Inflation is Killing — We Need the Fed to Come Closer to A Pause or Get Us Pivot

The US Consumer Price Index’s disappointing report of inflation suggests that the Fed will proceed with another large raise. But certain market conditions might force the Fed to change course, which would spark a powerful rise. the markets need a pivot from the Fed

How Will The Fed Consider to Pivot ?

The Federal Reserve is implementing quantitative tightening to combat rising inflation. The September CPI shows that inflation rates have not declined as predicted. The Fed is anticipated to increase interest rates by 75 or 100 basis points as a result. Nevertheless, a variety of factors could prompt the Fed to alter its strategy.

The lending market is currently under additional stress as a result of the Federal Reserve’s quantitative tightening. It is now more difficult for businesses to obtain money due to the credit spread’s expansion of more than 70% in a single year. Similar to this, the dollar’s strength has increased the likelihood of corporate debt default to a dangerous degree.

A reduction in treasure liquidity is another issue that can force the Federal Reserve to reverse course. By removing mortgage and governmental bonds from its balance sheet, the central bank is tightening its monetary policy. The Fed’s balance sheet increased during the epidemic as a result of quantitative easing.

The threat to financial stability around the world may also influence the Fed’s decision. The dollar has overtaken the Euro, potentially causing financial instability globally. Recession alerts for 2023 have already been issued by the World Bank.

At this point, the Federal Reserve decides to reduce interest rates once more and revert to its earlier Fed pivot. Both the stock market and the markets for cryptocurrencies will soar as a result of this. It will also halt the collapse of the housing market.

But there will be a price to pay: more inflation, which will be worse than what we currently experience. Furthermore, the wealth divide will expand.

The Federal Reserve printed a lot of money, which caused the stock market to soar and inflated everything, including the stock markets. The Federal Reserve then stopped printing money and has been raising interest rates ever since when there isn’t easy money available. This is where the rich get richer, the poor get poorer, and the middle class shrinks even further.

It’s a difficult fight. When the Fed prints money, the stock market rises; when the Fed withdraws money, the stock market falls. If you don’t battle the Fed, the Federal Reserve will have to decide whether to allow the economy to collapse or to restart the money printers, which would lead to further inflation.

Let me therefore restate this for you. Which option will be picked by the government?

Reduce government spending on social security, Medicare, Medicaid, welfare, low-income housing, food stamps, government employee salaries, and other services?

Or restart the money printers, hence it stands to reason that they will opt to restart the money printers. Why am I saying this, exactly?

Why am I advocating for cuts to all of these government programs? Because the federal government won’t be able to fulfill its duty to pay interest due to rising interest rates and quantitative easing.

The federal government will incur more costs and generate less income from taxes. A deflationary situation is unsustainable for governments. This is because they need inflation to help them pay off their previous obligations and they are unable to tax deflation.

As a result, the Federal Reserve will change course because the government needs it. When that occurs, there will be an increase in inflation, which will cause the stock markets to rise as well. I want to be quite explicit about this, just to be clear. This is not a wise choice.

This will be putting the problem off till later. In essence, that is what it is. I believe we have just enough left for one last strong kick before the real collapse, but it will only make the real issue worse.

The good news is that we will eventually emerge from this recession thanks to the Fed’s shift, but the bad news is that it is positioning the nation for impending tragedy.

I’m going to talk to you about the Fed pivots in today’s video. At this point, the Federal Reserve chooses to cut interest rates once more and restart the money-printing machinery. The stock market and the markets for cryptocurrencies will both soar as a result of this.

Additionally, it will prevent the collapse of the property market, but there will be a cost: higher inflation It will be worse than what we currently experience. Furthermore, the wealth divide will expand.

The middle class continues to get smaller while the rich get richer and the poor get poorer.

Here’s the scenario: the Federal Reserve issued a lot of money, which caused the stock market to skyrocket. After printing trillions of dollars worth of money, the Federal Reserve halted and has been rising interest rates ever since, even though there isn’t easy money available.

It’s a difficult fight.

If you don’t battle the Federal Reserve, they will give you two options: either the country will collapse or the money printers will be turned back on, causing more inflation. If you don’t fight the Federal Reserve, they will select greater inflation.

Then let me ask you again: which one will the government pick? Restart the money printers or make cuts to social security, medicare, welfare, low-income housing, food stamps, all government employee salaries, and government services?

Therefore, it makes sense that they will decide to restart the money printers at this time.

Why?

Do I really say this?

Why am I advocating for cuts to all of these government programs? Because the federal government won’t be able to fulfill its duty to pay interest due to rising interest rates and quantitative easing. The federal government will incur more costs and generate less income from taxes.

A deflationary situation is unsustainable for governments. This is because they need inflation to help them pay off their previous obligations and they are unable to tax deflation.

As a result, the Federal Reserve will change course because the government needs it. when that takes place. We’re going to have increased inflation, and the stock markets will also rise in value. For the record,

I want to be really clear about this. This is not a wise choice. This will be putting the problem off till later. In essence, that is what it is. I believe we have just enough left for one last strong kick before the real collapse, but it will only make the real issue worse.

The good news is that we will eventually emerge from this recession thanks to the Fed’s shift, but the bad news is that it is positioning the nation for impending tragedy

At this point, if the Federal Reserve chooses to cut interest rates once more and restart the money-printing machinery. The stock market and the markets for cryptocurrencies will both soar as a result of this.

It will also prevent the collapse of the housing market, but there will be a cost: increased inflation monitoring

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