Is the Fed Now a Hedge Fund in Drag?

Stop what you’re doing and take out any bill in your wallet/purse.

What does it say across the top?

It says “Federal Reserve Note,” right?

In Plain English that means that the value of US currency is based on the full faith and credit of the Federal Reserve (FED).

Are you with me so far?

Here’s where it gets tricky.

The word “Federal” does NOT mean it’s a government agency.

Huh?

In fact, the FED is a private agency established on December 23, 1913 (remember that date) by a small group of banksters to provide lending services for the US government…otherwise known as the US Central Bank.

The FEDs purpose – according to its website – “…provides the nation with a safe, flexible, and stable monetary and financial system.”

Their website also states they provide five functions to promote the effective operation of the US economy with the #1 function being:

conducts the nation’s monetary policy to promote maximum employment, stable prices, and moderate long-term interest rates in the U.S. economy;

How’s that “promote maximum employment” thingy doing lately?

Oh, and how’s the Zero Interest Rate Policy (ZIRP) working out so far? (Current US 10-year Treasury rate is 0.65%)

Think about that for a second.

Who in their right mind would tie up their money for 10 Years at a rate of 0.65%?

Moderate inflation alone will reduce your purchasing power by approximately 50% in ten years.

Translation:  Your $10,000 bond will be worth $5,000 in ten years…and you collected 0.65% while you waited.

So, how is the FED conducting sound fiscal policy?

Oh, I forgot to mention that since September 2019, the FED has been forced to inject over $9 Trillion into the REPO market to keep it from blowing up (article here).

Doesn’t sound very “stable” to me.

The bottom line is the FED has announced that it will be buying billions of corporate bonds to support the market.

Wait, What?

In addition to the recent $2 Trillion “Stimulus Package” for the consumer and the $4.5 Trillion to bail out the banksters, they’re now going to buy untold amounts of Corporate Bonds?

Question:  Where is this money coming from?

The FED has now become a hedge fund in drag.

The net result:  Politicians are using the FED to steal everything and anything they can get their hands.

Meanwhile they toss the consumer a $1,200 bone and setting up the greatest wealth transfer in history.

You can either watch it like the deer in the headlights, or prepare to prosper AND thrive in these Turbulent Times.

Learn how in our May newsletter:

Stealin everything during the pandemic