Fed to reduce balance sheet

The link below takes you to a step by step exhaustive explanation of how the Fed has fucked us with a 4 Trillion dollar debt.

Normalization has to begin somewhere and when it does a market addicted to near zero interest rates is going to go haywire

If we are going to be back in an economy that actually grows and is not dependent on the Fed buying public assets (Bonds) then there is going to be a very painful acclimatization period

4 Trillion dollars, no matter how much we wish , cannot be made to disappear

This is going to be the point that the rubber hits the road . There will be no pretending when runaway interest rates starts and inflation goes through the roof

You had better be ready to suffer the wrath of the laws of unintended consequences brought on by the fiscal policies of the Keynesian Kenyan

If you have not prepared yet, you have not been paying attention. But even so, now is not too late. A little is better than none

“The size of the Federal Reserve’s balance sheet increased greatly between 2009 and 2014 owing to large-scale asset purchases. The balance sheet has stayed at a high level since then through the ongoing reinvestment of principal repayments on securities that the Fed holds. When the Federal Open Market Committee (FOMC) decides to reduce the size of the Fed’s balance sheet, it is expected to do so by gradually reducing the pace of reinvestments, as outlined in the June 2017 addendum to the FOMC’s Policy Normalization Principles and Plans.”


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