The Federal Reserve will be turning the
money printers back on. So, get ready
for more inflation. So, if you remember,
I predicted back in 2024 that they're
going to turn the money printers back on
in 2026. And it looks like there's now a
high probability of that happening. So,
I want to tell you what happened and
what this means. Jerome Powell, who's a
chair of the Federal Reserve, spoke at
the NAB conference in Philadelphia this
week. So, that was about 47 minutes
long. And I I don't want to waste 47
minutes of your life. So I'm just going
to show you the highlights which
consists of three video clips and then
I'm going to give you my insights.
Okay. A big question is will the Federal
Reserve cut interest rates at their next
meeting? The Federal Reserve's next
meeting is going to be on October 29th.
So not too far away. So I'm going to
show you this video clip which gives us
a hint at what they're going to do.
Please take a look.
Based on the data we do have, it's fair
to say that the outlook for employment
and inflation does not appear to have
changed much since our September meeting
four weeks ago. Okay. Jay Powell said
that their outlook on employment and
inflation have not changed since their
last meeting. Now, this is very important.
important.
At their September meeting, they gave
their projection about what they're
going to do for the rest of the year.
You can see their projections right
here. So, let's take a look at that. You
click on that and that will open up
their report. And if you go to page two
of the report, you're going to see this.
Right now, the federal fund's interest
rate is at 4.25%.
In September, they projected that
they're going to cut interest rates down
to 3.75% by the end of this year. It
says 3.6% 6% because it's a range of
3.5% to 3.75%.
But we just use the top end of the
range. Anyways, this means that if their
outlook on inflation and employment have
not changed since September, then
they're going to stick to their
projections, which means that they're
going to cut interest rates by 0.25% on
October 29th. And then they're going to
cut interest rates again by another
0.25% 25% in December, bringing the Fed
funds interest rate down from the
current 4.2.5% to the projected 3.75%.
Okay, so does the market believe that
it's going to play out like this? The
answer is a strong yes. According to the
CME Fed Watch tool, there's a 97.8%
chance that the Federal Reserve will cut
interest rates on October 29th. Now, let
me show you the odds for the December
meeting. There's a 92.8% 8% chance that
the Federal Reserve will cut interest
rates by 0.25%
on December 10th.
Now, what does this mean? It means more
easy money is right around the corner.
And this is going to be a tailwind for
the stock market and also for precious
metals. Moving on to the second
highlight. When the Federal Reserve
prints money, it's called quantitative
easing or another way to say it is
balance sheet expansion.
I mean, those are just fancy ways of
saying money printing. If the Federal
Reserve wants to suck money out of the
system, it's called quantitative tightening.
tightening.
I want you to take a look at how much
money the Federal Reserve has been
easing or printing since the GFC, the
great financial crisis.
To prevent an economic collapse, they
had to print around $4 trillion.
And then during the pandemic, to prevent
an economic collapse, they had to print
another 5 trillion. And then of course
we got the raging inflation. And then to
fight inflation, what did they do? In
addition to raising interest rates, they
started to suck money out of the system
with quantitative tightening with QT.
Now I want to show you this video clip
of J. Powell suggesting that
quantitative tightening could end soon.
So please take a look. Since June 2022,
we've reduced the size of our balance
sheet by $2.2 2 trillion from 35% to
just under 22% of GDP while maintaining
effective interest rate control. Our
long-stated plan is to stop balance
sheet runoff when reserves are somewhat
above the level we judge consistent with
ample reserves conditions.
We may approach that point in coming
months and we are closely monitoring a
wide range of indicators to inform this decision.
decision.
>> So listen, this is what I said back in
2024. I said first comes the interest
rate cuts and then they're going to stop
the tightening which is right around the
corner and then comes the quantitative
easing or the money printing in 2026.
I mean their playbook is obvious because
they're cornered. They have no other
choice. And unfortunately it's going to
require a greater amount of money
printing in every subsequent crisis
which means more monetary inflation.
This is why you see the price of gold
doing its thing, acting as an inflation
hedge. If you didn't know, gold has gone
up by 60% year to date. The more dollars
that they print, the more gold is going
to go up. And they're warming up the
money printers.
So that's why people say that gold is a
safe haven because they can print
dollars, but they can't print gold. And
the more money that they're going to
print, the more devalued dollars it's
going to take to buy an ounce of gold.
And just so you know, the Federal
Reserve hates gold. Like, do you know
why? Because the Federal Reserve's
ability to print money gives them more
control and more power. But people are
catching on to this unfair game. Other
countries, they picked up on this a
while back and they started ditching the
dollar. They started ddollarizing right
after the GFC.
Now, more and more Americans are waking
up. They're catching on to this because
of inflation. Now, I want to show you
this last highlight. It's when J. Paul
was asked about the alarming rise in
gold prices. So here's what he said.
Please take a look.
>> Uh so one of your predecessors, Alan
Greenspan, used to view the price of
gold as an indicator of inflation risk.
So in that context, how do you view the
rally that we've seen in gold? And if
you want to throw in Bitcoin, you can
comment on that, too.
>> I I you know, I'm not going to comment
on any particular asset price uh
including that one. And uh I think we we
think of of uh inflation as driven by
you know fundamental supply and demand
uh factors and uh it's not something we
look at you know actively.
>> Okay. Fair.
>> There you go. Paul gets asked about the
rising price of gold and how does he
respond? He responds with no comments.
I'm telling you he knows like he knows
what's up. He just doesn't want to tell
the truth. It's pretty straightforward.
The more money that's out there, the
more devalued each dollar is, and the
more dollars it's going to take to buy
anything, not just gold, not just
silver, but a home, groceries,
utilities, etc., everything. And I'll
just say that it wouldn't be a problem
if incomes rose on par with the rate of
money printing. But that's not the
reality. And it's a problem because all
this money printing, it's going to widen
the wealth gap because some people are
closer to the money printers than others.
others.
So, what's that proverb? The closest to
the money printers will benefit the
most. So, what do we learn today?
They're still on track to continue
cutting interest rates. They're going to
stop the tightening soon and they're
warming up the money printers.
Inflation's going to continue. We're
going to see more asset price inflation.
And I'm telling you, we are making
history. We're in the middle of the
great meltup. And I'll say it again,
it's a process. It's not an event. So
when people read about us like this
situation right now in the history
books, I'm talking about like 50 years
from now, this is going to be known as
the era of when the central bankers took
control and greed and recklessness
ruined our country.
But on a lighter notes, I appreciate
your support. Thank you so much. Please
subscribe and I wish you a very nice
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