Liman, Federal Reserve, United States discussed on Rich Dad Radio Show


That's essentially a sell it. And then yet never had. In other words, when they bought the bonds, they created Fiat money as we all know, and when they fell grim. They're basically extinguishing the phony money that they've been creating the last several decades. So finally, we're even getting central bankers who are so fearful of what they've done going so far over the deep end with all this we and zero interest rates and all the rest that they're trying desperately in rapidly to get back to square one. That's they're calling normalization, but they're not gonna stop until they break something big, which is the economy and the financial market in. Oh, and here's the key thing. It used to be that when the economy was going into recession or starting to weaken, then the stock. Market would follow down nowadays it works. The other way, the bubbles get so big that when they finally crash, and I say, you know, the peak was September twenty one that brings the economy down with it because then corporations started getting nervous, and they lay off people, and they close plants, and they shut down stores and all the rest of it. That's where we're heading. I think the fall of twenty eighteen is very similar to the fall of twenty. Oh, eight remember the Liman up. See, and the, you know, the sheer panic in crisis, and what I think is happening is that we had a phony rescue with all this money, printing and the debt of the US government doubled. But it didn't solve anything. It only deferred the day of reckoning. And now here we are back again where we were ten years ago. And basically they've lied to you for the last decade. Saying it's all fixed. Everything's better. And that was a one time aberration will never happen. Again. Not true. So David table why? So let me ask the question. Why can't they just go back to QE they because their balance sheet is now so massively expanded when they started the first time in exactly, you know, ten years ago to this day the balance she's the fed was nine hundred billion. Okay. And in ninety four days, they took it up to two point two trillion. Now, the reason I mentioned this is the ninety four days resulted in more balance sheet expansion at the Federal Reserve than it happened during the I ninety four years of its existence. That's how crazy burn Anki. God. Okay. So now after doing that and then adding on in QE, QE two and Q E three and all the rest of it. They've got they got the balance sheet. So big that even scare. What the hell out of the Keynesians who were sitting on the Federal Reserve? So they're they're trying to shrink it, and they will until the economy buckles. But then it'll be too late. They will stop. I agree. But it'll be too late to to save the market and this time they really have. They don't have a lot of drag puzzle. So let me ask you this. Then if interest rates go up doesn't that make the US dollar stronger? Yes. And with them dollar gets stronger. Then all these emerging markets out. They were borrowed and dollars or toast. Also, absolutely. There's ten trillion dollars out there that has been borrowed mainly by emerging markets heavily by even China. But generally by non you know, by other economies around the world that are now going to be paying desperately looking for dollars to service debt where interest rates are going higher there scramble for dollars to service. Their debt will drive the dollar exchange rate even higher and the whole of vicious cycle. We're all compound, you know, it's the opposite of what's been happening over the last ten years dollar cost that much trial than the price of gold goes down..

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