The Traderszone Network

Published in TZ Latest News 25 June, 2017 by The TZ Newswire Staff

At Some Point, Fed’s Unwinding Will Be Bad For Bonds (TLT)

From John Ross Crooks III: The Fed is entertaining a disaster: Unwinding its $4.5 trillion balance sheet is expected to become part of its normalization efforts.

That’s a bad idea.

Michael Pento explains, “Since Quantitative Easing (QE) began back in November of 2008, the Fed’s balance sheet has grown from $700 billion to $4.5 trillion today. That is an increase of 540 percent [while] U.S. GDP has only managed […] a comparative measly blip in growth of just 29 percent.”

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