Money Saving Challenge: Saving In Challenging Times

Fed’s only option to lower interMoney saving challenge

Money Saving Challenge

Updated Dec 2022 

How Can I Save Money When Fed Wants to Lower Rates:

 The straightforward and easy-to-understand chart below clearly illustrates why the Fed has no option but to lower interest rates.  Central bankers worldwide have already embraced negative rates, so it is just a matter of time before our central bankers are forced to walk down the same path.

The Fed is trying to put on a brave act, but you can already see them backtracking from the firm stance they took last year. They state that all is not well, and the economic outlook is weaker than expected. Rubbish, we already said in several articles that they would take this path and that they only raised interest rates to come out with an excuse to lower them again.

velocity of money shows that Fed's only option to lower interest rates

Economic Boom Equates To Increase In the VM

As demonstrated in the chart below, the velocity of money (VM) has been in a precarious decline, which implies that the market is being propped up solely by hot money. This illusory economic recovery is highly reliant on the continuous inflow of hot money, and the moment that support is withdrawn, the economy will crumble.

The chart shows that VM peaked in 2000, forming a double-top formation. Although we did see a small rise when Greenspan flooded the market to create the housing bubble, the VM failed to reach its previous high. Since then, the velocity of money has continued to decline, which has resulted in a decrease in gold prices. Even though the money supply has increased, the funds are not being circulated. The general public doesn’t have access to these funds yet.

If the Fed wants to create a massive bubble, it needs to get the money into the hands of the masses. Only the public is foolish enough to push markets to unimaginable heights, which is why we’re confident that the Fed will release another stimulus plan. The current economic recovery is solely being sustained by hot money and nothing else.

 

Fake Recovery Limits Feds Options

If the recovery were natural, interest rates would not be held low for so long, and the Fed would need to support the stock market. After it stopped, the corporate world stepped in via the illegal usage of Stock Buybacks. Now instead of trying to improve the bottom line, they focus on only buying back more shares and, in doing so, artificially boosting the EPS. It’s a perfect scam, no work and big pay, and as interest rates are low, the incentive to borrow large sums of money to do these dirty deeds is more significant than ever.  As a result of this policy, investors should expect stock buybacks to surge to levels that will appear insane one day.

The answer to How can I save money question is straightforward. Invest in the stock market and view all pullbacks ranging from mild to wild as opportunities.

 Negative Interest Rates and the War on Cash

Overview of Money Saving Challenge

Inflationary times can be challenging for individuals and families to make ends meet. Rising prices can lead to a decrease in purchasing power and an increase in financial stress. One way to combat the effects of inflation is by participating in a money-saving challenge. A money saving challenge is a structured program designed to help people save money over time.

Many different types of money-saving challenges can be adapted to inflationary times. For example, a 52-week savings challenge involves saving a set amount each week for a year. The amount saved each week can increase over time to account for inflation. Another option is the envelope method, where cash is divided into different envelopes for different expenses, such as groceries and transportation. This method can help control spending and prevent overspending during times of inflation.

Participating in a money saving challenge during inflationary times can provide many benefits, such as building an emergency fund, reducing debt, and increasing financial security. It can also help individuals and families adjust to the rising cost of living and develop good financial habits for the long term.

To get started with a money-saving challenge, setting specific goals and tracking progress over time can be helpful. Many online resources, such as blogs and websites, provide tips and strategies for saving money during inflationary times.

 

Other articles of interest 

stock market sentiment analysis

Stock Market Sentiment Analysis: Sell Euphoria & Reap Rewards

Stock Market Sentiment Analysis: Euphoria Decoded for Market Peaks Updated Feb 2023 Even though things are viewed as bad now, ...
lot size

Tactical Investor Lot Size

This was initially posted in the Market Update forum. The current version is being modified to reflect a potential change ...
Bonds will not crash in 2015

Bond Crash: Bond Market will not crash

Always do what you are afraid to do. Ralph Waldo Emerson Bond Crash:  The Bond Market Is Not Set To ...
Define Market Sentiment

Define Sentiment: Unveiling the Power of Emotional Intelligence in Investing

Define Sentiment: The Power of Emotional Intelligence in Investing Updated Jan 2023 Let’s define sentiment: an attitude, thought, or judgment ...
what is hyperinflation

Hyperinflation Definition: It’s Elementary

Hyperinflation definition Updated Dec 2022 The penguins masquerading as experts on Hyperinflation are full of it, for they fail to ...
Stock Market Trends

Stock Market Monthly Trends: How to Profit from Market Cycles

Stock Market Monthly Trends: Identify Profitable Cycles Updated Nov 2022 We labelled this the market of disorder last year for ...
US bond Market & The Dollar

US bond Market & The Dollar

US Bonds and the Markets The reflation argument is somewhat suspect as almost everything is due to supply-side issues. In ...
QE - Quantitative Easing

Forever QE on steroids

As more and more jobs are shed, the printing press will move into extreme hyperdrive under the guise of trying ...
Tactical Investor past market calls

Tactical Investor past market calls

Listed below are some of the many essential calls we have made since 2013 The Dow is still on course ...
dow jones market trend

Dow Jones Trend: Markets Poised to Soar Higher?

The Dow Jones Trend:  Is The Ready to Soar V-readings are incredibly high, and market participants are no longer as ...
The Trend Blazer Service

The Trend Blazer Service

Trend Blazer As stated in the April 18th Market update, this service carries a much higher risk and one should ...
dow trends 2021

Dow Trends 2021 & The Market of Disorder

Dow Trends What kind of market is this? It’s the market of disorder, in case you forget. Disorder knows no ...
Stock Trends and AI

Stock Portfolio Tracker with Analytics 

Stock Portfolio Tracker with Analytics Some of the main features of the Stock Portfolio Tracker are listed below. We are ...
Public Education Trends

Public Education Trends: The Silent Crisis

Public Education Trends. The Education System is Broken Updated Dec 2022 The current state of the public education system in ...
Stock sentiment and Market sentiment Charts

Stock sentiment and Market sentiment Charts

  If one looks at the history and examines stock sentiment data, one will immediately spot something strange. When everyone ...

 

2 comments

Samuel Saint

For as long as the Fed has existed its only mandate has been to defraud the populace and gain control of the Government and in those two areas it has succeeded. The only way to end this system is for the masses to rise otherwise the pain will continue.

I never see any dates on these articles so I am not sure if this was written prior to the election or after?