US Debt Explodes at Record Pace Forcing Fed QE
US Debt Explodes at Record Pace Forcing Fed QE
Taylor Kenny: 11-4-2025
The economic headlines are buzzing, and for good reason. A recent analysis by ITM Trading, featuring insights from Taylor Kenney, paints a stark picture of the current U.S. economic landscape.
It’s a narrative dominated by a rapidly escalating national debt and a surprisingly abrupt shift in Federal Reserve policy.
Let’s start with the numbers, and they are staggering. In just the past eight weeks, the U.S. national debt has surged by a trillion dollars. While the pandemic provided a unique period of massive debt expansion, this current pace is setting new records outside of that extraordinary time.
This isn’t just abstract government accounting; it has tangible consequences. The daily cost of servicing this debt is now a mind-boggling $3 billion, consuming a significant 17% of all federal spending.
This brings us to the Federal Reserve and its recent decision to halt Quantitative Tightening (QT). For months, the Fed has been attempting to shrink its balance sheet, a move designed to withdraw liquidity from the market and combat inflation.
However, the announcement to end QT, according to the analysis, isn’t a victory lap on inflation control. Instead, it’s presented as a desperate measure to avert a looming liquidity crisis that could threaten the entire financial system.
The core of the problem, as explained, lies in the confluence of a debt crisis and an interest rate crisis.
As interest rates rise, the cost of borrowing for the U.S. Treasury escalates dramatically. To manage its existing obligations, the Treasury is forced to issue new debt at these higher rates, a direct contradiction to the Fed’s QT efforts.
This fundamental conflict is creating significant strain within the financial ecosystem. Banks are experiencing a depletion of reserves, and money market funds are hoarding cash, effectively drying up the liquidity available for the real economy – the businesses and individuals who drive everyday economic activity.
The beneficiaries of this liquidity crunch, the analysis suggests, are the titans of finance: large banks, hedge funds, and corporate insiders.
Meanwhile, the everyday American is left to grapple with the eroding purchasing power of their savings and wages, a direct consequence of inflation that persists despite the Fed’s actions.
The video points to the Fed’s past quantitative easing (QE) programs, particularly the colossal $4 trillion in 2020, as a catalyst for inflating asset bubbles and weakening the dollar. This, in turn, is seen as a mechanism for transferring wealth from the public to Wall Street.
The irony is palpable: the very institution that arguably contributed to the current crisis is now positioning itself as the savior, all while inflation remains stubbornly elevated.
The implications of ending QT extend beyond immediate liquidity concerns. The analysis posits that this move signals a “quiet default,” an implicit acknowledgment that the government may need to devalue its debt to remain solvent.
This devaluation would inevitably impact the value of individual savings, wages, and retirement funds. Historically, such currency crises have led to dramatic consequences, including hyperinflation and a loss of faith in fiat money, often prompting a return to tangible assets like gold and silver as reliable stores of value.
This potential economic reset, however, is unique.
The dollar’s global reserve currency status and the ongoing shifts in the global monetary order, particularly concerning the role of physical gold, add layers of complexity to this evolving situation.
In light of these concerns, ITM Trading is hosting a free webinar titled “The Great Gold Reset.” This event aims to equip viewers with knowledge and strategies to navigate what is presented as an impending collapse of the dollar and a transition towards a gold-backed global financial system.
The presenter emphasizes the importance of learning, preparing, and considering investments in physical gold and silver as vital measures of protection against the economic turbulence anticipated ahead.
For a deeper dive into these critical economic issues and Taylor Kenney’s comprehensive analysis, be sure to watch the full video from ITM Trading.