The Real Reason Powell Restarted The Money Printer (And Why It Could Backfire)

追加: 2026-05-30

[00:00:00]Six months ago, the Federal Reserve Bank announced that they were going to start growing their balance sheet again. In plain English, growing the balance sheet again means turning the money printer back on. And you've probably seen the impacts of this. Oil prices are skyrocketing, inflation is going back up, there's a new war in the Middle East, yet the stock market keeps breaking brand new record highs. But it looks like things are about to change again. President Trump is appointing a new chairman at the Federal Reserve Bank who's starting on May 15th. And this new chairman has said publicly that he wants to stop growing the Fed's balance sheet, aka he wants to stop the money printing.

[00:00:35]The only problem with that is you can't stop the money printing without causing pain somewhere else in the economy, and most people are not going to pay attention until they feel it in their wallet. That's why in this video, I want to talk about what might be coming. Not just so you can prepare better, but so you can find better opportunities to grow your wealth even faster. In December 2025, Jerome Powell, who is the current chairman of the Federal Reserve Bank, announced that he was going to start growing the balance sheet again, meaning start the money printing. Take a listen. The committee decided to initiate purchases of shorter-term Treasury securities, mainly Treasury bills, for the sole purpose of maintaining an ample supply of reserves over time.

[00:01:14]>> Now, the way this works, just so we're on the same page, is the United States government has one source of revenue.

[00:01:18]It's tax dollars from taxpayers. And in 2026, the government is expected to collect something around $5 trillion in taxes. So, the government collects these tax dollars, and then they go out and spend money. Now, if the government was running a balanced budget, they would be spending $5 trillion or less because that's what they're generating from tax revenue, but that's not what they do. In 2026, the government is going to spend something like $7 trillion, which means there's a $2 trillion deficit. That's what the deficit spending is. The government is spending money that they don't have. And so now, to make up for all this, they have to go out and issue debt. Now, when the government goes out and issues debt, what they're actually doing, the technical term, is they're going to go out and issue something called a treasury. A treasury is a fancy word for a loan, but more specifically, it is a loan made to the United States government. Now, this is where you really want to pay attention for this video because there are three primary buyers of these treasuries. Primary buyer number one is people like you and me. Private people, private institutions, investment funds, pension funds, banks, people and institutions that lend money to the United States government. Number two are foreign governments. These are countries like Japan and the United Kingdom and China that loan money to the United States government. And then the third one, when there's not enough money coming from the private institutions and private people, from the foreign governments, is then the Federal Reserve Bank. And this is where things get even more interesting because although it's called the Federal Reserve Bank, it's actually not a bank because you and I cannot go there and deposit money. It's not a reserve because it's not sitting on any cash reserves and it's not federal. It says so on its website.

[00:03:12]But if the Federal Reserve Bank now is going to be lending money by buying these treasuries so the government can go and spend money, how is the Federal Reserve Bank getting this money if they don't have any cash reserves? And the way that the Federal Reserve Bank gets this money is by printing that money. Right now, according to the Federal Reserve Bank, they say you shouldn't have to worry about this money printing that's happening because it's not quantitative easing. It's actually something called reserve management purchases. Now, the reason why this is such an important concept for you to understand is because anytime you go out and create more money, you're not creating more wealth.

[00:03:48]Right? The Federal [snorts] Reserve Bank can't just create more wealth out of thin air. they can print more dollars.

[00:03:54]But if you print more dollars without creating more wealth, the value of each dollar that you work to earn from your job, the value of each dollar that you're saving in your bank account starts to go down, which is why the prices of things go up. That's why when you hear about more Federal Reserve Bank money printing, more Federal Reserve Bank spending, more government spending, all of that is inflationary because the Federal Reserve Bank has to create this money out of thin air. causes the price of things to go up. Because of all the changes happening in the economy right now, I'm hosting a live, free, and virtual investor workshop on June 16th at 12:00 p.m. Eastern Time noon, where I'm going to be going over number one, how the economy is changing, and number two, how you can build wealth through these changes in the economy. That way you can build wealth outside of just your 401k, outside of just your house, because when you have all these changes happening with money, all these changes happening in our government, all these changes happening with AI and technologies, all of these create panic, but they also create opportunities. And some people are going to become incredibly wealthy because of them. And on June 16th, I'm going to be showing you my firm's research as to where money is moving, and how we can create better investment opportunities for you. It's a free workshop and it's live, but you do have to register to reserve your spot because our software has a limited number of people that can actually join us live. And in the past, when I've done these live workshops, we've hit capacity every single time. And as an added bonus, when you sign up for the investor workshop, you're also going to get Market Briefs, which is my newsletter for investors, completely free. It's read by hundreds of thousands of investors every morning. And when you show up live on my investor workshop on June 16th at 12:00 p.m. Eastern Time noon, you're also going to get a free digital copy of my company's new book, How Money Changed Forever. But to actually get a digital copy of this book, you have to actually show up live on June 16th at 12:00 p.m. Eastern Time noon. So, if you're an investor, I highly join me for my live investor workshop on June 16th. If you have not registered yet, again, I have that link for you down in the description below.

[00:05:55]But, if you ask the Federal Reserve Bank about what's going on right now, they say you shouldn't worry because it's not technically quantitative easing what the Federal Reserve Bank is doing. They're doing something called reserve management purchases. And this is a very important distinction that you want to understand because quantitative easing is what we saw happen during the 2020 pandemic. Quantitative easing is what we saw happen during the 2008 Great Financial Crisis. During that time, there was three things that happened in this order. During the 2020 pandemic and the 2008 Great Financial Crisis, quantitative easing was when the Federal Reserve Bank created this money out of thin air.

[00:06:31]Then they went out and they bought these treasuries, meaning they lent money to the United States government for the purpose of stimulating the United States economy. So, this money was created, the government got all this money, and then they were able to go out and print stimulus checks, unemployment checks, PPP loans, bail out businesses, and do a lot of things because now the government had all this fresh money. It wasn't that more wealth was created, but money was just printed. Now, what the government is doing today is not quantitative easing, it's reserve management purchases, which is a little bit different. The way that this reserve management purchases work is the Federal Reserve Bank has to go out and create more money, similar to the quantitative easing model. Number two, they then go out and buy treasuries, similar to the quantitative easing model, but they have to go out and then lend money to the United States government, but the reason why they're doing that is different.

[00:07:20]It's not to stimulate the economy like it was with quantitative easing, rather it is to support the banking system. And this is why the Federal Reserve Bank says you don't have to worry because now with this reserve management purchasing, we're not doing quantitative easing.

[00:07:35]But, the problem is, and the reason why you want to pay attention, is because this is where the inflation happens.

[00:07:42]It's not through here. Everybody assumes that inflation happens because we were just sending out stimulus checks or we were funding these unemployment checks or doing the PPP loans, but that's not the problem. If the government had the money to do that because we had a lot of wealth, not just in the form of our economy, but in the form of actual money, and the government was giving money that it had because we're spending less than what we make and because we have these extra cash reserves, the government's just giving that money away, that's not the inflation problem.

[00:08:11]The problem is the creation of money because as you create more money out of thin air, the value of the dollar goes down. So, the Federal Reserve Bank today is saying, "Don't worry about inflation because the quantitative easing is not happening. It's this Reserve Bank purchases." But just because the intention is different, doesn't mean that the money creation part is different. Now, this has quietly been happening since December of 2025 and chances are you've been feeling the impacts of this because on one hand inflation has been rising and yes, we got the reports that inflation was going up before the war in Iran started. At the same time people are concerned about the war in the Middle East and oil prices going up, the stock market keeps breaking brand new record highs, and on top of that we've also seen gold prices continue to go up as well. This is why it's so important for you to pay attention to what's going to be coming next with the new chairman at the Federal Reserve Bank because it could be changing the money printer, which can also change the trajectory of our economy. And this is also why it's so important for you to be an investor because our economic system is designed to make investors richer and unfortunately, the average person does not get to see those gains if they are not an investor. If you enjoyed this clip and you want to continue your financial education journey, I have another video that I think you'll love.

[00:09:25]All you got to do is click that button right over there. And for those of you who want to stay up to date on the top finance and business news, you can join Market Briefs, my free financial newsletter, by clicking that button below. Thank you for watching and I'll see you in the next one.