There is no denying that we are on the cusp of yet another major financial crisis. Here's what you need to do... [Outsider Club Header]
Sep 26, 2022 By Alexander Boulden for the Outsider Club The Fed Just Crashed the Stock Market Dear Outsider, The first cool days of fall are upon us. The days are getting shorter. Nights are getting longer. I could even feel the chill of winter in the air walking through Baltimore's financial district this morning. But not just the chill of the weather. Itâs the chilling thought that those running our country havenât a clue what theyâre doing. Thatâs because theyâre still following outdated rules of economics. But things have changed, and they need to keep up with the times or we're doomed. Remember when, just four months ago, President Biden held a rare meeting with Fed Chair Jerome Powell? [pow (bigger)] How do you think the conversation went? Biden: âNow listen here, schmuck, our plan isnât working. Everyone knows weâre lying about transitory inflation. And my numbers are terrible, so I canât be blamed for this inflation nonsense.â Powell: âBut, with all due respect, you are to blame, sir. Your administrationâs inflationary policies led to high inflation. You declared a war on oil and then pumped trillions of dollars into the economy to subsidize green energy.â Biden: âNow, you listen here, J. Pow, you know none of this was my idea in the first place. Iâm just following orders. Speaking of, weâre gonna need you to take the fall for this one. We need you to raise rates.â Powell: âBut raising rates will cause a recession. It could even plunge the U.S. economy and perhaps the world into a second great depression⦠Mr. President? Mr. President? Well, I better not wake him. Heâs got to get his beauty sleep.â So now the Fed is on a scorched-earth mission to bring inflation back down to 2%. World-Record-Breaking EV Stuns Tesla It clocked the longest distance ever driven by an EV on a single charge... At a whopping 1,102 miles!
Thatâs almost triple the range of the best EVs out there! And I predict that the company behind it will soon be bigger than Tesla. [Get the details on this disruptive $5 EV stock here.]( Outdated Numbers We keep hearing about the inflation target of 2%. We just gotta hit that quota, the Fed says. But this 2% number is the main reason weâre flailing right now. That's because it's completely arbitrary. In fact, the 2% guideline was invented out of the thin air in a 1988 TV interview with Roger Douglas, New Zealand's finance minister. According to Quartz, Douglas âwent on TV to talk about the governmentâs approach to monetary policy. This involved targeting inflation specifically â a method that had kicked around in economic literature for years but that hadnât been implemented anywhere. At the time of Douglasâ TV appearance, the inflation rate had just dipped below 10% for the first time in some years. [Former New Zealand Reserve Bank Governor Don Brash] recalled that Douglasâ interviewer asked him: âWas the government satisfied now, with this lower level of inflation?' 'No,' Douglas replied, adding that heâd ideally want an inflation rate of between 0% and 1%.â Douglasâ number was made up completely off the cuff, and it was quickly rounded up to 2% by the New Zealand central bank after factoring in cost-of-living estimates. But once New Zealand let the cat out of the bag, other countries starting following in lockstep, including the U.K., Canada, and the U.S. So, yes, the number that Jerome Powell is using to gauge inflation is not only 34 years old but also a rounding error from an off-the-cuff TV interview with the finance minister of a country the size of Colorado. And this number is really bringing the pain to the U.S. The New Emperor of Energy Storage Youâre looking at the future of a $3.3 trillion industry. Thanks to this groundbreaking innovation, clean energy can be fed to the power grid 24/7... Regardless of whether the sun is shining or the wind is blowing. I call it the "Newton Battery," and it crushes every other battery on the market. The Swiss and the Saudis are already using it. And grids across the globe will be using this battery before we know it. Itâs all possible thanks to one tiny companyâs patented tech. The best part is that 99% of investors have no idea that it just went public... [Get in on the ground floor now, before it's too late.]( The Second Great Depression According to RSM International, if the Fed continues to try to bring inflation back down to 2%, it would cause the loss of up to 5.3 million jobs and lift the unemployment rate to 6.7%. But just as inflation was âtransitoryâ and the numbers were way higher than reported, these unemployment numbers are also a conservative estimate. At the rate weâre going, we could see at least a 10% unemployment rate, the same number as during the Great Recession. Here's one example of how that could quickly happen. New data show that 25% of workers quit their jobs this year. But when rates rise, unemployment goes up. So if these people donât get jobs? Weâll be looking at unemployment levels not seen since the Great Depression. On the positive side for investors, the Fed has been wrong about pretty much everything up to this point, so thereâs a small chance the economy will rebound sooner than expected. Thatâs why investors should keep buying at regular intervals to lower their cost average. And now that good dividend-paying companies are cheaper, they look even more attractive. We might need the cash sooner than any of us planned. There is no denying that we are on the cusp of yet another major financial crisis. And if youâre worried about what you should be doing now to protect yourself from what lies ahead, I suggest you [check out this presentation.]( My colleague Jason Williams just rolled out the blueprint on a way to survive this looming crisis⦠Heâs including the names and ticker symbols of three stocks you MUST have in your portfolio right now if you're looking to come out of this unscathed. [Go here for details.]( Stay free, Alexander Boulden
Editor, Outsider Club After Alexanderâs passion for economics and investing drew him to one of the largest financial publishers in the world, where he rubbed elbows with former Chicago Board Options Exchange floor traders, Wall Street hedge fund managers, and International Monetary Fund analysts, he decided to take up the pen and guide others through this new age of investing. [Check out his editor's page here](. Follow the Outsiders [Twitter]( | [Facebook]( | [LinkedIn]( | [YouTube]( This email was sent to {EMAIL}. You can manage your subscription and get our privacy policy [here](. Outsider Club, Copyright © Outsider Club LLC, 3 E Read Street Baltimore, MD 21202. Please note: It is not our intention to send email to anyone who doesn't want it. If you're not sure why you're getting this e-letter, or no longer wish to receive it, get more info [here]( including our privacy policy and information on how to manage your subscription. If you are interested in our other publications, please call our customer service team at [1-855-496-0830](tel:/18554960830).