Wow, now they semi stealthily pump trillions into the system. What can go wrong. 6 TRILLIONS in 6 weeks. Crazy shit.
Guys stop bickering on this thread, about non important shit. We have other threads for it. Let's discuss enormous topic on hand. 6 trillions in 6 weeks.
https://www.axios.com/federal-reserve-temprorary-liquidity-89c59d7e-7c47-4663-ae55-33b5b55b39f3.html The New York Fed added $83.1 billion in temporary liquidity to financial markets Thursday, and the U.S. central bank looks primed to keep pumping cash for at least the next few months. Why it matters: The stock market's 30% gain in 2019 was in no small part backed by the Fed's decision to cut U.S. interest rates three times and inject more than $1 trillion of temporary financing into the repo market. It also added more than $400 billion to its balance sheet in the fourth quarter. What we're hearing: Fed vice chair Richard Clarida told an audience assembled at the Council on Foreign Relations Thursday that the Fed was prepared to continue adding to its balance sheet and providing liquidity to the repo market "at least through April." Clarida told me after the event he was not concerned markets could be taking advantage of the so-called "Powell put" — the belief that the Fed and chair Jerome Powell are using the cash to stimulate the economy or that they will cut rates to juice the stock market if prices fall significantly. "We realize that sometimes we’ll be criticized for it, but it’s not a factor driving our decisions," he said. "We have a very clear mandate, and are focused on what we need to do." What they're saying: Clarida's speech was "music to the ears of traders and investors who have profitably ridden a liquidity-driven rally that has allowed them to quickly overcome a set of shocks, including the latest one, the sudden escalation of the U.S.-Iran conflict," Mohamed A. El-Erian, chief economic adviser at Allianz SE, wrote in an opinion piece for Bloomberg. What's next: While Clarida pointed to April because of Tax Day, analysts who watch the market closely expect the Fed to keep delivering cash for even longer. Priya Misra, head of global rates strategy at TD Securities, a primary dealer that does business directly with the Fed, told Axios she expects the central bank to add $100 billion–$200 billion more in reserves and continue its Treasury bill buying through July to about $500 billion. In a note to clients, she added that she expects the Fed's balance sheet to move above $4.4 trillion this year, near its all-time high. Go deeper: The market will need the Fed again in 2020 Think about this... The creation of trillions of dollars by private individuals (without the govt spending it or authorizing it.) for the benefit of the owners of non govt "banks"... is the biggest theft in human history. The bankers ... do not even want to lend money overnight to other bankers because either the risk is too high or the interest paid is too low. So to cut the demand for money the FED says to itself... lets destroy demand by destroying the dollars value. We will create so many new trillions that it will destroy the value (demand) of the dollars currently in the system. Private individuals stealing 10% to 25% of what you earned the last 10 years. . Why?