Fed is gearing up for another 75 basis point rate hike. Knowingly blowing up the the system. Today. I want to talk about why.

The fed is purposefully causing a in the short term to build back better in the long term so stay tuned. And let's make some money and i want to dive straight. In with the key information. So the happy hawaiian tweeted.

Saying. I'm overjoyed. Updating the fed pivot indicator. And frankly.

It's showing. We have arrived already. He said. We're at the point.

Where the fed would usually halt rate hikes and begin easing again as they gear up for another 75 basis point rate hike in a couple of weeks. They would be knowingly blowing up the system. This chart shows. The average of the five year yield and federal funds rate multiplied by the national debt.

As you can see this chart oscillates between fed rate. Hiking and fed rate. Easing each time the chart peaks touching this blue line along here every single time. The fed hiking cycle ends and the fed begins easing right now we're again touching this blue line as the economy enters into a recession and therefore.

The fed should start easing rates. But it's likely they're going to continue hiking so why is that as hoss tweeted. He said the federal reserve's plan is to raise rates and quantitative tightening aggressively and purposefully crash the market then step in and ease when inflation is down to prevent a 1929 type of depression. He said don't fight the fed because even though the fed seems to be crashing the economy and causing a recession on purpose.

It is all part of the volca plan armchair quarterback tweeted. Saying the last president of the united states to face high inflation. Aka carter. Did the right thing.

And let volcker raise interest rates dramatically in the short term. Yes. There were substantial job losses. Which crushed carter's poll numbers.

But what followed was 30 years of one to two percent inflation and economic stability. I do think the fed is purposefully crashing the economy and causing a recession to purposefully cause. The amc squeeze to rebuild the financial system in a better and safer. Way they can effectively rid the market of bad heavily over leveraged actors and rebuild the financial system.

And the system of major banks. In a way where much less risk is being taken. We know that causing a recession and crashing. The stock market will cause the amc squeeze and this is being done on purpose to effectively rebuild things better without high inflation and without these bad actors.

The new york times. Says. Mr. Volcker's fed rolled out policies that pushed the short term interest rate to nearly 20 and that sent unemployment soaring to nearly 11 in 1981 car dealers mailed the fed keys from unsold vehicles builders sent two by fours from unbuilt houses and farmers drove tractors around the fed building in washington in protest.

But the approach worked killing off the rapid price inflation that had festered throughout the 1970s right now we do have rapid and ridiculously high inflation and that won't stop while these bad actors continue to parade around the stock market and continue to parade around on wall street causing all kinds of damage and not stopping therefore by continuing to push interest rates higher and higher causing a recession. It will cause these bad players to end up being liquidated. So they can effectively rebuild the market in a safer way it says. Mr.

Powell was asked this month. If the fed was prepared to do whatever it took to control inflation. Even if it meant harming growth as mr. Volcker did jerome power.

Replied saying. I hope the history will record that the answer to your question is of course yes. It says few if any economists think the fed will need to repeat. Mr.

Volcker's policies to the same degree in part because the central bank is apparently taking action much more quickly. I think this may be an old article. Because the fed is not acting quickly enough because inflation is continuing to rise even regardless of the current interest rates. We've seen over the last few months.

The article says the fed is expecting to raise interest rates from near zero. So therefore. I think. This article is a little bit old.

But as a hindsight being 20 20 point clearly this article was wrong because the fed isn't raising rates fast enough and therefore is likely gonna have to copy. Mr. Volcker's plans and therefore. It's likely that interest rates will continue to rise and a recession will be caused on purpose effectively to rebuild the economy in a safer.

Way and one. Party that's already suffering as major. Banks this article from. Reuters says us.

Bank profits are to tumble on higher bad loan. Reserves it says second quarter profits that big us. Banks are expected to fall sharply from a year earlier on increased loan loss reserves. Analysts.

Expect jpmorgan to report a 25 drop in profit while citigroup and wells fargo will show 38 and 42 declines respectively. It says the plunge in profit stems from lenders. Adding to their reserves for expected loan losses obviously these banks have been issuing tons and tons of risky loans during the pandemic era and after and before and it's now coming back to bite them a 42 drop in profit is catastrophic. And it seems these major banks are already being screwed and that's why i do believe we're likely to see potentially one two or maybe.

Even a number of major banks failing during the current recession. But again. This is just the fed's plan to weed out those bad actors to weed out those heavily over leveraged banks and get rid of them once. And for all.

And he said. Investors will want to hear executives insights into the health of the economy. And if borrowers are now more shaky and this is why jamie dimon is warning of an economic hurricane and why banks are going to have to build up their reserves. I think these smart banks or these safer banks will be building massive cash buffers and cash reserves for the coming recession.

But those more risky banks will still be yoloing into risky loans and therefore even though. I do expect a lot of short term pain for the wider economy and the wider market. It will cause that aims to squeeze and long term. It will be a much better environment to invest in now.

Adam aaron has had a very interesting string of recent tweets containing one specific number back on the 7th of july. Adam aaron tweeted. Saying hosting movie screenings at our theaters has been immensely popular so here's a new one join me as i see top gun maverick for the fourth time he then said join me at the amc theater on thursday july 14th. At 7 pm and today.

He tweeted. Saying it will be a packed house for our watching of top gun maverick together at the amc theatre. But there's a few seats left in rows 1 to 4 he then repeated the fact that this will be the fourth time. I've seen this fabulous movie.

But it doesn't stop there back in may you may remember that adam aaron. Repeated. The words doctor strange for individual times. And again.

Adam aaron recently announced the quarter two earnings are going to be on thursday august. The 4th now i don't know if this is a way for adam aaron to tell us the float is sold four times over or maybe. Adam aaron is hinting that amc is also gonna do a four for one stock split this could be amc doing a very very similar action to gamestop with their four for one stock split and amc's could be just around the corner straight after those quarter two earnings. Adam aaron has used the number four tons and tons of times in his recent tweets.

I think that's five times over the last month or two now again it also wouldn't surprise. Me if this isn't the only times. Adam aaron has used that number for and if there's even more tweaks and even more references. But i do think this is adam aaron hinting.

To us something to do with the number four again. Whether the float is sold four times over or there's a four for one. Amc stock split or a four for one amc reverse stock split coming. I'm not too sure gamestop also released their nfc marketplace.

The other day and have already surpassed one million dollars in sales in the first 12 hours alone roaring p. Crowded saying coinbase's nft marketplace. Had 1797 transactions on their launch day aka in that 24 hour launch period. However.

Gamestop's nft marketplace. Had over 10 000. Transactions. Within.

Only a few hours of the public beta. I think the gamestop nft marketplace is already the third largest nft marketplace in today's volume alone. This is obviously brilliant news for gamestop and brilliant news for their successful launch of the nft marketplace and i do think it will help the gamestop overall valuation increase even higher. I do think it would have been better for gamestop to release this nfd platform sometime last year when nfts were really kicking off.

But i do understand it obviously takes a long time to develop a full nft marketplace. However clearly the nft marketplace. Launch. Is already successful and is already generating tons and tons of transactions not only for gamestop.

But also for their overall business value. But guys be sure to let me know what you think down in the comments below and as always guys be sure to ding that notification bell. Because that way you'll be alerted when i upload a new video cheers.