What if I was to tell you that you're being lied to
about why everything is getting more expensive,
and then showed you how these politicians and corporations
are manipulating the narrative when it comes to the economy.
Also, you're able to see
how the greatest speculative bubble of all time
and all things is being informed,
and how you can prepare for it bursting.
Hi guys, it's Mark.
So you're being lied to about
why the price of your everyday items is increasing
by the second.
The topic of inflation
is something I find myself discussing on a daily basis.
It affects people, no matter what their generation,
political views, or race.
I mean, eggs are up 14.6%,
cheese, 17.9%, and milk, 34%,
and inflations only 8.5%.
Give me a break.
Now the media will tell you,
this is partially due to greedflation
driven by corporations.
However, huge corporations
would say it's down to the government's monetary policy
and supply chain issues.
The truth?
Well they all seem to be telling lies.
Corporations say they're responding appropriately
to the current climate, including the war in Ukraine,
rising oil prices, supply chain and logistics problems,
and changing customer behavior during the pandemic.
Now being a business owner myself,
I've had to deal with these issues firsthand,
however, this is a different story for huge corporations,
and I think it's important to make the distinction
between small to medium sized businesses,
and massive monopolies.
If we look at corporate profit margins,
they're higher than ever,
as there's actually 10 giant corporations
that either directly or indirectly
control everything we buy on a daily basis.
We have an illusion of a free market,
however many of the popular brands we know and love
are actually a part of a much larger company.
Just to give you one example,
Procter & Gamble, also known as P&G,
own Pampers, Tide, Lenor, Fairy,
Flash, Oral-B, Gillette, and so much more.
This gives them the ability to increase their prices
without fear of much competition at all.
They recently did this with their diapers,
and made huge profit increases in the process.
Consumers have little choice
about which brands they can buy from.
Another great example of this is Pepsi,
who's only real competition is Coca-Cola.
The free market is now being concentrated
into the hands of a few major companies across all sectors.
This is happening with banks, broadband,
pharmaceuticals, and even airlines,
causing them to face very little competition.
This is bad, as usually within a free market,
competition helps keep prices down.
However, when people have little choice
where to buy their goods from,
they have to put up with extortionate prices
on certain items.
The reason there is a lack of competition
is because politicians work very closely
with corporate interests,
at the expense of everyday people like you and me.
Personally, I wanna see a world
with many more small businesses,
and therefore I'm certainly in favor of a free market,
which is currently being prevented.
It almost feels like certain companies
are trying to make up for lost time during the pandemic.
For example, ExxonMobil lost $22 billion in 2020,
the first year of the pandemic,
however, quoting president Biden himself,
"They're making more money than God this year."
Now, as many of you guys know,
I'm not against a bit of profit,
however, when we see rampant inflation
at the same time as major US corporations
reporting record profits,
and companies passing on rising supply chain costs
onto everyday people,
it just leaves a bad taste in my mouth.
I'm not saying greedflation is the only factor
contributed into price increase,
however, it's one of the many
that needs to be discussed and controlled
as much as possible.
The Fed aren't exactly being very transparent either.
Believe it or not, they aren't actually owned by anyone,
not even the government,
and they have proven time and time again
that they don't stick to what they publicly say
that they're going to do.
They are very clearly telling us one thing,
and doing the complete opposite.
For example, in June,
The Fed was supposed to sell $30 billion in treasuries
and 17.5 billion in mortgage-backed securities,
but instead they only sold $10 billion of treasuries,
and actually bought $3 billion
of mortgage-backed securities.
The aim of selling treasuries and mortgage-backed securities
is to combat inflation,
so why set a selling target and completely ignore it
if there aren't other forces at play?
On top of these outright lies,
they are concealing the fact that the economy is crashing.
Astonishingly, the definition of recession
was recently changed by the white house
to conceal the fact that we're in one.
Wikipedia even went as far as to update the definition
and later freeze edits entirely,
so no one can change it back.
Maybe this is partially due to the government and The Fed
wanting us to spend more,
and therefore, if we believe we're in a recession,
it will be self-fulfilling,
as people that think hard times are coming
will hold onto their cash more tightly and spend less.
However, by lying to the people,
they just seem to be making things look worse.
The lies and poison are coming from the very top
with the House Speaker, Nancy Pelosi,
who has a very strong history of alleged insider trading.
Pelosi has been in Congress since 1987
when members were paid $89,500 a year.
Today as Speaker, Pelosi earns $223,500 per year.
Recently, an insider analyst
estimated that the Pelosi's total wealth
to be at least $46.1 million,
but many sources say it's a lot, lot more,
and I'm not even gonna get
into the recent semiconductor scandal.
So it's clear that the true state of our economy
is shrouded in mysteries and lies,
but what effect is this having
on everyday people and investors?
Well, a tweet that Michael Burry,
you know, the investor that predicted
a 2008 financial crisis,
sent out, but quickly deleted,
read, "People always ask me what is going on in the markets.
It is simple, the greatest speculative bubble
of all time in all things."
Now, Michael Burry is well known
for making outlandish statements,
however, people don't always take notice of him,
as he's kind of like the boy that cried wolf.
This is because
when he says the market's heading for a crash,
he still maintains multimillion dollar stock portfolio.
Although this time, it's a little bit different,
as Burry has sold 99% of his stocks,
only opting to maintain one position,
in a company called Geo,
who actually specialize in mental health.
Maybe Burry is suggesting
that when the everything bubble bursts,
people are gonna need help with their mental health,
more than ever.
It's almost like capitalism isn't the society
we're living in anymore,
where trade is run by private businesses
that people spend their hard earned money with.
It's instead being replaced by creditism,
as everything is being propped up by credit and debt,
where people are actually spending money
before they even have it.
As inflation is rising and people are finding it
harder and harder to pay their bills,
people are relying on credit cards more than ever
to fund their lifestyle.
The unemployment numbers are also misleading,
as many boomers are leaving the workforce due to retirement.
So although things look fine on the surface,
it's actually a much more complicated issue.
Michael Burry calls the latest rally,
"Silliness, and nothing but dead cat bounce,
saying gamblers gamble more the more they lose."
Essentially the point is,
let's say you and I go to the roulette table,
and we just watch the spins, and it's consistently black,
therefore we might assume that it will have to be red soon.
However in reality, each spin is independent of each other,
so it doesn't matter how many times black pops up,
it doesn't make red more likely,
even though many of us know this,
we still end up falling for it.
Therefore, just because the market's going up now,
doesn't mean we aren't in for another crash in the future.
Many crashes have recovered by 50%
and continue to crash again afterwards.
Burry even points to the Nasdaq
having dead cat bounces seven times
before it fell 78% to its 2002 low.
Corporate profits are gonna find it very difficult
to maintain their current levels,
due to the increased pushback from consumers
that have had enough of paying extortionate prices.
This could be made worse by the,
(whip cracks) bull whip effect.
Put it this way,
let's say you run an ice cream parlor,
and you assume there is gonna be sufficient demand
over the next four months,
and purchase 5,000 cones to ensure you don't run out.
Seeing as though you increase your purchases,
your supplier may also increase the amount they stock.
I'm personally buying a lot of stock
I don't actually need at the moment,
just to make sure I've got it.
If my supplier fix their supply chain issues,
I wouldn't need to buy anymore,
as my warehouses can only hold so much.
This will then decrease their sales, profit,
and potentially cause staff layoffs,
should the problem reach scale.
It's an everlasting cycle,
as layoffs equal less household income,
which equals less spending, and so on.
Now, the facts and figures I've been dumping on you
may sound a little bit scary,
and honestly, I wouldn't be surprised
if you were put off the idea of investing.
This would be a grave mistake though.
To demonstrate why, here are the main lessons I've learned
over my many years of investing.
Hopefully they can help you to make the right choices
when it comes to preparing
for what the stock market throws your way,
because there's some serious opportunities to come.
If you wanna start investing,
then I'll leave a link to public.com down below,
as they're a great investing app,
and are currently giving you a free stock
worth between 3 and $1000
to kickstart your journey.
First of all, let me start off by saying,
other than crypto, which is very new,
the stock market is the best performing historical asset
compared to bonds, cash and gold.
But most people don't make maximum profit,
as they try to be that guy that times the market.
Now I get it, there's always a reason to sell,
but although it sounds smart,
it's often historically proven
to be the wrong move over the long term.
As humans, our instincts are
to react to crashes as they come.
However, if we zoom out
and look at the drops within a much bigger picture,
we can see there little more than blips on the radar.
The reality is,
once you cash out of a stock that's dropped in price,
you move from a paper loss to an actual loss.
Selling in the middle of a crash
is the worst thing you can possibly do,
as you're effectively buying high and selling low,
the most flawed strategy in existence.
Of course, if you have some very shady pennies stocks
that you don't believe in long term,
then liquidating these might not be the worst idea.
I haven't experienced this exact situation before,
but I've experienced a lot of end of the world's,
from the .com bubble, to the 2008 financial crisis.
Everybody thought it was the apocalypse,
but the consistent buyers are the ones that win,
time and time again.
Look, the secret behind being a successful investor
isn't all that secret after all.
By avoiding herd mentality,
and holding a long term portfolio
of diversified index funds,
you should historically see better returns
than a majority of investors,
despite any crashes that may or may not come your way.
So I'm gonna leave the next video right up there,
but don't click on it just yet,
make sure to subscribe if you wanna grow your wealth.
Okay, I'll see you over there.