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The Fed's Money Printing Machine Never Stopped

ClearValue Tax · 2,256 words · 11 min read · EN-ORIG

The Fed's Money Printing Machine Never Stopped
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00:00

In today's video, let's investigate the Federal Reserve's money printing situation. Are they still printing money? How much money are they printing? And what does this mean for you and me? First, let's check to see if the Federal Reserve is still printing money. And in order to do that, let's go here to the

00:15

Federal Reserve's balance sheet on the Soma website. And to refresh your memory, the Federal Reserve began printing money again in December of 2025. So, is this still ongoing? Let's find out. So, here's the Federal Reserve's balance sheet as of December 31st of 2025. So, we're just going to focus on 2026. And I'll give you the overview right now

00:36

and then I'm going to break down the situation right after like what this means for you and me. The Federal Reserve started the year with their total Soma holdings at $6.15 trillion. And the Federal Reserve Soma holdings represents approximately 94% of their total assets. And this is comprised of US Treasury bills, notes, bonds, tips,

00:57

and MBS. And as you can see, the majority of their holdings are in the longer duration Treasury notes and bonds and agency MBS, which are essentially mortgages. Now, the remaining 6% that's not displayed here is a combination of loans, gold certificates, SDRs, foreign currency assets, swaps, and other miscellaneous assets. And then we take a

01:20

look at the most recent data which is provided on a weekly basis by the Federal Reserve. And for us that's June 24th and we're at $6.34 trillion. So since the start of the year that's an increase of 189 billion or in other words the Federal Reserve's balance sheet has grown by 3.08% over the past 6 months. So there's

01:43

another week left like in June if you want to call it a full six months, but we'll just work with these numbers. Okay, so that's 6 months, right? If you annualize it over the course of 12 months, then they're growing their balance sheet or they're printing money at a growth rate of 6.16%

01:59

year-to date. And again, that's slightly understated because that's not the full 52 weeks, right? Anyways, there's your answer. Yes, the Federal Reserve is still printing money at a rate that's greater than 6.16%. So, the Federal Reserve's money printing machine is still turned on. Now, the new Fed chair, Kevin Worsh, came into power

02:20

on May 22nd, and he was supposed to get in there, reform the Federal Reserve, and shrink the balance sheet. In other words, he was supposed to fight inflation by sucking money out of the system. Now, is he doing that? Well, let's see. Okay, so you have Worsh becoming chair of the Federal Reserve on

02:37

May 22nd. And that week, the total SOM holdings were at 6.324 trillion. And as of right now, we're at 6.344 trillion, which is an increase of nearly $20 billion in just one month. So the situation is, and this is not my opinion, this is called facts or math or numbers. Worsh is not shrinking the

02:58

balance sheets. Worsh is not stopping the money printing. Okay, the bottom line is that Worsh said that he's going to do something. He didn't. And I was curious to know if that's defined as a lie. You know, I looked it I guess it's not necessarily a lie. It could be classified as a broken promise, an

03:17

unfulfilled commitment, or you can chalk it up to unreliable behavior. You know, I guess it's considered a lie if he said that, you know, if he said that he's going to do it, but he knew he wasn't going to do it. But my opinion is yes, Worsh lied. Like, you can tell me what

03:33

you think, but that's just my opinion. All right, listen. Worsh is talking so tough on inflation. The media is saying that Wors is going to be so tough on inflation. and he's so hawkish. But at at his first FOMC press conference, he didn't give any indication that the Federal Reserve is going to raise

03:48

interest rates. He increased the inflation goal from aiming to bring inflation down to 2.0%. Now he changed it to the new goal of 2.9%. And the money printing continues. You know, he says one thing, but his actions are the I mean, they're the complete opposite. So, I'm just saying. And again, none of what I just said is my

04:10

opinion. And these are facts like you can go ahead and verify. I showed you the video clips of the press conference in my previous videos and I just walk you through the Federal Reserve's balance sheets and from that you know I formed my opinion and here we are. Okay. So I showed you the Federal Reserve Soma

04:26

holdings and again the Soma holdings represents 94.19% of the Federal Reserve's total holdings. So here's the total holdings of the Federal Reserve just to show you that I'm not cherry-picking data. This is a year-to-ate chart. January 1st until now. And I've circled in red when Worsh came into power for the year. Yes, the

04:47

Federal Reserve has been printing money. Since Worsh got into power, the answer is still yes. The Federal Reserves the Federal Reserve still continues to print money under Worsh. Again, the rate is above 6% a year. Now, I want to show you this again. This is what I showed you in my previous video. The M2 money supply,

05:06

how much money is out there, is growing at a rate of 7.5% this year. The banks, I mean, they print money too, and that's a topic for a separate video. But again, the Federal Reserve is printing money at a rate of 6.2%. Right? So M2 7.5, Fed 6.2. But the thing is according to the

05:27

government reports, according to their expert, honest and reliable calculations, the government is saying that the rate of inflation, the preferred measure PC core inflation is running at a rate of 3.4%. Yeah, very interesting. So, mark my words, you just wait and see. Watch social security recipients get a cost of living adjustment of around what, 3% for

05:51

next year, while the Federal Reserve prints money at a rate of 6.2%. 2% and the money supply expands at a rate of 7.5%. You know, to me that again, it's just my opinion. That sounds like a an awful scam. And mark my words, the American people are going to do nothing about it,

06:08

which is why the government does it and gets away with it. So, listen, I'm just saying it like it is. Even though you know it shouldn't be this way, you know that what I'm saying is true. Like, I'm just the I'm just one of the few educating people and saying it out loud

06:23

publicly. Okay, so I know I'm going to get this question, so I'll just, you know, get ahead of it. If your question is, Brian, can you please explain the Federal Reserve's money printing machine and how it affects you and me? And my answer is sure, no problem. I'll be happy to. My pleasure. So, let me explain to you the

06:40

Federal Reserve's money printing machine. And honestly, it's quite simple, actually. Like, you're gonna you'll see. So, let's take a look at 2020 and 2021 as an example. Okay, so this chart shows the government's deficits. In other words, their their terrible spending problem or their inability to balance their budgets. So, a deficit simply means that the

07:00

government's spending more money than their income, which their income is primarily tax collections. So, if you look at 2020, the government overspent by over $3 trillion that year. So, they needed to borrow money to fund their overspending. So, the situation is summed up very simply. The government will spend more money than they bring

07:21

in. So where does that difference or where does that money come from? You know they borrow the money. Okay. So how does the government borrow money? They do so by selling US treasury bills, treasury notes and treasury bonds which are like they're basically IUS that pay interest. Now if the government can't sell enough

07:40

treasuries to people, institutions and other countries, you know, because they have to sell trillions of dollars worth, then what are they going to do? You know what happens? the Federal Reserve steps in and buys them. Now, where does the Federal Reserve get the money to buy the Treasury bills, notes, and bonds? Like,

07:57

do they have a war chest of cash? No, of course not. They don't. They just create that money out of thin air. So, they go to their keyboard, they hit a few key caps on their keyboard, and then they make their bank account magically create trillions of dollars. Like, no joke. Like, it's all digital. So, therefore,

08:15

the Federal Reserve creates money out of thin air. They use that money to buy US treasuries. And the Federal Reserve carries those US Treasury bills, notes, and bonds on their balance sheet, which I just showed you. So, the US government gets their money and they spent that money on stimulus checks, on PPP

08:32

programs, on employment pay on top of their usual government programs. And all that money, it enters into the real economy because the government's spending that. And there's more money in circulation. And if there's more money in circulation, then the dollar gets devalued because the dollar is backed by nothing, which means that the purchasing

08:52

power of the dollar weakens, which means that it takes more dollars to buy anything, which is how we get inflation, which is why prices keep going up. And the faster they print the money, the faster inflation goes up. So, like I said, it's pretty simple. Okay. Now, the problem is that all this newly printed

09:12

money doesn't get distributed, you know, evenly to the American people. No, of course not. It's because they print the money and the government decides who gets that money and this causes more wealth inequality, which means that the rich get richer and the non-rich all that happens is the cost of living increase. I mean, that's what happens

09:31

and people struggle more dayto-day. Okay, so what do I mean? So going back to this, you see this part, part part four, the government wants to overspend, right? They borrow money, money that's printed out of thin air, and then they spend the money. Okay? But I want you to think about it. Like take take the

09:49

pandemic for example. You got a $1,200 stimulus check. While some people got a $10 million PPP forgivable loan, which is free money, you know, some people got 20 million, 50 million, 100 million. Okay? So you have that PPP situation. That PPP money was one example of unequal distribution of money. But how about all the corporate bailouts that

10:09

have happened ever since 2008? And how about all the money going to foreign countries? Like, do you really think that all that money is being spent honestly? Or is a good portion of that going to slush funds and contracts being awarded to friends and family and associates of the politicians? Like, let's be real. You know, I I don't have

10:28

to expand upon like look at Ukraine now. Look at the current situation. How about the $300 billion that we're going to give to Iran? You know, despite Trump saying that, that's not going to come from US taxpayer dollars. Like, I'm skeptical. And how about all the wasteful government spending? You know, a lot of which is being awarded to again

10:46

friends, families, and associates of the politicians pro most likely at very inflated prices. So, if you want my honest opinion, we are in a rigged game. But I guess what's new, right? But I just want to say this doesn't mean that the situation is hopeless. Here's what you can do to better your situation, our

11:06

situation. I'm going to give you three things. So the first thing is that you should understand the situation, which I just explained to you. The second thing is that you have to know that inflation is going to persist and it's most likely going to get worse. Like I already explained the reasoning why in my

11:21

previous videos. And the third thing is that you need to get invested due to monetary inflation from all the money printing. Like the prices of everything is going to continue to go up. So all I'm saying is get invested in stocks, hard assets, a primary residence because they're just going to melt up in price.

11:39

Not value, but price. And if you accumulate these assets, they're just going to go up. And if you don't, then you're going to get left behind. So, just to give you my honest opinion, it is a rush against time before this whole thing just ends very badly. The house of cards collapses. And I just want to say

11:58

that if you enjoy this research and this content that I provide, come join our investing community on Patreon. So, you can see what I'm investing in. You can join our chat room. You can get your questions answered. So, I'm going to leave a link for you down below. Thank you for the support and I wish you a

12:12

very nice day. Take care.

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