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The FED is PRINTING MONEY! $40B and counting!

Published December 12, 2025
Joel Bomgar
by Joel Bomgar
YouTube Video Transcript
The Federal Reserve is cranking up the money printer, starting with $40 billion of asset purchases, and they also dropped interest rates today by another one quarter of a percentage point. This is the third rate cut in 2025. Every time the Federal Reserve uh reduces rates, it's a indirect way of printing money because the way they reduce rates is by buying or in the or selling assets into the marketplace. And in doing so, when they uh buy assets from the marketplace, they do it with madeup money out of thin air that they create with a magic money printer and that's how they push interest rates down. Well, now because so many people were complaining about the inflation that was caused by the Federal Reserve, they have gotten creative and now they are doing roundabout ways of pumping free money made up out of thin air into the economy. So today they announced that they're dropping interest rates by a quarter of a percentage point, which again will cause the $7 trillion in money market funds to slowly try to find a better home as those interest rates come down for the money that the government will pay you for free to sit on the sidelines in a money market fund or a high yield uh savings account at a bank or things like that. But in addition, the Federal Reserve, they already announced that as of December 1st, they were going to stop letting assets roll off of their balance sheet. So, previously, the Fed Federal Reserve has been trying to shrink their balance sheet uh due to inflation. And uh so, as of December uh 1st, they are no longer shrinking their balance sheet. And now, as of today, literally today, they have announced they are expanding their balance sheet. And they're doing that over the next 30 days by buying $40 billion of government treasuries. So basically the government issues debt which is how it funds itself because the government is $2 trillion. It's running a $2 trillion a year deficit. And that deficit is paid for with debt. And because nobody's not nobody but not enough people are dumb enough to give the government money to loan the US government money. Uh, not enough people are dumb enough to do that because they know the government can print unlimited amounts of money and therefore cause inflation and so you loan the government money at 4% interest and then the government prints 7% more money and you end up 3% worse off. That's how that works. Well, because not enough people are willing to loan the government money and because the Federal Reserve is trying to find roundabout ways to print money out of thin air and inject it into the economy, they are doing this $40 billion uh asset purchase where basically they make up $40 billion out of thin air. They run around and buy government debt with it and then whoever had the government debt now has $40 billion that did not previously exist. magically the money appears out of thin air. So part of the reason the Federal Reserve is doing this is so that they can massively amp up these programs in the future. They're preparing for some significant uh issues in the economy as a result of how indebted the entire economy is from consumers to businesses certainly governments. They are deeply indebted and when they're deeply indebted it requires a constant supply of new money to pay those debts. Otherwise, everybody ends up with high interest rates and they start defaulting on their debt. So, when you have a debt-based economy where everybody's drowning in debt, the government continues to try to print more money out of thin air to try to keep it all from seizing up. The problem is in doing so, they debase the currency, meaning they make the currency less valuable, which causes inflation. And the inflation makes everybody mad and uh it's bad for everybody and especially wage earners who make their money from wages by getting paid by the hour. Because although wages rise slowly, inflation rises faster. Meaning you might get a 3% cost of living increase at work, but the government is printing 7% more money every year, making your life 4% harder to live. So, they're printing a bunch of money, $40 billion over the next 30 days, plus lowering interest rates, which they do by printing even more money. And in the future, they will print vastly more money on top of that. And the result of that will be high inflation. And Bitcoin is sitting at $92,500 as I record this. And as that money pumps into the economy and causes people to start chasing assets with that money, it will push the price of assets up, especially the assets that are most impacted and the the go-to assets that people flee to when the government is undermining and diluting their currency, foremost, Bitcoin. So, we've already seen big increases in the price of gold as a result of central banks buying gold to try to get ahead of their own money printing. So, they're effectively printing money out of thin air, buying gold with it, and then that's insulating the central banks from their own irresponsibility. But obviously, that does not insulate anyone else. Uh, Bitcoin is the best asset that that an average person can own to insulate themselves from inflation. and uh great time to buy it at $92,500. Eventually, Bitcoin will relatively quickly rise from 92,500 to over $150,000. I don't know when that'll be. You know, could be weeks, could be months, I don't know. I would certainly expect by the first half of 2026, but I don't know. And as that happens, uh a bunch of people are going to get left behind who are not buying Bitcoin right now because they feel like they don't need it and it's been mostly going sideways for a year. And we will get to uh next year. There will be massive amounts of money printing by the Fed. Prices will start rising. Everyone will end up worse off. People will try to start buying Bitcoin to shield themselves from inflation. But a lot of the increase that's caused by this money printing will have already happened. And so, how do you get ahead of that? You buy Bitcoin now instead of waiting for the effects of all this money printing uh to take effect. The best way to shield yourself from inflation is when the government's printing a ton of money out of thin air, go ahead and buy the Bitcoin now so that when the inflation and the money printing all hit, it does not hit your finances cuz your assets are shielded from that inflation because they are in the form of Bitcoin. So, buy as much Bitcoin as you can and hold on to it for as long as conceivably possible. Same advice as always.

Disclaimer:

The content provided in this post is for educational purposes only. It should not be considered financial, investment, or trading advice. I am not a licensed financial advisor, and all opinions expressed are my own. Always conduct your own research and consult with a qualified financial advisor before making any investment decisions. Investing in Bitcoin or any other assets carries risk, and you should never invest more than you can afford to lose.

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