The US has become delusional on monetary policy, and there will be consequences.
We now have a political environment of infinite money, and a new Treasury Secretary Janet Yellen formerly Federal Reserve Bank. What is happening in the last year is a new union between the US Treasury and The Federal Reserve Bank. The government prints infinite money, and the Fed buys it to artificially suppress interest rates. Back in 2009 I called it the bond wall, but since then the government figured a way out of the problem I called out, just have the Fed give itself money and buy the bonds!
With this trick firmly in hand, we have also had the Fed buy assets from banks, resulting in the Fed owning 1/3rd of all mortgages! Next up is market indexes and corporate debt. All of this results in a market infinitely moving up with no downside risk. To solidify this reality we will need a market crack to motivate a bazooka larger than 2020 to be fired to ensure a market rocket.
The question is, do we have conditions for the market rocket now, or must the market crack first to release a new volley. Only time will tell.
In any event, my obsession with crypto currencies, foreign investments (INDA), and gold miners is in preparation for this future event.
I encourage you to watch these videos to understand in detail my concern. If you disagree with the conclusion, I urge you to stop reading or following my stock chatter, for my entire perspective is skewed by this view.
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