George Gammon Reveals Truth About Crypto Crash
A Look Into Behind The Scenes Workings Of Federal Reserve Strategy
George Gammon nails it with another one of his 3 part presentations. Why they have been collapsing the price of Bitcoin. This is a great insight into what they have done so far, and why they did it. This also gives us an idea of what the future holds.
The Truth About The Crypto Crash Revealed
170,591 views
Jun 23, 2022
1,315 Comments
Bro you literally took my exacts thoughts and line board ideas and put them in a nicely wrapped package!!!! Now I can show people your video when I try to get them to understand how all of this is Interconnected 
liked subbed and shared already
liked subbed and shared already
Thanks for all your work George, we the little people much appreciate
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the shocking truth behind the most
recent crypto crash this is something
they don’t want you to know about and
i’m gonna reveal it to you right now in
one
simple fast step step number one let’s
go over how this is all part of their
plan who is they
the central planners at the federal
reserve and the politicians their main
objective right now is to bring down the
headline cpi number or consumer price
inflation
and the way they’re going to do this or
the way they’ve been trying to do this
is bringing down asset prices assets
just like crypto currencies let’s start
by going over this chart it goes back to
1980. actually the chart goes back
further than that but we’ll start at
1980 goes all the way to 2020.
on the left we go from 300 percent up to
650 percent
so this green line represents the net
worth the combined net worth of
americans as a percentage of gdp
so this isn’t how much income they’re
earning because adjusted for inflation
that line would be pretty flat go up
very slightly but this is how much their
home is worth their home equity their
401k
all of the assets they own outside of
their income that gives them an
incredible amount of purchasing power in
fact it’s purchasing power they didn’t
produce
anything to receive more on that in just
a moment so we can see going back to
1980 that it was right about
325 percent
the total net worth of americans as a
percentage of gdp
and then it goes up slightly about 1990
but if you look at this historically
going back to 1960 this still is at a
level that’s very consistent going back
a few decades then in 2000 it comes way
down due to the dot-com bust but then
alan greenspan comes in and drops rates
artificially low which gives us the
housing bubble and that takes net worth
up 500 percent we know what happens then
they tried to raise rates and then all
those assets that home equity came
crashing down
but in the minds of central planners the
cure for too much central planning is
even more central planning
so what do they do when asset prices
come down in 2009 going into 2010 they
drop rates even lower down to zero
percent and they couple this with
quantitative easing the fed’s balance
sheet goes from 800 billion
all the way up to
4 trillion prior to the cerveza sickness
and now or just recently it was up over
9 trillion dollars
so as the fed’s balance sheet went
parabolic so did asset prices and we go
from about 450 percent of gdp in 2010 up
to where we are today or where we were
just recently let’s say back to the end
of 2021 where the net worth of americans
as a percentage of gdp was up close to
600 percent and i want to remind you if
inflation was measured today the same
way it was measured back in the 1970s
our cpi would be very similar to what it
was in 1980 or 81 when paul volcker took
rates to 18 percent
but just recently the fed has increased
rates to what
1.5 percent why is this because they
look at this chart and they also look at
charts of the debt in the system
sovereign debt is at all time highs
corporate debt all-time highs and
consumer debt is at all-time highs as
well so they know that if they take
interest rates up to a certain degree
they are going to crush the entire
economy because the government the
corporations and the consumers can’t
afford normalized interest rates let’s
say fed funds at four five six percent
and they definitely couldn’t afford
positive real rates
so this would be the federal reserve
taking their overnight rate
above the rate of consumer price
inflation which as measured by the
government right now is 8.6 percent so
you can imagine what would happen to the
entire u.s economy if jerome powell took
rates to let’s say nine percent the
entire house of cards would come
crashing down
so now let’s look at the problem of
consumer price inflation through the
lens or the framework of these central
planners at the fed the treasury the
government these phd economists
they believe in something called the
phillips curve and this simply states
that there is an inverse relationship
between inflation and the unemployment
rate so if the unemployment rate goes
down inflation goes up if the
unemployment rate goes up then inflation
or headline cpi goes down and a perfect
example of this is recently larry
summers has come out and said that in
order to tame inflation they have to
increase the rate of unemployment they
being the fed and the central planners
but this presents a dilemma this puts
them in a very difficult position how do
you increase the unemployment rate
without crashing the economy
in their minds they think or at least
they’re saying that they can do this
without creating a recession now i would
argue that we’re most likely already in
a recession but we’ll shelf that for a
moment again we’re just looking at
things through their framework
well i think they look at this chart and
say aha
there is the answer
if we can somehow bring down
asset prices or decrease
the net worth
of average americans in aggregate total
we can bring down the cpi without it
having too much of an effect on the
overall economy and potentially pushing
us into recession and if we do go under
recession it will be very mild again
their words not mine
so i think the game plan is to raise
interest rates just enough to make it
seem like you’re going to get really
tough on inflation like you’re the next
paul volcker but don’t raise them too
much to where you break the economy and
then while you’re talking tough this
makes the market believe
that you’re going to continue to raise
interest rates maybe up to four or five
percent so then asset especially risk
assets start to sell off like the nasdaq
the s p and definitely
cryptocurrency
so how will this bring up unemployment
to a level that in their minds would
start decreasing the cpi to a point
where it’s politically palatable going
into the midterm elections
well i think that one of the big reasons
we have a labor shortage right now and
one of the main reasons the unemployment
rate is so low
is because people have made so much on
their stock portfolio or on
cryptocurrencies or their home equity
has gone up to a point where they don’t
have to go back to work at least not
right now so if you bring down asset
prices now all of a sudden they’re in a
position where they have to go back to
work so you turn a labor shortage
quickly into a labor
surplus
in fact i heard a great story the other
day on one of my favorite podcasts that
gives an example of this potentially
playing out in real time it was a story
from a restaurant owner who said he lost
all of his employees to this boom in
cryptocurrency because when they would
leave when they would quit he would say
why are you quitting you’ve been a great
employee for the last year or two years
they said because
i’ve made so much in cryptocurrency that
i’m going to take some time off but now
all of a sudden
let’s say the last month or so he’s
seeing all of those employees come back
to work and ask for their old job
so i personally believe that if asset
prices come down enough it definitely
will impact the unemployment rate but
unfortunately for the fed i think it
will also
negatively impact the economy
let’s go back to this example i use all
the time on my whiteboard videos of a
hot air balloon
and the fed still believes that the
balloon part
the part that’s carrying around the
basket is the economy
and the basket
pretty much asset prices so wherever the
economy goes
so will assets but in my opinion it’s
completely switched
and i think that this chart proves
that it has switched
from a standpoint of now the hot air
balloon
isn’t the economy but it’s asset prices
themselves
and the basket is now the economy so
wherever asset prices go
so goes the economy and i don’t think
the fed has figured this out yet and if
they have they won’t admit that the u.s
economy is now completely and utterly
dependent upon asset bubbles
in other words it’s impossible to bring
down asset prices to a level that would
negatively impact unemployment enough to
bring down cpi without throwing the
united states economy into a recession
if not a depression so the main takeaway
is i think the fed is going to increase
interest rates just enough to make it
seem like they’re getting tough on
inflation they’re also going to continue
to try to talk down the market through
expectations policy by making the market
believe that they’re taking a very
hawkish approach they’re going to
combine this with quantitative
tightening which is reducing the size of
their balance sheet
editor go and throw up a chart we can
see that there’s a direct correlation
between the fed’s balance sheet and the
s p 500
so again in their minds they can try to
have this soft landing where they
increase interest rates just enough
and bring down asset prices just enough
to bring down the cpi just enough for
these politicians believe they have the
highest probability of getting
re-elected at the end of the day this
has nothing to do about the average joe
and jane or what’s best for society it
has everything to do with what’s best
for the politicians and the central
planners
for more content that’ll help you build
wealth and thrive in a world of
out-of-control central banks and big
governments check out this playlist
right here i will see you on the next
video
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