makes QE a bad decision. If this bad decision is the best available to Powell and the Fed, we are well and truly screwed. https://m.theepochtimes.com/is-powell-playing-fed-games_3113228.html #news #economy #banking #finance #EndTheFed
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More from A Voice Of Liberty

A curious defense for Jay Powell: his money printing efforts and deceptions over the same are because he does see the warning signs and wants to get ahead of the curve. In other words, lying about Quantitative Easing is the best bad decision he can make. Suppose that's true. Suppose the Fed is stuck choosing between inflating asset prices indefinitely and triggering economic contraction and collapse. Since the collapse would be catalyzed by a failure to act, the choice to inflate is merely kicking the can down the road. When at last there is no more road, the contraction is then guaranteed to be collapse. In other words, Jay Powell is quite literally selling off the future to fund the present, and ignoring or hiding the fact that the future is tomorrow's present. Which makes QE a bad decision. If this bad decision is the best available to Powell and the Fed, we are well and truly screwed. https://m.theepochtimes.com/is-powell-playing-fed-games_3113228.html #news #economy #banking #finance #EndTheFed
31 views ·
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