Foreign Ly had enough I'm not even kidding I'm aggravated I'm pissed off and I'm absolutely fed up with this. BS So let's talk about why the markets are red today. and when we talk about why the markets are red today I Want you to bear in mind that the same people who are managing the policy right now are the same people who flooded the market with too much money in 2020 caused this inflationary cycle? Then they waited sitting on their ass for a whole year, claiming this was transitory and it's going to blow over like some cold, which it didn't in 2021 and now they're keeping the throttle all the way through, basically going full blast and neutral, going nowhere besides ruining you the middle class. So let's go back with this.

Now that was just the bottom line for those of you who don't have time to watch the entire video. There you go. Now, if you want to hear that full breakdown, stay with me because I'm gonna get triggered as hell today. So we heard that August Inflation came in at 3.7 which was way higher than they already 3.2 percent we have, so it's climbing back up after.

We almost could taste that two percent. You know how you play football, you're on defense. You can almost taste the water on the sideline to Gatorade But they get that fourth down. literally.

What happened? So yesterday Paul comes out, the FED comes out, the Fomc comes out and it basically let us know two things. Number one, they're not raising rates, which was expected. no issues with that. But the second thing they've said is that they're going to keep rates much, much higher for much much longer, including a rate hike in 2023 and only two rate decreases in 2024 by 0.25 each at the best case scenario.

So basically what this means is the Fed is going to keep a vice grip on the balls of the middle class for the next 15 months now. I have no problem with it if this was needed if this was effective, but the problem is that it's not. In fact, I have two problems with this. not just one.

My first problem with this is that these mother lovers in their suits and their nice makeup and all their correspondence and analysts and everybody there with you know sitting around this freaking press conference have no idea how hard this is. I do I may have money now, but it wasn't always the case. I was a poor ass immigrant living with my dad, my mom and my sister in a one room not one bedroom one room apartment which we couldn't afford anyways like look I know what's being broke feels like believe me I do and I know what it like looking at prices. Most of these mother lovers they don't so piles up there on his pedestal in his Ivory Tower talking about you know we understand the pain and we have to do this to help you guys out and shut the up.

Look, The thing is that we're talking about this: 3.7 Inflation, blah blah blah. Look at the real inflation. Since 2021, food, food has gone up by 10 and four percent. So 14 and a half percent since 2021..

So everything you're buying in Supermarket is now 15 more expensive cereal is up 16 for that period. Car insurance 15 Health insurance 10 percent Freaking Gasoline went from two dollars per gallon to four dollars per gallon. So let me ask you this question if gasoline prices went up a hundred percent. If food prices are up 15, every other thing that matters is up about 15.

How much did your salary increase during these times? I'm guessing it's a little bit under 15 Now look at the end of the day. All of this that's going on right now is basically inflicting Mayhem and pain on the middle class by keeping rates. High When you keep rate high, when you don't actually decrease rates, you're keeping the pressure on the economy. And usually usually when you have an inflationary problem, that's the right way to do it.

Usually that is. But here's the problem: If you break down into little bits and pieces and you do this kind of postmortem analysis on the root causes of the current inflationary. Spike We saw from three percent to 3.7 percent, you find out that the FED ain't doing nothing but cause you pain, inflict damage on you the middle class and not doing nothing paying for inflation. nothing.

If you see the actual report, you find out that what drove this inflationary Spike was gasoline and Shelter. gasoline was ten and a half percent month over month. Shelter is up seven percent year over year. Now let's break it up if you take out gasoline and food.

Inflation only went up by point three percent over the past month. now. I'm not here to say that inflation is good. I'm not here to say that things are freaking cheap.

No, it's still horrible because prices went up a lot since 2020. A lot the things are way too expensive, your dollar goes a lot shorter than it ever did, and everybody's in the toilet. I'm not saying that things are great and we should all sit around the campfire and sing Kumbaya how everything is freaking amazing. It's not, it's absolutely horrible, but the rate of increase of inflation.

If you take away gasoline and you take away food, it's point three percent of the past month, it's not 0.6 which we actually got when we included gasoline and food. Now let's break it apart if this was a good way to solve the fact that gasoline prices are basically dragging the inflation upwards. I Would say raise interest as much as you need because I'm okay with having a crisis with having a recession if it saves the economy. I Understand it's necessary, but do we really have any impact on gasoline prices by raising interest rates? Because that's the real question here.

because if we don't, what the hell are we doing here now? I'm going to show you some numbers. So the one thing you need to understand about gasoline prices is that they're extremely seasonal and extremely cyclical. The highest point for gasoline prices all year long are in freaking August Because people travel in August People go on vacations in August Summer travel pushes gasoline prices up during July and August This is the peak of every single year of gasoline prices and it usually ends in September October November and December Now we're looking at August CPI here. So the fact is that gasoline spiked in August has nothing to do with the spending power of the middle class in America it's a seasonal thing.

now. Add on top of it the fact that the Saudis and the Graco cartel known as OPEC I mean of course the oil cartel is actively shorting Supply So you guys have less gasoline at the pump so they can get a hundred dollars per barrel, which is what they want. So if OPEC is actually reducing Supply to artificially Elevate prices and the seasonality here which is basically we're looking at lacking data from from August Sorry, it's not current data. So what will interest rate hikes do for that? How will raising interest rates convince OPEC in the Saudis not to with your gasoline prices? How would raising interest rates convince people to travel less in the past? I'm just asking a legitimate question if people travel more in July and August Which happened in the past unless you got a freaking DeLorean Mr Powell How is raising rates in freaking October September is going to freaking change the past.

We're looking at lagging data, not to mention the fact that seven percent Spike year over year in shelter that's absolutely artificial? It's people sitting on the fence. Have you ever seen that nature films where you got that seal sitting on a type of an iceberg and killer whales are surrounding it and trying to get it to it. But they can't because it's sitting on a freaking Iceberg So they start making waves and then the seal falls off and they eat them. This is literally what's going on right now with the shelter.

The shelter. The real estate market is sitting on the freaking iceberg. People don't want to sell because they locked in higher, sorry, lower rates. They don't want higher rates right now to buy a new house.

Buyers don't want to pay seven percent mortgages, so nobody's selling. nobody's buying. And what it does is it kind of keeps the prices elevated, at least on paper, because if there's no transactional activity, we get data from the last amount of transactions we had, so there's no new data reflecting the fact that the prices are effectively cheaper. Plus, rents are going up because if people aren't buying, they're renting.

so rents are going up and the amount of transaction activity isn't really giving us the full picture and shelter so there's a lag. All of this does not get solved by increasing rates. Further, you're not going to encourage people to sell and buy more. You're not going to stimulate the real estate market into actual transactional activity by making the problem worse and increasing rates even more to make the problem even worse.

This bizarre world right here. I Don't understand this. Like why are we trying to ruin the middle class in America by putting more pressure on them when we know it has nothing to do with them? It has nothing to do with the consumption power of the American Consumer It has everything to do with lag of shelter pricing and oil prices coming from OPEC and seasonality. Why crash the economy and crash the middle class and crash every day hard-working people? But it's absolutely not necessary.

I Don't understand this. Look at the surveys from the New York Fed. The percentages that people put on losing their job over the next 12 months are the highest we've seen since April 2021.. Same for actually increasing household expenditure and decreasing household income.

Highest numbers we've seen since April 2021. So the consumer is already terrified by the Fed's own data. That's the New York Fed is telling you: consumers are terrified. When consumers are terrified.

their confidence is low, they're spending less, but the inflation is still going up. Why? Because the oil prices are pushing it up and the shelter is pushing it up. Which has nothing to do with consumer confidence and the interest rates. We are already headed into some sort of a Slowdown Economically because you cannot raise rates and keep it at five percent and not cause unemployment and not cause a slow down, a recession or whatever you want to call it.

It's already happened. You just don't know it yet. The question is, why make it worse just so you? you can pretend that you're solving the problem? The problem is currently being sold by itself by the existing rates we already have and the oil prices in the shelter will have nothing to do with what you guys are doing right now. Why keep rates so high when it's absolutely unnecessary? I Don't understand this and this is by the way why the stock market is reacting the way it's reacting Because when you have imbeciles running your policy, people are selling their portfolios because there's no confidence.

I'll see you next video.