Today
James Turk sent King World News exclusively a chart that every investor
needs to see. It really is true that a picture is worth a thousand
words. But first, here is what Turk had to say about the the markets
and what is happening behind the scenes: “What a great way to start the
week, Eric. Even the stock market is rising, possibly because it was
due for a bounce after the pummeling it has taken lately. But it
probably bounced because the Federal Reserve has started the printing
presses now that the election is over.”
James Turk continues:
It is beginning to pump some money into the system. Last week it turned $42.5 billion of debt into dollar currency – what is called monetization. Only $2 billion was new cash currency, which are the dollar notes that we carry in our pocket. The rest was deposit currency, which are dollars that circulate within the banking system.
Regardless, both are currency, and they both can juice the system, though deposit currency tends to have a bigger and immediate impact because it circulates more efficiently and usually more quickly….
READ MOREIt is beginning to pump some money into the system. Last week it turned $42.5 billion of debt into dollar currency – what is called monetization. Only $2 billion was new cash currency, which are the dollar notes that we carry in our pocket. The rest was deposit currency, which are dollars that circulate within the banking system.
Regardless, both are currency, and they both can juice the system, though deposit currency tends to have a bigger and immediate impact because it circulates more efficiently and usually more quickly….
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