Rebel Capitalist News BREAKING: Fed Announces Not QE...QE 2.0 (What You Need To Know)
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Dec 12, 2025 The discussion kicks off with the Fed's latest 'not QE' news and its implications for liquidity. George dives into the mechanics of the Fed's short-dated Treasury purchases, raising eyebrows about its precision in managing inflation. He critiques the Fed's past failures while mocking their jargon-heavy explanations. A riveting analogy illustrates how collateral quality impacts repo rates more than cash reserves. Finally, George presents actionable insights for navigating different investment regimes in light of these developments.
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Not QE Became QE Again
- George Gammon argues the Fed's 2019 'not QE' quickly became QE when crisis hit in 2020.
- He warns the current '2.0' technical buying will likely follow the same path toward broader QE.
Fed's 'Technical' Buying Is QE In Disguise
- The Fed calls its new program 'technical' or 'technically oriented purchases' but Gammon says that's just Fed-speak for bond buying.
- He highlights the Fed's claim of precision despite decades of failing to hit inflation targets consistently.
Buying Bills Removes Collateral From Market
- Gammon emphasizes the Fed is buying T-bills (front end) to manage liquidity, not long bonds yet.
- He points out buying collateral removes it from market plumbing and changes risk dynamics.