As sovereign funding needs spiral higher, the governments are crowding out private investment and sucking all the liquidity out of the banking system. Only massive QE operations can restore longer-term liquidity
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-The governments are sucking the banking system dry and the unprecedented need to reliquify the system remains. The pressures are mounting, despite dropping longer-dated yields.
-The Fed cannot yet admit this, but eventually the Fed will have to begin more massive rounds of QE. I estimate that bond purchases will have to rise to about $50 billion a month. Prepare for what is coming.
-The Fed is regularly providing upwards of $75 billion in short-term liquidity in the repo market. The only solution will be massive QE. The repo operations didn’t work last decade and they won’t work now.
-The dollar continues to firm as the demand for dollars grows.
-Gold is rising as more people see impending potential crisis. It reminds me of 2005-2006.
-60-70% of the population have been left behind this decade. They made the worst financial decisions at the wrong time. They relied on ZeroHedge and the other alt-financial “analysts.” These writers couldn’t make it in the big-time, so they turned to their blogs. many listened and lost out.
-The elites chose this route. They could have taken a number of other avenues, but chose to perform QE and buy up the world instead. They will pursue this route until the bitter end, and this can last for years.