Saturday, July 6, 2024

Why the Federal Reserve is Running Out of Monetary Oxygen

 On the fiscal front, Congress enacted $6 trillion of Covid-Lockdown bailouts and stimmies virtually sight unseen.

The Fed's balance sheet soared from an already bloated $3.8 trillion in the fall of 2019 to a peak of $9.0 trillion a few months ago.

How do you even comprehend that $5.2 trillion of central bank balance sheet expansion? After all, what it actually measures is the cumulative gobs of new fiat credits being printed day-in-and-day-out?

Still, here's one powerful metric that our mad-money pumpers in Washington surely didn't notice as the ran the Fed's printing presses red hot.

To wit, the Fed's balance sheet crossed the $5.2 trillion mark for the very first time in history on March 25, 2020.

Five days per week we provide facts, charts, history, analysis, assessments and warnings about the madness at loose on both ends of the Acela Corridor connecting Washington and New York.

We think the US economy is weak and debt-ridden, not awesome and that the Fed is destructive, not beneficent. 

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