Federal Reserve Playbook Revealed

Interest rates, Hyperinflation, Markets & QE

This article reveals what the Federal Reserve plans on doing regarding Interest Rates, Quantitative Easing and the effects it will have

Interest Rates

(1) The Fed will raise rates and or pause. The Fed does not plan on cutting. The Fed raised rates on purpose to begin collapsing the system. Reducing rates is no longer a main policy procedure. Maybe they cut for the election or some major psychological goal or (Insert whatever other reason here←)

-Rates are already “high” enough where they are currently, to collapse the system, with QE still in place (even though there is less of it - Fed Tapering) and deficits as high as they are.

Quantitative Easing

(2) The Fed will, of course, continue Quantitative Easing (Inflation - Currency Devaluation) with raised rates (Paused or Higher), while reducing the amount or increase of QE (Currency Supply), each time QE is utilized (tapering). As you can see in the Chart below of M2 Supply, is down and no longer on a upward trajectory, surpassing new highs.

-Note that the above (2), is or can be deflationary for stocks, while for example, food prices will increase (Stagflationary hell).

(M2 Currency Supply Chart -FRED)

Stocks have cooled somewhat and should continue to. Food prices among other things have done nothing but rocket towards the Firmament. Why? Two words, Currency Velocity (M2). That's on an upward trajectory straight through the Firmament as well. INDICATING THE BEGINNING PHASE OF HYPERINFLATION HAS ALREADY BEEN IN PLAY since Q3 2021

What reaction would you expect Jerome Powell to have to this reality, I offer you the following:

“I don't see the Stag or the flation”.

-Federal reserver Chairman Jerome Powell

Of course Jerome does not “see it (stagflation)” publicly. He's not allowed or supposed to. I however assure you quite candidly, Jerome does infact see it. Myself and a handful of others do too. Maybe you're one reading this. If so, don’t forget…

Many people say and think the Central Bankers are stupid and or don't know what they are doing. The Truth is, they are just liars. Who know what they are doing and are doing it on purpose while playing/acting stupid. Anything less than the above, is understatement and an offensive perversion of the truth.

Unit Labor Costs Soar In Q1 As 'AI Productivity Boom' Fails To Show Up

BY TYLER DURDEN

THURSDAY, MAY 02, 2024 - 08:05 AM

Today's data corroborates other data that showed gross domestic product cooled in the first quarter while employment costs rose by the most in a year. As a result, inflation is proving stubborn, supporting the Fed’s pivot to a more hawkish stance that will keep interest rates higher for longer than anticipated.

Of course, Fed Chair Powell told us yesterday that he "doesn't see the stag or the flation" in US data...

Inflation is cooling. So why are food prices, from steak to fast-food meals, still rising?

Rising food costs were one contributor to the hotter-than-expected inflation report on Tuesday, with food prices rising 0.4% in January from December, a faster pace than the overall 0.3% rise in the Consumer Price Index (CPI). 

https://www.cbsnews.com/news/food-prices-grocery-inflation-biden-economy/

Why?

First off, inflation isn't cooling. That's just Propaganda and disrespectful tar being poured onto the public before being feathered by the consequences of our economic & financial reality. Until then, bask in whatever joy you can manage to find. The doomsday party hasn't even started. This is currently dress rehearsal.

Notice the above chart is similar to M2 velocity & US Bloomberg Economics Inflation Data Surprise (scroll up to see those charts again).

For growth to happen in stocks, usually each QE injection (supply) must be bigger than the last, to support or drive higher prices. We can see that below, as currency supply grew along with market growth.

Notice the charts below:

1 year chart:

https://tradingeconomics.com/united-states/stock-market

If a QE injection is not larger than the previous, the artificial growth can fall or stall. On top of that, the Fed is still creating currency, even though not as much currently (decrease in M2 supply), it still devalues.

Since 1913, the inception of the Federal Reserve. The dollar has lost 98% of it's purchasing power as admitted on the Federal Reserve's website. That means there is $0.03 left of purchasing power out of the original $1.00.

Notice the charts below:

The things you need go up while assets that were propped up by ever expanding QE, no longer are. Stocks are not making new records, things people need to live or survive, are. That's not to discount another blow off top in the markets.

We are seeing the system ‘shaking’ right now from withdrawals, as we have been overdosing on currency creation for over a decade. The Fed knows tapering slightly (Less QE - Drop in M2 supply) is enough to slowly collapse things, while calling it or using the cover story of, "fighting inflation". They are not fighting inflation. They are hyperinflating us to collapse, with higher rates and continued QE. QE that isn't ever expanding, which is needed to prop things up such as the markets. Not enough additional or increased QE for the expansion we have seen over the last 15 years. 

That is why if you plan on rate cuts and or new all time market highs (still possible obviously), you're going to continue being disappointed for the foreseeable future as of current. Although things do and are rapidly evolving and changing in this environment.

US Factory Orders Rise In March... But February Saw Yet Another Downward Revision

BY TYLER DURDEN

THURSDAY, MAY 02, 2024 - 09:11 AM

The roller-coaster ride of US durable goods and factory orders continued in March (final data just released) as the flip-flopping data series

Having plunged by the most since COVID lockdowns in January, US factory orders continued to accelerate in March, +1.6% MoM (as expected) - but February was revised lower... again. This pushed the YoY factory orders up 1.7% (nominal)...

Source: Bloomberg

This is the 17th monthly downward revision in the last 22 months... come on!!!

https://www.zerohedge.com/markets/us-factory-orders-rise-march-february-saw-yet-another-downward-revision

Source: Bloomberg

The Fed will Hyperinflate the dollar by continuing QE with higher or paused rates. It is enough to prop the system up without collapsing immediately (questionable ATM) while also still destroying it, the dollar/debt and making citizens "own nothing and be happy". It also makes other countries flee from the US, further shifting power from the West to the East.

Currency (destruction) is still being created, but not enough for expansion. This is the decompression (depression phase) of the former expansion (growth) phase.

Is it cool if I drop a Ray Dalio; Cycles of Empires chart here…

The green light has been given to set the sun on the US Empire, the fall of the West and rise of the East and transition to the New World Government digital monetary slave system already being rolled out. This is a purposeful destabilization of all countries economies and the central Banks are all in lock step coordination.

- By Dillon Critique from; what's the DILL?

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