The FED Just NUKED The Economy | The 2022 Market Crash Explained
The FED just nuked the economy. In this video, I take a look at the 2022 market crash and explain major changes in the FED's fight to save the economy.
The economic conditions in the economy are worsening and the Fed has officially warned US consumers of future “pain to come” signaling a deeper and longer 2022 recession than previously expected.
First, we’ll talk about the bad news you NEED TO KNOW to protect your money, and then we’ll cover the good news.
THE BAD NEWS:
In short, people are facing a worsening economic crash, including:
- A falling stock market in 2022
- 40-year high inflation in 2022
- Growing unemployment
- Increased global tension with the Russia/Ukraine war
- Heightening tension between China & Taiwan
The United States House of Representative Committee on Financial Services, summoned the CEO's of America’s largest banks. In the words of The US House of Representatives Committee on Financial Services:
“The hearing is the continuation of a series of hearings with the Chief Executive Officers of the largest U.S. banks to review trends and developments in the industry in recent years. As Congress looks to tackle major issues, including:
- consumer protection and compliance issues
- enforcement actions and recidivism
- diversity, inclusion, and racial equity
- mergers and acquisitions - emerging technologies
- and issues relating to the public interest, including worker rights and abortion access
As a finance channel, I seek to find financial advice in news. What is clear is that the House Committee on Financial Services wanted to play politics on a socialist agenda while the bank CEO's urged the FED to protect the financial interests of Americans by doing more quantitative tightening to get inflation under control.
Because the rising cost of living due to inflation most negatively impacts those who can least afford to absorb inflation.
Here’s what we need to know from the mouths of America’s best and brightest financial minds:
- The $6 trillion in Federal Deficit Spending on Stimulus Payments, Paycheck Protection Program Loans (PPP), and “The Inflation Reduction Act” drove the U.S. to 40-year high inflation and the FED has been unable to engineer a soft landing to get inflation under control.
- FED Chairman Jerome Powell raised interest rates another .75 and promised more increases to come. The Federal Reserve is now practically saying that they need to increase quantitative tightening (aka crash the economy) to bring inflation back to 2%, which now isn’t expected to happen until year-end 2023.
- The bank CEO’s urged the FED to deal with inflation because it disproportionately affects those who can least afford to deal with it Economists are predicting further deterioration of the stock market (as much as 20% more to fall) as Fed Chairman Jerome Power basically promises to nuke the economy by raising interest rates more aggressively to fight inflation
- Increasing interest rates will make the cost of lending higher and further diminish the banks ability to make loans given current capital requirements put in place by the Dodd-Frank Act. The Dodd-Frank Act increased capital requirements in response to The Great Recession to prevent bank failures.
THE GOOD NEWS:
The White House Releases First-Ever Comprehensive Framework for Responsible Development of Digital Assets.
What they meant to say is that they “have ideas on a framework” to regulate and participate in global cryptocurrency transactions.
The administration believes this will improve:
- Consumer and investor protections
- Promoting financial stability
- Countering illicit finance (meaning knowing the difference between real and fake money
- Maintain US leadership in the global monetary system
- Allow for financial inclusion (more people to have access to the system)
- Responsible innovation
I have been critical of the speculative nature and high-rise atmosphere of crypto, and I believe this is a good step towards the future for crypto and America’s leadership in the global economy.
As I always say, all that matters is that you don’t panic and control what you can control while staying aware of worsening economic conditions.
So Dave, what can I do about this incoming market crash and recession?
Watch How To Protect Your Money in a Recession:
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