Global Central Banks Concerted Effort To Prevent Collapse of Financial System

Global Central Banks Concerted Effort To Prevent Collapse of Financial System

look at the actual statistics something doesn't add up by exclusively watching the numbers that the Fed has been eyeing it would seemed the economy and the general consensus is absolutely fantastic yet central banks around the world are already beginning a new QE cycle this is so absurd and unprecedented never have we seen a global coordinated effort by central banks to backstop a global economy that we are being told is still growing at a moderate pace something really stinks you came here for the truth so let me on the other for you today we are going to talk about the global coordinated push to prevent collapse it is important to understand what central banks are doing also important to note what they are saying oftentimes there are two very different things if you look at the Federal Reserve and the information that they are always checking up on and reporting on they're looking at their inflation numbers they're looking at unemployment they are looking at the basics and I provide you here on the channel and show you why this isn't actually anywhere near reality if you look at the unemployment rate I've covered that at length of course we know the deal with that if you look at inflation numbers this is obviously a metric that depending on what you include is going to have a very different way of interpreting the data and actually giving you a percentage number people are feeling inflation differently depending on where they live and of course even the Federal Reserve cannot agree to an actual inflation statistic I'm gonna show you that today I've got a lot to cover let's begin right away the Fed is about to cut rates to protect the economy even though most signs are strong of course this is going to get into all the jobs numbers it's gonna talk about what's happening with the SMP 500 out is hitting new highs all the time and so they want to have this insurance rate cut something really stinks think about this for a second you want an insurance rate cut to make sure that anything going on around the world isn't going to affect you as far as I'm concerned that would absolutely no way of preventing or backstopping any potential concerns and it's just really silly to tell me that this is the reason there's got to be something else going on and of course we know the truth we know exactly what's going on we are always paying attention to that and that's why I am really thankful that you are here listening to this because we know what's really going on the return of easing you could see the share of central bank's either hiking on hold or cutting right now in this particular chart from Goldman Sachs I don't know exactly where this is from but this is showing us that there are zero central bank's hiking at the moment I'll show you one that is hiking but if you look at it on the whole we are basically seeing that everybody is either cutting or in a wait-and-see attitude ok so that's where we are presented right now with this information out of Goldman Sachs but look at this here Norway hikes interest rates maintains plan for further increase this was back in June I just want to show you that I thought it was interesting that this was not included in that so it must have been before that but perhaps they had this information wrong I don't know but I definitely wanted to present that to you just look around the world and you will see that central banks are cutting in general okay so that's what's happening if you look at pretty much all over the place they're either cutting or they are saying we may cut if necessary and so long there are all different ways to create stimulus here and China is doing every single one of them you're looking at the easier China policy China's seven-day repo rate is has been declining for a little while actually it was sort of around this range between 2017 2018 and then it had been declining ever since they need to do this of course because they need all of these institutions to lend out more money and you can actually see I believe I just read within the last few days that one of the banks in China was about to collapse they're gonna try and step in all of the central banks have to do this right now because they need their commercial banks to lend out the money they are trying to really trying very hard in order to get the money moving that's what's going on today it's going on in China it's going on in the u.s. in Europe and everywhere around the world US inflation nears two percent now that depends on who you ask if you look at a Dallas Fed trimmed mean PCE inflation rate you can see right now it's at 2% core PCE inflation which is the one that you typically hear of in the news you hear Jerome Powell talking about it it is sitting at approximately 1.6 percent so even the Federal Reserve themselves cannot agree to a particular inflation rate okay so if we look at the Dallas Fed they're saying they're right on target they are trying to actually hit 2% they have hit that 2% if you look at what's happening with the core PCE it's showing that they haven't hit their target yet and therefore they need to actually create more stimulus so they can always change the method for which they calculate this PCE inflation or just use another one entirely that will show us that the inflation rate is always below their target and therefore they always need to create more stimulus to produce interest rates the print money whatever they need to do you could see that there had been a divergence here right around 2014 and it becomes very apparent right through 2015 whereas there's a big spread in between those but of course it's not real regardless but I just like the fact that even their own institution depending on where you look is actually not seeing eye to eye and that of course is a good thing but ultimately they seem to have the same policies all the time not actually responding to the needs of the people robbing them every single day truly unfortunate passive equity funds assets will surpass active by 2020 to look in the next few years is gonna be a big change and that is the fact that these passive funds that have been growing very rapidly since the financial crisis up until the present well then it's going to actually surpass the actively traded funds and I think this is important to note those in the financial industry are going to be hurt by this in the next financial crisis I believe we're gonna see a wave of firings however they will not be rehired that is troublesome because if you look any downtown core you find that the biggest towers are always these financial companies well hopefully the robots will be able to sit at those desks because I don't think they're gonna need any more humans at least they'll have a reduced workforce that's what I'm trying to get at bonds on paste for record year of inflows take a look at this you can see that hundreds and hundreds of billions of dollars worth are moving in and of course this data provided by the EPF are I think it's important to look at this to try and see where the money is going to and from most people are completely oblivious to it they simply buy quote-unquote good companies whatever that means and then they believe that they were just hold for all eternity they have no exit strategy whatsoever and they just believe that well I don't need to worry because I'll always have the dividends for this particular company or that particular company well unfortunately during the recession many companies stopped giving dividend so you can actually hope and pray that number one this stock that you bought or assets whatever it is is gonna go up and up forever but when you challenge the person on that they finally say well in the event that it goes down I'll still make dividends on it no worries that's really not the case you can't rely on that although I really like dividends that's the only reason why I would ever buy paper but you have to look into it a little deeper and actually see the track record throughout these crisis time periods and what happens afterwards number of listed domestic stocks I just wanted to include this very quickly here I wanted to show you the fact that the United States the amount has declined significantly over the years and then you see China that has been increasing over the last few since the financial crisis at least the world itself has pretty much been flat since the financial crisis and that data there is just something I thought was important to share with you because I've been seeing all these new companies popping up all over the place you have these unicorn companies and others and how many will axe remain how many will be there 20 years down the road 50 years down the road we need to be very diligent with stock analysis and a lot of people simply don't care they just buy whatever they see um seeking alpha or whatever Jim Cramer tells them to but that really isn't wise sluggish and merging market growth this right here just showing you that basically all around the emerging markets no matter where you look around the world this has been in a negative that really isn't a good thing okay so we're seeing that this has been a global phenomena that has been going on we have seen this stagnation we've seen the slowing that is happening and it isn't just one country it's not just one thing you can't point to just well it's because of that I hear that all the time but of course you cannot really squeeze it down and condense it into a sentence or one fact and you're trying to really just hold everything – that never works I just want to end the video there if you found it informative hit that thumbs up button by hitting the thumbs up on your supporting this channel so I do appreciate that very much if you want the financial education you were not taught in school these two books have everything you need all the details A to Z you can get it at the link in the description if you want the audiobook that's available at the money GPS com if you have not seen this very important that I have put together then you need to watch it click on the video I will see you there

20 thoughts on “Global Central Banks Concerted Effort To Prevent Collapse of Financial System

  1. Chart 3 6:36 look how close passive mimics active. On the left side. While this is dangerous to active assets its healthy to see this mimic maneuver. Maybe its time to switch up the way we do transactions entirely???

  2. Conventional Investment Logic: Good Economy – Buy Stocks… Bad Economy – Buy Bonds… Good Luck with that !!

  3. even here in costa rica a 3rd wolr country the central bank is lowering rates and there are news about slow economy ….. this is like when BTC got to 20K when the news here started talking about it crased 1 week latter …. i think same will happen we are close to the depresion

  4. The biggest malfunction with the insanity called QE is that the more you do it, the less effect it has. This proceeds until cranking it up constantly is required just to break even. Its a losing proposition in which once begun all avenues lead to collapse. Its only a matter of how bad you want it to get. The longer it goes on, the worse it gets and the harder it is to maintain.

  5. Bullshit about the great economy. Have you walked around any big city and seen all the homeless. I don’t remember any homeless as a kid growing up in Hawaii. Now we have tent cities. Every thing is way to expensive, healthcare insurance, phone bill, real estate. Life has gone so much worst since the 70s and 80s downhill since then . Really a 25 cent raise what a joke. We are being sucked dry by the big monopolies and corporations who run our country. The US sucks. Yep I moved to Thailand

  6. Innovation is slowly killing jobs, college is getting more expensive and rent is rising. Expect homelessness to sharply rise, layoffs to rise and investors buying bankrupt homes. Rich get richer, poor get poorer.

  7. There is no subtler, no surer means of overturning the existing basis of society than to debauch the currency. The process engages all the hidden forces of economic law on the side of destruction, and does it in a manner which not one man in a million is able to diagnose."
    The Economic Consequences of the Peace by John Maynard Keynes, on Project Gutenberg

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