The Fed's 3 year sell off begins tomorrow

K
source: My dad works at the fed printing press

Nothing will begin in two weeks. They will slowly deflate the market like they have already been doing, mongoloid. There will be no crash because the fed will just keep it pumped. Not sure where the fuck you been for the last 8 months

There are always ways to unwind problems.

They're going to keep it pumped but also slowly deflate it?
What?
Is the sun also going to rise and set simultaneously?
Tell me the future Chudstrodamus.

the problem is the stock market valuation at today's ~21x price-earnings ratio will become 10x because of 1980s style economic/inflation/commodity/conflict conditions as inflating retirement costs force retirees to sell more and more stock (often automatically in index funds). ok so what?

the s&p500 market cap is $38.29T. at 10x, the market cap will be $18.23T. $20T dollars is about to be spent because of inflation and all the shit is getting bought out at its most expensive. how do we know what the impact will be? the s&p record market cap was December 2021, measured at $40.36T. in other words the 'transitory inflation' we've all experienced since December (7% annual) is from $2T in sold stock. we have 10x that total amount of inflation total to happen over the next economic depression because of this problem.

by far the best solution is to sever the connection between $USD for domestic and foreign trade. the current USD should stay what it is because contracts are hard to change, however it should just be like the Yuan with a FED controlled peg to USD2.0 ("greenback" issued by US Government for paying all benefits and collecting as taxes). at some point you pay back the USD debt because its in 30y durations and you stop spending more of it. the net effect of this operation is to break the connectoin between an imploding stock market and making retirees, businesses, banks, and government spending try to keep up with 10% yoy inflation rates which grow exponentially.

the basic idea is to triage inflation and trade imbalances at the exact same time by containing it into foreign markets and just not giving a fuck if there is a global depression while US government dollar debt pays itself off over 30 years of us no longer needing to give a fuck about domestic impacts.

You wrote out some diatribe that I'm not reading. The market will be allowed to fall a bit below what it was before the pandemic and rates will rise, like they were rising under blumpf. Jesus christ you people are schizo

The market would have collapsed over the last year if the fed wasn't pumping it at times. And yes, you can pump and deflate, mongoloid.

$2T just hit consumer prices since December. you felt that as inflation and $6/gallon gas. there is 10x that much left to go and it is optional. that's all.

>Greenbacks are dollars, morons
No you dumb nigger, he meant greenbacks that are refundable for gold aka real money.

They are starting deflation. Prices will fall, mongoloid. Again they won't let the market collapse. Ever. They will pump it when it has real bad days to keep confidence and bleed it slowly like they have been doing for the last year.

They're fucked and they know it.
Once revenues of large corporations, like Walmart, Netflix, Apple, Amazon, etc., see losses/decline in between earnings reports, this is a HUGE indicator that the average joe has begun cutting back on spending and directing their expenses towards "needs" rather than "wants".
This will cause large companies, which are in need of the current cash flow/revenue to stay alive, to fall. Thus, is the start of our domino effect.
Large corporations cut back spending in return, and cut off employees and business partnerships/expenses, which in exchange cuts money flow to various other sectors (example: employee gets laid off, he can no longer afford Nike kicks as he would normally do each month, which in turn eats at Nike's profits (obviously taking into account this is happening to MULTIPLE people)) and thus creates a fire within a dry forest which cannot be maintained, as the very same people who handle these said "forest fires" are actually the ones that lit it in the first place.
I give it 3 years tops, and it'll get crazy in the states.
Worst part is housing prices. Remember 2008? Lol that will be child's play.
At least 40% drops in housing prices will be expected. Anyone who has purchased a home within the last 2-3 years will be deep underwater.
Honestly I'd say buy BTC or precious metals, but even those markets are choppy. The safest things to buy are: food, water, medications, guns and ammo.

>all the shit is getting bought out at its most expensive.
what do you mean? i don't understand. you are saying that retirees will have to sell their stocks because they need cash to pay (rising) bills, i understand that. but will there be a crash because no one wants to buy their stocks they are selling because they are overpriced and their earnings are dropping?

to do that, that means someone sold stock and got money for it. that money gets spent. that's the fucking problem.

Greenbacks weren't backed by gold you knuckledragger. I can redeem my greenbacks or dollars for gold by purchasing the gold with my fiat. You are the stupidest dumbest blackest gorilla nigger I've ever seen.

That money won't be spent lol. It will be parked off into a saving account or bonds since rates are rising. They will let the market deflate back to 28k. Already has dropped 3k 36k to 33k. They are resetting

the market has to be thought of in real dollar terms. in other words, you can have a crash with stock prices going up. you will see it in PE because earnings are net of underlying costs, and the form we see the FED taper (rates/buyback cease) is in the $2T valuation drop. $2T of dollars went out of stock market and into houses, cars, gas and you see real shortages because supply chains are increasing real costs. everything is more expensive because of a productivity and credit collapse occurring at the same time as drought and war and covid bullshit. more and more demand creates more and more costs and there is no way to take the excess money out of the costs. PEs go to 1980s level for a decade. sure, the stock market is higher but it doesnt buy as much wealth. unless we split the dollar into halves, which if we do, we can just export the problem completely which is preferred. fuck 'em.