Selasa, 14 Juli 2020

The Secret Document Central Bankers Don’t Want You to See

July 14, 2020

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Money & Crisis

Urgent Warning

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Don’t Invest Another Dollar Until You Watch This 3-Minute Video.

The Secret Document Central Bankers Don't Want You to See

Graham SummersDear Money & Crisis Reader,

The Fed will soon be buying stocks.

And I don’t mean secretly… as in the Fed would do this “behind the scenes” without anyone knowing about it.

I mean the Fed will be buying stocks right on the open market just like you or I would.

This is no longer conspiracy theory, nor is it conjecture… the Fed has already filed the actual paperwork to do this.

Let me explain.

By law, the Fed is not permitted to buy anything other than Treasuries or mortgage-backed securities (also called “agency debt”).

“But wait a minute Graham,” you might be thinking. “Didn’t you tell me the Fed is currently buying everything from student loans to corporate bonds?”

This is correct, the Fed is buying those assets. But it is doing this indirectly.

Here’s how it works…

  1. The Fed prints new money.
  2. This new money is funneled into a credit facility the Fed set up with the US Treasury back in March 2020.
  3. The Treasury then uses a large broker (BlackRock) to buy these assets.

By doing this, the Fed is able to work around its legal limitations because technically it’s not the entity buying these assets… the US Treasury is doing that by using BlackRock.

And that’s how we know the Fed will soon be buying stocks.

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Proof that the Fed Will Soon be Buying Stocks

Nestled in the contract the Fed signed with BlackRock is the following language:

Subject to this Agreement, including the Investment Guidelines (as defined in Section 5.1), the Manager is hereby appointed as the FRBNY’s agent in fact, and it shall have full power and authority to act on behalf of the Account with respect to the purchase, sale, exchange, conversion, or other transactions in any and all stocks, bonds, other securities, or cash held for investment subject to the Agreement. [Emphasis my own.]

Source: New York Federal Reserve

Let me ask you…

Why would the Fed authorize BlackRock to buy stocks if it wasn’t planning on announcing this later this year?

The Fed could have easily said it was authorizing BlackRock to only buy ETFs, bonds, and the other investments that it planned on purchasing (via the nine credit facilities it set up with the US Treasury in late March).

So why include stocks… an asset class the Fed has yet to approve for ANY purchases whatsoever?!

The Fed would only do this if it knew it would be announcing a new QE program to buy stocks later this year.

No Longer a Secret?

According to my research, it looks like the Federal Reserve is about to make its stock buying official.

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Best Regards,

Graham Summers

Graham Summers
Editor, Money & Crisis

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