Why the Fed is URGENTLY Turning the Money Printer ON

Well, it's official. The Federal Reserve

is bailing out the artificial

intelligence market. Yeah. Okay. Yeah, I

I know. Big claim, but you're going to

see exactly how what the Federal Reserve

just announced is a complete bailout of

the last leg holding up this economy

from collapsing. And the market is

already snuffing it out. Take a look at

this. Gold up again 1.5% to almost

4,300.

Silver up 4.6%.

Copper up 23. Now, why would copper, an

industrial metal, and these safe havens

against inflation such as gold and

silver be rising? While at the same

time, we're seeing a rise in the spread

between the 2 and 10-year Treasury,

making us more shockprone than nearly

any other time over not just the last

year, but frankly since 2021.

Well,

it might be because the market is

sussing out that the Fed is running the

money printer to bail out artificial

intelligence to keep this market propped

up. And that creates some really

interesting investment ideas, but also

risks for us. See, what a lot of folks

aren't talking about is that the Federal

Reserve said the quiet part out loud

yesterday, and I was surprised that we

didn't actually get a lot of people

talking about this. See JP Morgan, Bravo

Bank, and I've got over here Goldman

Sachs. All of them released their notes

along with Bloomberg, Wall Street

Journal, the Financial Times. All of

them released their notes. And all of

them said, "Hey, you know, the Federal

Reserve is going to be buying $40

billion per month through either Tommo

or POMO, depending on, you know, the

length of the bills that they're buying.

We'll talk about that in just a moment."

which is interesting because then it

makes you wonder, oh, okay, you know,

that's that's just to create reserve

liquidity. But why are they doing that?

And that's the key that nobody is

talking about. Now, let me first explain

a clarification on what we discussed

yesterday regarding FOMO, SOMO, Tommo,

and POMO. So, we know that the Fed

yesterday announced they are going to

start printing $40 billion per month to

initiate their quote reserve management

purchases. This turns the money printer

on. Now, FOMO is fear of missing out.

SOMO is sadness of having missed out.

Tommo stands for temporary open market

operations, which are more overnight

operations or really short-term treasury

bill purchases. Pomo is considered

permanent open market operations. And

it's possible the Fed might actually

prefer POMO over Tomo. And we're going

to explain exactly why in just a moment.

But first, all of the headlines are

talking about $40 billion.

But Goldman actually did this right.

Goldman points out, folks, it's actually

$60 billion because they're already

reinvesting $20 billion a month of

mortgage back securities rollover into

treasuries. In English, cuz those are a

lot of acronyms and fancy words. In

English, the Fed is secretly increasing

their balance sheet to the tune of $60

billion a month. Now, if they're doing

that with four-week Treasury bills, it's

basically temporary. it doesn't really

matter. But if they're doing it with 52-

week bills, which they could, they could

actually be injecting permanent

liquidity for the next year into the

economy to the tune of $60 billion per

month. Now, why would the Federal

Reserve do this? How does this have

anything to do with bailing out AI? And

how does this have anything to do with

private credit and people like scam

altman? ah it has everything to do with

those. So let's understand first the

guys or the the Fed is feeding

us. Okay the Fed is saying hey uh hey

guys so uh between now and April people

have to pay their taxes which means

they're going to send money from their

bank accounts to the Treasury General

account which in English means banks are

going to have less cash.

What do banks do with your cash?

They lend it out. But if they don't have

anymore, they can't lend it. And think

about it, folks. Who wants to borrow

that damn money? It's all part of the

Ponzi. And this is not being like a

doomser. The dollar's going to be around

for a while. Eventually, currencies will

collapse and eventually the dollar

collapse. This is why I like real assets

like real estate or stocks or whatever.

But in the near term,

the Fed, and it took me a while, you

know, I sat down for probably six hours

yesterday just studying, studying

history, studying the more of the nuance

from the Fed Reserve meeting, and I'm

like, "Oh my gosh, they could be

misleading us with this bills purchase

because they could be buying 52- week

bills." And you're going to see why this

matters. Okay, what crisis have we had

over the last 90 days? In the last 90

days, we've had massive private credit

hell. Understand that tririccolor was a

multi-billion dollar collapse on

September 10th. That was just 90 days

ago. Well, 91 days ago, right? Then what

do you have? Well, you have the first

brand's collapse, the Renovo Homes

private equity home renovation rollup

that collapsed. You have a Portaotti

company that goes bankrupt. You got SER

Homes that goes bankrupt. You've got

that's the Marriott related brand. They

went bankrupt. All of a sudden, evicted

people out of their hotel rooms. You've

got a Ritz Carlson developer in Arizona

that goes bankrupt. All of that within

the last 90 days. Now, we literally have

warnings coming from the largest pension

fund in Canada literally yesterday

saying beware of rushing into private

credit. This is a buyer beware market.

Not only do you have this, but you have

a French insurer exercising quote

greater caution on artificial

intelligence buildout when it comes to

financing for the sector, which all

comes on top of credit default swaps

skyrocketing for Oracle. And that is

based on yesterday's pricing. We don't

even know yet what pricing is going to

look like when we jump into a negative

14% decline on the day for Oracle. Okay,

so private credit has been a disaster.

Oracle specifically because remember

companies are using private credit to

finance these data center buildouts.

Remember Meta, Facebook, they are

borrowing $27 billion through Blue Owl

Capital, a private credit firm that also

recently had a crisis because their

publicly traded vehicle is selling for a

massive discount to their privately

traded vehicle. And then they tried to

fix it, but the Financial Times exposed

their bull crap and then they had to

cancel and call off their rollup. You

could look into that. The private credit

Blue Owl disaster. Blue Owl is the same

company taking the entire bag of $27

billion for Meta on financing the Meta

data center expansion. This is why

people are getting a little skittish

about debt, including the Federal

Reserve. And this is where it all ties

back to the Fed. And I'm telling you,

this took me a while to put together

yesterday. But I want you to think about

this. Last 90 days, private credit hell.

Where does private credit money come

from? Big banks. Okay. JP Morgan, Bank

of America, Wells Fargo, and City. Okay,

these are the big four. The big four

funnel money into companies like Jeff.

Jeff then lends uh uh lends to scams

like first brands financing receivables

which just all of a sudden evaporate.

Why do they do that? Because they shove

retired people's money into these funds

that have a high yield to give them

certain yield cuz it can't go wrong. and

Jeff takes a big ass fee and then JP

Morgan and Bank of America and Wells

Fargo and City get a slice of that big

ass fee because they can't do the loans

themselves because of the DoddFrank

regulation that says we don't want you

guys doing the scammy financing. So

instead of them doing the scammy

financing, they give it to Jeff to do

the scammy financing and they still get

a slice of the pie. This is why it's all

related to big banks and it's a giant

giant banking crisis waiting to happen.

People are like, "Kevin, I don't care if

private credit goes bankrupt. It's

different from the big banks." No, it's

not different at all. And it all gets

scary when you have the regulators start

coming in. But the regulators aren't

coming in. I mean, Trump's president,

right? I mean, regulators don't have a

job, right? Oh, shya. SEC probes Jeffre

over their lending to first brands.

Well, damn it.

The regulators are still at their jobs.

They're still at their desk. What the

hell is going on? So, how does this

relate to a direct bailout from the

Federal Reserve that has just started?

Well, we're going to talk about that.

But something to know, and I want to

just shout this out

in the Me Kevin Alpha report this

morning. Nobody's going to believe it

unless you watch this me Kevin Alpha

report this morning. I said I'm buying

the dip on a 617 bounce and I just want

you to see it. These were the cues this

morning and your boy Kevin probably

spent about what did I buy? Like $50,000

bucks worth of stuff. I think I bought

somewhere around $50,000 maybe even

$60,000 worth of stons uh of my top 10

stocks to buy list. Yeah, I bought

11,000$10,000

11,000 10,000 and an option for five.

Okay, so it's like 46ish,000. 46,000

bucks of of buy the dip by alert 617

line. Look at where it is on the chart.

Just saying if you want lifetime access

to that, make sure you join over at

meekke.com. Can't always guarantee that

our calls are, you know, perfect, but I

think we do a really good job every day

before the market opens up. I want you

to be a part of it. Pay once, you get

lifetime access. Some even say you stop

hearing the pitch once you join. It's

like a built-in ad block. Okay, go back

to this for a moment. Understand this.

So, we know private credit is in bed

with the big banks. We know this. This

is obvious. We know they're lending to

bull crap private credit scams. Okay.

Now, where does the Fed come in? The Fed

is pumping liquidity. The Fed is arguing

that bank balances are about to get

drawn down by about $400 billion

because taxes are going to go to the

Treasury General account. So, think

about this. Like look, I got like

multiple, you know, seven figures

sitting in cash right now because I got

a big tax bill to pay. Okay, which is,

you know, it's a good thing. It means

you made made money, right? Fine. So, I

got a big tax bill to pay. When that

money goes from cash at the banks to the

Treasury Department because I paid my

tax bill, the banks have less money to

lend. So, the Fed is saying, "Hey, uh,

well, what if we quietly print $60

billion per month to prop banks up

again?" Okay. Well, how long would it

take for you to prop up $400 billion of

money until April tax refunds start, you

know, dropping into people's banks so

banks can lend again? How long is that

going to take to offset $40 billion of a

banking hole or $400 billion worth of

banking hole if you're printing $60

billion a month? Well, 400 divided by 60

is 6.67

months. So basically sometime between 6

to 7 months of money printing that the

Federal Reserve has to do. How long is

Powell still in office?

Six months.

Howell on his way out is trying to print

his way out so he isn't left holding the

bag.

Call me jaded, call me skeptical, but

it's too damn convenient. And so this is

where we get back to Pomo versus Somo.

Okay, so Homo Somo, I initially thought

this was just going to be overnight

liquidity. I actually think I was wrong

yesterday. I actually think they're

going to use rigable homo because think

about it. If you're trying to plug a

$400 billion hole, why are you going to

buy one week or four week treasury

bills? You won't. You're probably going

to buy 26- week and 52- week Treasury

bills, which basically means the money

printer is back on for the next 6 to 12

months. Now, why is the money printer

back on? Why are they doing this?

They're doing it because they said the

quiet part out loud yesterday. You

remember what they said yesterday? It

was nasty. They were so blunt about it,

but nobody's paying attention to what

they said yesterday.

>> Go buy the meet Kevin courses.

20,000 negative jobs per month on

average. And don't trust the data. Okay,

look at this. Number one, average job

gains

40k

uh last, you know, 4 months. Powell

says, "Don't trust the data." He

literally is saying the quiet part out

loud. Powell's saying, "Don't trust the

data." And he's telling us actual jobs

are probably - 20k per month, which is

less than break even, which is bad.

Okay, but here's the problem. Okay,

watch this.

Fed prints 60 bill. Where does that

money go? The money goes to banks, which

goes to private credit, which props up

AI and Oracle. They haven't started

printing yet. They turn the printer on

tomorrow. Okay. Uh the 40 bill, well,

they started printing some of it. The 40

bill starts 1212 and 20 bill is already

happening, you know, per month, mind

you. This is per month. Okay? This is

not like a little onetime top off. It's

per month for the foreseeable future. So

now I want you to think about this for a

moment. The Fed prints $60 billion. It

goes to banks, which goes to private

credit, which goes to AI and Oracle. You

think it goes to you? No. It's going to

AI, Oracle, and big companies. Why?

Because the only leg holding up labor at

all isn't the consumer, it's AI. If it

weren't for cap, like Goldman Sachs says

this, we know this. If it weren't for

AI, we would be in recession without AI.

And so the Fed knows this. And so

they're secretly saying the quiet part

out loud and people aren't paying

attention. Imagine if the Fed said this.

Imagine the Fed says labor is SH9T

and we're going into a recession. The

stock market would tank and guarantee a

recession. So instead, hey guys, the

Treasury General account is getting

filled up. Uh you know, banks need

liquidity.

Private credit is seizing up. Uh we're

just going to we're going to fix the

plumbing. Uh, this isn't QE. Uh, no.

This is this is this is just a just a

plumbing patch. That's all this is. It's

a plumbing patch, guys. Everything's

fine. Everything is fine. This is like

Spongebob with fire. Everything is fine.

It's insane.

So, everything is not fine. The Federal

Reserve is literally now printing $60

billion a month to directly bail out

artificial intelligence to try to stick

the soft landing before Jerome Powell

leaves. The timing of the purchases

align with Powell leaving. Maybe it's a

coincidence, but Powell said his dream

is to make sure that he leaves the Fed

with the economy on good footing and not

in a recession. This is Powell and the

Federal Reserve puking. The Federal

Reserve realizes the labor market is a

massive issue. Now, how the hell can you

increase GDP and say that the labor

market is weakening?

AI. That's it. Jerome Powell also warned

about that. This is the first industrial

revolution that might actually be net

job destructive and it's terrible for

America in the long term. It's in the

very long term will be good. So, I

should say maybe it's terrible in like

the medium longest term and then the

very long term it's better. Eventually,

it'll be better, but it could take a

decade because when we had the boom of

radios or we had the boom of the

automotive industrial revolution, yeah,

people who drove, you know, horses or

horsedrawn carriages, they lost their

jobs to autos or, you know, some

newspapers lost their jobs to radio or

TV, you know, TV killed some radio,

right? There's always going to be some

turnover. But AI is this really unique

innovation where you could fire a 100

customer service agents and hire two

electricians for your data center and

actually net have GDP go up. So you

could literally have GDP going up with a

net 98 person loss in that example,

which is insane. And it's the big

winners are big corporations. The hope

is that the big corporations turn around

and start hiring people again because

they're the only ones who have the

capacity to hire. If you look at the

last ADP reports, which businesses are

suffering?

Big businesses? No.

>> No.

>> Small businesses. Small businesses can't

hire. So, no. The Fed is not trying to

bail out Main Street. They're not trying

to bail out the small businesses.

They're not trying to bail out you or

your mom or your sister. They're trying

to bail out the stock market. They're

trying to bail out rich people because

historically, rich people create jobs.

However,

maybe

that's going to take a whole lot longer

than it has historically. And that's the

scary part. And that's why secretly the

Federal Reserve is printing $60 billion

a month. And I think they are using POMO

instead of tommo. not only to try to get

through this technical tax patch, but

also

because they are saying the quiet part

out loud and they are telling us, don't

trust the data. The jobs market is

actually worse than Donald Trump is

telling you. Powell, I've never seen him

do this before. I've never in my career

seen Powell say, "Don't trust the data."

And conveniently, after Donald Trump

makes the jobs data disappear for

October, and then the November jobs data

is going to be based on a month that

half of the government was shut down

for, we're going to conveniently and

magically have numbers come out, you

know, next week that aren't going to be

rigged at all. Just happens to align

with the same exact moment that Jerome

Pal says, "Don't trust the data."

saying something. That's why the Federal

Reserve is puking. And now, if you go

look at the Wall Street Journal

editorial board, they're one of the few

actually pointing this out. The central

bank is predicting faster growth in

2026, but still eases again. Why?

Because of the labor market. Now, they

don't tell us about the negative 20K,

which I think everybody's missing. But

the editorial board of the Wall Street

Journal tells us something different.

They tell us something that good old

Nick T is not telling us. They tell us

the FOMC has introduced what you might

call QE eternity, which is a new way of

saying QE infinity. But this is

basically like I I honestly I honestly I

I believe their for a moment. I

I I'm like, "Okay, I get it. They're

going to use tommo. They're going to buy

really short-term T- bills." Understand

T- Bill maturities. T- billill

maturities. I think it's it's useful to

see the options which is gives you so

much cover. So just type in T- billill

maturities. Okay. And you could buy as

low as one week because you just buy the

four-week maturities that expire within

a week or within a few days. Right? But

these are the available new issue T-

billill maturities. 4 weeks, 6 weeks, 8

weeks,

one quarter, 17 weeks, 6 months, and and

a year. Those are your T- billill

maturities.

I thought they were going to use tommo

and they were going to go for very

short-term you know one day overnight

one week tea bills but the more I got to

thinking about it the more I realized if

they buy 4 week and they buy 60 billion

of four week this month well then next

month they're net doing zero but that's

not what they're trying to do they're

trying to fill the treasury g they're

trying to fill the hole of the bank

money going to the treasury general

account. So, they can't do 4-week. It

doesn't make sense to do four-week

because you're literally pushing against

a string. Then you're doing nothing. You

have to get to at least April, which

means you're going to go for 6 months.

And if you're going to go for 6 months,

you're probably going to be buying

between 26 and 25 weeks. That is not

temporary liquidity. That is basically

permanent liquidity. That's why we call

it homo. So, I have to say I was wrong

and that my initial reaction was was

taking at face value what they said that

this is just to patch the plumbing. And

it wasn't until I sat there for hours

yesterday going something seems off

about this. Gold is rising. Okay, that

was that was a tell, by the way. Okay,

gold is rising. Silver is rising and the

102 spread is rising. The market is

telling me something. What is the market

telling me? And it wasn't until I took

that hint and I sat down for many hours

and I'm like, "What? This is weird. What

is going on?" And then I realized

nobody's talking about that, the - 20K.

And when you align the negative 20K with

the private credit banking disaster, it

all makes sense. This is a secretive

banking bailout of $60 billion of

printing. And so what does that mean for

well stons? Well, usually it's a good

thing for stons. Just saying. I bought

the dip a little bit. Okay, I might buy

some more of the dip, too. But it's

actually usually bullish for stock

short-term. The problem is what if the

Fed truly is too late? And this is why I

maintain I'm at a teeter totter. Okay,

if you go to meet Kevin.com/data,

you could see the barebull scale. So

meet.com/data.

I really got to update the web page a

little bit, but the the bare bull scale

is updated as of two days ago. Honestly,

this probably puts me at like a 5.8

because you just got the Fed put. The

Fed put is back.

Now, notice I'm not a 10 out of 10.

That's because the Fed might be too

late. We might already be screwed. In

which case, that sucks.

But this is why I say no debt, okay? no

margin, no personal debt, no bank debt

at my startup. I am having serious

conversations, by the way, uh now with

my team and uh soon with my board. I'm

meeting my board in 5 days about ending

the fund raise for House Hack. And I'm

going to tell you why. The Federal

Reserve, well, first of all, we're

releasing our AI product and we're like,

we don't need to pay a yield to

investors. Uh if we have an AI product

out, we still are for the people

investing now. You know, read the

offering circular. This is not a

solicitation. So you click the invest

button, you could learn about, you know,

the 5% yield or all the upside,

whatever. No fees to invest, blah blah

blah. Not a solicitation. Read the

offering circular. There's risk with

every investment. But I'm seriously

thinking about going to the board and

saying the Federal Reserve is now at 3

and a half%. The we are dropping our AI

product this month.

Why are we paying a yield when the Fed's

at 3 and a half%, we're paying five, and

they're literally about to turn the

money printer on. We do not need to pay

a yield. They're turning the money

printer on tomorrow. We don't need to

pay a yield.

So, um I don't know. We We'll see. Stay

tuned. I I might I I don't like just

making a decision myself. You know, it's

going to be between uh uh the board uh

and and everyone's collective input, but

I I will uh I'm tempted to make the case

to say we need to end it. So, we'll see.

Um anyway, that's my take. The Fed money

printer is back and it's insane. Why not

advertise [music] these things that you

told us here? I feel like nobody else

knows about this.

>> We'll we'll try a little advertising and

see how it goes.

>> Congratulations, man. You have done so

much. People love you. People look up to

you.

>> Kevin Praath there, financial analyst

and YouTuber. Meet Kevin. Always great

to get your take.