and Cover to Justify the Next Massive Money Printing?
Recall the post from November 3/25? The topic was the end of QT (quantitative tightening) and the return to QE (quantitative easing)
“
led a number of analysts to bet on the Fed ending its quantitative tightening (QT) program earlier than expected“
Linking an interesting piece From Metal’s and Miners. Lots of graphs and charts to explain the position taken, this is a very good read. A bit frightening but still a very good read!
Metals and Miners; It’s happening. The sea of red we have seeing is undeniable. Stocks, bonds, real estate, commodities; everything has been falling, albeit at different paces.
On the surface, it looks like the Federal Reserve has made a catastrophic error, tightening too much and unleashing a deflationary monster that potentially threatens to plunge the world into a new Great Depression.
But what if this isn’t a mistake? What if this crisis is manufactured? What if the coming deflationary scare is the perfect cover story for what’s comes next: the greatest monetary expansion in human history, designed to monetize the trillions in unpayable debt?
The evidence suggests we are witnessing a deliberate, controlled demolition, and only those who have eyes to see the endgame will survive what comes next.
Engineering the Crisis
Look at the screens lately. It’s been a lot of red. The S&P 500 and the Nasdaq suffering. Oil cascading lower. Even the perceived safety of U.S. Treasury bonds is offering no refuge.
This is not a random market event; it is the desired outcome. To justify an unprecedented level of money printing, you first need an unprecedented crisis.
You need a scenario that has every newscaster and politician screaming for a bailout. You need a sea of red that makes the coming monetary firehose seem not just reasonable, but necessary.
The collapse in commodities is a key part of this playbook. By driving down the price of oil, coffee, beef, and other raw materials, the headline inflation numbers can be temporarily suppressed, creating the illusion that the inflation fight has been won.
This provides the perfect justification for the Fed to pivot. They can claim victory over inflation while simultaneously responding to the “unexpected” deflationary crisis they themselves have engineered.
One of the most dramatic pieces of evidence of the deflationary mechanics at work is the collapse of Bitcoin. From a peak of around $125,000 just weeks ago, Bitcoin has plummeted to $83,000 this morning; a stunning 34% collapse, despite the Trump Administration saying they want the U.S. to be the Bitcoin capital of the world.
Bitcoin has dropped like a stone (additional info)
This is not just a correction; it is a liquidation event. Bitcoin, was supposed to be “digital gold” and a hedge against inflation. Inflation has been sticky above 3% as you can see by the next chart, and rising once again, and yet, Bitcoin is getting pummeled.
So, it is clearly not correlated to rising inflation or ‘digital gold” as gold has held strong above $4,000. Neither of these tags are appropriate. So, Bitcoin is something else entirely and likely tied to liquidity.
When liquidity dries up, it collapses just like everything else. This is the deflationary scare in its purest form, and it is exactly what the authorities need to justify their coming response.
The rising market volatility tells the same story. The CBOE Volatility Index (VIX), often called the “fear gauge,” has been spiking over the last month. This is not random market noise; it is the direct result of the Fed’s QT program pulling liquidity out of the system at the exact same time that government expenditures are rising.
So, Let’s Dig into:
- The Fed’s villain and excuse
- The smoking gun
- The real motive
- How the Trump Administration has tipped their hand
- Why we need to own what they can’t print
- and more……
You’ll have to sign into Substack to read the rest as a courtesy read- It’s worth doing, in my opinion.
Some may recall prior to the Covid “pandemic” we were in a deflationary period (2019) – Lockdowns and other “pandemic” measures gave cover to a massive expansion of cash supply (QE), that was reigned in (QT) not so long ago. In order to engineer this next crisis? “the greatest monetary expansion in human history, designed to monetize the trillions in unpayable debt“
Is this some type of kicking the can down the road manipulation until the road finally ends? Share your thoughts, of course!