Fed is again trying to cut back on its money printing without causing interest rates to go up. However, this time around, it looks more like an exercise in deception than an honest attempt at the impossible. The money they withdraw from one channel is siphoned right back out through another, as explained in this Zerhohedge article.
A sophisticated set of smoke and mirrors are currently used by the Fed to make it look like they are withdrawing liquidity when they're not. But we don't need to go into any details on this to understand that their aim is an illusion. Besides war, famine, and disease, there isn't any way to withdraw currency without causing interest rates to go up.
The law of supply and demand tells us that any withdrawal of supply will send prices higher, unless demand is equally reduced. In the case of currency, the price is the interest paid. Hence, it's impossible to withdraw liquidity without seeing higher rates of interest, unless some calamity puts a damper on demand.
This is why the Fed's attempt at liquidity withdrawal back in September 2019 failed, and why the plague that followed was so warmly welcomed by the elite. Had it not been for the Fed's about face on liquidity, with the plague as an excuse, interest rates would have been in the double digits by now. But nothing was fixed in the process, signs of strain reappeared by February this year.
This insight is all we need in order to call the Fed's bluff, and the day is drawing near when the wider market realizes this. When that happens, the Fed must stop their money printing if they are to save the dollar from being viciously sold. Interest rates must go higher or the dollar will crash. Either way, things are about to get ugly.
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