The Hidden Truth Behind Federal Reserve’s Interest Rate Cuts

The Fed Chooses Inflation!

The Federal Reserve Open Market Committee, the Deep State Money Manipulators, voted last week to lower its benchmark interest rate to a range between 3.5%-3.75%.

At the same time it relaunched its money printing operations.

There are a lot of different names for what the Fed does: quantitative easing, liquidity operations, stimulating the economy, demand management, monetary easing, debt monetization.  Another euphemism is preventing liquidity stress.  

We have a few different names for what the Fed does: money printing, inflating the money supply, debauching the dollar, taxing the people without benefit of legislation, creating money out of thin air.  The most descriptive term for what the Fed does is legalized counterfeiting.

Make no mistake about it.  Legalized counterfeiting has been the ruin of nations throughout history and around the world. 

From the Fed’s statement: 

Effective December 11th, 2025, the Federal Open Market Committee directs the Desk to: Increase the System Open Market Account holdings of securities through purchases of Treasury Bills and if needed, other Treasury securities with remaining maturities of 3 years or less to maintain an ample level of reserves.

See?  “Purchases of Treasury Bill… and other Treasury securities….”

Purchase them with what?  Unbacked, fresh digitally-printed money created out of thin air.

“… to maintain ample levels of reserves.”

That’s one we missed in our list of names for what the Fed does.  

To make it all transparent, let us suggest that if you want to lower the price of something, you will try to create more of it.  A bumper crop of oranges… increase the production of flat screen TVs…  bring in a lot of foreign workers to lower wage rates.  More supply.  Lower prices.

So when the Fed says it intends to lower interest rates, they’re firing up the printing presses.

That’s because interest rates are prices.  They are the price one pays to borrow money.  To lower rates, the Fed must “create more money.”  As it does so, it dilutes the value or purchasing power of the money you have.

Meanwhile, the Fed has proven impotent at lowering inflation.  As one Fed official said at the meeting, “There’s no way around we’ve been four and a half years above the inflation target.”

That’s right.  We are in an inflationary environment that the Fed has been unable to tame.  And yet they are relaunching the inflation ship.

If it seems to you like that is crazy, you’re right.  When governments start running on the money-printing hamster wheel, they find it very difficult to get off.

It is fortunate for wise investors that these Deep State Money Manipulators can’t print gold.