U.S. Debt and Federal Reserve Assets Grow Further – Rogue Economics

But starting in October 2018 – curiously on the exact date the Dow-to-Gold ratio peaked – the government’s appetite for cash finally overwhelmed the market’s ability to lend it. A slow-motion credit crunch ensued, culminating in the repo spike of September 2019… the restart of the Federal Reserve’s money-printing… and the explosion of the Fed’s balance sheet in March 2020. Said another way, the government finally became insolvent in September 2019. The Fed’s printer has been bailing it out ever since. That’s why the two lines on the first chart I showed you are rising together. The more the government borrows, the more the Fed prints.

U.S. Debt and Federal Reserve Assets Grow Further – Rogue Economics