Easy Money Returns as the Economy Teeters on the Edge
The Fed Just Flinched—Again
Let’s not beat around the bush: the Fed is easing monetary policy because it has to. It’s not about “guiding the economy softly.” It’s about keeping this teetering clown show from collapsing outright.
The Fed just dropped the target interest rate again—down another 25 basis points, putting us at a 4% upper bound. This marks five rate cuts since September 2024. That’s 150 basis points in 13 months. Think about that: every time the markets get wobbly or the job numbers stink, the Fed rolls out the cash cannon.
Why does this matter? Because every time they cut rates, they’re basically saying the economy can’t survive on its own. It needs artificial life support—again.
And just like in 2001, 2008, and 2020, this kind of rate-cutting spree always happens right before—or during—a recession. The writing's on the wall.
Quantitative Tightening? Nah—Just Another Lie
Remember how the Fed said it was reducing its balance sheet (QT)? Scratch that. Powell just announced they’ll stopshrinking it on December 1st. They’re going to maintain the size of their $7-trillion-plus balance sheet and “rebalance” it to favor more U.S. Treasurys over mortgage-backed securities.
Translation: they’ll keep buying U.S. government debt, propping up demand so Washington can borrow more without sending interest rates into orbit. In plain speak: the Fed is monetizing government debt—again.
They’re not calling this QE (Quantitative Easing), but it smells the same. Even if they’re just rolling over maturing assets, they’re keeping the money floodgates wide open. That’s not tightening. That’s capitulation.
The Real State of the Job Market
The Fed’s statements are loaded with contradictions. They say unemployment is “low,” but Powell slips up and admits job creation is “pretty close to zero.” He even concedes that layoffs and hiring are both dead in the water. What’s keeping the unemployment rate from exploding? Fewer workers. Deportations. Declining labor-force participation.
That’s not a healthy labor market. That’s statistical sleight-of-hand.
The Two-Percent Inflation Target Is Dead—Long Live Whatever Powell Says
For over a year, inflation has stayed above the Fed’s sacred “2% target.” Core CPI is around 3%. Core PCE (their preferred number) is pushing 2.9%. But instead of owning up to failure, Powell’s now playing word games. He introduced a fictional stat: “inflation minus tariffs,” claiming that without tariffs, we’re practically at target. Yeah, right.
There’s no math. No accountability. Just more propaganda to justify printing more money.
Here’s the dark truth: the Fed is intentionally letting inflation run hot while pretending everything is under control. Why? Because the economy is so weak, they’re betting that lower demand will offset the inflationary effects of easy money.
This way, they can keep fueling asset bubbles and protecting the big boys on Wall Street—while Main Street continues to drown in higher prices and stagnant wages.
Bottom Line: We’re Being Lied To—Again
The Fed isn’t here to protect you. It’s here to protect the system. And that system is cracking. Every time Powell talks about “transitory inflation” or invents new data to backstop rate cuts, it’s just a smokescreen.
Easy money is back. QT is dead. Inflation is here to stay. And the only way out is to opt out.
CALL TO ACTION:
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Stay skeptical. Stay prepared. Stay free.
— Derek Wolfe
