I think we are nearing the end and just like the Federal Reserve help to put the bottom in in March of 2020 I think they are going mark the top in at the end the this year making (2021).
How the mechanisms work in short.
At this point in a long-term economic cycles you seen the financilization of everything near the end of the dominance of economies that only global reserve currency becomes one trade.
Land
Stores of valu
All move in tandem against the currency at the sole discretion of the Central Bank
We've seen in last two years unprecedented money supply in the intervention in our economy by the Central Bank that results have been record high asset prices and record-breaking inflation.
Federal Reserve faces unpopular decision holding back on it easy money policy. Its comes in two forms either raising interest rates or selling assets.
The FED currently doing which is buying acsetss injecting new money what they will do in near future is selling assets thus they will extract money from the economy .
They stated very clearly the economy is not yet strong enough to raise interest rates.
Thus the first thing that they plan on doing is reducing assets purchases and then after that point they will start selling and raising interest rate at some point.
Timeline for this when will this tapering will happen and when will cause a crash as result of tightening would definitely not happen until at least tigtening begins so its pretty much rules out this year
because they've stated that they're gonna let us know when it's going to happen .
The earliest that begin to reducing asset purchases is closer to the end of this year but it does take a little bit of time for the effect of monetary policy to be felt in economy. The effect does not will be inmediant, but for you at time need to positioneted your assets accordingly.
We have time , which is great but if we step earlie we gonna leave money on the table.
FED TIMELINE
According to the Federal Reserve with light to have their total asset purchase per month down 0$ purchases by the end of 2022 if not a little bit earlier. Current120 billion dollars ( min)
In the next part I will let you know why they need hike rates, and how its connected with Joe Biden agenda.
Now the most important things to interpret the coming message from Jeremy Powell on Wednesday.
Please look after if you dont know M2 money supply
How the mechanisms work in short.
At this point in a long-term economic cycles you seen the financilization of everything near the end of the dominance of economies that only global reserve currency becomes one trade.
Land
Stores of valu
All move in tandem against the currency at the sole discretion of the Central Bank
We've seen in last two years unprecedented money supply in the intervention in our economy by the Central Bank that results have been record high asset prices and record-breaking inflation.
Federal Reserve faces unpopular decision holding back on it easy money policy. Its comes in two forms either raising interest rates or selling assets.
The FED currently doing which is buying acsetss injecting new money what they will do in near future is selling assets thus they will extract money from the economy .
They stated very clearly the economy is not yet strong enough to raise interest rates.
Thus the first thing that they plan on doing is reducing assets purchases and then after that point they will start selling and raising interest rate at some point.
Timeline for this when will this tapering will happen and when will cause a crash as result of tightening would definitely not happen until at least tigtening begins so its pretty much rules out this year
because they've stated that they're gonna let us know when it's going to happen .
The earliest that begin to reducing asset purchases is closer to the end of this year but it does take a little bit of time for the effect of monetary policy to be felt in economy. The effect does not will be inmediant, but for you at time need to positioneted your assets accordingly.
We have time , which is great but if we step earlie we gonna leave money on the table.
FED TIMELINE
According to the Federal Reserve with light to have their total asset purchase per month down 0$ purchases by the end of 2022 if not a little bit earlier. Current120 billion dollars ( min)
In the next part I will let you know why they need hike rates, and how its connected with Joe Biden agenda.
Now the most important things to interpret the coming message from Jeremy Powell on Wednesday.
Please look after if you dont know M2 money supply
