The Fed's Balance Sheet Passed $7 TRILLION - Does It Even Matter Anymore?

The balance sheet of the Federal Reserve recently grew larger over seven trillion dollars. There are no signs of slowing, and at this pace, the Fed could hit $10 trillion by the end of the year. At this point, it makes you wonder whether it even matters anymore. The Fed has almost doubled the size of its balance sheet since September. What effects does this have on the economy, and how (if at all) does this impact the total money supply? Does this influence asset prices and government spending? All this and more.

#fed #assets #inflation

I am not a CPA, attorney, or licensed financial advisor and the information in these videos shall not be construed as tax, legal, or financial advice from a qualified perspective. Linked items may create a financial benefit for Heresy Financial.

[rolfeliason]

When the dollar to gold ratio is at $24, 057:1 and the dollar to silver ratio at $2, 901:1 (and both rising exponentially) it is my belief the USD is headed to failure. If the US loses the reserve currency you can bet taxation and inflation that cannot be exported will not be far behind. Think that can't happen? Financial history proves otherwise.

[guppeeh]

Wow, this is the best summary of how our monetary system works. You have a gift in delivering complex financial concepts, simply. Thank you and looking forward to learning from you.

[michaelgoodrich]

Great explanation! Keep up the great content!

[suryanarayanarao]

Great explanation..really you summed up a complex subject matter into simple words...Great work !

[steakmayo]

Need to execute FED, Banks, and US governments who end up with more than $50 million negative balance sheet.
Also people who passes laws to favor big corporations.
For the suffering of all the people in earth.

[anthonyp.]

Hi Joe 👋 thank you! You are very knowledgeable. I enjoy your videos.

[richardmayger]

Printing money is no problem providing it does not enter the larger economy. Supporting banks Wall Street ect. If it escapes into the hands of the serfs it will cause high inflation

[kungfujoe]

the us dollar is become so expensive they can only export money and import everything els

[amolghanekar]

Excuse my knowledge on economy but I have two questions / thoughts.

A) Does "Dollar" being world's most preferred reserve currency helps USA in "printing money" like this and still get away just because it is "Dollar" they are printing and not "Indian rupee" for example... :)
B) Can Fed simply keep expanding its balance sheet forever to stimulate economy? How does it matters even if it hits like say 20 trillions if they are never going to "offload" what they have to "Real economy"?

[nicholasoliver]

where do you get your data just trying to educate myself

[mohamedhabib]

When Fed chairman explained about the QE to the Congress, Ben B said "When the Fed R buys assets via FOMC, there is usually a "haircut" of 20% loss to the original owner of the asset. What Fed gains is about 20% even if it's price does not go up in the Free Market Valuation. But usually after sometime the asset value goes up and the Fed reaps a handsome profit when sold at the right time, which eventually goes to the Treasury. So, QE helps the Banks & Asset Owners at times of crisis AND Treasury gets the "net asset appreciation".. This is a Win Win situation for all parties involved". But, here Heresy said "No haircut of 20%, Fed buys assets for full price"... Apparently, there is mis-information. Please clarify this.

[avds]

Great video again Joe! keep up the good work!

[vanscoyoc]

Whats to stop them from "buying" I mean stealing all private property and private businesses?

[pisanghangus]

How much money can the fed print before the value of USD goes down ?

[bhargi]

Aren't all the Federal Reserve profits given to their board of directors? It is a private corporation and not part of the government?

[bobable]

Man. Keep going.. Your topics are great. I ll keep saying... you are one of the best economists out there. I am a CPA, , and i enjoy your videos.. What is your thoughts regarding the global financial system and would it be able to hold itself for good, given that the whole world is in debt, and the global debt is now many multiples the global GDP, what about the future of forex against the USD, , is the world going towards Digital currency soon, money other topics such as the blockchain currencies, , what is the solution to the topic of your today’s video.. isn’t the only available option? Thanks

[MsPrecious]

Terrible cycle of debt. Basically, the gov does not care about people and their $$$$.

[Sam-nens]

Joe, who will pay that debt? and at what value? it's troubling unless you create a new monetary system and a new currency with high value that deems the dollar worthless.

[BlackJokerDRUMS]

Can you explain how defaults are deflationary? If someone repays a loan, then the money "disappears" from the system and that is in fact deflationary because the money supply decreased. But how can a loan default be also?

[lukemckee]

Wait till they ask for more taxes haha