All language subtitles for 7_fodase111asdasdsad

especially consumers you know
they start to see benefits in

source I'd say. I'm going to
add some links at the end but

100% efficient stopping of a QE
program because essential banks

stop we'll get a completely
stale market and very

that read about the constative
easing program that happened

Investopedia is an amazing
place. Um obviously search this

supply in the market you start
to see you know massive shifts

up on YouTube as well just to
get a better understanding.

they always want you know money
supply to increase because they

even successfully stopped. I
don't think there's ever been a

kind of need it to stimulate
the economy. If they completely

obviously look back on the
previous lessons and another

understood. Please take notes
of whatever I'm saying and

the market they get benefits
every month and as soon as you

saw in the 2013 a tape a
tantrum and then of course

deflationary conditions.
Anyways guys I hope you

start to hear that okay you're
not going to have as much money

moment. So this just proves the
point that the market becomes

earlier before that in 20082009
everything that happened after

guys keep researching more
about this particularly what we

back then and understand one
thing that QE program never

way too reliant especially in a
time like this on the influx of

purchases that's when you
actually Start to see DXY you

money provided by the Fed. So
of course as you understand

in the in the treasury yield
market especially now anyways

increases particularly M2
supply and you realise that

eventually the Fed they didn't
really announce anything about

might see a range in market and
that's what I'm expecting in

know appreciate in value rather
than what we're seeing at the

and you know you you're going
to see immediate immediate

from the 2008 crisis and how
that continued on because

with this is when an
announcement is make is made

chart. If you look back in the
2013 taper tantrum and this is

Treasury yields. Uh example of
this is the US 10 ten yield

the beginning but as soon as
you start to see interest rate

with all these asset purchases
that are happening money supply

hikes which usually happen
after the reduction of asset

the reduction of assets until
about 2012 and 2013. Now the

going to see a massive crumble
after this announcements due to

the first time it was really
heard of so this term taper

occur. This means an
announcement will be made of

shifts in the markets
especially with the US Treasury

the problem with with actually
announcing tapering and the

reaction in the in the markets
can actually be seen in the US

Now tapering is only expected
when the overall economy is

tantrum. Have a look back at
the constative easing program

tantrum. Now the reason why
central banks don't immediately

reduction of assets is
something called a taper

slowing down constative easing
pretty much immediately. Um the

announce a shift in policy is
because a taper tantrum can

showing substantial progress as
we've just gone through. Now

quite a hike from that but of
course you know we've had the

information that year on year
inflation was recorded at four

now. I believe for the moment
they've just released

when the Fed starts to realise
okay enough of our constitative

yield markets now if you have a
look back on that chart you're

the panic now this is going to
be for a short while so you

employment number and of course
inflation is increasing right

is just 2% and now the 4%
increase it's it's quite it's

pandemic and everything around
the world with global macro.

percent. So of course you know
what economies usually aim for

course showing higher
inflationary numbers that's

easing program we're starting
to see you know an improved

start to see consumer price
index numbers increasing and of

comes to you know increased
money supply with all the

that leads to higher employment
rate. The second thing is the

improved employment number and
that's the main thing when it

stage of the fundamental
course. So as soon as they

increased money supply and all
that inflation that's coming

in. Of course they want to see
higher GDP and of course that

happening? So first of all the
Fed they do want to see an

these are the two main ways
that tapering can occur. Now

which types of bonds the the
Fed decides to purchase and I

months all the way to 30 years.
And of course it depends on

believe they release this
information. Um but yeah guys

CPI number. So we've briefly
went through this in the first

what are the confirmations of a
tapering announcement actually

the maturity of that bond
asset. So they range from three

way Is to allow the assets to
mature. So as you understand

reduction of expansionary
monetary policies as seen as

purchase has an expiration
date. So you have to look at

is what we're potentially
going to be seeing from an

especially when it comes to the
bond market. Every single bond

come into the into place by
twenty twenty-two. The second

announcement from the Fed soon
and then hopefully that will

Fed uses the word tapering. So
that's simply just the

ways. First way is to reduce
asset purchases per month which

reduction of asset purchases
the term that especially the

know something negative to
happen. So in terms of

quantitative easing. Now how
can tapering occur? There's two

purchases must start to take
place. You can't you simply

can't keep increasing money
supply without expecting you

severely leads to the
depreciation of the domestic

currency. As a result the Fed
have obviously got to act upon

inflation that can lead to an
overheated economy. Which

this and you know take action.
So a reduction of asset

continues? We're obviously
going to be seen out of control

too but these are the main two.
Uh so what happens if this

Fed has stepped up its QE
program to $40 billion dollars

month in mortgage backed
securities and like we

a month in treasury bonds and
then $40 billion dollars a

that they look at. Of course
there's other types of assets

mentioned before these are the
two main two main asset classes

purchases. So let's take a look
at the US QE program at the

moment. So particularly since
the peak of the pandemic the

in other countries they have to
dial back on all these asset

understand that eventually the
Fed and the other central banks

can't can't keep up with their
QE program. Especially when

and all the money supply in the
economy. You've got to

when there's times of higher
inflation due to the QE program

So moving on from what we
looked at last time with

constated ease and you've got
to understand that the economy

going to be looking at
reduction of asset purchases.

Yes guys welcome to the next
lesson. So in this one we're

Anyways guys take care and I'll
see you in the next video.