TIP OF THE WEEK – Watch What They Do; Not What They Say

Watch What They Do; Not What They Say

Jason Brizic

Mar. 4, 2011

Federal Reserve chairman, Ben Bernanke, says a lot of contradictory statements in his boring speeches.  Ignore what he says.  You should watch what Federal Reserve does instead.  The FED’s balance sheet visually shows you if they are inflating or deflating.

The stock market’s nominal index numbers will go up when the FED is printing money out-of-thin-air.  Commodities will go up when the FED is printing.  The purchasing power of the dollar goes down when the FED prints money.  However, the opposite happens when the FED deflates.

Cumber Associates does a great job of visualizing FED balance sheet data.  It is available for free and it is updated weekly.  Click on this link to see the Federal Reserve’s balance sheet:


It looks like this:


The large dark blue increase at the bottom of the chart since December 2010 is QE2 (the purchase of US Treasuries).

For more tips, go here:


Published in: on March 4, 2011 at 2:08 pm  Leave a Comment  

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