In a shocking development that I frankly hoped we’d never actually see, the Federal Reserve dropped a bombshell today and announced that it is going to create an extra $1 trillion dollars out of thin air to support the spending desires of the US government and to drive down interest rates for mortgage borrowers and savers.
Flat out the Federal Reserve said, as plain as can be, that they are going to be printing money directly to support the borrowing needs to the US government and US consumer. Below I explore this outrageous turn of events. Please note that I have not had much time to digest this incredible news and that I reserve the right to add to (or amend) my thinking over the next few days.
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