Jupiter-Saturn-Pluto 2020 Alignment: The Federal Reserve Is Still Not Buying Enough Debt (Bonds) To Fully Re-Ignite The Global Credit Cycle

Jupiter-Saturn-Pluto 2020 Alignment: The Federal Reserve Is Still Not Buying Enough Debt (Bonds) To Fully Re-Ignite The Global Credit Cycle

On Thursday, May 7, an unprecedented event took place: after a violent repricing in Eurodollar futures contracts for November 2020, for the first time ever, the market was pricing in that negative interest rates are not only coming to the US but would arrive sometime around the Presidential Election.

This unprecedented event only could occur in a world where growth is only possible with trillions in new monetary liquidity debt injections occur on a near-weekly basis – and with debt already at crushing levels, and with interest rates close to zero if not below it. 

Even though the Fed has injected over $6.6 trillion of QE into the markets, it is simply not doing enough QE to monetize the massive upcoming U.S. Treasury flood coming to stimulate a global reflationary wave, which leaves it with just one other option: negative interest rates.