Is The Fed At Near Breaking Point?

Date: 27 Jan 2016

This is a section of the Fed’s Balance Sheet. look at the Total Liabilities vs Capital. The Fed is leveraged 112.6 to 1.0! Several months ago it was just 77.0 to 1.0!

The Fed is almost broke!

There is also an issue of US$19.5B being siphoned off its surplus. Apparently to fund spending after Congress and Senate reached an agreement on the budget (Source: King World News).



The US$ could weaken in the second half of the year.

Elsewhere US economic indicators continue to be weak. The US Services PMI has fallen in January 2016 at 53.7 vs expectations of 54.0.

Gold price is on an upward trend, so gold and silver mining stocks, gold and silver ETFs and gold and silver mining ETFs could fare better in the coming months, especially in a weak US$ environment.

Tonight the Fed will issue some information on their two day meeting. Look out for indications for QE4 or Negative Interest Rates Policy. This could result in the fall in price of ETFs that shorts the major indices such as SH, DOG, RWN and PSQ.





About The Author


Author of the books “Invest In Foreign Shares!” and “Invest In REITs!” both books are available at Popular bookstores “Invest In Foreign Shares!” reached Popular’s top 10 bestseller in August 2014 in the non-fiction category

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