Earlier today I put out a piece noting that the Fed is now putting $200 billion per month into the system.

To provide some context to this, consider that during QE 1, the Fed was putting roughly $50 billion into the system (large money pumps in bold):

After QE 1 ended, the Fed’s monthly liquidity pumps fell to roughly $30 billion or less.

That’s when this happened:

So it’s not surprising the Fed freaked out and started QE lite in August.

This kept things chugging along until QE 2 was announced in November at which point the Fed began putting $100 billion into the market.

Despite this, the financial system crumbled in March:

The ONLY thing that kept the market afloat was a coordinated effort on the part of the G7: the first in 10 years.

So if you think that somehow the Fed’s money pumps will keep the system afloat and stop another 2008 type even from occurring, consider that we’ve gone from $50 billion to $200 billion per month in money pumps… and we’re still seeing sharp sell-offs occur.

Indeed, at some point, and I cannot say specifically when, the Fed will lose control of the system. When that happens, the Crisis that follows will make 2008 look like a PICNIC.

If you have not already taken steps to prepare for this, I strongly urge you to download a copy of my FREE Special Report specifying exactly how to prepare for what’s to come.

I call it The Financial Crisis “Round Two” Survival Kit. And its 17 pages contain a wealth of information about portfolio protection, which investments to own and how to take out Catastrophe Insurance on the stock market (this “insurance” paid out triple digit gains in the Autumn of 2008).

Again, this is all 100% FREE. To pick up your copy today, go to http://www.gainspainscapital.com and click on FREE REPORTS.

Best Regards,

Graham Summers

PS. We ALSO publish a FREE Special Report on Inflation detailing three investments that have all already SOARED as a result of the Fed’s monetary policy.

You can access this Report at the link above.

Again, this is also 100% FREE. To pick up your copy today, go to http://www.gainspainscapital.com and click on FREE REPORTS.