How our economic system will finally be destroyed in 2023.

ZodiacTrader
3 min readOct 11, 2022

I have come to realize one thing.

An everyday person doesn't understand FED’s language.

Before we explain how our economic system will finally be ruined let me first explain the definition and function of the FED and other central banks.

What is Fed though?

Fed is the most powerful central bank in the world.

There are other central banks, and they represent the will of different nations.

So what does a central bank do?

The central bank mainly prints money, and its main goal is to stabilize inflation to 2~3%.

This central bank has the power to influence all asset prices including stocks, bonds, commodities, etc.

How does the Fed impact the entire financial system?

Mainly through raising interest rates and lowering interest rates.

How does that work?

Simple.

When our economic system is overheating, we raise interest rates.

When our economic system is not active enough, we lower interest rates.

If we have too much inflation, say above 4% for too long, the central bank will raise the interest rates to kill inflation.

If we don't have enough inflation, say below 1%, the central bank will lower the interest rates to fuel inflation.

The ideal range of inflation is around 2~3%; above or below this rate can create harm to our economic system.

When Fed chairman Powell talks about raising interest rates, we leave it to wall street experts and analysts so they can somehow translate or interpret the message for us.

By misunderstanding the FED, the crowd will do silly things.

They buy stocks when the entire market is going down.

Then they sell everything when the stock market is about to bottom.

The crowd has been doing the opposite of what they should be doing. I have seen very similar scenarios repeatedly.

Now let me explain why our economic system will finally be destroyed.

It will be destroyed for three reasons.

  1. The system will be destroyed because of ignorance.

More people are caring for cats and dogs. Very few people are interested in gathering more knowledge of how the financial system operates.

Knowledge is power.

Knowledge will keep your wealth safe from an upcoming total market crash.

2. The system will be destroyed because of greed.

Greed is what fuels capitalism.

Having enough greed can help boost the economy, but when banksters and Wallstreet have too much greed, they will use our money, taxpayers' money to gamble.

Archego family office is one of the recent examples showing us how greedy these fellows can be.

They have bet billions of dollars and lost tens of billions.

3. Fed has to raise interest rates more aggressively.

When bankers and traders max out their bets, we will eventually pay for their mistakes.

Fed needs to raise interest rates, but this will suppress our economic demand. Fed raises interest rates because there is too much inflation, and the reason why we are having this much inflation is that during the 2020 market crash, to save the economy from collapsing, the Fed had to print massive amounts of cash and inject them into our financial system.

First, they create the problem.

Then they want to solve the problem by bailing them out.

With our money.

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