FRED has lost control of the train. They are completely stuck.

This is why the next 6-12 months in the markets are going to make zero sense.

1. 2020 the FRED not only created money they injected so much unnecessary money that have they not enforced global lockdowns the "2022 mini bubble" would have looked like 2000.
   
2. Markets will follow and always adjust to debasement meaning your earnings / your P/E ratios are useless in this environment.
   
3. The FRED tried raising rates the fastest in history to front run the M2 Velocity (money changing hands / transacting) but there's still simply too much money created, markets are finding support and have not "corrected" enough to off set lowering rates.
   
4. If the FRED does not lower rates look at the red line on chart 2 the Federal government will blow up due to to debt.
   
5. There's only one solid choice here, Option 1 "Global bust" meaning governments will default inflation will go negative no GDP growth safety nets will fail.
   
6. Option 2 "Global debasement" The FRED starts lowering rates cheap credit will flow into stock markets / gold / bitcoin Money Market Funds will pour back into the markets M2V will go parabolic reigniting a dangerous inflation cycle.
   
7. Once that blue box on chart two is broken this means its over. Considering how much of the market is pricing / preparing for a "collapse" yes a collapse will happen but what happens if its the currency debasement and not markets that fall? Correct, you need to re enter all markets.
   

Lets see how this plays out towards year end.

Comment:

Well this is not good. Haha not worried at all