The FED Just Broke The Market | Dollar Crisis Explained

The YouTube Creator Academy:

The US Dollar Crisis:
As it stands right now: the US dollar serves as the reserve currency for the entire world. This means that EVERY COUNTRY trades in US dollars because of its stability, resiliency, and global acceptance.

HOWEVER…here’s where things begin fall apart: Because inflation has become a WORLD WIDE problem…countries are constantly looking for a safe place to park their money…and, since the United States raised THEIR interest rates the fastest, and is seen as the most secure…everyone is buying up the Dollar. That means, even though our money is “losing value” to inflation here in the US…it’s INCREASING IN VALUE, RELATIVE to to the rest of the world.

Bloomberg explains that countries can chose to LIMIT their exposure by SHORTING the US dollar as a hedge…and that means, if the US dollar CONTINUES going higher, countries would be forced to sell of their OWN assets to pay for those losses, and so far - that’s happened near the end of almost every quarter in 2022.

In addition to that, a higher US dollar means that our own EXPORTS become THAT much more expensive…after all, 1 euro USED TO BUY $1.20 worth of American Goods…but NOW it only buys 97 cents…so, everything - for the rest of the world - is more expensive than it was previously.

So far, here's what we do know:

Number One: Some of the largest funds are stocking up in cash.
After all - why take the risk in equities…when you can earn 4.3%, guaranteed, with no work buying Treasuries?

Two: The Housing Market Is Falling.
Like I mentioned earlier, The Housing Sentiment Index is near an all-time historic low, as fewer and fewer people believe that NOW is a good time to buy.

Three: The Bank of England is in trouble.
They recently came on record to warn that “Households will Face a Strain Similar to Pre-2008 Crisis,” as their markets begin to crumble. For them, higher rates will decrease business activity…higher prices will lead to less spending…and, foreign investment will slow as people sell off their assets. This could probably be a video in and of itself…but, starting today…their central bank is no longer backstopping bond purchases…which, is likely going to lead to a LOT more volatility.

And Four: Expect higher unemployment.
To me, the writing is on the wall that - as companies scale back - employees will be the FIRST to get cut…so, I’d use this as an opportunity to make yourself as indispensable as possible…and, save up extra cash just in case something were to happen.

My ENTIRE Camera and Recording Equipment:

[mathebulamkhize]

Year-over-year inflation stood at 6.5% in December 2022—the lowest that figure has been in more than a year. Inflation was in line with what economists expected and gave many of them a reason to believe that the peak of inflation may be behind us. I have approximately $150k stagnant in my port_folio that needs growth. What is the best way to take advantage of this downturn?

[Billionswitch]

This is by far the most objective analysis I've seen on YouTube to date. As a foreigner who spent the last three years living through the entirety of zero covid in China. Starting in 2023, economists and business leaders are expressing their concern that the year would be challenging. CEO of JPMorgan Chase & Co. Jamie Dimon indicated on Tuesday that the Federal Reserve may need to hike interest rates above their peak level this year. According to a report I read, during the financial crisis, some people were able to make up to 50k with just 10k in starting money. What percentage of that is accurate? Which asset is the greatest one to watch right now.

[instinctively_awesome]

My greatest concern is how to recover from all these economic and global troubles and stay afloat especially with the political power tussle going on in the US.

[checkforme]

Biggest lesson of 2022 in the stock market: Nobody knows what is going to happen next, so practice some humility and follow a strategy with a long term edge.

[louisnvrr]

“People are making too much money.” It’s always the individuals fault. Never the corporations racking in record profits😒

[drizzle]

I’m the TA guy and the dxy is by far one of the most bullish looking charts there is, and to make matters worse it’s no where near over bought territory yet!

[financialnews]

We will look back at zero interest rates being one of the biggest policy mistakes our country has ever made. Unfortunately it was made by a group of unelected officials who will never face the consequences. Actually, they were given a Nobel Prize. Every company/person is structured for zero rates right now. Things are going to really break.

[Mariegot]

<Every financial goal requires patience, dedication and consistent spirit knowing that investment is currently the most lucrative business in the world. both NFT, real estate, Stocks and Crypto is positively changing people's lives. I stopped panicking about the market the very moment I started working with (Elizabeth Ernst David) last year, her confidence and skills is on a maximum level…..

[instrong]

Watching you for about a year. U motivated me to get into youtube. Now filming workouts from Ukraine. Hope one day will be abel to help people like u do!

[cloudyview]

The strong dollar is such a weird side effect in all of this - everyone is stuck in inflation, we're just managing to inflate less....

[TicklePickleLover]

Employment does not cause inflation. Government spending does.

[canadianminingreport]

That inflation is this persistently high is not really a surprise given the huge monetary expansion of 2020 and 2021…the surprise was more that inflation stayed so low from 2011-2019 even with the massive global monetary expansion of that period, which actually shows just how deflationary that time would have been without the intervention…but the central banks may have gotten the wrong lesson from that period and thought they could ‘get away with it again’ in terms of an extreme monetary expansion without inflation…there are many factors that had been driving the unprecedented low inflation since even as far back as around 2000 that are no longer impeding price rises as much.

[ali-txuh]

Graham will you make today video about *AMP5Z*

[ItsBrightOne]

I am under the impression that we need interest rates to at least equal inflation rate in order to bring inflation down. With fed fund rates at ~3% and inflation at ~8%, this means we still have a ways to go and the Fed cannot pivot yet. I expect interest rate hikes to continue well into 2023/2024 and increased federal fund rate targets come the November 2022 meeting. More pain for the market. This is my take. Buying Puts to swing into November 2022.

[xEnder]

inflation is the result of no competition and corporations raising prices because they can.

[ClipCritics]

In the 70’s they had to raise interest rates to 19%. Today the debt/inflation is much worse.

[rickym]

You got my like at the beginning, “this episode of we’re totally f..Ed” made me laugh that!

[bigsidable]

F IT ALL. STAY LONG AND STRONG. F THE FEDS. F INFLATION.

[MrCaveman]

And then we see many Companies recording MAJOR PROFITS. How exactly does that happen? Oh... well, they are taking advantage and GOUGING as much as they can get away with! DO NOT USE THESE COMPANIES!

[chainbacon]

That multi trillion stimulus on March 20th 2020 cost me $485, 000. Did a lot of good huh?I’m still pissed and I’m getting pissed more and more by the day with this bullshit market