Here’s Why Jerome Powell’s Speech (Federal Reserve) is the first sign that this stock market bubble is about to pop and cause a massive stock market crash.
With the SP500, Nasdaq, and Dow Jones at all time highs, we are in the midst of a huge stock market bubble that has just been confirmed by Jerome Powell and the Federal Reserve. Powell said he wants higher inflation, even though inflation is actually much higher than is reported. The FED says they want to raise the inflation target to over 2% to accommodate the new economy. This is where the problem comes in. The inflation is actually much HIGHER than 2% and has been for quite some time. If you base inflation on how it was calculated in the 80s and 90s, we have been seeing around 6-10% inflation over the past 20 years. So the problem is now with the FED saying they want even more inflation, and we could see it get out of control. In this event the only solution the FED will have is to raising interest rates, which will certainly cause a stock market crash. So what I’ve been saying is starting to unfold.
money printing ➡️ inflation ➡️ raising interest rates ➡️ stock market crash.
The presentation is factually correct, the economics reasoning is flawless, and the implication chain is intuitive, but the presentation lacks to integrate two factors: an election year and a financial reset.
Yet, I expect a stock market correction this October short of a stock market crash.