Hello Bj”rn,

 LL>> Is that scary enough for you?

 BF> You have such a nice way to explain things, thank you muchly.

Anytime.

 BF> Now all I'd like to know is how long your Feds can manage to prop up the
 BF> stock exchange before it all collapses.

Junk bonds. The Federal Reserve is buying junk bonds and corporate
debt ETFs in order to revive the American ecnomony. That is what it
has been doing since the pandemic began.

 BF> After all, there must be a limit even of how much money they can print?

Fiat money. Scrip. Not real currency at all.

Since the pandemic began the Fed has acted as a server of
emergency lending programs, making purchases of Treasuries
and mortgage bonds, among other things. The goal is to make
sure companies and households have access to all the credit
they could ever need or want, as credit is the lifeblood
of the economy.

After the events of 9-11, GWB stood between two gigantic
firemen at the base of what used to be the WTC Twin Towers,
and told Americans to "hug your children" and "go shopping"
because we have a consumer society (60% of the economy was
due to consumer spending).

The current pandemic that is running rampant in the USA
needed a different approach.

Governors around the country placed the people in their
states under stay at home measures, closing many businesses
and costing lots of people their jobs.

After giving people free money not to work, people are now
being told to go back to work with no more free money coming
their way. As a result, many people are losing their lives
and the jobs they thought they had.

After re-opening most of the country, the USA is back to
square one. Lots of people dying, hospitals not having enough
beds, etc. And still millions upon millions of people without
jobs. The next stage being when those unemploymnt checks run
out, leaving those without jobs being broke and homeless.

But the stock market exchange lives on. As it will forever.

Remember the stock market crash earlier this year? The S&P 500
had lost half its value. But since March 23, when the Fed started
buying junk bonds, the Federal Reserve's balance sheet has grown
to $7 trillion. That's a lot of junk bonds. Going from flat
broke to $7 trillion in less than four months.

Just you wait until the Federal Reserve starts buying US stocks.
Then you will see elephants fly.

--Lee

-- 
If it doesn't say Jiffy Lube, it's not Jiffy Lube

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