Why will the Federal Reserve Bank of the US have to restart QE sooner than later? The answer is runaway budget deficits and also interest payments on the US national debt (plus running a large and massively growing welfare and warfare state) are taking up a larger and larger share of annual US tax revenues. The US budget deficit is up 27% and getting closer to $1 trillion. Unfortunately, this is not the real budget deficit. https://www.cnbc.com/2019/08/12/the-us-budget-deficit-is-up-27percent-and-getting-closer-to-1-trillion.html According to billionaire bond expert Jeff Gundlach, the US national debt increased by $1.4 trillion dollars in 2018. However, because on a relative basis, US yields are still higher than elsewhere and many people have copied Stanley Druckenmiller, there's strong demand for US Treasuries for capital gains: https://finance.yahoo.com/news/debt-ceiling-accord-means-us-investors-will-feast-on-treasury-debt-181759249.html Why is the Fed trapped? (Mish Shedlock article) https://moneymaven.io/mishtalk/economics/fed-trapped-in-a-rate-cutting-box-it-s-the-debt-stupid-Hv0PnrNhCUWn1yDNTktL0g Track Annual US Federal Government Tax Revenues Here: https://fred.stlouisfed.org/series/W006RC1Q027SBEA President Trump & Congress reach a 2 year deal on the debt ceiling: https://www.cnbc.com/2019/07/22/us-debt-ceiling-and-budget-deal-near-final-suspends-ceiling-for-2-years-source.html US Treasury website tracking portfolio holdings of US & Foreign (Debt) Securities: https://www.treasury.gov/resource-center/data-chart-center/tic/Pages/ticsec2.aspx How much in US Treasuries does China, Japan, etc own? https://ticdata.treasury.gov/Publish/mfh.txt Who Owns the US National Debt? https://www.thebalance.com/who-owns-the-u-s-national-debt-3306124 The Fed is worried about veolcity of money picking up after it restarts QE and wants banks to hold onto more reserves and not make more loans after the Fed also cut Interest on Excess Reserves (IOER) along with its 25 basis point rate cut at the end of July 2019: Fed Considers New Tool for a Downturn https://www.wsj.com/articles/fed-considers-new-tool-for-a-downturn-11565614800 Please visit the Wall St for Main St website here: http://www.wallstformainst.com/ Follow Jason Burack on Twitter @JasonEBurack Follow Wall St for Main St on Twitter @WallStforMainSt Commit to tipping us monthly for our hard work creating high level, thought proving content about investing and the economy https://www.patreon.com/wallstformainst Also, please take 5 minutes to leave us a good iTunes review here! We only have about 57 5 star iTunes reviews and we need to get to our goal of 100 5 star iTunes reviews asap! https://itunes.apple.com/us/podcast/wall-street-for-main-street/id506204437 If you feel like donating fiat via Paypal, Bitcoin, Gold Money, or mailing us some physical gold or silver, Wall St for Main St accepts one time donations on our main website. Wall St for Main St is also available for personalized investor education and consulting! Please email us to learn more about it! If you want to reach us, please email us at: [email protected] **DISCLAIMER- ANYTHING MENTIONED DURING THIS AUDIO OR SHORT VIDEO RECORDING IS FOR INFORMATION & EDUCATIONAL PURPOSES ONLY AND DOES NOT CONSTITUTE INVESTMENT ADVICE. JASON BURACK AND HIS GUESTS ARE MERELY STATING THEIR OPINIONS ON DIFFERENT TOPICS RELATED TO INVESTING, THE ECONOMY, MARKETS OR COMPANIES. PLEASE TALK TO YOUR INVESTMENT ADVISOR AND DO ADDITIONAL RESEARCH AND DUE DILIGENCE ON YOUR OWN BEFORE INVESTING AND MAKING IMPORTANT INVESTMENT DECISIONS.- DISCLAIMER**