In this free episode for May 2022 I discuss what exactly has led us into the financial predicament global markets are in today.

I discuss how the beginning of this growth bubble was a result of basically 0% interest rates and a requirement by traders and speculators alike to take on more risk in their portfolios. However, with a substantial change in interest rates, taking on risk has become more and more unnecessary.

The changing of interest rates has also severely effected the US monetary system in regards to the amount of liquidity in the system and just the cost of borrowing money. I point out how the FED has basically prioritized inflation over economic growth and employment and is attempting to engineer a soft landing (i.e they don’t force us into a recession with their aggressive policies).

At the end of the episode I touch on the fact that whether we engineer a soft landing or head into a recession at the end of the day the FED is left with the choice to cut interest rates and increase liquidity or cut rates and increase liquidity.

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