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EXPECT THE FED TO INCREASE! NOT DECREASE ASSET PURCHASES

By Gregory Mannarino TradersChoice.net
Before I proceed with this article, keep this in mind: the current environment IS NOT what it seems, and NOTHING is happening by accident.
Every single week the economic news continues to be bad, more like abysmal, and although the mainstream narrative is attempting to desperately convince you otherwise, debts and deficits are hyper-ballooning. Moreover, as a percent of debt to GDP, the US Economy is CONTRACTING. Meanwhile, just in the last week the NASDAQ and the S&P 500 have hit new all-time record highs. The fact that this market continues to rise should be of no surprise to you IF you have been following my work here at the Trends Journal moreover, the market is going even higher.
All the talk as of late is skyrocketing inflation, in fact, the cost of living here in the US is rising at its fastest pace EVER! 
Allow me to let you in on a big piece of information that you are not supposed to know. Regardless of the current pace of inflation, the Federal Reserve has no intention whatsoever of raising rates any time soon, and the worse the economic news gets, the higher the stock market will continue to go.
Here is yet another secret—the Federal Reserve has not even begun to inflate, they are still in the middle of their endgame—to hyper-inflate, and as such—own it all.
Last week the mainstream media reported that the major banks all passed their Federal Reserve Stress Tests with flying colors! Can you imagine my shock?! These institutions have a mainline directly to the Federal Reserve, and have so much cash that they do not even know what to do with it!
Ah! But we do know what they will do with it—buy back shares of their own stock and increase dividends. What will be the result? A stock market which will be propelled higher. (I have been urging people to buy energy and financial stocks for months, and it is already paying off big, with more gains to come).
Over the past several months I predicted that crude oil would be over $70 a barrel, well, now we are at $74. The higher price of crude will boost the entire energy sector of the market. 
The mechanism here is simple. If the energy and financial sectors of the market can be propped up, the rest of the market will follow as the Fed continues to fuel the debt market with easy money.
Forget any talk about the Fed “tapering” or “lifting off,” it is just not going to happen as the Fed is maintaining and moving closer to its end game—again, to own it all.
The Fed will not taper its asset purchasing program until it is done, and it is not done. 
I fully expect that the Federal Reserve will be increasing the pace of its debt purchases, and not tapering them—even if they have to come up with some kind of new scheme, or perhaps engineer a new crisis of some kind to make it happen. 
The power of a central bank resides in its ability to issue more and ever-increasing amounts of debt. Every single dollar of debt a central bank is called upon to issue, makes them exponentially stronger. 
 

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