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By Gregory Mannarino TradersChoice.net
Have a look at the chart below.
This chart was taken directly from the Federal Reserve’s Own Website.
In looking at the chart above, focus your attention on the shaded area and the dramatic increase in money issuance which continues to go on unabated.
What this chart above demonstrates is mass debt issuance, the dollar being a unit of debt. Not only is the Federal Reserve issuing debt at a staggering pace, but the Federal Reserve is also continuing to buy assets with this newly created money.
This mechanism of the Federal Reserve issuing debt, and then using that debt to buy assets, is tremendously inflationary—something I have covered in my YouTube blog for YEARS.
This vicious cycle of debt issuance and asset purchases by the Federal Reserve WILL CONTINUE.
The Federal Funds Rate, FFR.
The federal funds rate refers to the interest rate that banks charge other institutions for lending excess cash to them from their reserve balances on an overnight basis.
The Federal Reserve has kept the FFR at near zero for over a decade, and only recently has begun to incrementally raise this rate.
The LIE being sold across the spectrum of mainstream propaganda ministry outlets is that by the Federal Reserve raising the FFR, this will somehow combat inflation—this is a complete falsehood.
In fact, without the Federal Reserve raising its benchmark rate ABOVE the current rate of inflation—by their numbers 8.5 percent—they are guaranteeing more and higher inflation.
This issue is compounded with THE FACT that, as demonstrated by the money supply chart above, the Fed continues to inflate the money supply.
The current Federal Reserve DELIBERATELY CREATED INFLATIONARY ENVIRONMENT will continue.
Moreover, it is being set up to create yet another crisis—a cost of living crisis.
What we have today is a “crisis driven economy,” and this is also by no accident. A crisis driven economy DEMANDS that even more debt be created—it’s a vicious cycle.
Every engineered crisis demands more funding, which is simply a mechanism to pull cash out of the future to fund the now.
What we can expect moving forward is yet more crises, one after the other, and each in turn or simultaneously will allow the Fed to BALLOON the money supply even more.
Why does the Fed want to balloon the money supply?
Because debt is the one and only product of any central bank, and the more debt they create, the stronger they become.
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