Look around Twitter, and you'll see "financial analysts" turning the latest FOMC meeting into something really complicated so they can sell you a course. "Dot plots" and "terminal rates" ... all jargon to make you believe you can't analyze this yourself.
Do me a favor; don't buy anyone's financial course who talks about dot plots. WTF. That kind of shit is relevant in more subtle markets. In this market, where there is one buyer (the Fed), this shit is easy.
The FOMC meeting went as planned, with the Fed raising interest rates to slow demand. Powell also iterated his promise to bringing down inflation over all other priorities, including employment. There was pushback from politicians, saying they would fight to increase government aid to those most affected by the tightening.
What does this mean? Smart money (yours truly) is already out of the market, and the dollars they hold are getting stronger. They'll be able to buy back into markets at great prices at will. But they'll sit on the sidelines until they see the greatest opportunity, which means others capitulate because of longstanding bills (mortgages, car notes, business rent payments, overdue inventory, other outstanding debt). They will be loaning money to people to save their homes and businesses; they'll wait for max pain then steal the homes and businesses. The middle class will not have access to this money.
The poor will get help to retain their base lifestyle, which means government will need to continue inflating currency within that sector. But access to this money will be strictly curated. As in you to be poor to get it, which means you by definition can't be doing anything successfully. The middle class will not have access to this money, either.
So you've got the continued inflation of currency, but productive society has less access to that money than ever. Blue chip cryptos will continue to accrue into the hands of hoarders like Michael Saylor. Other hoarders in other industries will hoard their preferred asset, e.g. Bill Gates/farmland, Blackrock/real estate, etc. Money will get tighter, resources will get tighter.
This will continue until the Fed can no longer sustain global austerity. When this happens, they will stop tightening and start loosening. At which point, money will re-enter speculative assets and the dollar will weaken against them. This is when buyers during the austerity period will get "rich."
You don't need a bunch of charts to explain this. Watch what the Fed does and invest in assets that follow this behavior.
What you should be worried about is speculative assets you invest in. Are you helping dig your own grave by investing into stuff like Ethereum, or are you creating a different paradigm with investments in things like Cosmos? That's what I do — find the investments that will get you rich AND actually do some political good. Click to follow Alucard on Twitter
