At the end of last year, the Federal Reserve told us that interest rate cuts had begun! Because of this, countless people have seen the opportunity to make money! Jump right in!
Because according to history, whenever the Fed lowers interest rates, it will do so very quickly, even to zero! As long as the Federal Reserve lowers interest rates, the cost of borrowing money around the world will also decrease. Then everyone will naturally borrow money for business and investment, and the prices of stocks, houses , and U.
S. bonds will skyrocket! So everyone is rushing to buy houses and stocks in advance!
Right? But this year has just passed the New Year, and the Federal Reserve is telling you, sorry! We won’t cut interest rates!
It is not even ruled out that interest rates will be raised in the future! Because the inflation in the United States cannot be suppressed now! In other words, in just a few months, interest rates in the United States have only dropped from 5% to about 4%, and then it will be over!
In other words, when the cost of borrowing money in the United States is still very high , the logic of investment has not changed at all due to interest rate cuts . Then the good news before will turn into bad news! And if inflation still cannot be suppressed and the Federal Reserve even raises interest rates, then the world's assets will experience an unprecedented plunge!
Is this really the case? Hello everyone, I am the sweeping monk! You will find that due to the interest rate hikes in the United States in the past few years , all the money in the world has flowed from their own countries to the United States!
Currencies around the world are devaluing! Because of this, many countries can only follow the United States in raising interest rates to prevent their own country's exchange rate from plummeting so sharply! But in many of these countries , the economy itself is not very good because of epidemics and wars!
And now they are raising interest rates to increase the cost of borrowing money, so people in these countries will be even less willing to borrow money to invest in their own countries, so the economies of these countries can only get worse! For example, in the UK, their bonds have no trading volume , that is, no one is buying them! For example, in Japan, the yen fell to a record low!
For example, in Europe, even Germany’s GDP has dropped directly! So when the world's economy is very poor and only the U. S.
economy is very good, all the money in the world goes to the U. S. , the U.
S. dollar appreciates, and U. S.
stocks skyrocket! This is the blood sacrifice of the Federal Reserve, draining the blood of the whole world to make itself stronger! So last year, the economies of many countries around the world were in trouble!
When they heard that the Federal Reserve might cut interest rates, the United States would once again spend money and blood. Many countries couldn't help but rushed to cut interest rates in advance! Because if we don’t cut interest rates, the economy will not be saved!
And when the Federal Reserve actually lowered interest rates last year, these countries lowered even more! Their economy can only breathe a sigh of relief now! But now, the Fed says it won’t cut interest rates again!
What about other countries? Their interest rates have dropped a lot, and there is no turning back! Does this mean that the interest rate difference between the United States and other countries has become wider?
For example, the interest rate in the United States used to be 5%, but the interest rate in your country is 4%! So is the interest rate difference between you originally only 1%? But now when the Federal Reserve cuts interest rates to 4%, your country's interest rates have dropped to 2%.
Has the current interest rate difference between you suddenly expanded to 2%? And you can’t raise interest rates to correct this interest rate difference, because your economy can no longer withstand it! You can even just keep cutting interest rates!
In other words, does the fact that the Fed does not cut interest rates now mean that it is raising interest rates? Because the result is that the interest rate gap between the United States and other countries will widen even further! And all the money in the world will flow into the United States again!
And as mentioned in the previous episode, the current surge in gold is actually the whole world using their own currencies to exchange for gold! Because of this, currencies around the world are now devaluing again! In other words, the blood sacrifice is not over yet, and will even be more terrifying than before!
If the world's money is further siphoned away, the world's assets will be further sold at a lower price. Countless people's hard-earned wealth will further evaporate in an instant! Is this really the case?
Can the Fed really not cut interest rates? How can we plan to protect our wealth and even make more money through this blood sacrifice? If you don’t want to be a victim, then you can subscribe to my channel because you expect that I will give you more information in the future!
And if you are afraid that you will forget it after listening to it, it is a waste of your time! Then you can like this video and it will automatically be saved in your playlist so that you can come back and follow it at any time! The first and most important thing is, why has the Federal Reserve been saying recently that it cannot cut interest rates because inflation cannot be suppressed?
Have you ever thought about why inflation in the United States cannot be suppressed? Is it because the U. S.
economy is so good that everyone is willing to spend money? So why are there zero-yuan purchases? Even if you go to a convenience store in the United States and take whatever you want, no police will arrest you!
Because this is legal! If the U. S.
economy is very good, then why are so many big companies in the U. S. , such as Amazon and Tesla, firing people and laying off employees?
And tens of thousands of people are attracted to it once it is speculated! For example, Facebook recently said that it plans to hire another 10,000 people! Why?
If the U. S. economy is really so good, why should we replace the previous president?
So everyone, the Federal Reserve has been telling you that inflation is because the U. S. economy is doing so well that it needs to suspend interest rate cuts or even raise interest rates to adjust it!
Otherwise, the people will be in dire straits! Is this really the case? If you tell me, it’s because everyone thinks that Trump is going to increase tariffs and things will be more expensive in the future, so most people will stock up in advance to buy the necessities of life in advance , which has triggered the recent rise in inflation in the United States!
Then this barely makes sense! Because we all know that most things in the United States are imported and bought from other countries! For example, 90% of the avocados in salads come from Mexico!
Then Trump said he would impose a 25% tariff on Mexico, so should everyone buy avocados in advance? If everyone goes to grab it, prices will naturally go up! Inflation is coming!
But this is only short-term! What is the true nature of inflation? It’s just that there is more money than goods!
What does it mean? We can tell by looking at this picture. During the epidemic in 2020, the Federal Reserve began to expand its balance sheet.
You can think of it as printing money. So if you look at the yellow line, it rose from 4 trillion to about 9 trillion US dollars in an instant! In other words, how much money has the Fed printed?
About 5 trillion US dollars! OK! Then we can see that starting from 2022, the Federal Reserve has been shrinking its balance sheet!
You can understand shrinking the balance sheet as taking money back, so the yellow line fell down! From 9 trillion, it has dropped to about 7 trillion now! In other words, about 2 trillion will be recovered!
So for a 12-year-old math question, I printed 5 trillion in money and got back 2 trillion. Is the money now more or less? Of course there are more!
Just not that much, right? So in the past few years, everyone has seen the Federal Reserve shrinking its balance sheet, thinking that it has taken back a lot of the money it printed. In fact, it has only taken back 2 trillion of the money!
But there are still more than 3 trillion printed money in the market! But recently, few people know that the Federal Reserve has said that it is ready to stop shrinking its balance sheet! In other words, stop taking back the money you printed before!
In other words, the extra 3 trillion US dollars printed will always remain in the market! Then the newly printed money will be used by the Federal Reserve to buy U. S.
bonds , which is to lend it to the U. S. government!
Or lend it to some capitalists through banks at close to zero interest! Let these capitalists use it to do business and produce goods. Although the money will increase, the goods produced will also increase, so there will be no inflation, and the economy will be stimulated!
This is the rhetoric that American economics has been brainwashing us with! What's the premise? The premise is that after those capitalists get the money, they use it to produce goods!
In other words, economics assumes that people are rational! But actually? I just said that in the past 20 years, the epidemic has caused the entire United States to be like a dead city, and the economy is very bad!
So the Fed prints money without any limit, which is why the yellow line in the picture just now suddenly exploded in 20 years! The newly printed money was then lent to many capitalists at close to zero interest, but this was also mentioned in the previous video! You are one of these capitalists.
After you get the money, will you use it to open factories, hire employees, and do business? Today you are the CEO of a company, and your only responsibility is to maximize the interests of shareholders! Rather than making the company profitable!
In other words, you don’t actually need to use the newly printed money to do business. You only need to use it to buy your own company’s shares in the stock market and push up the stock price! This is why, during the epidemic in 2020, although the US stock market plummeted by 30% in one month, it quickly rebounded by 30% and then rose higher than before!
It’s not because everyone is working from home due to the epidemic and the economy has recovered, but because all the newly printed money has been used to speculate in U. S. stocks!
In other words, the Federal Reserve lent the newly printed money to the United States! The United States gave money to the capitalists! Capitalists use legal methods to push up stock prices and attract retail investors to enter the market!
At the same time, ordinary people have to accept the increase in prices! To put it simply, this is a great transfer of wealth! Let the money saved by ordinary people depreciate.
Because of inflation, you will have to spend more money to buy things. At the same time, the assets of capitalists will become more and more expensive due to the newly printed money, so the wealth of capitalists can skyrocket in an instant! Then 2 years later, when the inflation in the United States was too strong, the Federal Reserve told you that it was going to raise interest rates!
Everyone, would you like to ask if raising interest rates will make the United States have less money? Although raising interest rates can reduce the number of people who do not borrow money to invest or do business, it will reduce leverage! But at the same time, as I said at the beginning, when other countries in the world see that the interest rates in the United States are so high, they will convert their money into U.
S. dollars and deposit them in your American banks! Because of this, the U.
S. dollar will appreciate, which will further attract more money from around the world to convert money into U. S.
dollars, earning you an appreciation of the exchange rate first! Then when the whole world sees you, the U. S.
stock market, because after 20 years of expanding the financial statements and printing money, there is constantly new money being printed, and it is used to push up the stock price! So the whole world is investing money in U. S.
stocks! This is why U. S.
stocks soared when interest rates were raised last year! It’s because of all the money in the world that I was attracted to take over the U. S.
stock market! So last year, when interest rates rose to 5%, billionaires such as Buffett, Bill Gates, and Zuckerberg all sold their stocks that had doubled! Then what?
For example, Buffett took a huge amount of cash from selling stocks and used it to buy U. S. bonds!
And they are all short-term U. S. debt!
You will find that 90% of U. S. debt is now short- and medium-term U.
S. debt! What does it mean?
Even if capitalists are lending money to the United States, they will collectively only lend it to you for 3 months or at most a year or two! When it is due, you, the United States, will have to repay the money. After you repay the money, these capitalists will look at how much interest you have received from the United States, and then decide whether to lend it to you!
So in the past few years, if you lend money to the United States for 3 months, the interest will be higher than if you borrow money for 10 years! To put it simply, it is actually the capitalists who are collectively lending us money to suck the blood of the US government! In the past, when I lent money to you, I would only get 2-3% interest after 10 years!
It doesn’t work now. Now you want me to lend you money. Not only do you have to pay me back the money in three months, but you also want to give me 4-5% interest!
If you don’t give, no one will lend you money! So why does the U. S.
government run a deficit, meaning it spends so much more money than it makes? It's because he only needed to pay off his debts in the past ten years or so! Now it takes a few months, half a year, or a year to repay the debt!
If you can't afford it, you have to borrow new debt to repay the old debt , and the interest rate on the new debt cannot be lower than the old debt! So recently Trump has been asking the Federal Reserve to significantly cut interest rates. Why?
It's simple, because there is only 700 billion US dollars left in the U. S. treasury and it is no longer enough to spend!
So Trump will reduce the speed at which the country spends money! The most direct way is to cut interest rates! For example, if I owe you 1 million and I give you 5% interest every year, do I have to pay you 50,000 every year?
So today, if I borrow 1. 05 million from another person and then return the 1. 05 million to you first!
After returning it to you, because of the interest rate cut, I only need to repay this person 1% interest every year , which is more than 10,000. Then will my annual expenses in the future be reduced from 50,000 to more than 10,000? In other words, after the interest rate is cut, the interest cost that the U.
S. government will have to repay every year will instantly decrease! Will Trump be able to give an explanation to his voters in this way?
After I came to power, the benefits provided to everyone remained unchanged, but I could still make the government spend less money instantly! Right? But if you lower the interest rate to 1%, will capitalists still lend you money?
After interest rates are cut, who will buy short- and medium-term U. S. bonds?
So if the Federal Reserve cuts interest rates significantly , will it mean that these capitalists will have no way to continue sucking the blood of the U. S. government?
Is this equivalent to the fact that the Federal Reserve has cut off capitalists’ financial resources? So many people may think that this is a conspiracy theory! Then let’s just look at the results!
Does the result mean that the Fed prints money? Did the result mean that the U. S.
government borrowed money from the Federal Reserve? As a result, did the United States lend the money it borrowed back to the capitalists at zero interest rate? Did printing too much money cause inflation?
Is the result that the wealth of the common people is depreciating and the wealth is invisibly transferred to the hands of capitalists? The result is that the capitalist used the money lent to him by the government at zero interest rate to push up the price of the asset, and then sold it! In the end, you took a huge amount of cash and gave it to the government for short-term loan sharking?
So if you don’t have a vision and can’t see clearly in this game, you are not result-oriented. You just rely solely on the principles of economics and financial reports. Then what you should do when the Fed raises interest rates is to sell stocks?
Because raising interest rates is used to suppress the economy! The result is that you will miss last year's bull market, which was soaring even if we bought without thinking! But now, you think the interest rate is going to be cut, and then you rush into the U.
S. stock market! Then you will find that although the index rose, it quickly fell back!
It goes up and down, and the volatility becomes very large. In the past, 80% of people could lose money in the bull market, let alone in such a volatile market with large volatility? So they often fall when they buy and rise when they sell!
And our approach to U. S. stocks is now to engage in guerrilla warfare!
Make money and run! I won’t fight a protracted war with you! Our focus, in fact, since the end of last year, has been on Hong Kong stocks , including many of our disciples from all over the world who have participated in Xiaomi, which has doubled, and now Alibaba!
Of course, what makes us the most profit is gold and Bitcoin! Let’s not talk about these things as they were mentioned in the previous film! I don’t want to show off to you, I just want you to know that no matter how much you learn about investment methods, they are just fragments!
You only need to have a method and system that can run through any asset including stocks, gold, Bitcoin, and even foreign exchange! As for our mentality and tactics, we only need to follow the trends created by the funds of large investors and buy assets that are likely to rise! And the most important thing is that we will make deals with high odds!
And all of this can be formed into muscle memory very objectively and very simply! To put it simply, we took a bet on whether it would rain, but I saw dark clouds! So not only do I know that there is a 6-70% probability of raining , but if I guess it is correct, I will earn you 100 yuan!
But if there is a 3-40% chance that I guess wrong, I will only lose 1 yuan to you! If I play this game for a long time, I will only lose less and win more! It looks like I'm gambling, but actually I'm investing!
So if you haven’t learned this system yet, I urge you to quickly follow the first link in the video description column and join our stock investment class! Because we will take it off the shelves! But now as long as you subscribe and become my fan, the registration fee does not cost 100 US dollars , not even a penny, it is free!
If you miss it , any benefits will be cancelled! So why does the Fed want to help capitalists make money? Because the Fed itself is a capitalist!
What's the meaning? In the past, the United States did not have a central bank. At that time, the banking industry had just begun to develop.
Competition was very fierce, the jungle prevailed, and the fittest survived! Then the Morgan family, the more outstanding bankers among them, when many banks were failing, the territory of the Morgan empire expanded even more! It was not until later that the United States experienced the most severe Great Depression and the San Francisco Earthquake.
In both of these financial crises , the Morgan family took action to save the U. S. banking system!
After that, the Morgan family realized that problems in the economy would cause the entire banking industry to have poor liquidity and operational problems, so it was necessary to set up a reliable central bank to provide them with emergency funds and provide them with a cushion to help them tide over short-term operating difficulties! Because if these banks fail one by one , the United States will be finished and will fall into an irreversible economic depression! So the Morgan family nominally started planning to set up a central bank that would be completely independent of the government!
You just don’t need to listen to the government’s orders! The founder of Forbes magazine described the founding process of this central bank like this! A group of people who controlled a quarter of the world's wealth at that time All night long I boarded a private train!
After walking hundreds of miles, the group finally sneaked into a sparsely traveled trail! Except for a few servants, there is almost no one on the island! Then this group of people stayed in this environment for a week!
No one's name was ever mentioned during the entire process so that those servants would not know their identity! And in this secret meeting , these people repeatedly pondered how to formulate a scientific currency system for the United States! And finally it was announced that today the birth of the Federal Reserve was announced!
So you can see that even if Trump wants to fire the boss of the Federal Reserve and wants to cut interest rates, the Federal Reserve will ignore you! Because he is not under the control of your government! Being not controlled by the government also means that the Federal Reserve can always be loyal to its real sponsors, which are the richest group of capitalists in the world!
In other words, this temple is actually to protect the wealth and power of the elite group! As for the Federal Reserve Act, even though the Congress at the time still had doubts , even though they felt that this power and influence was given to those capitalists , in 1913, this bill was still passed! So we can see that when the United States was at war in the past, power was concentrated in the military-industrial complex!
Because they made a lot of money selling arms! But later on, when there was no war, the ability of these military-industrial groups to make money dropped instantly! So we can only take the initiative to make way for financial groups, because those capitalists only need to sell stocks, bonds, and U.
S. dollars to make money all over the world by selling these fictitious things , so why do they have to work so hard? So why doesn’t the US government take care of these capitalists?
Because American politics serves capital! This is no longer a secret in America! So let’s think about it.
During this period, inflation in the United States has increased, and the Federal Reserve will not cut interest rates! What's the result? The result is that capitalists can still lend usury to the U.
S. government! Currencies around the world are further devaluing!
Especially RMB! Then what? These capitalists began to sing the praises of mainland China and Hong Kong!
The previous video mentioned, why do we pay attention to DeepSeek? I follow DeepSeek not by reading Xiaohongshu or Douyin! But Zuckerberg and those Wall Street financial tycoons made their own videos about it!
It is said that this DeepSeek has allowed China’s AI development to catch up very quickly! Then what? The stock markets in mainland China and Hong Kong are soaring now!
Our Hong Kong stock market, Xiaomi, has doubled, and Alibaba has risen by 40% in a few days! The disciples in our cram school can testify! Then what?
Wall Street said that it is no longer bearish on the Hong Kong stock market! So if we only look at the results, has the RMB depreciated further? In other words, if I were an American capitalist, would it be cheaper for me to buy Chinese assets with US dollars ?
Then, although American capitalists are saying that DeepSeek is not good , they have never denied DeepSeek's capabilities , but it has attracted worldwide attention. Is this another way to provide a reason for the surge in the Chinese and Hong Kong stock markets? Then let's take a look at the FTSE China ETF, which is listed in the United States.
Is the trading volume during this period significantly larger than in the past? And this is the US-listed MSCI Hong Kong Index ETF! Isn’t his trading volume obviously larger than before?
Then with such a large trading volume, could retail investors buy it? Impossible! It must be all caused by institutions!
Then Apple recently suddenly announced that it would cooperate with Alibaba on AI! Why at this time? Then the US stock market BABA, which has been plummeting for several years, has its trading volume suddenly increased a lot?
In other words, judging from the results, those American funds, chaebols, and groups have actually been bargain hunting in the assets of China and Hong Kong during this period! I am not talking about China and Hong Kong stocks, don’t get me wrong! We always only look at the results.
When the United States does not cut interest rates and currencies around the world are devaluing, what assets are American capital buying? The stocks of China and Hong Kong have plummeted for four years. When Trump said that he would increase tariffs on China and the trade war would become more intense, and everyone said that they should cherish their lives and stay away from Hong Kong stocks, the stocks of China and Hong Kong rose!
Why? Because when no one is buying and assets are at their cheapest, it is the best time for capitalists to hunt for bargains and buy chips! Can you understand?
So when we started planning Hong Kong stocks last year, some people laughed at us for selling US stocks and buying Hong Kong stocks! There are many videos as proof, it cannot be faked! But now that Hong Kong stocks are soaring across the board, and you can make money by buying with your eyes closed, many people say to me, what should I do if they haven’t even gotten on the bus yet?
So what can I do? All I can say is, if you haven’t watched the stock investment class yet, hurry up and watch it while it’s still free and there are benefits included! Because I missed the bull market, I don’t know how many more years I have to wait!
But now we can only make an inference! This is not a prediction because none of us have a crystal ball! So I can only guess!
We will not invest based on this reasoning but buy and sell based on emerging trends! So this just gives us a direction! We found that the Federal Reserve has stopped shrinking its balance sheet and has stopped taking back the money it printed before!
Then what? Canada has said it is preparing to expand its balance sheet! What does this mean?
I hope that if you don’t watch my other videos , you will at least watch the first two videos because it can help you understand my recent reasoning! Pay attention! Generally, Canada is ahead of the Fed when it comes to cutting or raising interest rates, or expanding or shrinking its balance sheet !
In other words, there is a high probability that the Federal Reserve will also expand its balance sheet! The expansion of the balance sheet is usually accompanied by a substantial interest rate cut! Eh!
Didn’t you just say, Mr Sweeper, that a drastic interest rate cut would cut off the wealth of capitalists? Yes! So U.
S. debt rates may not be cut! But interest rates on deposits in the United States may drop significantly!
In other words, in the future, if you deposit your money in a U. S. bank, there may be no interest!
But if you use your money to buy government bonds, you may still be able to get the same high interest rate as now! This is equivalent to sending the deposit money to the U. S.
debt! And if the interest rate on U. S.
debt does not come down, the capitalists can continue to suck the blood of the U. S. government!
Then if the U. S. government doesn't have enough money to spend, the Federal Reserve will print money and lend the money to banks at very low interest rates, and then let the banks buy high-interest U.
S. bonds! During this process, the Federal Reserve will continue to play expectation management and let you guess whether it will raise or lower interest rates!
Then these are just my personal guesses! So what will be the subsequent impact? What new layout will we have in the future?
Due to time constraints, it can only end here! But what do you expect in the next issue? Many people are waiting for this sentence every week and it will be the top priority!
Okay, the time when my videos will be released will be changed next. I will continue to share free information about becoming rich, entrepreneurs, investors and achieving financial freedom every Sunday at 8:30. If you don’t want to miss it, I still call on you to subscribe to my channel and turn on the little bell!
Then share the video selflessly! I sincerely wish the brothers and sisters who liked this video to achieve financial freedom as soon as possible! If you have any questions, please leave a message to me!
As long as you can find one or two sentences in what I said today that are useful and can help you live a better life, I will be satisfied~ Well, see you next week, Bye!