How the Fed’s Money Printing Impacts the Markets – And What It Means for You

Economists and Wall Streeters will often tell you that the Fed influences the economy by pumping money into the banking system, or by lowering or raising interest rates. But they don’t tell you exactly how the Fed does that.

That’s because most of them don’t know…and the ones who do know don’t like to talk about it.

Let’s put aside interest rates for a moment. The Fed completely screwed that tool up by injecting $2.7 trillion of cash into the banking system. With that amount of money in the system, rates don’t matter much.

All that matters is whether that huge pile of cash is increasing or not.

From 2009 until the end of 2014 under its “quantitative easing” program (or QE), the quantity of money in the system was always growing, except when the Fed took a brief pause. And the markets always rose, except when the Fed took a brief pause.

That was no accident.

Wall Street would have you believe that the Fed prints money and somehow it gets into the US economy and then by osmosis into the stock market.

In fact, it’s just the opposite.

Today, I want to take you inside the Fed’s secret “back room” and give you a look at how the sausage is made


As Soon As You See This Headline, Sell Every Stock You Own

If you’re an investor, there’s an important date coming up. You’ve probably read about it, but everything you’ve read is wrong – including what the actual date is!

I’m talking about the coming debt ceiling drop dead date, which Treasury Secretary Mnuchin says is September 29.  Mnuchin also says that, unless Congress acts on that day, the government will run out of money. At the same time, the government will have lost its ability to borrow money from the public to finance its ongoing deficits.   

As I have reported in my Wall Street Examiner Pro Trader Federal Revenues report, the Treasury appears to have enough cash to last until mid-October, not September 29, as Mnuchin is threatening. There is some uncertainty however, due to a large military pension fund payment that is legally required on October 2.

And on that date you’ll see one headline that will be your signal to sell – fast.

In this column I’ll show you exactly what is going to happen and when.  I’ll also show why the analysts are completely wrong about the market’s direction.  As we get closer to the real drop dead day I’ll show you how to position your portfolio for maximum profit during the crisis using my exclusive LAMPP indicator.

And on that date you’ll see one headline that will be your signal to sell – fast.

First, here’s what’s really happening (if you ignore the hype)…