The Fed is adding $23 billion to Primary Dealer trading accounts this month as it settles its forward MBS purchases from the last two months May 13-21. But this a drop in the bucket compared to the countless billions of newly printed money flowing into US markets from Europe and Japan. Their central banks keep printing it, and their banks and institutions keep shunting some of it straight to Wall Street. That has continued to feed what, at this point, is probably the greatest asset bubble in the history of the world.
Massive Foreign Money Printing Keeps Ending Up in US, Inflating US Assets
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David Stockman’s Contra Corner isn’t your typical financial tipsheet. Instead it’s an ongoing dialogue about what’s really happening in the markets… the economy… and governments… so you can understand the world around you and make better decisions for yourself.
David believes the world -- certainly the United States -- is at a great inflection point in human history. The massive credit inflation of the last three decades has reached its apogee and is now going to splatter spectacularly.
This will have lasting ramifications on how governments tax and regulate you… the type of work you and your family members will have available and what you get paid… the value of your nest egg… and all other areas comprising your quality of life.