🚨BiG CRASH IS COMMING🚨
The Fed's latest macro data reveals a potentially disastrous situation unfolding. Let's break it down:
👉The Fed's Moves:
- Expanded balance sheet by $105B.
- Added $74.6B via Standing Repo Facility.
- Bought $43.1B in mortgage-backed securities.
- Bought only $31.5B in Treasuries.
This isn't a sign of confidence; it's a sign of desperation. The Fed is injecting liquidity to prevent a funding crisis.
👉The Bigger Issue:
- US national debt is at an all-time high ($34T+).
- Interest costs are exploding.
- The US is issuing new debt just to pay interest on old debt.
This is a debt spiral. Treasuries aren't "risk-free" anymore; they're a confidence trade.
👉Global Implications:
- China is facing similar issues, injecting over 1.02 trillion yuan via reverse repos.
- Both the US and China are injecting liquidity at the same time, signaling a global problem.
👉Markets Are Misreading the Signs:
- Liquidity injections aren't bullish; they're a lifeline to prevent a funding crisis.
- Bonds and funding markets are showing stress before stocks.
- Crypto might take the hardest hit.
👉The Signal That Matters:
- Gold and silver are at all-time highs, signaling a loss of confidence in sovereign debt.
- Money is moving into hard collateral, not paper promises.
👉What's Next?
This isn't a normal cycle. It's a balance-sheet, collateral, and sovereign debt crisis forming in real time. Position yourself accordingly to navigate the potential market collapse. Stay informed, and be prepared for what's coming next.
