Money printer go brrrrr for the elite. Here's a little check that may cover a couple week's groceries for you, John Q Public.
You think you live in a "free market" but it's anything but. The Federal Reserve system is a gigantic Rube Goldberg machine to hide the extraction of productivity by the elites. Your economy is every bit as "planned" as the USSR's. Watch next week when they throw another trillion or so to the energy sector.
Our system resembles late stage Soviet Union more and more each day. I think many are waking up to the complete lack of legitimacy the system has (can't protect citizens - 30 million illegals... Absurd levels of degeneracy and lack of culture..sham courts decide nationwide rulings against the will of the people... endless wars that nobody benefits from). Things are normal, until they aren't and more people understand that society is not normal.
You haven't been paying attention the past two weeks. The Fed and The Treasury are now (more or less) one entity controlled by the president. Did you notice that happen a couple weeks back? The New Federal Reserve/ Treasury entity is now showing up to help support the foreign markets and maintaining liquidity for banks. Will this new entity be the central bank for the world? Watch closely... times are changing. Jay Powell seems to be playing a different kinda of chess on a number of different boards at the same time.
Now the Federal Reserve/ Treasury will now be purchasing “Fallen Angel” bonds. Fallen Angel bonds are top companies that fall from grace being once highly rated to junk rating. When this happens most pension funds can no longer purchase them based on their rules. So basically THE major bond purchasers in the country are no longer able to buy or hold these investments and the bond’s value continues to fall causing a loss of value in the overall bond market and increased interest rates. This typically means bad news for the market, until now.
For the last 100 years the Fed has only had basically 3 tools to help the economy. Most of the time they have been significantly late or chosen not take action in helping avoid a recession and typically work in conjunction with foreign central banks. Not now, typically they lower rates, buy or sell bonds and control lending limits as their only tools. Now they are doing everything possible to support all markets and the world. Specifically they are buying the equity markets, the real estate markets, the municipal bond markets, increasing the lending to banks, other countries when their central banks are not helping and now the junk bond markets. With them buying it raises the price or solidifies the market from further decline. It also greases the tracks for the economy to run effectively. This is an absolute master class in finance being wielded by the treasury/ fed in the hardest economy we have ever seen. If not there would be a run on the banks, meaning banks would not have cash. If you go to get money out it’s not there and this has come very close until they have developed new tactics. We never even thought these were possible. The federal reserve of the United States is leading the world in innovation and setting new standards for future market growth. They are in complete control. If we can get the virus under control expect the federal reserve/treasury moves to launch this market beyond expectations.
The Fed/Treasury are doing an amazing job! They added 2.3 Trillion to support the economy because they can’t wait for congress to supply more money! Look at the timing of this move with jobless claims at 6.6m. This is addition to the dissolution of OPEC means massive changes to the world economy. Additionally the World Bank is having billions called in due to Pandemic Bonds and the Coronavirus Pandemic (you can research that because this post hasn’t gotten waaaay too long).
So in conclusion The Fed/Treasury are one and controlled by the US government again, OPEC is basically dissolved, and the World Bank is getting billions of dollars’ worth of bands called in while The Fed is buying up millions in Fallen Angel bonds (buying up corporations). The Old Guard is crashing down hard and it is in large part due to moves by President Trump and his cabinet. For good or ill the US and world economy will be completely changed after this is all over and it is looking very much like the US will represent the new world central bank.
One note to add here that is interesting. With the government back in full control of The Fed the US could stop collecting federal taxes (literally do away with the IRS) and invest their money and run the country off of investment earnings. It's a wild thought but not impossible.