Big Warning - Federal Reserve will Cause a Stock Market Crash and then a Massive Stock Market Rally_otter_ai

 America is in deep financial trouble, I'm going to tell you what they don't want you to know, I'm going to tell you about the upcoming stock market crash to be followed by an insane stock market rally. And then I'm going to tell you what I'm going to do to avoid financial ruin and come out ahead. And you're welcome to join me. So here's the dilemma, the rate of inflation, it's extremely high right now, to reduce inflation. Here's the Federal Reserve strategy. One, they're removing money out of the system. That's called quantitative tightening. And two, they're raising interest rates. So here's the problem. And this is where the dilemma lies. For quantitative tightening, if you take out just a little bit of money out of the system, it's not going to put a dent on inflation, especially when inflation is this high. So the government, they would have to remove a lot of money out of the system, which would cause deflation. So here's the thing, the government's they cannot afford deflation, because the government's cannot tax deflation. The government, they benefit from a certain degree of inflation. In a deflationary environment, the federal government, they're going to collect less tax money, if there's less tax money, the government, they would struggle to keep up with their debts and the interest payments on the $30 trillion of debt that they've accumulated. The second tool for finding inflation is raising interest rates. However, raising interest rates, that's going to come at a very costly price for the government's raising interest rates, that's going to make interest payments on your debts much more expensive. So as I said, the federal government they are in debt $30 trillion. That doesn't include the unfunded liabilities, the interest rate increases that we just recently saw, that's going to cause the federal government to pay an extra $100 billion of interest on that debt. So to summarize this very nicely, you have three options here. So one, option number one is to remove money out of the system that would create deflation, the government would receive less tax money, and then they would struggle to make the interest payments on their debts. Option number two, would be to raise interest rates, which would cause the government's interest payments to skyrocket on the 30 trillion of debts. And option number three, this is always an option, it's to take no action. If if the government takes no action, then inflation would get worse. And then there would be the risk of hyperinflation, turning it to Zimbabwe or to Venezuela. So we are essentially, in deep trouble, we're getting very close to checkmates. So this is going to be I mean, it's going to be game over, it's not going to be today, but it's not going to be as far away as you think. And things are going to get worse, every passing year. The only solution to this situation is to increase productivity is to increase outputs. So that would, that would solve the problem. If I were in charge, I would do that. And I know how to do that. But I'm not in charge and our elected officials, they're just digging a deeper hole for all of us. If the urgency of the situation is not clicking for you, I'm going to give you some visuals to help you picture what is going on and where we're headed. But before we do that, I'm going to I'm going to briefly tell you, so let me just say this, the federal government, they spend much more money than they have coming in to make up the difference. They borrow the money and they go deeper into debts. If the interest rates go up the government, they're going to have to spend much more money on the interest payments to service the debts. So here's a graph showing the relationship of the interest rate on government debts as the Federal Reserve raises interest rates. So you know, I know we all know that inflation is threatening our financial system. Therefore the Federal Reserve, they're raising interest rates because they have to, this is going to cause the federal government to pay a lot more in interest payments. So take a look at this. As interest rates go up, a larger percentage of our tax money is going to go towards interest payments. That means there's going to be less money for welfare programs for defense for health care, you name it. And to make matters worse, we just keep adding on more debts. Please take a look. The Comptroller General of the United States and head of the Government Accountability Office just said without substantive changes to spending policy, the federal debt is poised to grow faster than the economy

 

a trend that is unsustainable. Now I'm going to tell you what I'm going to do to avoid financial ruin and to come out ahead but before before I get into that, you need to know this. After the housing bubble burst During the Great Recession about 14 years ago, the Federal Reserve, they've been printing money at an accelerated pace. This has driven up the stock markets. There's basically just too much money in the system, there's too much money going around. And if you're thinking, What do you mean, there's too much money going around like, that didn't happen to me, while I was referring to the rich people, the people in charge. So here's a graph. So here's a chart showing how much money was printed, and the effect that it had on the stock markets. So this is why there's the saying, don't fight the Fed. As you can clearly see the relationship, the more money that's printed, the higher the stock market goes. Now, the Federal Reserve, they're telling us directly, that they're going to take money out of the system, quantitative tightening $47.5 billion a month, every month for the next three months, followed up by $95 billion a month thereafter. So why would you want to fight the Fed, they print the money, the stock market goes up, they take money out of the system, the stock market, it's going to have a very difficult time going up, it's most likely going to go down. If I'm going to be buying anything in this type of environments, it's going to be companies that are highly profitable, that are paying dividends and have pricing power. So if I'm going to be buying a growth stock or a tech stock, it needs to be really special, because it's going to be an uphill battle. The Federal Reserve, they're going to be raising interest rates, they're going to be performing quantitative tightening, to reduce inflation, and it's going to trigger a stock market crash, there's going to be a bunch of wild stock market rallies along the way. So that would be a great opportunity to write covered calls to offload positions and to short zombie companies. However, it is most likely that the stock market is going to end up crashing the Federal Reserve, they're going to attempt to bring down inflation to their target rate of 2%, which is going to be highly unlikely. That's because the Federal Reserve that can only raise interest rates by so much until they reach that points where the government, they're going to get very uncomfortable with the rising interest payments on their debts. So this is going to be an unsustainable situation. When we reach that breaking points, the federal government, they're gonna speak with Jerome Powell, the Chairman of the Federal Reserve, and they're gonna tell him like, are you trying to collapse the federal government's, they're gonna tell them, we can't afford to make these high interest payments on our federal debts. So the Federal Reserve, they're gonna have no choice but to to terminate quantitative tightening, and they're going to stop raising interest rates. When that happens, inflation is going to pick up again, and we're going to see more financial asset appreciation, financial asset inflation, better set. So this is going to trigger a massive stock market rally growth stocks, they're gonna they're gonna skyrocket cryptocurrencies, they're gonna go to the moon, the federal government's they're going to prefer inflation rather than risking default, because with inflation, the government's they're gonna be able to collect more tax money. It also means the 30 trillion that they haven't debts, it's going to be easier to keep up with and the interest payments, they're going to become more manageable. So at that point, that's the point when it's going to become checkmates. So the stock market crash that we're going to have relatively soon, it's going to be big, but it's not going to be the big one, because that's probably going to be one cycle. So one more cycle away. So ultimately, this is what I'm envisioning. It's going to be a stock market crash triggered by the Federal Reserve, followed by a crazy stock market rally triggered by the Federal Reserve. From there, it's going to be choose your poison, it's going to be the big one, the big crash, or it's going to be hyperinflation, when the big crash comes, if they go that routes, the Federal Reserve, they're not going to be able to rescue the stock markets. At that point, it's going to be a decision between screw over all the retirees by wiping out their 401 K's in the IRAs or let hyperinflation turn us into the next Venezuela.

So here's a fun fact. I was in Venezuela multiple times. I was in Caracas during the riots. So imagine an angry Venezuelan mob fighting the riot police. And I was in the middle of that I thought I was gonna die. So the font so that's not the fun fact. The fun fact is that even though Venezuela turned into a hellhole, if you have money, life in Venezuela is great. So there's a whole society and a whole culture of rich Venezuelans living the good life. I mean, this is going on at the same time. There's children in the streets begging for food begging for money just to get by the elite class. And so the ultra wealthy, they're going to be fine if America gets devastated. So I believe that the ultra wealthy and the people in charge, they're going to choose hyperinflation over a deflationary environments, with hyperinflation, no doubt, there's going to be economic havoc, it's going to be crazy, but the rich, they're going to be better off in an inflationary environments. So if you know this is coming, the question is how do you avoid financial ruin. So first, my recommendation, my advice is do not get wiped out in the upcoming crash. This is not the big one, just the one that's coming up relatively soon, avoid getting to leverage just don't get wiped out. Second, it's to get prepared for the crazy stock market rally that's going to follow. And then after you make a lot of money, right before hyperinflation, my recommendation would be to buy hard assets, especially gold, silver commodities. So that's, that's for financial protection, BTC and alts. That's up to you. So something like gold, that is not an investment. Gold is a store of value, its wealth preservation, its protection. From there, it's going to be your choice to get out of the country, just how the Venezuelans with money just poured into Miami. Or to ride it out. Just see how the dust settles. And again, this is all of this, it's not going to unravel just overnight, it's going to get this is going to get worse little by little, and then it's going to pick up steam. And then it's going to catch a lot of people by surprise, it's going to it's going to catch a lot of people unprepared. So hopefully that will not be you. So listen, I understand that this is a little bit depressing. This is not what most people want to hear. I know a lot of people prefer just rainbows and sunshine. But at least I'm being honest with you. 

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