The FED is PRINTING MONEY! $40B and counting!
Published December 12, 2025
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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