How the Fed Causes the Boom and Bust Cycle

TIMECODES
0:00 The Truth About the Debt Cycle
0:12 How the Fed Causes Booms & Busts
0:25 A Free Market Money System Explained
0:52 Scarcity, Savings & Interest Rates
1:30 Natural Economic Incentives in a Free Market
2:08 Why Interest Rates Should Ebb and Flow
2:54 The Problem With Central Planning
3:35 Replay Available: Asymmetric Trading Masterclass
4:25 How the Fed Manipulates the Economy
5:01 Artificial Interest Rates Create Misallocation
5:28 Booms, Malinvestment & Price Inflation
5:48 The Fed’s Role in Triggering Busts
6:28 The Real Cause of the Boom-Bust Cycle
6:53 False Signals & Economic Distortions
7:08 Making Money in the Cycle Anyway

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My name is Joe Brown, and I'm a former stock broker who spent years advising the top 1% on how to manage their wealth. After making enough money to leave the corporate world behind, I turned my attention to teaching regular people financial strategies that exist outside the mainstream - things you'll never hear from your traditional fiancial advisor.

I am not a CPA, attorney, or licensed financial advisor and the information in these videos shall not be construed as tax, legal, or financial advice from a qualified perspective. Linked items may create a financial benefit for Heresy Financial.

[Lacore]

It's also a mechanism of wealth transference to the rich. Poor and middle class people are forced to sell their assets in a bust at a huge discount in order to survive whilst the rich can maintain and even buy up these assets through the storm and come out richer. A couple of these cycles is the reason why we have such a huge wealth gap today.

[chargermopar]

The strength of this channel is Joe's ability to explain deliberately confusing things in a logical step by step way. That is a rare talent these days!

[johnmarlowe]

One of the best explanations I have heard of the Fiat and central banking system and the impacts to the boom and bust cycle.

[MirkoRatar]

it's really crazy how nobody is talking about the book bevelorus the hidden codex of the financial alchemists

[jlolear]

Thanks, Joe! Your information is helpful. Thanks for the list! God bless.

[lordptk]

Right, I have just one question: In your free-market situation, where loans only come from savings, where is the money coming from for people to save i the first place?

[randyosborne]

For over 100 years both parties of Congress have sold this country down the river. And no one can stop them. Therefore, I'm all in on gold.

[marekligocki]

the problem is that most people do not understand what the monetary system is. in the usa most people think that the fed (due to the name it is a state bank). the fed is a private bank and it has the exclusive right to create the whoever rules it has absolute power...

[InnovativeSustainableSolutions]

I know these videos will seem basic to you Joe, and probably a lot of your viewers. But they really help me get a handle on how all this works. Thanks man, solid work, appreciate the education.

[jjrossphd]

Excellent. WIsh people would listen. SOFR swap rates are closer to the actual interest rates - rates minus Fed interference.

[tradertechprotradealerts]

Can you remember Fed chair "Bubbles" Greenspan? CHEAP money will always find its way into the stock market!

[Mr]

What about the tariffs? Also how would you implement and determine the natural interest rate?

[BrianButterworth-sz]

Read: A History of Central Banks and the Enslavement of Mankind by Stephen Mitford Goodson

[FirebreathingRedhread]

Binance infinity ETH bug right now
I just made a video to show that"

[HusseinbergDude]

I didn’t know Jason Statham had a YouTube channel

[supersam]

We had boom and bust cycles even before we had a central bank so yes they facilitate of the problem but the structure of the banking system is the root of the problem and not using actual money and having currency that is only a representation of the weight of gold which is money . If banks lend money they don’t have you will always have instability in the market .

[HavenInTheWood]

This channel is epic, which confuses me, because your links that bear no fruit

[christianlibertarian]

Mises would be proud of you for your analysis. But it has a problem in the era of fiat money. When the economy expands, with fiat money and a responsive central bank, the money supply also expands. With commodity money, like gold, that cannot happen. In the Mises world, deflation would be a common event. But that ignores the concept that prices, especially wages, are sticky. You cannot readily decrease wages when the money supply doesn’t keep up with the increase in production. The Fed is aware of this, and allows money creation such that the overall rate of inflation is always positive.

[TheBigJawn]

How can it possibly make sense that the savings pool is large when the Fed decides to lower rates? In 2008 when everyone was losing their jobs, getting foreclosed out of their homes and going bankrupt, the Fed was lowering rates. How was the savings pool large then? Is there something I’m missing…?

[SpeedroidTerrortop]

TLDR abolish the fed.

Jk I watched the whole thing. Good vid 😁