Folks, the layoffs are starting and it's about to get substantially worse. The last remaining ground that our economy has to stand on is that low unemployment rate. Our economy still has more jobs than people, but sadly that won't last for long. The main reason that we have had such low unemployment in the first place is because over the last two years we printed trillions upon trillions of dollars out of thin air in order to create decades low unemployment.

We have created decades. High Inflation If you look at the supply of liquid cash assets in the U.S you had a increase from the 1960s to the Great Recession in 08. It sped up dramatically after that to get us out of that crisis, but nothing comes close to what we did during the last two years. We printed all of these dollars during a period of time where the economy was barely barely producing any goods or services that allowed for persistent demand throughout the beginning of the pandemic and a massive massive comeback after things reopened, which then created a massive massive hiring boom in nearly every sector, even sectors that had previously been shut down by the pandemic.

Now, in a normal economy, if people for whatever reason can't work or aren't allowed to work, well, that means that they have less money to spend and for years after that, until they get more money again and the economy improves, they spend less so the lack of Supply is met with a lack of demand. and that allows the economy to recover a lot more organically in a normal economy. Massive supply chain shortages are met with massive demand shortages. If people aren't working then they can't afford things on the supply chain anyways.

Obviously there's exceptions, but if you look at this from a broad scale, this is how the system works if you let things go as they would go normally. The last two years though, we said screw that we printed so much money that many people had even more buying power than they did before, despite the fact that there was no Supply to back that up. and despite the fact that supply chain problems would continue to persist years ahead, You go ahead and you add in a war in Ukraine, a partially resulting energy crisis, and further bad policy making, and all of a sudden you get inflation at four decade highs that continues to go up despite Energy prices actually dropping. We live in a cause and effect world and this is the effect that we are dealing with because massive, massive printing of money at the same time where supply has continuously been struggling to keep up.

Now we can debate the C19 response as much as we want. Personally I Happen to believe that if the government forces you to be locked down, then the government should be also responsible for helping you sustain yourself whether you're a business or a regular everyday tax paying citizen. But regardless of whether you support the measures or you don't support the measures or you think we should have done more or less. Hey, it doesn't matter, this is done Now we have to pay for it and this process of paying back the proverbial Piper is starting very, very rapidly.

Now of course, it is my sworn and sacred responsibility to make sure that no matter what, you are violently informed and we are going to do just that in this video. I'm going to walk you through and I'll put all the time stamps down below exactly what you need to know about all of these new layoffs and how bad it's going to get. and the only thing that I ask in return is that you hit that subscribe button and keep up to date with us because this is going to be quite the shite show and you need to make sure that you are on the front lines when anything new happens and we will get right into the video after a quick word from our sponsor MooMoo and the up to 15 free stocks that you will get if you sign up and deposit with them using our link down below. So let me ask you this question: Would you show up to a bloody battle without the proper weapons? I wouldn't No matter what kind of warrior you are, you need the proper gear to thrive and Mumu is exactly that.

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So we are in the beginning stages of this unemployment number skyrocketing. A survey from Pricewaterhousecooper shows 50 percent of firms expect to reduce their labor forces in the next six to 12 months. For example, fifty percent of all respondents are reducing their overall head count, 46 percent are dropping or reducing signing bonuses, and 44 are rescinding offers. Okay, so 50 of firms in the US are expecting to do some level of layoffs in the next six to 12 months.

That already doesn't sound exactly peachy, but hey, six to 12 months? Maybe everything just magically heals before then, right? No, we are in the early stages of the beginning of this layoff cycle, but it is actually well underway. It's been happening for the last few months. It's just accelerating now. in fact, I would argue it's skyrocketing and pretty soon you're going to see it in the overall unemployment number as well.

You can. You can already see it a little bit in that unemployment number because it ticked up a little bit, but you're gonna start seeing it a lot. Here are some examples. This morning: CNBC reported that Gap is starting layoffs by eliminating about 500 corporate jobs.

Last month, the company with grew its 2022 Financial Outlook entirely citing execution challenges and uncertain macro economic challenges. Real Estate Company Compass laid off hundreds of employees at the start of the summer, and they are just announcing now that they are going to do another bigger second round of layoffs, more are likely to come. Twilliam just announced they are laying off 11 of their employees Snapchat Laying off 20 of employees Wayfair Lane off 870 employees or five percent of its Global Workforce Let me go through some of these others very quickly. Patreon is laying off 17 of their Workforce Groupon 15 Daily Harvest 15 iRobot 10 Rent the Runway 24 Carbon, 23 of their Workforce Flow Hub 15 Big Bear.ai 7 good RX 16 Other companies that have recently announced layoffs for: Best Buy Shopify Walmart Peloton HBO Max OCTA Stripe Core Scientific Sweet Green True Pill Go Health Com Vroom StubHub Ring Central Credit Suisse Crypto.com Meta Rivian Twitter Tesla Netflix Coinbase Warner Brothers Carvana Robin Hood Zillow Clorna and these are just a few.

I've only named a few of the companies that are announcing layoffs or have already done them. Now there is some silver lining here if you are somebody who ends up getting laid off by one of these companies, the IRS is hiring and you can help audit the people that didn't get laid off. How about retribution? But the point is folks, you can very very clearly see that we are in the start of a massive, massive Trend. You're already seeing a lot.

A lot of companies start really cutting back on their Workforce and the job Market's so strong right now that it absorbs it. But these are just the early effects. Do you think the headwinds moving into 2023 are going to be better or worse than 2022.? I Believe and central banks are signaling that they are going to be much, much worse. And in terms of specifically central banks, it tends to be the case that rate hikes 10 take about 6 to 12 months to really start impacting the entire economy.

So if you go back six months. We had just done our first 25 basis point hike. so right now we are seeing the impact of really only 25 basis points of Firepower and of course the impact of gutted purchasing power. But the remaining several hundred basis points that we've already gone up and will go up much further haven't been factored in.

Have it been portraying their effects in this economy at all yet? And we aren't even talking about the dopping of asset purchases off the Fed's balance sheet. Yeah, we are expected to believe that with all of this, the macro conditions are going to magically improve into 2023.. I Don't think so, folks. the data doesn't suggest that and history doesn't suggest that.

and I hate to say it. I Really don't like making bearish content. That's not something like I didn't want to go on YouTube to make bearish content all the time. That's not something that I really have any interest in doing.

But when you're in that kind of Market you got to do what you got to do and then tell the FED pivots it's gonna be that way and the FED won't pivot until inflation meaningfully goes down. So back on point. Let's talk about the last time inflation was this: High and the FED led by Paul Volcker had to crack down on it. This is from AP News quote.

Working relentlessly to bring prices under control, Volcker raised The Fed's Benchmark interest rate from 11 to a record twenty percent by late 1980 to try to slow the economy's growth and thereby shrink inflation. It it goes on. Those higher interest rates made it so expensive for people and companies to borrow that the economy weakened steadily. By January 1980, a recession had begun.

It lasted six months. A deeper and more painful downturn took hold later on after that six-month period in July of 1981. it endured for 18 months, 18 months, and set unemployment up to 10.8 percent in November and December 1982, the highest level since the Great Depression. A lot of people today are looking at inflation that hasn't been as bad since then, and they're saying no this time.

Actually, it's going to be a very, very easy solution, just a little bit of a rate hike. and then all of a sudden Boop Inflation's gone so far. that hasn't been the case. And in fact, if you actually use the CPI that we used back in the 1980s before we turned it into the Cpli, we have inflation that's worse worse than it was when Volcker took office and was in office.

Which suggests the Fed like Volcker may have to seriously piss a lot of people off. In fact, in the early 1980s, when Volcker took office, he was vilified. He was vilified by the public for what he needed to do. quote.

In the early 1980s, Volcker was vilified by the public for having triggered a severe recession in order to curb runaway price increases. Home builders listen to this. Home builders put postage stamps on bricks and on two by four wooden planks and mailed them to the FED to protest how super high interest rates had wrecked their businesses. Auto dealers stuck with lots full of unsold cars did the same with car keys angry Farmers Struggling with high debts drove their tractors to Washington and block hated the Fed's headquarters.

So the irresponsible monetary and fiscal policy of that era resulted in everyday Americans and everyday businesses having to pick up the bill down the road right. And they were pissed. They didn't see the bigger picture that at the end of the day the system is made so that the everyday citizen in the economy always has to pick up the tab since they're the ones generating the economic growth. But the fact of the matter is that the monetary overlords over at the FED back in the 1980s had to force had to force bludgeons across the economy and it led to literally people going outside the Fed and protesting protesting how high the rates work.

This is a picture of Volcker going and addressing the crowd in the 1980s. So the point that I'm trying to make here is not so much that we are heading for the same exact Calamity that we saw in the 1980s. But what I am saying is that perhaps we're not actually going to have quite a peaceful transition into getting inflation back down. Perhaps it's going to take a long time, Perhaps it's going to be substantially substantially more painful.

And quite frankly, I believe that it's going to cause unemployment to Skyrocket much much higher than it is Now, the only recent comparable time in history where we've had this High Inflation is back in the 1980s, and back then, the FED had to be so aggressive that the unemployment rate shot up to 10 1.8 percent. The economy tanked massively for many quarters, and people literally sent bricks, wood planks, and unsold car keys to the Fed. This time around, people are looking at the same sort of situation and they're saying, hey, we can escape all of this, there's going to be barely any more pain, and 2023 is going to be a fantastic year for the economy. You get out of this with a correction in the stock market, a slight correction in real estate prices, and some layoffs in oversized Tech.

But overall, everything's going to be fine and dandy. Nothing massively bad is going to happen. and honestly, I would feel the same way if inflation was actually taking, and there was substantial evidence that Supply chains were catching up with demand. We're catching up with all the money that we printed, but in fact they are not.

and the longer that is true, the more aggressive the monetary medicine that is going to be prescribed at the Fed, and the more aggressive the overall regiment is going to be now. I Want to conclude this video with a paragraph that I found on the FED St Louis Branch website and an article that describes what the FED has learned since the inflationary area era of Volcker. The idea that we can let down our guard on inflation to increase employment is unwise in the long term because higher inflation, higher inflation eventually destroys rather than creates jobs. So there's this idea that's complete opposite of this that says hey, you know what, It doesn't matter if we have high inflation as long as we have low unemployment.

but the FED here is saying wait a second no. In the long run, High Inflation causes it causes a skyrocketing of unemployment. It's just a short-term fix to put trillions of dollars on demand. If Supply can't catch up eventually, High Inflation will cause high unemployment.

It's just a matter of time. So the thing to keep in mind here is that when you have an economy that is out of balance, either you do nothing and job losses come from the sheer destruction of consumer purchasing power or the FED does do something. And job losses come from the dramatic, dramatic raising of interest rates and overall monetary policy tightening. So the point is folks: If the Fed does or doesn't act appropriately and aggressively enough.

job losses are coming. It's just a matter of how severe and how long lasting they are going to be because at the end of the day, all of that demand that we created out of thin air is going to be pulled from the wallets of. Everyday People Today, the bailing out that we did of businesses and consumers that were forced to stay in their house. Now the bill is coming due.

Now the bill is coming due and there's nothing that we can do about it. I Pushed this little button thing over too far. But anyways, that caps off the video. Thank you again! MooMoo for sponsoring today! One of the best ways to fight the bludgeoning Market is to make sure to boost up your portfolio with some free stocks.

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and also if you want to learn how to trade rather than currently with our step-by-step license. private chat, daily morning briefings as well as our full price Target list I will put a link to zip Trader You down below have a good one folks and I will see you in the next video.