Here are the latest items and commentary on current economics news, market trends, stocks, investing opportunities, and the precious metals markets. We also cover hedges, derivatives, and obscura. And it bears mention that most of these items are from the “tangibles heavy” contrarian perspective of JWR. (SurvivalBlog’s Founder and Senior Editor.) Today’s focus is on the Fed’s Great Unwinding. (See the Economy & Finance section.)
Economy & Finance:
At Wolf Street: The Fed’s QE Unwind Reaches $285 Billion. JWR’s Comment: That $285 Billion represents a reduction of only about 17% of the QE bubble. Remember: Debt money creation has a multiplying effect. The destruction of debt money has a reverse multiplying effect! (Credit implosion.) Unless the Fed Board of Governors unwind their balance sheet very slowly, they are likely to burst the credit bubble and crash the global financial system. Politically, this may be just they want: Turning President Trump into another President Herbert Hoover.
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A primer from Wells Capital Management: The Fed’s balance sheet normalization plan
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Back in October, 2017, we read: Unwinding QE could trigger financial crisis, warns JP Morgan