Hey this is tom, and if there's one thing we can all agree on, everybody was waiting for the jackson, hall, jerome powell speech about the state of the economy, about inflation, and that speech was delivered 24 hours ago. And i wanted to give myself enough time to think about it, analyze it. In fact, i made a 57 bullet point breaking down every single word. He said i didn't want to just push out a video immediately to get some quick views.

This is going to be a nerd festival. So if you like that sort of stuff hang on stick with me, but don't click, nothing, don't smash, nothing, don't buy nothing. There's no courses, there's no sponsorships, there's nothing to buy, let's just get into it. So, first of all my thoughts about the delivery of the speech.

Now i watched it and i kind of be honest with you. It wasn't great but, let's be honest, i mean john powell isn't really known to be a great public speaker. I mean he's like stalin. I mean, if you remember stalin, if you're old enough shout out to you, he wasn't a great speaker, but he delivered this stuff and i felt a little bit monotonous a little bit bored i mean i felt he doesn't really want to be there.

He just have to do it. In fact, i thought to myself. This would have been a great opportunity to showcase the importance of tesla bots. Imagine the same speech, the same words being delivered by a robot.

The same result. Nothing would be different, but all jokes aside, let's talk about what he said and what he didn't say. So this is really important because, despite the monotonous boring remarks - and despite of him, definitely not wanting to do it, there's a lot of golden nuggets that came out of the speech which are really important because they have a lot of meaning for the next six to Eight months, i'm gon na break it out to you it's gon na be very nerdy. So before we get started, let me explain a few basis points of how these things work.

So we speak the same language so to speak. So the way the fed actually prints money, i'm sure you heard the sentence, the money printer goes. I mean i just mentioned this a few seconds ago. The fed doesn't really give out money to the market in the sense, like a government can send you a stimulus check the best way for the fed to do it is actually to purchase assets like bonds or mortgages, and that way they can actually infuse the market.

With a lot of cash, that's the way they do it, so these asset purchases is basically that money printer everybody's talking about in the memes and right now that printer is going at full speed, 120 billion dollars of assets being purchased every year. That's the pace! They have right now and it ain't slowing down anytime soon now. The reason why this is such a dangerous practice is the same reason why driving a car like this is not safe. If you drive your car without touching the brakes, flooring all the way down, it's not a safe drive, the same thing with the economy.

If you just go berserk like this, you might hit a wall, you might crash, you might do a lot of bad things and in this analogy, crashing into a wall would be causing hyperinflation, which is something that will be catastrophic for the market. So he has to be careful now, that's the basics of how we're going to talk about it. Now, here's the thing, while everybody's, seeing everything that's going on in the market right now, which is housing prices going up stock price, is going up. Salary is going up.

Employers are literally begging to employees to go back to work, everybody's, seeing inflationary stuff. You can't get a lot of things online. Everything is sold out. I mean there's a lot of demand for a lot of commodities, a lot of retail products everybody's.

Seeing inflation, however, you can easily manipulate cpi data, you can easily manipulate job data and that's exactly what jp was doing in this conversation he was basically saying well, look employment rates are not great inflation, isn't that high it's just transitory, transitory, meaning fleeting. It's going to go away, it's going to be a 2 inflation all the way through, which is basically like the band that was playing with the titanic, essentially ignoring the fact that the ship was sinking now, there's a good reason. Why he's doing it? So he had two options in my opinion for this speech and muhammad allerian actually spoke about the first option - and i actually mentioned this in my first video because things are so bad. This is literally an intervention right.

The patient is on drugs. We got ta wean them off the drugs we got, ta put them through rehab. So basically, if jerome powell wanted to actually put the market through rehab and win the market of drugs, now would be the perfect time to do it because things are so bad. We have to do this immediately unless you have another plan and here's the other plan, in my opinion, which means it might be inaccurate, might be wrong.

It might be the complete ramblings of a madman. This is just a theory. You can conclude your own conclusions during research, i'm just sharing with you how i see things so i'm looking at the politics game here right now. The government can't afford any nonsense with everything that's going on around the world right now.

Biden and the government cannot afford anything going crazy and if jerome powell and the fed decide that this is a good time to win the market of the drugs of the money printer, the market is going to take a hit. Nobody likes to be weaned off drugs. I mean drag addicts, don't like to go to rehab. Initially, it's not a pleasant situation where everybody's just happy-go-lucky, you know driving to the rehab center.

I mean it's a painful experience. It's the same thing for the market: winning the market out of those 120 billion is not going to be an easy process and the beginning is going to be painful. So you have the government basically looking at this and saying well the fed, if you're going to do this right now, you're going to really screw us politically, because we really are grasping at straws here, there's nothing. We can do to prevent you from doing this.

Obviously, but if you do it, you're really gon na screw us. On the other hand, you have john powell sitting there and thinking well. My renomination is coming up in february just in six months. So if i want to play my cards right, i can actually help biden and his team and this government and actually pull through for another six months.

This person is on drugs. Anyway, we can wait another six months before we put him to the rehab. Let's wait until i get re-nominated, so i play my cards right. I make it seem like everything is gucci, i explain it and then biden gets to win.

The government gets a win and i get re-nominated. If you pay attention closely to the speech, he specifically said: we're not gon na do this by the end of this year, which means at least four months, but if they are going to do it next year, it's going to take some time. They'll have to discuss. So, basically you're looking at q2 2022, that's the earliest they're gon na.

Do it based on what he said in the speech, guess what that's right after his renomination. So i would guess, based on what he said, whether you agree with him, whether you don't agree with him, whether you like him or not. What he said actually means that we have another six months of party like it's 1999. and since this is a very elaborate politics game you got.

Ta have jokers and there's a massive joker here in play covet. If coke comes back, if any variants come back, what's gon na happen to the economy, if it slows down the reopening and god forbid, brings back lockdowns, the economy actually isn't going to reopen and it's going to roll back that growth rolling back that inflation. So if that happens, which is a reasonable probability, i don't know if it's over 50 under 50. I honestly don't know, but if that happens, that means that inflation isn't going to be as bad as people expect and then not slowing down the money.

Printer right now is going to make them look like geniuses. So basically jp is saying. Well, i honestly don't have a choice. I have to somehow pull through until february and make people believe that that's okay, but in that time, within the next six months i might be saved anyways.

So i really have two choices: i'm gon na pull through until february, i'm gon na get re-nominated and maybe in this whole process, i'm actually gon na look like a genius if pandemic comes back and rolls back inflation. So it's a win-win for me. Only six more months: let's do it that's the way i see it. You can conclude your own conclusions, however, that kind of behavior causes a huge imbalance in the way the u.s economy operates and in many important indicators.

For example, the bond market was traditionally such a great indicator of inflation, for example, when you have a high demand of bonds, that means that people are looking to get less interest for their money, meaning that inflation isn't going to be that big. However, when you have people running away from bonds, that means that they're seeing this as a losing deal, that means they're seeing a lot of inflation. When people are running away from bonds, the bond yields actually go up, and that was always the case. You could easily look at the bond market, look at the trend and see what's going on with inflation, but now, since the fed has completely started money printing like crazy and they're, creating all this fake demand for bonds, i'm saying that the whole bond market as an Indicator of inflation is r.i.p, it's gone, and i really wanted you to understand this because i don't think you can look at the bond market anymore as an indicator of inflation.

I think the fed took it away with all this money printing. But again, what do i know, i'm just a guy on the internet. Now let me know below your thoughts. Let me know if you agree with me: disagree with me i'd love, to hear your thoughts shout out to the channel members and the patrons.

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