SO IT BEGINS! The 10 Year Yield NOSEDIVES As The Fed Steps Up Buying. Stocks Gain… Mannarino (11 min)
Comment under the video in answer to the question….Why can’t the Fed just keep printing forever?
Because the USA doesn’t live inside a bubble. It needs products from the rest of the world and so it relies on the rest of the world accepting US dollars for products and services and swallowing that Fed inflation. Most production has moved overseas and it would be impossible to bring back; it was too expensive in the first place. We have already seen the BRICS countries introducing a new trade currency backed with commodities. Every time the Fed debases the dollar it encourages countries which manufacture America’s products to move away from the dollar reserve. As that happens foreign central banks and governments will sell down their dollar holdings. That means the Fed has to keep buying ever more on top of the Treasury’s own issuance which continues to spiral out of control. That means even more inflation, a massive underclass, civil unrest and eventually a revolution.