The Fed Bought $96 Billion Mortgages … THIS WEEK

Live and Trade with Passion My Friends,

Griff
_____________________

Headline: The Fed Bought $96 Billion Mortgages … THIS WEEK

Hey There Income Hunters,

J-POW (aka Fed chairman Jerome Powell) is up to old tricks …

First, he’s preparing the nation for big inflation by telling us the Fed will allow it to run well above the 2% target …

Then he goes and buys almost $100 billion mortgages just in the last week … Of late, the Fed was “only” buying $40 billion a month as a way to inject money into the economy.

What is he NOT telling us?

Check out yesterday’s 4 p.m. Fed balance sheet update …

Verrry interesting …

The Fed had been buying “just” $40 billion in mortgages A MONTH … now they bump it by 240% — with no warning!?

J-POW is in total Panic Mode!

Reading Desperation Between the Lines

On Wednesday, J-POW called for a “society-wide” commitment to reaching full employment.

That sentence had a real 1984 feel to it. Yikes.

He said getting people back to work would require “continued support from both near-term policy and longer-run investments.”

Translation: We need to print a crap-load (technical term) more money. So we will BS anyway we can in hopes you believe we are doing the right thing.

The Fed is rapidly moving into Hyperinflation Mode, folks…

That’s when they accelerate money printing because they fear failure of not reaching their inflation target…. ever!

Here’s why…

Fed leadership understands what a bad situation they are in because of their $28 trillion of debt, which will probably grow to $33 trillion by the end of the year!

Back in the late 1970s, inflation was soaring but the US had very low debt … so, we could raise rates to stop it. 

Here’s the poison pill before us today … when companies have high-interest costs to service debt, higher rates will cause massive defaults.

That is why hyperinflation is a real possibility, the Fed will not have the monetary tools (interest rates) to slow it down …when 3-4% inflation arrives…

And the fact The Fed is buying so many mortgages proves it… because…

Higher mortgage rates risk bursting the housing bubble. So, they will go overboard on printing to ensure the bubbles remain inflated — but the mistake will be allowing inflation to get out of control.

Bring It Home

It is so important to stay focused on the big picture as pressure builds to unleash inflation.

Some of the noise I’m hearing right now is …

– Higher real rates are bad for gold …

– Higher rates could burst the housing, bond and stock bubbles and send us into depression…

– Investors are moving out of bitcoin into gold …

Allow me to address each of these individually:

– Wrong

– Wrong

– Wrong

This is what’s happening… 

– The Fed, Treasury and Government are firing on all stimulus cylinders and will not stop until they get inflation of 3+%.

– Stimulus spending in 2021 will be ASTRONOMICAL. I’m forecasting upwards of $5 billion, all told.

– The Gov. Gang will hit their inflation number and then some — which will be WAY above interest rates.

– Stocks, Silver, Gold and Energy are in a bull market for the foreseeable future.

Folks, this is the perfect scenario for Power Income’s big-picture view of Trading the Fed !

The pressure in the fire hose of inflation will be released by this next stimulus package …

That’s why I’ve been giving multiple trades each week that will position you for profits later this year.

And there are plenty more of those to come!

So stick with me and …

Live and Trade with Passion My Friends,

Griff

Leave a Reply

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.