The Fed Funds Rate Is on Its Way to 4%

"The Fed is trying to crush the demand. So you stop spending as much," he says. "As they crush demand and as asset prices fall, like I said, your stocks, bonds, real estate, etc., then people spend less money." The Federal Reserve will go from making 100 billion a year of profit that it gives to the Treasury to losing almost 300 billion per year,. Now the Treasury has no income. That's a big problem. They're going to have to continue printing money. And now we have another part of the world setting up their own currency: China and Russia who have now gotten together.