The Fed's Money Printing Machine Never Stopped

[00:02] 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

[00:14] Federal Reserve's balance sheets on the SOMA website. 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

[00:30] December 31st of 2025. So, we're just going to focus on 2026. now, and then I'm going to break down the situation right after. Like what The Federal Reserve started the year with their total SOMA holdings at $6.15

[00:45] And the Federal Reserve SOMA holdings represents approximately 94% of their And this is comprised of US Treasury bills, notes, bonds, TIPS, and MBS.

[00:59] 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

[01:12] loans, gold certificates, SDRs, foreign currency assets, swaps, and other And then we take a 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

[01:27] $6.34 trillion. So, since the start of the year, that's 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%

[01:40] over the past 6 months. So, there's another week left like in months, but we'll just work with these numbers. Okay, so that's 6 months, course of 12 months, then they're growing their balance sheet, or they're

[01:54] growing their balance sheet, or they're printing money at a growth rate of 6.16% And again, that's slightly understated because that's not the full 52 weeks, right? Anyways, there's your answer. Yes, the

[02:08] 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 Warsh, came into power on May 22nd, and he was

[02:22] 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.

[02:34] Okay, so you have Warsh becoming chair of the Federal Reserve on May 22nd, and that week, the total sum of holdings were at $6.324 trillion. dollars. And as of right now, we're at $6.344 trillion, which is an increase of nearly

[02:48] $20 billion in just 1 month. So, the situation is, and this is not my opinion, this is called facts or math or numbers, Warsh is not shrinking the balance sheets. Warsh is not stopping the money printing.

[03:02] Okay, the bottom line is that Warsh said that he's going to do something, he didn't, and I was curious to know if that's defined as a lie. not necessarily a lie, it could be classified as a broken promise, an

[03:16] unfulfilled commitment, or you can chalk it up to unreliable behavior. You know, I guess it's considered a lie if he said that do it, but he knew he wasn't going to do it, but my opinion is yes, Warsh lied.

[03:31] but that's just my opinion. All right, listen. All right, listen. Warsh is talking so tough on inflation. to be so tough on inflation, he's so hawkish.

[03:43] conference, he didn't give any indication that the Federal Reserve is going to raise 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

[03:57] 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

[04:09] what I just said is my opinion. These are facts. Like you can go ahead and the press conference in my previous videos and I just walk you through the Federal Reserve's balance sheets. And from that,

[04:21] And here we are. Okay, so I showed you the Federal Reserve's SOMA holdings. And again, the SOMA holdings represents 94.19% So, here's the total holdings of the

[04:35] I'm not cherry-picking data. This is a year-to-date chart, January 1st until now. And I've circled in red when Warsh came into power. For the year, yes, the Federal Reserve has been printing money. Since Warsh got

[04:50] the answer is still yes. The Federal Reserve's The Federal Reserve continues Warsh. Again, the rate is above 6% a year. is what I showed you in my previous video. The M2 money supply, how much

[05:07] 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?

[05:21] So, M2 7.5, Fed 6.2. But the thing is, according to the government reports, according to their expert, honest, and reliable calculations, the government is saying

[05:33] that the rate of inflation, their preferred measure, PC core inflation, is running at a rate of 3.4%. Yeah, very interesting. So, mark my words. Like you just wait and see. Watch Social Security

[05:47] recipients get a cost of living adjustment of around what? 3% for next year, while the Federal Reserve prints money at a rate of 6.2% and the money supply expands at a rate of 7.5%.

[06:00] again, this is my opinion, that sounds like a an awful scam. are going to do nothing about it, which away with it. So listen, I'm just saying it like it

[06:13] 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 Okay, so I know I'm going to get this question, so I'll just

[06:27] question is, Brian, can you please explain the Federal Reserve's money and me? And my answer is, sure. No problem. I'd explain to you the Federal Reserve's money printing machine, and honestly,

[06:42] going to 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, they're their terrible spending problem or their

[06:56] inability to balance their budgets. So a deficit simply means that the government's spending more money than their income, which their income's primarily tax collections. So if you look at 2020, the government

[07:08] So if you look at 2020, the government overspent by over $3 billion that year. their overspending. So the situation is summed up very money than they bring in. So where does that difference or where does that money

[07:23] come from? You know, they borrow the money. money? They do so by selling US Treasury bills, Treasury notes, and Treasury bonds, which are like they're basically IOUs

[07:37] Now, if the government can't sell enough Treasuries to people, institutions, and have to sell trillions of dollars worth, what happens? The Federal Reserve steps in and buys

[07:52] Now, where does the Federal Reserve get the money to buy the Treasury bills, notes, and bonds? Like, do they have a war chest of cash? No, of course not, they don't. They just create that money out of thin air.

[08:05] a few keycaps on their keyboard, and magically create trillions of dollars, like no joke. Like, it's all digital. So, therefore, the Federal Reserve creates money out of thin air, they use

[08:18] Federal Reserve carries those US Treasury bills, notes, and bonds on you. So, the US government gets their money, and they spent that money on stimulus checks, on PPP programs, on employment

[08:33] pay, on top of their usual government programs. real economy because of the government's spending that. And there's more money in And if there's more money in circulation, then the dollar gets

[08:47] devalued because the dollar's backed by nothing, 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

[09:02] they print the money, the faster inflation goes up. it's pretty simple. Okay, now, the problem is that all this newly printed money doesn't get distributed, you know, evenly to the

[09:15] 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

[09:27] happens is the cost of living increase. I mean, that's what happens, and people struggle more day-to-day. Okay, so what do I mean? So, going back to this, you see this part part four, the government wants to overspend,

[09:40] right? They borrow money, money that's printed out of thin air, and then they Okay, but I I want you to think about it. Like, take take the pandemic for example. You got a $1,200 stimulus check, while some people

[09:53] 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

[10:06] money. But, how about all the corporate bailouts that 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

[10:19] portion of that going to slush funds and contracts being awarded to friends and politicians? Like, let's be real. You know, I I don't have to expand upon. current situation. How about the $300 billion that we're going to give to

[10:33] Iran? You know, despite Trump saying that that's not going to come from US [snorts] 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 probably 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

[11:01] the situation is hopeless. Here's what you can do to better your situation, our 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

[11:13] is that you have to know that inflation's going to persist. Like, I already explained the reasoning why in my previous videos. And the third thing is that you need to get invested due to monetary inflation from all the

[11:28] 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, not value, but price.

[11:42] 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.

[11:58] 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 answered. So, I'm going to leave a link for you down below. Thank you for the

[12:11] support, and I wish you a very nice day. Take care.