Fed money printing: what Bank of America told clients

0:00Felix and Winston here, and I need to tell you about the Federal Reserve's secret plan because that could literally either protect you or it could leave you in pretty dire straits. Because what Bank of America's just put out, and this pisses me off because they don't send this to you and me, right, the retail investors. They don't send it to CNBC even. They send this to their institutional clients. But I got it leaked. Winston's got some good friends in banking, and literally a former Federal Reserve insider at Bank of America says the Fed is about to start printing money secretly. $45 billion per month, which is pretty significant.

0:33Now, how do they hide this? How do they make that a secret? How do you make $45 billion a secret? Well, they call it reserve management purchases. But what it really means is that they are printing money again and your savings are about to get crushed by inflation once more. I've got the full report here. We'll put it on the screen for you so you can see it.

0:53How did I get the full report? I used to be an investment banker. I've got a very smart hound down here who's too exhausted to show his face. And we've been studying for years how Wall Street actually operates. And a lot of that, of course, is transferring wealth from others to themselves. That's one of the reasons we also founded the Goat Academy where we've taught over 20,000 students so far and why I co-founded Trade Vision to give you guys access to the news and data that's better than anything you've ever seen without any of the political bollocks and madness.

1:20We are spending our retirement, Winston and I, to teach you guys because it's insanely satisfying. In many ways it's a selfish endeavour. I wake up every morning and I get dozens and dozens of happy messages from students, so I feel really happy all day long, right? But that's the beautiful thing when you know how to make your money work, is you can actually do something you enjoy.

1:38So what have we done for this video? Well, we fact checked this as much as possible. We've gone through all the documents, the repo market data, Bank of America's reports, and let me break down for you what they're actually hiding because it'll help you make better decisions financially in the coming weeks and months. Because most people don't read repo reports, right? Like when was the last time you read a repo report? What even is a repo report? But we've done it for you, so you're going to get it broken down in a way that makes sense.

2:05And I'm not going to bang on about the $38 trillion debt and all of that stuff. What I want to go back to is the last time they really did this, 2008, right? Banks were collapsing. The economy was in freefall. So what did the Fed do? Print money. Called it quantitative easing. Fancy term for just printing money out of thin air, and they printed like $4 trillion from 2008 to 2014.

2:27Now what happened? If you owned stocks, real estate, gold, you got rich. The S&P tripled. Real estate recovered and soared. But if you held cash, if you had a job or a savings account, you got destroyed by inflation. Your purchasing power, as us economists call it to make ourselves sound more fancy, well it just vanished, evaporated. So every time the government has too much debt, they can't pay it back, they print money.

2:50And now here, 2025, the end of it, we're seeing the same thing. Lots of debt. Banks are struggling. They're trying to hide it. And really what this means is there's going to be more liquidity sloshing around. And I think there is this great big misunderstanding. I'm literally writing a book on this as we speak because I think it's that important, that says the stock market goes up and down the valuations, it's a reflection of how much profit companies are making, how much they're growing. And the reality is that's the old economy.

3:17The new economy is all about money printed, and it changes it all. The S&P does not go up because of profits anymore. The S&P 500 stocks now go up because there is more money, more money or liquidity as we call it in banking. Again, another stupid fancy term to make ourselves sound smarter. All that's saying is if there are more dollars out there because the Fed printed them, then those dollars will now buy assets because the dollars always want a return. They want an interest. They want a profit.

3:47So there's just more buyers. If you think about every dollar is one person, one buyer, and you have a market stall and you're selling orchids, right? Now I've only got 10 orchids. I have 10 buyers. I can charge $10 for each. What if I have 100 buyers? Well, I can charge a lot more now. What if I have 1,000 buyers? I can charge a heck of a lot more. And that's what's happening on Wall Street. And the other part of that again, which almost nobody understands, is that companies are buying back their own

5:03Shares. So say if I own 10 orchids, I would just destroy 2 of them. Now I've only got 8 orchids. Still got 100 buyers. I can charge you more, right? So that's basically what's happening out there. And there is more complexity to that. And we're working on something very, very, very cool, insane product which will hopefully teach thousands and tens and tens of thousands of people how to profit from this.

5:24But I'm running it past, I have a meeting today with my FTC lawyer because I used to be a lawyer and a banker and I like to be very, very compliant. So I want to make sure we put out there has longevity so we can really make an impact. So we're actually having that meeting today which I'm super excited about because I really want to put this out. I'm gagging and itching to put this out. And something to be put together with the head of our academy. He's a former market maker, one of the smartest people I know, probably the smartest people I know. Whenever he talks to me I'm like, can you break this down for me again like I'm 6? And then he does and I'm still like, and one more time.

6:02But yeah, we put something in that was just going to be I think insanely useful for our students. But more on that in a little while. I know I'm teasing you. But there is a path in my opinion to benefit from this tremendously if you understand it. Just look at what happened after COVID, right? You remember COVID, right? Market crashed 30 odd per cent and then we saw the greatest bull run that we've had in a very long time. Why? Because the Fed printed all that money.

6:27They're starting it again. And this is this current conservative Fed. They're doing this because there are banks that would otherwise go bankrupt. But what is going to happen over the coming months is that we're going to get a different Fed president, Fed chair even come in. So Jerome the money printer Powell, who's become a bit more conservative in his old age, he's printing. The next guy is going to accelerate that. They're going to accelerate the rate cuts. It's going to create a tremendous opportunity for everybody who knows what to buy.

6:55And once you understand that and once you finally understand when to take profits, because it isn't a straight line, you probably realised that by now, right? People come to me and say, oh I bought the stock you did a video on, it was such and such, I'm down 70%. I'm like, it went up 300%. How could you possibly lose 70% on it? And of course, I understand. I look at the chart and I see, okay, it went up and it went down and people didn't know where to sell, right? So it's one of the key things we need to address through education. That's what we do here.

7:22But for the moment, just understand this. Bank of America, biggest bank in the US, believe the Fed isn't just going to cut rates. The report is literally titled "This the Season for Rate Cuts" or "One More Rate Cut." But they're going to do this weird repo market thing that nobody understands which basically means pumping money into banks. What do the banks do with it? They lend it out. There's more money around in the economy and then they do it again and again and again and again. It's a cycle.

7:50So there's going to be more money of that and the money is going to find certain assets that are going to keep going up and that's why we're seeing this crazy run. It is nothing to do with AI in itself or stronger profits or savings from AI or any of that. It is just more money and it's the easiest thesis for investing I think anybody can understand.

8:10So all I'd say to you is learn, understand this. You can join our free community, get a ton of free resources in there, felix.org/resource. If you're really serious about investing, you want to learn from my mentors, including the guy I'm talking about that I'm building this amazing thing, as we shall call it until the FTC lets me give it a name, you want to learn from them, then you can book a call with us, felixfriends.org/freedom, and potentially be part of our mentorship programme.

8:40You don't have to do that, but if you want to do that, there's a free call, free strategy call, and you can explore how that would work and learn from actual guys who've done this for decades on Wall Street. That's the way I learned. I think it's the only way to learn. And these guys are going to keep doing these tricks and hide stuff from us and unless you actually just uplevel your financial skills. That's all this is. It's a skill like any other. You're going to be left in the lurch in my humble opinion.

9:10And Winston says it's fun when you have more freedom and you can do stuff that's fun because it really is. So I wish you the freedom you deserve. I wish you the education you deserve. You don't have to get it from me, get it from anybody, but I would make it somebody with institutional experience at the very least. So, what do you want to do? Click on the 2 links down below in the description.

9:38Go and give your furry creatures a cuddle and really, really follow this Fed story because this is really, really, really important. This is what's going to drive 2026 for us. And I think it's going to be tremendous. But not for all sectors, not for all stocks. We need to understand which ones we're in and why. You got some value out of this and it's just a quick one off the cuff, then share it with people who don't understand it yet either. And Winston, any final words? Come on. Any final words?

10:12He is tired. All the best. If you hold any tech stocks or AI stocks or even just an index fund, Tesla, Nvidia, semiconductor, whatever it is, maybe in your private portfolio or your 401k, what I'm about to reveal could potentially