đš The Fed just released new macro data â and itâs far worse than most people realize.
We are moving toward a global market breakdown, and the majority of participants donât even see it happening yet.
This is extremely bearish for markets.
If youâre holding assets right now, thereâs a high chance you wonât like what comes next.
What weâre witnessing is not normal.
A systemic funding problem is quietly building beneath the surface, and almost no one is positioned for it.
âž»
â ïž The Fed is already scrambling.
âą Balance sheet expanded by roughly $105B
âą Standing Repo Facility added $74.6B
âą Mortgage-backed securities surged $43.1B
âą Treasuries? Only $31.5B
This is not bullish QE or growth-driven money printing.
This is emergency liquidity.
Funding conditions tightened, banks needed cash â fast.
When the Fed absorbs more MBS than Treasuries, thatâs a major red flag.
It signals deteriorating collateral quality, something that only appears during periods of stress.
âž»
Now zoom out to the issue most people are ignoring.
U.S. national debt is at all-time highs â not just nominally, but structurally.
Over $34 trillion, growing faster than GDP.
Interest costs are exploding and becoming one of the largest components of the federal budget.
The U.S. is now issuing new debt to pay interest on old debt.
Thatâs a debt spiral.
At this stage, Treasuries are no longer truly ârisk-free.â
They are a confidence trade â and confidence is starting to crack.
Foreign demand is weakening.
Domestic buyers are increasingly price-sensitive.
Which means the Fed quietly becomes the buyer of last resort, whether they admit it or not.
âž»
This is why funding stress matters so much right now.
You cannot sustain record debt when funding markets tighten.
You cannot run trillion-dollar deficits while collateral quality deteriorates.
And you cannot keep pretending this is normal.
This is not just a U.S. problem.
China is facing the same issue.
The PBoC injected over 1.02 trillion yuan in a single week via reverse repos.
Different country.
Same problem.
Too much debt.
Not enough trust.
A global system built on rolling liabilities that no one actually wants to hold.
When both the U.S. and China are forced to inject liquidity at the same time, that isnât stimulus.
Thatâs the global financial plumbing starting to clog.
âž»
Markets always misread this phase.
Liquidity injections are interpreted as âbullish.â
Theyâre wrong.
This isnât about pushing asset prices higher.
Itâs about keeping funding markets alive.
And when funding breaks, everything else becomes a trap.
The sequence never changes:
âą Bonds move first
âą Funding markets show stress
âą Equities ignore it â until they canât
âą Crypto takes the hardest hit
âž»
Now look at the signal that actually matters.
Gold at all-time highs.
Silver at all-time highs.
This is not growth.
This is not a healthy inflation cycle.
This is capital rejecting sovereign debt.
Money is moving out of paper promises and into hard collateral.
That doesnât happen in stable systems.
Weâve seen this setup before:
â 2000 before the dot-com crash
â 2008 before the Global Financial Crisis
â 2020 before the repo market froze
Each time, a recession followed shortly after.
âž»
The Fed is boxed in.
Print aggressively, and metals explode â signaling loss of control.
Donât print, and funding markets seize while debt becomes impossible to service.
Risk assets can ignore reality for a while.
But never forever.
This is not a normal cycle.
This is a balance-sheet, collateral, and sovereign debt crisis forming in real time.
By the time it becomes obvious, most participants will already be positioned wrong.
Position yourself accordingly if you want to make it through 2026.
Iâve been calling major market tops and bottoms for over a decade.
When I make my next move, Iâll post it here first.
If youâre not following yet, you probably should â before itâs too late.
đš The Fed just released new macro data â and itâs far worse than most people realize.
We are moving toward a global market breakdown, and the majority of participants donât even see it happening yet.
This is extremely bearish for markets.
If youâre holding assets right now, thereâs a high chance you wonât like what comes next.
What weâre witnessing is not normal.
A systemic funding problem is quietly building beneath the surface, and almost no one is positioned for it.
â ïž The Fed is already scrambling.
âą Balance sheet expanded by roughly $105B
âą Standing Repo Facility added $74.6B
âą Mortgage-backed securities surged $43.1B
âą Treasuries? Only $31.5B
This is not bullish QE or growth-driven money printing.
This is emergency liquidity.
Funding conditions tightened, banks needed cash â fast.
When the Fed absorbs more MBS than Treasuries, thatâs a major red flag.
It signals deteriorating collateral quality, something that only appears during periods of stress.
Now zoom out to the issue most people are ignoring.
U.S. national debt is at all-time highs â not just nominally, but structurally.
Over $34 trillion, growing faster than GDP.
Interest costs are exploding and becoming one of the largest components of the federal budget.
The U.S. is now issuing new debt to pay interest on old debt.
Thatâs a debt spiral.
At this stage, Treasuries are no longer truly ârisk-free.â
They are a confidence trade â and confidence is starting to crack.
Foreign demand is weakening.
Domestic buyers are increasingly price-sensitive.
Which means the Fed quietly becomes the buyer of last resort, whether they admit it or not.
This is why funding stress matters so much right now.
You cannot sustain record debt when funding markets tighten.
You cannot run trillion-dollar deficits while collateral quality deteriorates.
And you cannot keep pretending this is normal.
This is not just a U.S. problem.
China is facing the same issue.
The PBoC injected over 1.02 trillion yuan in a single week via reverse repos.
Different country.
Same problem.
Too much debt.
Not enough trust.
A global system built on rolling liabilities that no one actually wants to hold.
When both the U.S. and China are forced to inject liquidity at the same time, that isnât stimulus.
Thatâs the global financial plumbing starting to clog.
Markets always misread this phase.
Liquidity injections are interpreted as âbullish.â
Theyâre wrong.
This isnât about pushing asset prices higher.
Itâs about keeping funding markets alive.
And when funding breaks, everything else becomes a trap.
The sequence never changes:
âą Bonds move first
âą Funding markets show stress
âą Equities ignore it â until they canât
âą Crypto takes the hardest hit
Now look at the signal that actually matters.
Gold at all-time highs.
Silver at all-time highs.
This is not growth.
This is not a healthy inflation cycle.
This is capital rejecting sovereign debt.
Money is moving out of paper promises and into hard collateral.
That doesnât happen in stable systems.
Weâve seen this setup before:
â 2000 before the dot-com crash
â 2008 before the Global Financial Crisis
â 2020 before the repo market froze
Each time, a recession followed shortly after.
The Fed is boxed in.
Print aggressively, and metals explode â signaling loss of control.
Donât print, and funding markets seize while debt becomes impossible to service.
Risk assets can ignore reality for a while.
But never forever.
This is not a normal cycle.
This is a balance-sheet, collateral, and sovereign debt crisis forming in real time.
By the time it becomes obvious, most participants will already be positioned wrong.
Position yourself accordingly if you want to make it through 2026.
Iâve been calling major market tops and bottoms for over a decade.
When I make my next move, Iâll post it here first.
If youâre not following yet, you probably should â before itâs too late.