Hey this is tom nash, and a few days ago, secretary, janet yellen went on national tv and told you that she doesn't think that we absolutely headed into recession. In fact, she said that fighting inflation does not mean we're absolutely 100 heading into recession, but i don't think a recession is at all at all inevitable, um sure, powell. Clearly, inflation is unacceptably high. It's president biden's top priority to bring it down and chir powell has said that his goal is to bring inflation down while maintaining a strong labor market.

That's going to take skill and luck, but i believe it's possible. I don't think a recession is inevitable. Obviously, coming from a lady who said that inflation is 100 transitory, it's a little bit shaky but hey i've been known to say stupid before in my life, i'm not going to hold that against her. But what i will want to do in this video is actually break down what she's saying here and see if what she's saying actually makes sense, or is she selling you the fantasy that you can have the cake and eat it too, because for me it sounds Like the latter, but let's not jump into conclusions.

First of all, let's talk about inflation. Now i want to tell you a story about a king. The king live in this castle and in his castle he had stalks of gold and every time somebody came in and did some work for him. He got a gold bar, the pool guy came in, he got a gold bar.

He had plenty of gold and listed months of gold, and then the carpenter came in a gold bar, etc, etc, etc. Now the gold was obviously locked in the safe, because i mean it's a whole lot of gold. I mean you can just leave it lying around and one day the guys came in to do some garden work and the king was so hammered from the night before he was so hungover couldn't find his key now he absolutely could not find it anywhere looking for It under the bed in his wife's underwear - where is it he could not find it now? Obviously, the safe was still intact. Nobody broke in, so he basically went over to the guys and said: listen, i'm so sorry to do this to you.

I know you guys work so hard. I can't find the key to the safe, but i'm the king, i'm going to give you a letter with my seal, the king seal, letting everybody know that you own two gold bars that i owe you and you can use this because i'm the king and i'm Good for it, so whoever owns this piece of paper, i'm gon na give him your two gold bars. So don't worry about it, i'm so sorry, but i absolutely can't find the key and the guy said yeah sure no problem, king, we got you, i mean you're good for it. So basically the same thing happened next day the pool guy came in again, no key.

Still can't find the key same thing happens and then the next day same thing happens, and on week, three or four of this, the king just basically stops looking for the keys like it. Why would i look for the key? I'm just gon na give out these papers that you know i owe people a bunch of gold and it's just as good. I mean i have the gold no problem, and this went on for years and years and years now. Eventually, what happened is because you know the king gave out so many pieces of paper.

Giving right to his gold is that everybody in that little town got so freaking rich. You got the carpenter driving a lambo, the pool guy driving a bugatti. I mean the street cleaner is driving a porsche. Everybody is just exploding with money, everybody's happy everybody's, having a good time.

Things are good. The party is out of control, everybody is just saying wow, this is the life. It's amazing. We love the king.

The king is awesome, everything is perfect, then what happens is things become more expensive? I mean when everybody has a ton of money and there's just so many cars to sell so many tvs to sell so many horses. So many you know, furniture whatever. That may be, prices tend to go up. I mean not immediately, but eventually that's the forces of market, so prices go up, people obviously pay more and the prices keep going up.

People pay more until the point where prices catch up with the wealth that's been created and in fact they blow past it. At this point, people are feeling the pain i mean now. Porsche is no longer an option now you're driving a hugo and that you will cause what the pores used to cost like 10 years ago now. Basically, what happens is that when people get addicted to this good feeling of basically wow, i love this great feeling.

They want more and they want more, and we did this to ourselves. We asked our government to give us stimulus checks to print all this money to absolutely bombard the economy. With free money, i mean we want for free right, that's just normal. There's huge amounts of political profit and giving away money.

I mean that's just facts, but the problem is that once you become an alcoholic and in this example, we have created a market that is absolutely alcoholic. The withdrawal process is going to be very, very unpleasant. The withdrawal process is actually going to be the opposite of how we became alcoholics when all of us became alcoholics. Things were great in the beginning, and then we ended up on the toilet this time around.

This is going to begin in the toilet, but eventually, if we keep it up and if we pull through we're going to be back on our feet, but the beginning is going to be nasty and unpleasant and that situation i'm talking about not anything else. Now. Look all throughout history. U.S governments dealt with inflationary cycles.

This isn't the first, and this isn't the last when we had it in the 70s, they blamed the arab sheiks for the prices of gas and inflation, and, of course, this wasn't their fault now. They're blaming putin and the oil companies, and, of course, this isn't their fault every single time. There's only one culprit for this thing, which is the printing of money, you print more money, you have more government spending, you lead to inflation happen before happens again and will happen again, because the political game is just built around giving people free money. We make it happen and then we complain when it actually happens.

So, despite what you hear from politicians, no, this is not putin's fault. This is not the arab sheik's false in the 70s. This is our fault for printing too much money, stimulus, checks too much government spending, and it is what it is now. Look.

Here's the truth. The withdrawal process from this endless money, printing and spending is to simply stop it. I mean you can talk about opaque, giving you more oil, you can talk about russia, ukraine, china, lockdowns. Obviously, all of these things contribute to how bad inflationary pressures are, but they're, not the root cause.

The root cause is that we have too much money spending money. Printing on the government level. Now, when you stop money, printing and obviously i'm talking about physical printing, but you know what i'm talking about and when you reduce the amount of money in the system when you reduce government spending, what happens? What happens is that the market goes through withdrawal and that withdrawal is insanely unpleasant. I mean it's actually quite painful, violent and insanely, not fun, and saying that the market can go through an alcohol withdrawal process without having withdrawal symptoms just breezing through it, which is exactly what jen and ellen is saying, is horseshit.

I mean i had people in my family who had an alcohol problem. I've never seen them breeze through withdrawal. I mean that is insane now. Obviously we absolutely have to do it.

We've done it before we'll have to do it again. Every few you know every few years, every decade decade and a half will go through the same cycle again but saying to the public that this is not going to be. A violent recession is lying, and i mean it's on par with what they did with inflation. Claiming that this was transitory, now they're claiming well, it's not transitory.

We up, but it's not going to be recessionary again, they're lying to you. I said it before go back in my videos. You'll find two types of videos. One me hyping up volunteer.

I completely fail, but also you'll find my macro videos where i'm telling you that john powell is full of when he says that inflation is transitory. I said it before i'm going to say it again. So now i'm calling it again general ireland is full of she's telling you you can have the cake and need it too. That is not going to be any recession while addressing inflation.

The only solution to inflation is by the government to stop printing money to take money out of the system and basically go through with role. It's gon na be painful, it's gon na be unpleasant and it will be recessionary. That's just the end of it anything else. You hear from politician is just full of to get you to feel comfortable yourself.

What feels good gets political clout? That's not necessarily what you need to hear and what you need to hear you get on this channel now before you sign off on this video. First of all, let me know below, if you agree with me, if you disagree with me, i do want to point out that this video was sponsored for you by ftx us, which means the reason you did not see an advertisement from youtube on this. Video is because ftx us graciously agreed to sponsor this video for you now i've been working with ftx us for a few weeks. Now i've never had a sponsor on my channel before ever.

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Tell me if you agree with me, tell you if you disagree with me, i want to have a debate with you, not a screaming match. Not you calling me an idiot and me calling you doofus. Let's debate the facts. Let's get some economic debate going in the comments, so can everybody benefit from this? I think we can do it.