Yujie He
๐Ÿšจ ๐—•๐—ฅ๐—˜๐—”๐—ž๐—œ๐—ก๐—š: ๐—ง๐—ต๐—ฒ ๐—™๐—ฒ๐—ฑโ€™๐˜€ ๐— ๐—ผ๐—ป๐—ฒ๐˜† ๐—ฃ๐—ฟ๐—ถ๐—ป๐˜๐—ฒ๐—ฟ ๐—ถ๐˜€ ๐—ฆ๐—ง๐—œ๐—Ÿ๐—Ÿ ๐—ฅ๐˜‚๐—ป๐—ป๐—ถ๐—ป๐—ด ๐—›๐—ผ๐˜ Under New Chair Kevin Worsh! ๐Ÿ’ธ Think the Federal Reserve turned off its money printer? Think again! ๐Ÿ–จ๏ธ๐Ÿ’ต A deep dive into the Fedโ€™s latest balance sheet reveals that the central bankโ€™s massive monetary expansion is still well underway, despite promises to the contrary. ๐—ง๐—ต๐—ฒ ๐—ก๐˜‚๐—บ๐—ฏ๐—ฒ๐—ฟ๐˜€ ๐——๐—ผ๐—ป'๐˜ ๐—Ÿ๐—ถ๐—ฒ ๐Ÿ“Š The Fed started 2026 with its System Open Market Account (SOMA) holdings at $6.15 trillion. Fast forward to June 24, and that figure has swelled to $6.34 trillion. Thatโ€™s a massive increase of $189 billion in just six months, translating to an annualized balance sheet growthโ€”or "money printing"โ€”rate of roughly 6.16% year-to-date. ๐—ง๐—ต๐—ฒ ๐—ช๐—ผ๐—ฟ๐˜€๐—ต ๐—˜๐—ฟ๐—ฎ: ๐—” ๐—•๐—ฟ๐—ผ๐—ธ๐—ฒ๐—ป ๐—ฃ๐—ฟ๐—ผ๐—บ๐—ถ๐˜€๐—ฒ? ๐Ÿ“‰ When Kevin Worsh took the helm as the new Fed Chair on May 22, the market expected a hawkish approach to reform the Fed, shrink the balance sheet, and combat inflation. However, in Worsh's first month alone, total SOMA holdings actually increased by nearly $20 billion. Adding fuel to the fire, Worsh didn't signal any upcoming interest rate hikes at his first FOMC press conference and explicitly shifted the Fed's inflation target goal up from the traditional 2.0% to a new 2.9%. ๐—ง๐—ต๐—ฒ ๐—š๐—ฟ๐—ฒ๐—ฎ๐˜ ๐—œ๐—ป๐—ณ๐—น๐—ฎ๐˜๐—ถ๐—ผ๐—ป ๐——๐—ถ๐˜€๐—ฐ๐—ผ๐—ป๐—ป๐—ฒ๐—ฐ๐˜ ๐Ÿงฉ There is currently a glaring gap between actual money creation and official government reports. While the broader M2 money supply is expanding at a 7.5% clip this year and the Fed's balance sheet grows at 6.2%, the government claims its preferred inflation gaugeโ€”core PCEโ€”is running at just 3.4%. This massive disconnect suggests everyday Americans are being left behind; for instance, Social Security recipients might only see a 3% cost-of-living adjustment next year, completely failing to match the pace of currency creation. ๐—›๐—ผ๐˜„ ๐˜๐—ต๐—ฒ "๐— ๐—ฎ๐—ฐ๐—ต๐—ถ๐—ป๐—ฒ" ๐—ช๐—ผ๐—ฟ๐—ธ๐˜€ โš™๏ธ It all boils down to unchecked government deficit spending. When the government spends trillions more than it collects in taxes, it sells Treasury bonds. The Fed steps in to buy these Treasuries by literally creating digital money out of thin air. This floods the real economy with new cash, devaluing the US dollar, decreasing purchasing power, and driving everyday prices through the roof. Ultimately, this system fuels severe wealth inequality, benefiting those with access to massive corporate bailouts while everyday Americans absorb the rising cost of living. ๐—ช๐—ต๐—ฎ๐˜ ๐—ช๐—ฒ ๐—ฆ๐—ต๐—ผ๐˜‚๐—น๐—ฑ ๐——๐—ผ ๐Ÿ’ก : To protect yourself against persistent dollar devaluation and expanding money supply, retail investors can get invested in stocks, and hard assets, as these asset classes will likely see prices "melt up" to adjust for ongoing monetary inflation $SPX500 $NSDQ100
Not investment advice. The author may have financial interests in the mentioned instruments.
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