Folks, it is all going to zero and even that would be far too pricey. The IMF came out today and essentially said we are screwing. We are completely screwing the global economy, We are screwing asset valuations. But it's all a necessary screwing and we must continue.

And they are awarding of quote rapidly, disorderly declines in prizes of stocks and other assets. In fact, Bloomberg Reported this morning that the IMF said quote Financial stability risks have increased and the balance of risks is tilted to the downside. and the Wsj reports the IMF said there is a risk of disorderly tightening in financial conditions. You think if inflationary pressures do not Abate as quickly as currently anticipated, or the economic slowdown intensifies, so this massive risk of disorder, massive disorder across the economy and assets is based on what what makes it more likely.

Well, inflationary pressure is continuing to stay elevated and economies continuing to slow down. Two things that I see as basic guarantees, especially as you look out the next few quarters. Sure, inflationary pressures may have peaked at their overall growth rate. Their growth rate may have peaked, but it's going to take a long time for them to actually fully Abate, especially with OPEC and that core inflation continuing to try to put as much of a floor on prices as possible.

And if you look at the surveys out this morning on inflation expectations, consumers do overall see a decline in short-term inflation, but they are starting to see Rises over the long term. When looking out three years and even five years. What does that mean? It means consumers are starting to expect inflation well above the Fed's target at two percent to be the new normal for years to come. Which means also that the Fed's projected policy trajectory of restrictive policy and high interest rates for years to come may also very well be the new normal.

But on this IMF survey, it says two risk factors: not just inflation, but also worsening economic slowdown. A lot of people right now are saying oh, okay, things are slow right now, but as the FED continues to attack inflation as things get worse, while there's not going to be any more economic slowing down, things are down a little bit. But nothing nothing worse could possibly happen because that would just be fear-mongering Well, unfortunately, the survey show that the average American Business leader expects a much worse situation heading into next year and the year after. In fact, one survey from KPMG found that 91 of American Business Leaders expect a recession will occur within the next year, and this is the harder, more extreme definition of a recession, right? So yes, IMF your two risk factors that you've identified more inflation and more economic slowdowns? Well, they're both going to come true and it's going to be devastating.

And what are they warning will happen as a result. Well, again. Bloomberg Reported today that the IMF warned of the danger of Rapid disorderly declines in prices of stocks and other assets and urged Central Bankers to carefully and clearly calibrate their necessary efforts to reduce Sky High Inflation Rapidly and disorderly declines. What does that sound like? It sounds like Panic they are projecting Panic So far, we've managed to mostly avoid a rapid disorderly decline.

Each decline this year was supported by a combination of buyers, people who believed the FED would pivot back to dovishness by the end of this year early next year and other people who believe that inflation would rapidly be behind us. Unfortunately, due to a lot of different factors, inflation is not behind us and inflation continues to destroy our economy and eat us out from the inside. But but markets overall have been slow to accept this, so you haven't really had a rapid disorderly. Panic To the downside? No, it's just been a slow and steady decrease where more and more people lose faith in the market.

But once you actually do get that so-called rapid disorderly decline, how much is that? How much is that folks? That's a completely different beast that's talking about a 2020 lockdown style drop. And Let Me Tell You Folks when Panic ensues that is not something that takes you down just 5, 10, or 15 percent that is stopping. That is at least 20 plus more of downside which reiterates exact what Jamie Diamond at Chase said just yesterday. In order for this Market to bottom, you have to have factored in insane Panic People need to be at Peak acceptance that we are heading on a terrible trajectory and then you've bought them So far, people have just slowly closed out of positions all year.

You have to remember, you need to look at the overall economy and think about all the small to medium to Mega businesses, all of the countries, all of the various institutions that have been built and rebuilt over the last 20, 30 or 40 years. Well, like I was kind of getting at yesterday. We have an economy that was built on the backs of low interest rates. So you have all these seasoned Business Leaders who quite frankly, they have never experienced what success or management looks like in a high interest rate world.

Look at who controls the biggest companies in the US Today most of them took their possessions over the last 10 years, maybe the last 20 years. Look at all these Emerging Markets who were built on low borrowing costs from First World Countries A lot of those political leaders and entire governments were built in a world with very, very easy money, the entire global economy right now, and many households specifically and individually depend on the existence of cheap, cheap, dirt money. All of these economic participants know exactly how to operate in good times when rates are low. Maybe they understand how to avoid a crisis and keep themselves running for a year or two if there's a global shutdown.

But what you're seeing is that very very few companies have any idea what it means to operate in a much higher interest rate environment. A lot of people like to say no Charlie Actually, you're so wrong. We had much higher rates back in the 70s, 80s, 90s, Much much higher rates. Those were completely different days since.

Oh wait, we have completely completely rebuilt the system and we have no idea at all what would happen if we start getting back to those rates and we might very well be headed back there. Let's go over to London The Bank of England stepped in to further expand their bond market rescue and to help restore the overall Financial stability over there. If you weren't familiar or you weren't following the UK situation. a couple of weeks ago, the new Pm try to pass stimulatory measures, but in doing so cause Capital to panic out of the currency and government bonds and threaten to essentially collapse major Pension funds that like a third of Brits are invested in.

Saw the Bank of England had to step in and enact emergency measures to prop up the system to avoid the further complete obliteration of value. Well, it turns out that wasn't enough. Today the Bank of England announced an expansion of its emergency Bond buying operation as it looks to restore order to the country's chaotic bond market. The reason this is worth watching is because the UK is a prime.

a prime example of what happens if you try to stimulate your way out of an over-stimulated inflationary economy until inflation goes down and that problem is behind us. Any country that decides to go and stimulate its way out of the massive slowdown that we are heading into is going to be punished and whipped like a dog. A barking dog that just won't shut up. Financial Systems that try to stimulate right now will lose credibility Capital will flock elsewhere and the entire country will have to pay with even more asset purchases that they then have to unload years down the road.

That's a long term coming back here to the U.S Make no mistake about where things are heading and how this will be handled. Once the Fed and Global policy makers have tightened this economy so much and created so much scarcity that people can't afford to wake up in the morning. then guess what happens? They'll come back in and try to save the day. How do we know this though? Charlie Well look no further to who they are telling us that we should be celebrating right now.

Look no further then recent Nobel Prize Winner: Ben Bernanke He received his Nobel prize in economics just yesterday. This is of course the former Chairman of the Federal Reserve Who was appointed in February 2006 right before the financial crisis and led the FED through it all the way to 2014 BBC reports and you likely already know when the financial crisis hit. He pushed the Federal Reserve to intervene, aggressively slashing interest rates and helping to organize bailouts of some of America's biggest banks moves that were and still are politically controversial. In other words, this is somebody who is known for really establishing the central bank as the central planning structure of the U.S and really the global economy.

Yes, that was already true, but he took it to a whole other level. According to a member of the prize committee, Ben, Bernanke and the other laureates have provided a foundation for our modern understanding of why banks are needed. AKA Banks are needed for centrally planning the economy and this is exactly what he won the award for. He won the award for his theories that led to him doing the work that essentially set us up for a lot of the Central Bank driven ills that we see this very day, and yet he is ironically winning an award for it right now.

Right when the central bank is showing all of these cracks and all of the problems with his theories, this is like if somebody has huge caffeine withdrawal after trying to quit coffee and a few days in, he's having massive massive headaches and Ben Bernanke comes and says I have a solution for you and he goes and gives him massive jug of caffeine, amounts of jug of coffee and he's like drink this and then the individual drinks and he's like oh my God Woof my headaches are gone and then Ben Bernack is like yep, I'll take that prize now and then the Nobel Prize people are like wow, you fixed the problem Uh, no, you just made him even more dependent on Kathy Which means what he's gonna need more caffeine down the road and more and more and more every single time. I Acknowledge that what Ben Bernanke did during the crisis did help us get out a lot faster than probably otherwise would have, but at what long-term cost? at the same long-term cost of giving a junkie more of the junk to get him through a headache or a withdrawal symptom? In the case of the economy, we completely restructured how our system works and we implanted a appointed Central Bank at the middle of it. And when you have leaders like this who are winning these Awards What is that saying? It's saying that this is how they want the system to operate. Moving forward, more fed induced massive asset pumps followed by Massive fed induced asset dumps followed by again repumps.

If our fed overlords tell us to jump, we must ask how high how high Mr Your Highness Powell and he's going to say JUMP as high as that inflation rate is and then we're going to break our legs Bernanke Contributed greatly greatly to this role of the FED being the popper and the dumper before the financial crisis as Fed Governor in 2002 to 2005, Mr Bernanke made news by claiming the biggest economic risk was deflation. He persuaded his colleagues and chairman. Alan Greenspan to keep interest rates unusually low in Spring 2003. Even as a tax cut passed and the economy boomed, asset prices soared, especially the housing market, but the FED kept supplying a subsidy for credit with negative real interest rates.

In other words, Bernanke supported and aided in the pumping of asset valuations prior to the 08 collapse, which made it that much more worse without the slight care for what might happen later on. And then when he took over as Chairman in 2006, he failed to anticipate the financial panic and crash. And while the measures that he took after the OA crisis did help the economy recover over the next five, six, ten years, the fact of the matter is that it was one of the slowest recoveries we had had in many decades, and at the same time, it created a lot of structural issues that we are only starting to see now. And guess what folks, the Central Bank made the same mistake this time around.

use the same Bernanke Playbook but to a much bigger degree and now we have to pay for it. Folks By the way, you're not allowed to have conversations on whether or not policies that devalue our currency cause inflation over the long run. You're not allowed to have those conversations because they say, oh, that is so wrong. It's not because of that, It's because of Putek.

It's because of greedy corporations. It's because taxes aren't high enough. It's because small businesses are milking you. Sure I Can find you tons of evidence of price gouging across the economy all around the world.

You can look very clearly to see the oil reaction after the Ukraine Invasion But the bigger picture is the massive, massive shutdown of the economy while printing tons more money and all of these structural issues that we've created over the last 10 15, 20 years rated an existential threat to the overall Financial system versus these other things that they're just a really bad accelerant. Anyways, folks that caps off this video, let us know what you think down below: Is this economy going to recover? Is it going to be a beautiful and fast recovery into 2023? What's the market going to do next? Let us know what your thoughts are and make sure to take advantage of the Flash 40 sale on zip Trade Review: I Will put the link to that below get your up to 15 free stocks with an excellent and Powerful trading platform MooMoo I'll put the link to that below as well. Have a good one folks and I will see you in the next video.