by John Rubino
Lawrence Lepard, Managing Partner with Equity Management Associates, just released a report that lays out the coming debt crisis in all its apocalyptic glory. The excerpt below is just a tiny fraction of the whole report, which should be read in its entirety by anyone who wonders about the fate of todays financial system.
SAVED BY THE PRINTING PRESS
As detailed in our last report, the Government response to the COVID driven bursting of the credit bubble was large and unprecedented. At peak, in the three-month period ended 6/11/2020, the Fed balance sheet expanded by 66% as it grew from $4.2 Trillion to $7.2 Trillion. Most of that growth has been the purchase of US Treasuries as the Fed has had to monetize deficits in the absence of foreign and domestic UST purchasers in this low treasury yield environment.