By Gregory Mannarino, TradersChoice.net
It is unprecedented.
In the history of global markets, never has a stock market defied gravity like the market we have now. In the midst of a Scamdemic and worldwide economic shutdown that has led to Greatest Depression-era unemployment, the market appears unstoppable.
Understanding the mechanism behind this seemingly unstoppable market is simple: it is massive debt expansion and asset acquisition by the Federal Reserve. The Federal Reserve is now funneling epic sums to the Wall Street banks and hedge funds that are buying the market. Moreover, the more the Fed inflates its balance sheet, the higher stocks will go regardless of the dead economy.
Today, the Federal Reserve’s balance sheet is ballooning as they fulfill their century-long destiny to be the lender, buyer, and, therefore, the owner of the world.
In fact, the Fed’s balance sheet – the one we’re allowed to see that is posted on their website – has skyrocketed to over seven trillion dollars. That’s higher than the GDP of most countries on the planet!
FEDERAL RESERVE’S BALANCE SHEET
Keep in mind that the Fed has two balance sheets (as alluded to previously).
The first is the one the public see, which is posted on their website.
They also have a second balance sheet. This one is private and includes monies they are loaning to nations around the world to the tune of multi-trillions of dollars. Understand, the Federal Reserve has the ability to issue unchecked loans and grants to any entity… with no oversight whatsoever.
And, for decades, the Fed has been in the “business” of issuing loans to nations throughout the world to fund wars.
The Federal Reserve’s “private” balance sheet is off-limits for any American to see, even the President of the United States.
What is also “mostly” unknown by the general public is that most, if not all, corporate entities also have two balance sheets: a public one and a private one.
As the U.S. stock market continues to inflate along with the Fed’s balance sheet, one can expect to see massive distortions in asset prices, commonly known as bubbles, which, at some point of the Fed’s choosing, will correct to fair value with devastating effects felt around the world.
For now, if you are an equity investor or derivatives trader like myself, we ride the wave of fraud in the market… until the Fed stops inflating their balance sheet(s).
It is my opinion that the Federal Reserve remains in their early stages of inflating their balance sheet(s). Therefore, stocks will continue to rise. They will not stop inflating their balance sheets and issuing loans until they literally OWN IT ALL!
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