QE or Not QE: This Is the Only Thing You Need to Read

There’s a lot of noise out there right now.

On socials,
Half the people are screaming “QE IS BACK!”
The other half are shouting “THIS IS NOT QE!”

Both groups are missing the point.

Let me simplify it for you so clearly that you never get confused again:

This is not QE.
But it is monetary expansion.

And for markets, that’s what matters.

What’s actually happening?

The Fed is buying Treasuries again.

They don’t want to call it QE because the word is politically toxic.
They don’t want to say “we’re printing money again” because it sounds like a panic button.

So they change the label.

They call it “Treasury purchase programs.”
They call it “balance sheet adjustments.”
They call it “liquidity operations.”

But here’s the truth:

If the Fed is buying bonds and injecting dollars into the system,
it is an increase in the money supply.

Call it QE.
Call it Not QE.
Call it Uncle Jerome’s Magical Liquidity Hose.

The name changes nothing.

Money is being put back into the system.

That is what drives markets.

Why are they doing this?

Because they have no choice.

The U.S. is running a $2 trillion fiscal deficit.
That means the government is spending $2T more than it earns.

Where does that money come from?

Either:

1. Taxes- political suicide

2. Cutting spending - absolutely not going to happen

3. Borrowing - too expensive with high rates

4. Printing money - the only option that keeps the machine running

So what do they do?

They print.

They try to hide it.
They try to rename it.
But the math doesn’t lie.

You cannot fund a $2T deficit without expanding the monetary base.

“But Victor, they said it’s only $40B a month until April.”

Correct.

They will buy $40 billion per month until April, then “reassess.”

But here’s what people keep forgetting:

Programs like this never shrink.
They only grow.

Because once you start solving liquidity problems with money printing…

You can’t stop.

Markets get used to it.
Bond auctions depend on it.
The Treasury relies on it.
Politicians quietly cheer it on.
And risk assets absolutely love it.

This is how every cycle works:

Step 1 – “Temporary liquidity measure”
Step 2 – “Extended due to market conditions”
Step 3 – “Stabilizing growth and inflation”
Step 4 – Quiet, persistent balance sheet expansion
Step 5 – Full QE when markets get volatile again

We are at Step 1 now.
But the path is already pointing toward Step 5.

The real signal isn’t the amount.

The real signal is the direction.

This is the first time since the tightening cycle began
that the Fed has returned to buying Treasuries consistently.

This is a pivot in behavior.

Not in rates.
Not in policy language.
But in actions, which is what matters for liquidity.

When the Fed starts adding to its balance sheet…

It tells you something big:

They are afraid something will break if they don’t.

That is bullish for risk assets.
That is bullish for Bitcoin.
That is bullish for everything tied to liquidity expansion.

The timing matters too

They said they will buy until April…

But Trump’s new Federal Reserve appointments begin in May.

If you think the current Fed is dovish…

Wait until you see the next one.

Fiscal + monetary alignment.
Treasury + Fed cooperation.
Deficits + political incentives + market fragility.

It all points in one direction:

More liquidity. Not less.

Read this twice

• This is not technically QE

• But it is still money printing via Treasury purchases

• It expands liquidity

• It supports risk assets

• They start small, but they never stop

• The deficit guarantees continuous money creation

• The May Fed reshuffle accelerates everything

• This train only moves one direction once it starts

People are arguing about the vocabulary.

Smart traders only care about the flow.

And the flow has officially turned.

When liquidity expands, markets rise.
It’s that simple.

If you understand this, you are already ahead of 95% of traders trying to predict candles without understanding the engine behind them.

The engine is ON.

And once it starts, the market will not wait for you.

If you want the deeper breakdowns, the liquidity dashboards I track daily,
and the positioning strategies that actually ride these macro shifts…

You know where to find me.

www.whop.com/digitalvault1

Victor