Sell Everything Now! Depression Worse Than 1933 Coming!

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We are not anywhere near the bottom another 80 drop for sure heading into another 1930s error depression where unemployment rate is 60 percent worldwide depression will last 50 years 1930s lasted 12 years bread lines at the street corners will again be commonplace people lining up and waiting three to four hours for their half a loaf of bread a half a bowl of

Porridge on the weekends water filled in jerry cans this will be the conditions in the u.s again fed and its eu central banks will continue the tightening no matter what it does to the economy they have lost their minds f their reputation so you know i i want to talk about this because you know there’s definitely a lot of people that think not only are we headed

Into recession but they’re convinced we’re headed into a depression okay and i want to talk about this for a moment i want to show you guys a few things i think it’s an important subject i think it’s on people’s minds and when you’re in a time period where you know people are scared people when people are scared they take their thought process to the most extreme

Version right and it’s very commonplace like if you understand the way the brain works in psychology when people are scared and these sorts of things they take their brains to the scariest place possible and so they always think about like worst case scenario right and so you know if you think about uh first off unemployment is 60 i don’t know where they got that

Okay uh unemployment global unemployment reached about 25 percent peak which is absolutely an insane number during the great depression 1933 uh absolutely incredible number and let’s not forget the great depression um you know there was a lot of things birthed out of the great depression we learned a lot right you can’t even really compare what the economy was

Like prior to the great depression versus where what the economy is now um but obviously there was a lot that came out of the great depression that completely changed the way uh everything’s done in the united states of america the banking system the fed everything um that was something that the united states went through and obviously the world went through that

Changed everything forever and um after that obviously world war ii came shortly after that which changed the world forever because of um the nuclear bomb and um that was a thing that you know the only reason we have just so everybody understands and this is very clear the only reason we have uh peace between superpowers nowadays is because of the nuclear bomb if

The nuclear bomb never happened um we would still be having world wars all the time why has it not been world war iii nuclear bomb that’s it because every single major superpower understands crap if we get into it with this other superpower they got that capabilities and so there was so much birth that there’s so much that changed um things forever uh that from

The great depression essentially okay now what’s the difference between the great depression i mean there’s a million things but on the unemployment side the truth is they would never ever let unemployment uh climb to 20 something percent and if they somehow unemployment ever did climb to 25 which is completely unrealistic they would just give people money it’s

As simple as that that’s all they do nowadays because the fed’s there to do that a sec look we just had a we literally two years ago we had the perfect example of this right unemployment climbed to 15 or whatever ridiculous number the highest by far in modern history right in what happened you know stimulus checks and uh you know unemployment checks and everything

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You know that’s just what the government does if you get into any sort of situation where unemployment goes up in any meaningful way the fed’s there to backstop it they’re going to do whatever it takes they’re going to print as much money as needed they’re going to you know find any way to you know slosh money out there now where the fed screwed up in this last

Situation is they printed way too much money you know is i guess the best way to say it they went too crazy with it between the stimulus between what the government was doing uh between the ppp loans and all that stuff they went too far overboard between all the asset purchases the fed was doing they went way too far and that’s why we ended up into bubbles right

You saw we saw bubblicious things happening in the stock market we saw bubbles happening in real estate bubbles happening in crypto and they went way too far with things and so now we have a bunch of high inflation right they went too far with it bottom line now when we went off the gold standard back in the 70s officially there was something that changed the

United states forever right and basically what we adopted and the government doesn’t really like to call it this or they like to try to almost avoid this but basically what we have is some people call it modern monetary theory others call it monopoly money theory okay it’s essentially where the fed the government will spend money you know they’ll slosh money out

There either through different you know programs the government will do or the fed will buy up assets or whatever stimulus um anything right and so they flood the economy with money right and all that money ends up getting spent around used around but the problem is sometimes they go too crazy with it which obviously they did in 2021 right they should have stopped

All those program a lot of those programs they should have stopped in 2020 but they kept so much of them going including a lot of the asset buying the fed was doing into 2021 and what they caused is the economy to overflow right which caused obviously ridiculously high inflation that we’re going through now and so they went too crazy with it right now when the

Government shuts all that money that’s sloshing out there right when they shut off that faucet you know the economy gets pretty serious pretty darn fast and the financial markets feel the first right and that’s why we see nasdaq down 30 plus percent year date look at bitcoins down like 60 plus percent uh year to date ethereum’s down what 70 80 percent uh you know

Countless stocks are down anywhere between 30 and 80 just in the past you know six to nine months and so things get pretty serious pretty darn fast when you you shut off the faucet and that’s essentially what happened here right and i want to show you guys such a great video okay this is such a great video that i want to show you and i i love to you know shout out

Different youtube channels and this is probably the smallest youtube channel i’ve ever shouted out on my channel before they have 414 subscribers as of right now but i think they put together a masterpiece here i think this video should be shown in every school across the united states of america i mean i just think this is beautiful like like watch us is a federal

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Reserve ponzi scheme watch us okay the federal reserve system was created in 1913 by president woodrow wilson my least favorite president and the one who induces within me and urged to vomit and he did this for a proported purpose and that purpose was to reduce the severity of economic recessions by first managing the money supply and two serving as the lender of

Last resorts now what in the heck of mob do those things mean let’s get into it so first managing the money supply back in the day we had money that was pegged to a set amount of gold and this was unmanageable ah the nostalgia but now we have fiat currency which is only backed by our undying faith and loyalty to the united states republic gee whiz what this means

Is that the fed can create money in quotes at will through increasing the supply of reserves this pushes down the federal funds rate which in turn lowers interest rates throughout the economy and makes it a whole lot easier to borrow money so expansionary monetary policy is essentially flooding the economy with inflated dollars to disguise economic contractions

This lowers interest rates and stimulates the economy fraudulently this makes economic recessions worse in the long run but i’ll explain that in another video next the bank is supposed to be the lender of last resort but you know what really helped this explanation a series of cartoon drawings so we got a bank let’s call it i don’t know the bank of the dying

Empire no reason for that it functions like a normal bank people put their money in it for safekeeping and for some incredible return of 0.6 annually the bank in turn invests that money into something that generates a higher return than what they give the poor citizen aka rent seeking aka zero like behavior but the catch is the poor citizens can go get their money

Whenever they want this presents a problem for our bank friends cash as we know generates a negative return due to inflation so the banks hold as little as they are legally allowed to they do not have enough cash on hand to pay back everyone if they all came at once so what if more people than they can fund want to get their money back what if everyone wants their

Money back well then in layman’s terms the bank is screwed yeah exactly i mean if everybody if all of us watching this video right now and everybody else in the united states wanted to go down their banks right now and try to get all your money out that ain’t happening that’s just beyonce it’s not even close to happening okay i don’t even know five percent of us

Would get our money right away this is where the fed supposedly comes in in times of crisis the fed serves as the lender of last resort so a bank on the brink of collapse can come and get a loan of fed reserves to pay off the angry mob of poor citizens at its door this is what the fed was originally created to accomplish already not my favorite in terms of logic

Or integrity but now let’s talk about how it officially becomes a ponzi scheme the country is in debt like it was at the end of the day that was necessary okay and we can push back into it it’s necessary like at the end of the day when people freak out right they go to these extremes what what like what was a huge part of what led to the great depression was the


Fact that everybody panicked at the same time everybody wanted to get their money out of the bank and all those banks failed right and it wiped out the entire financial system essentially and so although yeah it may not be our favorite it’s really your only choice you have because humans are humans and they’re going to act ridiculous and also everybody gets panic

Nowadays when we go through these time periods of everybody’s scared the difference is not everybody goes running down their bank and like i gotta get all my money out because they know the fed’s there to to give them their money if they need it right and so it’s a very different situation we simply cannot afford to pay for everything the government does each year

With tax revenues alone so we keep on issuing more debt and eventually other countries stopped buying the debt so you know who started buying it the federal reserve by creating more reserves let’s say that one more time our government spends money it doesn’t have on whatever the heck stuff then gets a loan to pay off that spending from its own central bank which

Got the money to loan from the printing press that’s pretty ponzi but we’re not done yet since we’ve been in debt for you know a century we owe interest on the debt we have not paid off yet mainly government bonds issued to nice old people so we use today’s dollars which are half of what they used to be worth because of inflation to pay off yesterday’s debts and

We do it year in and year out that’s by definition what a ponzi scheme is learning in new people to donate money to a dying cause to pay off last year’s debts okay you can’t just create money though the value has to come from somewhere and where does it come from your wallet because now every dollar you own is worth less than when you earned it by definition they

Are stealing your honest labor from you so what did we learn by the fred printing more money the government pays for its insane spending and reduces its existing debt burden at your expense hmm just wondering did you vote for that me neither pal me neither yeah a beautiful video uh i think it’s a top top 10 video on youtube right there uh but at the end of the

Day that’s just you know in terms of like these worries about a great depression or something that as soon as and believe me as soon as if unemployment starts to go up in any meaningful way fed’s going to be there to try everything again because the political pressure gets heavy right if all of a sudden unemployment ticks up it majorly the fed right now is raising

Rates and they have no fear of raising rates right now because unemployment’s so low as soon as people stop you know start losing jobs in mass and also you see unemployment ticked to four percent and five percent and six percent seven percent that’s when the fed starts freaking out that’s when politicians start freaking out and so yeah if you’re worried about great

Depression always keep that in mind guys so anyways much love as always hope you enjoyed this video a little something different and peace

Transcribed from video
Sell Everything Now! Depression Worse Than 1933 Coming! By Financial Education

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