As the Federal Reserve continues to resort to emergency measures, to address a problem that it claims does not exist, more and more market participants are starting to realize there’s an element to the Fed’s story that just doesn’t add up.
For the last 10 years Federal Reserve officials have proclaimed victory over the last financial crisis, while extolling the virtues of its quantitative easing programs. Of course the programs, much like the recent Fed repurchase transactions, were sold as temporary, but have turned out to be anything but. Which those who have been critical of the Fed warned about when the policies were first initiated.
Now the Fed has seen that if it tries to raise interest rates or undo the quantitative easing balances, the markets quickly runs into trouble. Which was evidenced most clearly in the last quarter of 2018, when the markets started tanking in response to even minimal Fed tightening.
All of which David Brady, a former money manager and current writer for Sprott Money was kind enough to join me on the show and discuss. As well as what to expect when QE4 is officially launched, and how to be best prepared to respond.
So to discover how to put all of the pieces together, click to watch the video now!
October 18, 2019