Forcing the Fed U-Turn | The Danger we Face.

everyone me Kevin here boy oh boy we

gonna talk about some major damage the

United Nations is warning of what

they're asking the FED to do and

something called opportunistic

disinflation that's a critical part

right there we're going to talk about

that also I got an email this morning

from somebody saying hey good morning

Kevin I clicked on the link it wanted to

check you know I saw the initial

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we're only until September 30th is the

opportunity still available yes

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you got up to 65 percent in warrants

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Max of sixty percent by the end of

October and then probably the it'll go

down to a Max of 50 by the end of

November so you kind of just have these

small little drop-offs so if you're an

accredited investor and if you're not

yet don't worry we're working on the

non-accredited but if you're an

accredited investor go to invest ready

get a letter or send us your W-2s or the

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remember the sooner you get in the

better but we are approaching about 30

million dollars in funding I just want

to keep that communication very clear so

sorry if that was unclear yeah it's my

fault all right so uh the World Bank two

weeks ago in coordination with the

United Nations has warned of a global

recession and that's because of the

synchronous a rate hike cycle that we're

in where the the World Bank president is

now suggesting that Global growth is

slowing so sharply and that further

slowing is likely going to push

countries into a deep recession the

president of the World Bank says that

quote my deep concern is that these

Trends will persist with long lasting

consequences that are devastating for

people in emerging markets and

developing economies but not just those

because see the World Bank believes that

when the United States sneezes the rest

of the world gets really sick and this

is where they're now warning of a

globally synchronized

stagnation this is really bad this is

where all of a sudden the FED basically

pushes the entire world to the extreme

because what happens is the Fed raises

rates that makes the dollar stronger

which hurts and makes basically home

inflation uh more challenging for other

countries who are importing things

especially from America because the

dollar has gotten so much stronger or

maybe they're trading for things in

dollars like maybe they want to buy oil

in dollars and all of a sudden all of

that is more expensive it's not just

that like we could literally see the

price of oil come down but because

they're trading for it and dollars for

them the price of oil is actually going

up which is an inflationary pressure so

if you're importing Goods you're getting

screwed by a strong dollar so what do

you have to do well you have to be like

the United Nations and you have to float

flop and you have to get aggressive you

have to start raising rates aggressively

but if you raise rates aggressively now

all of a sudden large countries across

the world are all synchronized in this

aggressive rate hike path and we could

end up pushing us into not stagflation

but potentially straight up stagnation

or a deflationary environment where all

of a sudden we see inflation drop off a

cliff but now we've just killed the

desire of the consumer to spend we've

changed everybody's mentality from hey

you know save some money and spend to

okay we're in a panic just don't spend

at all and just try to survive and get

through this and that can actually lead

to an even deeper recession if not

depression which ultimately requires

bringing out the money printer again and

here's an interesting stat the United

Nations mentioned uh and this is both

the United Nations and World Bank here

in coordination the United Nations

mentioned that a Federal Reserve rate

hike of one percent reduces economic

output in rich countries by half of one

percent and economic output by 0.8

percent in poor countries so you're

actually seeing a magnified impact by 30

basis points in poorer countries

compared to rich countries but in both

you're seeing a crush and it's worth

noting that we just went from literally

zero percent to three and a quarter

percent in less than eight months that's

insane actually seven months that's wild

now there is talk about quote there is

still time to step back from the edge of

recession that quote we have the tools

to calm inflation and support all

vulnerable groups especially poor folks

right but the current course of action

is hurting the most vulnerable

especially in developing countries and

risks tipping the world into Global

recession and then obviously followed by

that

stagnation really really bad

but now the compounding problem of all

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the next problem has to do with

opportunistic disinflation and this is a

really interesting one so the Federal

Reserve back in the 80s dealt with

really high inflation we got Paul

volckert right we got rug pull to the

point where interest rates went up to to

higher than inflation over 15 interest

rates to push inflation down and prove

to the world that no no we are going to

end inflation well they never set a

Target in terms of where they're going

to go so when inflation plateaued at

four percent they were willing to wait

15 years for inflation to go from four

percent to two percent because there

really wasn't any kind of economic data

that said four percent inflation is

really that bad they were willing to go

from 15 inflation down to four percent

and then just chill so when we plateaued

at four percent inflation in the 90s it

actually wasn't that big of a deal the

problem was now we have a Federal

Reserve that is convinced we need to get

back to two percent inflation well in

order to get back to two percent

inflation we might have to continue to

aggressively raise hikes where we are

pushing not only us but development

countries and other even rich countries

into depression the reason for that is

we might see inflation very quickly fall

to four to five percent over this next

year all of the factors of inflation are

pointing in that direction whether it's

commodity prices uh metals or fuels or

energy costs or used cars or eventually

what will happen to the housing market

which is what we're going to take

advantage of without sex like inflation

will be coming down but if it lands at

two to four percent and the FED says

nope sorry got to keep tightening the

screws we got to get to two percent and

they don't actually u-turn

then we could end up going into

depression and this is why as desirable

as it is to try to pre-price in the FED

U-turn and that's why we're seeing the

market uh at least over the last couple

days trying to go green again and have

sort of a bear Market Rally or relief

rally so to speak is because the markets

are trying to pre-price in that the

Federal Reserve will U-turn that they'll

soften not only will they pause rate

hikes but they'll see they have to come

down and and be okay with maybe a

plateau at three four five percent but

that's going to lead to potential

credibility issues because they've so

cemented this idea that they're going to

get to two percent and they're not going

to stop until they get to two percent

well if they flip-flop on that again

well then the next time around the FED

might look and go now we really got no

credibility

it's a problem I don't know though let

me know what you think is the Fed the

FED going to Utah

are they gonna stay strong until we get

to that two percent inflation well they

pull fate out of the drawer again which

is f-a-i-t flexible average inflation

targeting we'll see let me know comment

down below and check out househack.com

if you've got questions email IR

househack.com thanks bye