đ¨ FED EMERGENCY LIQUIDITY IS A GLOBAL WARNING SHOT đ¨
This is NOT QE. This is the financial plumbing clogging. The Fed balance sheet expanded $105B driven by emergency needs, not stimulus. Collateral quality is slipping fast.
â ď¸ Why This Matters: The US is issuing debt just to cover interest on old debt. We are in a structural debt spiral where Treasuries are now a confidence trade, and confidence is cracking globally.
⢠China is mirroring the stress with massive PBoC injections.
⢠When both the US and China inject liquidity simultaneously, it signals system failure, not growth.
⢠Funding stress hits Bonds first, then Stocks, and Crypto takes the hardest hit last.
Gold and Silver hitting ATHs confirm capital is fleeing paper promises for hard assets. This setup precedes every major crash: 2000, 2008, 2020. The Fed is trapped. Risk assets cannot ignore this reality forever. Position for the balance-sheet crisis now.
#DebtSpiral #MacroCrisis #FedIntervention #RiskOff #SystemicRisk đ