The Fed is Pumping Nearly $100 billion Into the System… Every Single Night
Over the last week, I’ve been detailing how the Fed has secretly launched another Quantitative Easing (QE) program.
As a brief recap, QE is a monetary policy through which a central bank prints new money and uses it to buy debt from financial institutions. And the Fed is back doing this in a big way – with a whopping $75 BILLION worth of QE in a single week.
To put that number into perspective, at its most aggressive QE program back in 2013, the Fed was doing $80 billion worth of QE per month.
It just did that in the span of five days.
And it’s not finished by any stretch…
On Monday, the Fed pumped $65 billion into the financial system.
It pumped another $75 billion into the financial system on Tuesday.
And another $91 billion on Wednesday.
That same day it announced it is increasing its nightly liquidity pumps to up to $100 billion.
Yes, $100 billion every single night.
The Fed also announced it’s going to keep doing this every night until October 10.
And then on Thursday, the Fed put $110 billion into the system.
So what started as a “one-off” temporary move is now rapidly becoming a daily, permanent program.
As I keep stating, this is QE, called by another name. And it tells us one thing:
The Fed is absolutely panicked.
The Endgame for Central Bank Policy
The reality is that when the Fed moved to corner the Treasury market in 2008, it was attempting to corner “all risk” assets.
As I explained in my bestselling book The Everything Bubble: The Endgame For Central Bank Policy, Treasuries are the bedrock of the current financial system. Their yields represent the “risk free” rate of return against which all risk assets (stocks, commodities, real estate, etc.) are valued.
So when the Fed cornered the Treasury market, creating a bubble in Treasuries, it create a bubble in literally everything.
As I stated virtually non-stop from 2008 until today, by doing this the Fed was entering the endgame for central bank policy. What I meant by this was that the Fed could never stop providing stimulus to the system.
With every asset on the planet priced artificially based on artificial bond yields, the Fed has to maintain low rates and QE forever until something finally breaks.
The fact the Fed hit the “panic” button and is now providing $100 billion to the system every single night tells us that we’re a lot closer to “something breaking” than most believe.
All of this means we’re moving into a time of tremendous volatility in the financial system. And that means tremendous opportunity.
Indeed, with the right trading strategy, you can use this to generate a LITERAL fortune.
On that note, I’ve spent the last six months perfecting a system of trading currencies based on central bank actions. I knew the Fed would be forced to hit the “panic” button and that when it did, we’d have a once in a lifetime opportunity to profit from it.
It’s called Alpha Currency Profits. Since its launch, it has shown traders returns of:
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- 63% in five days
- 75% in five days
- 79% in four days
- Even 100% in just four days.
We’re showing traders a win rate of 85%, meaning we’re making money on OVER eight out of every 10 trades we make.
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Editor, Money & Crisis