Welcome back to the channel everyone today, i want to talk about how the fed has made a huge mistake and how a market crash is imminent, so stay tuned and let's make some money, and now i want to dive straight in with the key information. So this article says that it's now clear, the federal reserve has made a huge monetary policy error. The central bank took too long to raise interest rates and it's now playing catch-up. So the article starts by saying in may of 2020, the auth was on anthony pompolino's podcast, describing the likelihood of high inflation in the coming years and the federal reserve trying to catch up to it, and he said it turns out.

It's all came true since then. I said it the following time that i don't see how in say, 2021 or 2022 that if the economy is really rebounding, that we don't have three percent four percent or even five percent core inflation. And i think you can have the federal reserve chasing their own tail, raising rates and right now, in april of 2022, we don't have three percent four percent or even five percent inflation, we're currently sitting on a ginormous 7.9 percent inflation and when the march cpi data Is released in a few weeks, i think this inflation number could jump up to nine percent after the russian sanctions and after the giant price spikes in commodities such as nickel, and he says, but we shouldn't blame the fed for everything. After all, the central bank didn't cause all of the current inflation that was mostly caused by trillions of dollars in government spending and the complex mess of supply chain snags during the pandemic, although he does say, but the fed could have done a lot more to get In front of rapid inflation before it got out of hand, and that's where its response is worthy of criticism - and he said, unfortunately, the subjective nature of discretionary interest rate policy has left the fed doing what it typically does.

Looking at 12-month trailing data in a reactive manner and not a proactive manner and then responding when it becomes clear that the economy is drunk, but he says the fed now wants to swipe a punch bowl that it should have been watering down long ago. The problem is, the policy makers are on the verge of swapping the punch bowl with sleeping pills as part of the economy. Look increasingly fragile. The fed is now at risk of tightening policy into an economic slowdown.

He then goes on to point out a few key. Rising risks of inflation such as the flatting and inverting of yield, curves, which has been happening over the previous few weeks, which he says always precedes slowdowns and recessions. We also have rocketing commodity prices, crashing freight data already we're seeing a sharp drop in mortgage applications, and he also says the next key one to look out for is the china pmi contraction and he said: if the fed had been more proactive, then they might have Been able to dampen inflation before it was too late, because, obviously, by now it's already too late to fix the market crash, and he says, but maybe this isn't such a bad thing in the long run. Yes, it could all contribute to a recession in the short run, which is obviously good for amc, because if the market does crash, then amc is very, very likely to squeeze and jack.

Scott has also posted a photo of the 10-year treasury yields and key market events, and he says not if, but when and seawolf cap said, this is the chart that scares me if fields break through to the upside from this 40-year channel. My opinion is that the market has more downside than people expect, eventually the piper will get paid for its 10 budget deficits. As far as the eye can see. So you can see that over the last 50 years, and especially over the last 40 years, where the 10-year treasury has been trading in this channel, each key market event has spiked the rate of this 10-year treasury yield back in 2008, the housing bubble spiked the 10-year Treasury yield from around three three and a half percent all the way to five percent.

Before that, we also had the dot-com crash, where the yield spiked from around four point: five percent, all the way to six and a half, maybe even seven percent, but more recently than that in the equity market. Turmoil of 2018, the rate spiked from around one and a half percent all the way to three percent when the s p 500 fell by over 20 percent, but right now, as of 2021 2022, that rate has spiked from around 0.5 percent all the way now to 2.69 - and it won't be long before we overtake that previous peak back in 2018 - and you can also see that we're now starting to break out of this 40-year channel. Obviously it could just be a fake breakout and the rate starts to fall. But at the moment it seems to be breaking this channel with conviction so guys.

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This chart shows the treasury drawdowns over the last 25 years. Treasury drawdowns are when large investors and institutions withdraw their money from the treasury markets over the last 25 years. The largest drawdown in the treasury market was in 2008 and 2009 during the recession, when the drawdown rate was just about 7, but right now, in 2022, these large institutions have withdrawn 10.88 of their money from the entire us treasury market. So jack tweeted saying this is the worst drawdown for treasuries.

Since the bloomberg us treasury index began back in 1944 and he said all of the previous drawdowns over the last 25 years - don't even come close, but it's not only the us market. That's currently on a knife edge, garland, nixon tweeted, saying breaking news white house. Insiders say that internal reports predict a complete economic collapse in the eu. Within months.

Many countries in the eu are struggling to ridiculous levels. As a quick reminder, u.s inflation is currently 7.9 percent. As of february, but if we look at some of the inflation rates in the eu, these numbers start to get crazy. Greece currently has around 8.9 inflation, which doesn't sound too obscene for a country, that's practically indeed, full.

We also have other countries like ukraine at 13.7 percent inflation, russia at 16.7 inflation and turkey at a whopping 61.14 inflation. That is absolutely ridiculous and, as you can see from this list, there's many countries in the eu that are struggling far more than in the united states. Now i also wanted to come back and recap on the sec and the we, the investors petition and also amc and amc's performance over the last week or two yesterday, the chicago office of the sec tweeted saying, if you see wrongdoing, say something. Please report possible violations of securities laws to the sec now, obviously dave lauer the other day, tweeted saying it's time to let the sec know who we are and what we care about.

The sec responds to public pressure and we need to let them know just how many investors truly care about these issues, and he also said that the best way to let the sec know is to submit information to the sec, to help explain market manipulation and exactly What illegal activities are being committed in the ways that they like it? Even though this tweet is a bit laughable because, as nate says, what do you guys think we've been doing for the last year or year and a half, but at least it gives us a clear direction as to how to report all of this market manipulation directly To the sec, you can now see that this petition is up to 56 000 signatures, and if i do a quick search for my name, you can see that i've now signed this petition as well. I think this is absolutely incredible that we've managed to get 56 000 signatures in around 24 hours, maybe slightly over. I think this is the fastest that a petition has moved, especially in our niche for some time now. I don't think it will be long until this petition reaches over a hundred thousand signatures, and i think by then chairman gary gensler will be forced to do something about the market manipulation.

Now i also wanted to point out some interesting realizations that i've had about amc over the last few days, and i think it goes to show that shorts are absolutely desperate to do all. They can at the moment to push the price of amc down and scare us into selling our shares. Mermaid tweeted saying that amc has a legally issued float of 513 million shares, which obviously you and i know by now. She said in the past 15 months, wall street hedge funds have shorted over 14 billion shares of amc now something that i wanted to point out with this is the fact that, if there's been 14 billion shares shorted over the last 15 months, that means that, for Every single one shared he's been shorted.

There has to be a buyer for every single share. Obviously, a hedge fund can't short a stock without first borrowing the stock aka, creating the synthetic share and selling it to a retail investor or another hedge fund. Like you and i now that doesn't quite mean that 14 billion shares of amc have been purchased and held over the last 15 months, because many of these shares won't necessarily have been retained because many shorts obviously short, but then cover their short positions. In a space of only a few hours or a few seconds in the sense of high frequency trading, now we know that high frequency trading is responsible for around 60 of all our market activity at the moment.

Now that still means that there's around five or six billion shares that have potentially been sold to retail investors like you and i now. Obviously, if these five or six billion shares sold to retail investors, many of these shares will have been sold to paper, hands or people just day trading amc, i do imagine. The portion sold to paper hands is probably fairly small compared to the total portion sold to apes again. Maybe some of these shares are also gon na have been sold to institutions, and maybe some of those institutions have also been day trading amc as well, but i'm still convinced, there's been at least two to four billion synthetic shares of amc sold to retail investors.

Like you and i over the last 15 months that have been diamond handed again, i just think this is further proof that synthetic shares absolutely do exist, because, if there's been 14 billion shares shorted over the last 15 months, that also technically means there's been 15 billion. Shares purchased now, i think something. That's absolutely incredible at the moment is the blatant manipulation. That's happened over the last week or two.

This level of manipulation hasn't ever been seen in amc. Even if we look back to january 2022, the current manipulation is still far more blatant over the last week or two we've had nine consecutive red days in a row which has never happened with amc. Even if we look back in january 2022, when amc fell from around 45 down to only 12, there was only a maximum of six consecutive red days in a row. Here we had one two three red days, followed by a green day.

One two three red days, followed by some more green one, two three red days, more green and then one two, three four five six red days, followed by some more green. So, therefore, between november and february, when amc fell from forty six dollars per share down to twelve 12, we only experienced maximum manipulation of six consecutive red days. That means the shorts are absolutely desperate at the moment, if they're willing to show nine consecutive red days in a row. I do believe that if this run-up wasn't halted on the 29th of march 2022, that this could have absolutely caused the mother of all short squeezes.

Instead, they had to throw everything they could at amc, including the kitchen sink and all of their manipulation and illegal synthetic shorts to crush the price of amc for nine consecutive days in a row also guys be sure to head over to omaze.com forward slash thomas james, Linked in the description below and enter for your chance to win the tesla model x, plaid guys be sure to. Let me know down in the comments below whether you think the fed has made a massive mistake and whether you think a market crash is imminent and as always guys, if you enjoyed this video, be sure to check out some of my others. Alternatively, subscribe to the channel and ding that notification bell, because that way, you'll be alerted when i upload a new video cheers.