10y Treasury Bond % increased 30% in 1 month...
Causing signs of Inflation because of Quantitative Easing (Printed Money) which value is powered by confidence alone
So any equities that have the backing of QE Money(US$) lose value.
The Federal Reserve injects $120 Billion into the system every month.. 6% of GDP
The Stock Market looking healthy is what's required to keep confidence in the US$.. it's a illusion..
Confidence in the US $ is essential for investment.
We all know that.
No investment
No Economy
So pumping the system full of Printed Money creates a false economy.
There is no true wealth being generated nothing was produced with that money...
It backed by DEBT 85 trillion dollars if debt and increases every second
Some people think that if the stock market is healthy the economy is also which is not correct.
The long term interest rate can't be risen without effect to the banks increasing there rates to the every corner of business that are Surviving off Quantitative Easing
When profit is what is required ( it's insane )
No profit
No Investment
No Economy
The Federal Reserve can't issue more Bonds which normally would curb the % rate and slow the rise of INFLATION
The yield 1.2 % is so low that nobody's wants them
It's a Crap return.
So the Federal Reserve buys the bonds known as ASSETS.
So the only way to solve this problem the Federal Reserve has created. This has been going on well before COVID 19..It's been brewing since 2008 GFC When it was introduced as a Economic Tool relieve the economy
They have to print more money which reduces the value of the $$$ AGAIN ( they are creating the very thing they are trying to stop... It totally Insane )
You can't fight INFLATION with INFLATION and keep confidence in the $$$
It unsustainable economics it well crash it SOME point
It's affected the markets already with one small spike
The system is strung so tights that any movement is felt
You may think I am talking B/S and there will be many people that understand what I am talking about..
At some stage 2 years maybe less the money supply of US $ will be so saturated and diluted it will have no VALUE
The new monetary system will be issued in bring Digital.
RESET
It's absolutely INSANE
And I am fascinated to see how it's all gonna play out
And for a lot of people it won't pretty
Stay cool everyone and invest in stocks wisely
Famous quote from JP Morgan
Gold is the only form of money !!
Everything else is just CREDIT
(20min delay)