By Graham Summers – Re-Blogged From http://www.Gold-Eagle.com
Very few investors caught on to it, but a few weeks ago the Fed made its single largest announcement in eight years.
First let me provide some context.
For eight years now, the Fed has propped up the stock market. In terms of formal monetary policy the Fed has:
- Kept interest rates at ZERO for seven years making money virtually free and forcing investors into stocks and junk bonds in search of yield.
- Engaged in over $3.5 TRILLION in Quantitative Easing or QE, providing an amount of liquidity to the US financial system that is greater than the GDP of Germany.