So 1974, we went from everything, looks okay to the worst recession since world war ii in four months, im thinking its going to look similar because of the speed of the monetary tightening the speed of the rise of prices. So i think we are going to have a very ugly few months, um, both economically and for markets from the stock markets to bonds and cryptocurrencies. The financial markets are feeling the full blow of a rapidly collapsing global economy, worsened by a brutal war. When the russia, ukraine war, started back in february, many investors were certain that it would end almost immediately after it started. However, its been four months and the war is still raging and has locked up tons of raw materials and food meant to be exported to other countries. No one knows when the war will end and how devastating it is going to be for both countries and the rest of the world. However, it is certain that, in addition to other grave consequences, the war is terribly worse in the ailing global economy. The past few months, weve watched some of the largest economies struggle with record high prices, weakening fiat currencies and general economic collapse in a recent broadcast macro guru and real vision, ceo raul, pal and renowned author robert kiyosaki vividly describe the extent of the damage powell pines That the next few months are going to be quite ugly, especially as the federal reserve continues to struggle to bring inflation under control without crippling the economy.

We will now take you to raul pals interview, but before we do, please take a little time to like this. Video subscribe to the channel and drop your comments, thoughts and observations in the comments section below thanks and enjoy the video. The imf says the world economy faces the strongest headwinds or challenges since world war ii, and so ralph pal is talking hes a macro global econom economist. He walks the talk. He knows what hes uh hes made kim and i very rich on his recommendations of when to buy bitcoin and were very proud of that. But one thing that he mentioned is talking about. The you know talked about debasement of currency, so heres a penny, its copper and in 1964. I was looking at the quarters and dimes same color. Do i mean its the same color? So basically in 1964, dimes quarters and half dollars became copper and thats. What you were talking about debasement and, i think, were paying the price for it, because im really glad you started with history, because macroeconomics is history, you have to look back in time and every time people did. This first was the chinese. They they printed paper money and the chinese empire collapsed, and then, when the romans did the same thing debased the currency, the roman empire collapsed. So when the imf made that announcement, i was going. Oh my god, thank god ralphs coming on. Because are we looking at the end of the american empire? Can you go into what youre seeing coming together? I think its going to happen at a shocking speed.

The question is: is what comes next and thats? The key point: if my base case comes into play, which is the fed pivot, they stop raising rates jpeg, they already started, suggesting, maybe well pause in september. My guess is june will be the last hike and after that they will say well were just going to see and well see the economy start going down the toilet and they will start thinking well were not going to do qt now either so theyre not going To start shrinking the fed balance sheet and before you know it were going to be talking about rate cuts, but we dont have many rates to cut. You know rates in nowhere, so the only outcome is theyre going to have to print money. The credit markets already starting to dry up thats, usually an indicator. The housing markets rolling over and thats a bad indicator. Printing money is this stuff. Here you have a silver coin: you have a copper coin, made silver right. Basically, its called debasing the currency, which the romans and chinese already did yeah, because dont forget the basement. Currency works in a simple way if youre really thirsty – and i have a bottle of water – youll pay anything for it. If youre really thirsty and ive got five bottles of water, youre kind of thinking, yeah ill probably need some of that water ill buy them all. But at a lower price, if i say heres a million bottles of water, you dont want any of it because theres too much water.

Now it has no scarcity. So if you make too much of something it becomes less valuable. So if da vinci created 50 million pieces of art, guess what theyre worthless and so its its that concept and what it does is if something gets devalued versus something else, so were not making more shares in the s p. Actually, what were doing is buying them back making less of them. Therefore, the s p goes up real estate, yes, theres periods where we try and create new real estate, but generally real estate prices go up versus the fed balance sheet because its a relatively scarce asset same with gold same with crypto, so that thats the phenomena. The question is: when does the ball start climbing again right? Is it kind of and we either go through a scenario like 2000, which was a typical old school recession, where you know equity markets, unwound excesses, the bear market was 18 months or so and then the fed keep cutting rates and eventually it stabilizes. But if we look at 2008, which was the next recession as soon as the fed used the fed balance sheet, we pretty much stopped in its tracks happened really quite quick after they did that they cut rates. First, didnt really help because the banks was had seized up. Then they used the balance sheet. Then they did it again in 2010, 12, 16 and then 18 was the fed pivot, the powell pivot, where they went from hiking to oh, my god.

We need to cut after the seven to five basis, point interest rate hike. In june, jerome powell, the chair of the federal reserve, stated that a similar hike might be in store for july. However, the third quarter and second half of the year could bring in unexpected surprises that would necessitate a different direction for the apex bank. If the economy declines further and the threat of recession increases, then we could be seeing another pal pivot. What is your prediction? More hikes or cuts, please let us know what you think in the comment section below lets, get back to raul. Pals interview is: what choice do you give people do you say well youre going to get destroyed because of the supply chain issues because of cloven. All of this and your wages wont keep up so were going to destroy household net worth and everythings levered. So all the borrowings against houses and all the borrowings against equities and all of the borrowings on top of borrowings and youre going to let the collateral go down and blow the entire thing up, but isnt that what theyre doing when they say theyre going to pay Off the student loan debt, because, if theres, if theres debt theres also forgiveness, thats mmt right, which is coming whether we like it or not. Again, i understand that so what youre trying to do here? What theyre trying to do is reduce the debt via financial repression, which is you basically have inflation running slightly higher, so you have than than interest rates.

So what you want is to reduce the real value of the debt. So if you think back to your parents, how much they paid for a house and the mortgage they had, the mortgage seems laughable its because over time inflation raised the value of the house and the debt doesnt get raised. So in the end the debt is nothing. So so the way that is this stuff here make the money less valuable, correct. It makes the debt less valuable right, so its okay, if youre in debt, but if youre borrowing, if youre, if youre lending money it becomes complicated but anyway, the point being is. Is you either have a fiscal stimulus which is lets say the republican view? Well, have a fiscal stimulus, cut taxes or and well put some spending, and what happens is? Is that doesnt go to the people who are the worst off right, so its creating this issue of 1 versus 99, which everybody can see, and nobody knows how to solve. The issue is actually the balance sheet because all of the expensive assets keep going up because they keep printing money. These get richer, the rich get richer, but doing this blanket fiscal stimulus is hard because the rich get richer again. So i think people have thought. Well, maybe we should just try and give it directly to the people who are most affected. Okay, fine, those are the two choices or you do nothing which is too late because theres too much debt, so you cant.

Let the system clear anymore. The old way would have been you let the system clear, its all. Okay, you just have a recession. Everyone stops borrowing as much money, blah blah blah blah blah. The world is 400 percent of gdp in debt. The world has never been this in debt. In all economic history, well i hate to say this im seeing your point of view yeah and and what im saying is, regardless of your philosophy, its difficult to find other outcomes. That kind of make some sense lets. Take a quick look at the cryptocurrency market before the video ends, but before we do ensure you drop your comments about raul pals interview in the comments section below over the past few days, bitcoin the worlds leading cryptocurrency has traded in the 21 000 range. As of press time, the crypto asset has gained around six percent in the past week and is now exchanging hands at 21 294 dollars with a market cap of 406 billion and a 24 hour trading volume of 3.97 billion popular mean coin. Dogecoin has also had a favorable week as a press time. The crypto asset is back among the top 10 largest cryptocurrencies with a market cap of 9.6 billion dollars. The meme coin has gained over 23 in the past week. Other top cryptocurrencies have also recorded similar gains in the past week from solanas 24 gain to cardanos 7.15 percent gain in ethereums 12.64 gain. The slight recovery has taken the overall cryptocurrency market closer to the one trillion dollar mark at 957 billion dollars.

However, we are still far from what the market looked like during novembers peak. What do you think about the recent trend in the cryptocurrency market? Is it going to be another short reprieve before more pain, or are we getting closer to the beginning of another bull market? Please drop your comment below hit the like button and subscribe to the channel.