Over the past weekend, both Bank of America and the Federal Reserve “leaked” critical truths, ones that should come as no surprise to those who follow my articles in the Trends Journal.
New Digital Dollar
Bank of America stated, “The Federal Reserve will create inflation with a digital dollar.”
The release of a digital dollar by the Federal Reserve, a NEW dollar, has been getting a lot of coverage over the past few months, even by the mainstream media.
In my opinion, it’s just a matter of time before the U.S. dollar in its current form goes the way of the dodo bird, something I have covered at length in my daily MarketReport video blog.
So, what does this mean?
It means the Fed is going to devalue the purchasing power of the new digital dollar in relation to the dollar in its current form. We are talking about mass dollar DEVALUATION to create inflation. The effects of this will be profound.
One: A devalued digital dollar is massively positive for the stock market. Why? It will take more weaker digital dollars to buy anything – including shares of stock.
Two: Multi-national corporations based in the United States will love a weaker dollar, as they will reap the benefits of currency exchange rates when selling their products overseas. This will add to their bottom line.
Three: A weaker dollar is incredibly positive for gold, silver, and cryptocurrencies. A weaker dollar is also commodities positive overall.
Four: A weaker dollar robs purchasing power, making the lives of those not so well off even more difficult.
A weaker digital dollar is yet another mechanism to suck the middle class dry, which will propel the stock market higher and further enrich multi-national corporations. It is also a boon for hard assets, non-government issued currencies, and commodities in general.
The Federal Reserve Warns
The Fed is sounding the alarm regarding the debt market, talking about the potential of a “credit freeze” or a “lock up” occurring. The effects of a credit freeze are disastrous. A freezing up of the debt market would mean ALL TRANSACTIONS STOP – this would be a catastrophic financial event that would affect the entire global financial system.
Many people, including myself, some multi-billion-dollar fund managers, and even former Fed Chairman Alan Greenspan have warned of a potential credit freeze for years.
This past weekend, the Federal Reserve itself is now warning of a potential locking up of the debt market, which they cannot allow to occur.
To prevent a credit freeze, the Federal Reserve must vastly increase its purchases of debt and create epic sums of dollars to purchase it. The effects of this are again positive for the stock market, commodities, and crypto currencies.
The Bigger Picture
With the Fed fully intending to issue a devalued digital dollar and tremendously increase its debt purchases, the Fed, again, moves closer to its “final solution”: to be the lender and buyer of last resort… to own it all.
by Gregory Mannarino, TraderChoice.net
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