Seen this chart a few times now. It's the FED increasing it's balance sheet massively in a short time.I'm guessing the chart increased the way it did, because they had to help some banks yet again..
The way it was explained to me when times are bad the FED buys stuff and puts it in a warehouse. (Quantem Easing) to spur up the Economy and increase spending
Right now is supposed to be a time of Quantum Tightening when they sell those items from the warehouse. To increase Rates and make people poorer to battle the inflation.
Isn't this a form of QE which we don't want right now, because it could cause inflation to go up again?
I guess this supports some peoples vision that in the second half of this year the FED will get into trouble, because they can't raise rates anymore and inflation will be to high.
I've been thinking of shorting the market and buying Gold if it comes down again.But I tend to do things wrong or atleast I time it wrong..
Leave a Reply