By now, it should be obvious that a major U.S. financial crisis is coming.
A trillion-dollar bail-out, which will see the Fed pump trillions of dollars into the economy, will come into effect in October.
This is the moment when the Federal Reserve’s $85 trillion balance sheet will start to crumble.
But, before the Fed can get the goods in place to prop up the economy in the long run, it will have to make some decisions.
Inflation will need to rise.
And some of the big banks will need some bail-in.
Will the Fed let the banks fail, or will they allow the economy to collapse?
And how will the financial markets react to this?
The Fed is also in the midst of implementing a series of reforms to help keep the economy afloat, but these are also the kinds of decisions that we all make as citizens, even the smartest of us.
We all make decisions that can make or break our careers, our jobs, our savings and our lives.
So, as the economy is slowly healing, we should be asking ourselves whether or not the Fed is making the right decisions.
Let’s take a look at some of these decisions the Fed will need before the end.
The $85 Trillion Balance Sheet Is Already In Trouble