[00:00] The Federal Reserve Bank just voted to raise interest rates for the first time since 2023. And the reason why this is so important is Kevin Walsh, who is the new chairman at the Federal Reserve Bank,
[00:13] was appointed by President Trump. And President Trump picked him because he wants lower interest rates. But Kevin Walsh did not give President Trump lower interest rates. He did the opposite.
[00:25] He voted for higher interest rates. This has a direct impact on your mortgage. It has a direct impact on your national debt. It has a direct impact on the stock market. And it has a direct impact on your retirement. So in this video, I want to break down what's going on.
[00:39] And then I want to go over what this means for your money and where the opportunities are. That way you can be a smarter investor. So make sure you stick with me until the end of this video. This is also why on September 29th, I'm hosting my live, free, and virtual investor workshop.
[00:53] I ask you, what are you most concerned about in the economy? the most popular response was the dollar falling. On this workshop on September 29th, I'll show you how you can profit from the falling dollar.
[01:05] I'm doing the workshop twice on September 29th, once in the morning at 10.30 a.m. Eastern Time, again in the evening at 8 p.m. Eastern Time. It's the same workshop twice, but there is a limited number of people that can actually join me live.
[01:17] So if you have not registered yet, I have that link for you down in the description below. And as an added bonus, when you sign up for the workshop, They're also going to get added to market breaks, which is my newsletter for investors, completely for free.
[01:30] Now, just so we're on the same page, the Federal Reserve Bank is a central bank here in the United States. And they're not a bank because you and I can't go to the deposit money. It's not a reserve because they're not sitting on any cash reserves and they're not federal.
[01:43] I'll talk more about that in just a minute. But the reason why the whole world watches what the Federal Reserve Bank does is because they get to decide the number one, interest rate policy for the United States,
[01:55] and number two, they get to decide the money printing policy for the United States. And they just voted to raise interest rates. Now, why did they raise interest rates? Let me read you what the chairman of the Fed, Kevin Warsh, had to say.
[02:08] Quote, The economy strengthened, but inflation did not slow, and geopolitical tensions intensified. All three of those things helped to come to a firm, unanimous decision today.
[02:25] Why? Because right now the prices of things are too high, and that's why the Federal Reserve Bank believes that they need to raise interest rates. But, like I said in the beginning of this video, President Trump has been demanding lower interest rates.
[02:39] Ever since President Trump came into the White House in 2025, he has been saying that the United States needs to have lower interest rates. And we hear lower interest rates, and many times we assume we want lower interest rates.
[02:51] That way it's cheaper to get a mortgage or a car. But that's not all. The other reason why President Trump really wants lower interest rates is because of our national debt. We have over $40 trillion in national debt.
[03:04] The United States government has to pay interest on that national debt. And when the Federal Reserve Bank raises interest rates, that makes our national debt more expensive. Not just because we have more debt, which we do,
[03:17] but now because the cost of servicing that debt has gone up, because we don't have a 30-year fixed-rate loan, it is readjusting loans, so when interest rates go up, like we just saw happen, our government's expenses go up,
[03:29] and the government has one source of revenue, tax dollars from taxpayers. So more of your tax dollars have to be used not to actually provide you a service, not to take care of its citizens, but to pay back our interest payments
[03:42] on a $40 trillion plus of debt. And that's what President Trump wants, lower interest rates, because that will make spending for the government cheaper, and then the government will have more money to spend
[03:55] on its citizens to stimulate the economy. And so here's what President Trump posted on Truth Social when the news came out that the Federal Reserve Bank is raising interest rates, not cutting them. Quote, Interest rates in the United States should be 1% or less
[04:09] because we are the best credit in the world by far. We are carrying almost every country in the world, and that cannot go on any longer. And then he wrote this in all caps. Lower the interest rates for the United States of
[04:24] America and fast. Now, this is where things get very interesting, because we know that President Trump is not happy about the higher interest rates. We know that he picked Kevin Warsh because he wanted Kevin Warsh to cut interest rates. But here's what President
[04:37] Trump said to Kevin Walsh in regards to Kevin Walsh. President Trump said, quote, I talked to Kevin and I said, you might as well vote with the board, meaning to raise interest
[04:49] rates, because it's not going to matter. Because President Trump had got the idea that the rest of the Federal Reserve Bank wanted to raise interest rates, so whether Kevin Walsh wanted to raise or cut, it wouldn't make any difference because interest rates are going
[05:02] to go up anyways, because the way that the Federal Reserve Bank makes decisions is through majority votes. There's 12 voting members at the Federal Reserve Bank, and so if seven people vote to raise interest rates, well, it doesn't really matter what the other five
[05:16] think, because the majority gets to decide. And when Kevin Warsh was pressed on, well, what do you think the president is going to say in regards and in response to you raising
[05:28] interest rates, he said, I don't have anything for you on discussions with the president. I am not a Wall Street newsletter. Because we, the Federal Reserve Bank, stay in our lane. We don't tell the president what to do in his lane.
[05:43] So, Kevin Walsh says, we do what we want. The president's going to do what he wants. And Kevin Walsh has now made a commitment to help strengthen the dollar and fight inflation. But there's going to be consequences because higher interest rates have pain in the economy.
[05:58] And the best way to understand this is just to take a look at history. because while history doesn't exactly repeat itself, it does rhyme. The last time we saw an interest rate hiking cycle was between 2022 and 2023.
[06:11] We had cut interest rates all the way down to zero during the pandemic. We had done a lot of money printing, and so now we have a huge inflation problem in 2020, 2021, and into 2022. And then in 2022, that was when the Federal Reserve Bank started raising interest rates,
[06:26] had to raise interest rates very aggressively as a way to fight the record inflation that we were seeing. And as a result of the higher interest rates, mortgage rates went up. Car loan rates went up. Business loan rates went up. Our national debt got more expensive.
[06:42] And then we started to see the pain in the economy. We started to see bankruptcy surge. We started to see defaults on debts surge. And then we also saw some banks fail. You You might remember Silicon Valley Bank.
[06:55] They failed. Why did they fail? Because of the higher interest rates. Now, what happened with Silicon Valley Bank is they were holding on to a lot of treasuries. A treasury is a loan to the United States government.
[07:08] And so treasuries are known as a very safe investment because it's a loan that is backed by the still faith and credit of the United States government. But the problem was, the way bonds work, these treasuries, is as interest rates go up, the price and value of those treasuries go down.
[07:26] So Silicon Valley Bank bought a lot of these treasuries when interest rates were extremely low during the pandemic era. And now as interest rates went up, the price of those bonds went down significantly.
[07:38] And now Silicon Valley Bank was sitting on a lot of assets which were great, they're treasuries. They're known as the safest investment in the world, but now they're underwater on those assets because they paid this price for those assets, but now those assets have fallen to this price.
[07:53] And so they're underwater on these assets, which had people concerned, so they started pulling their money out of the bank. As they pulled their money out of the bank, Silicon Valley's financials started to struggle, and that's what ultimately led to that collapse because then people got more worried and then they pulled more of their money out.
[08:09] And so as interest rates go up, it puts downward pressure on the economy because now if any business who is relying on debt needs more money, that debt now becomes more expensive.
[08:21] And what we also know is that businesses don't get 30-year fixed-rate loans. They get readjusting loans. And the reason why 2026 is such an interesting year is businesses that readjusted their loans,
[08:35] which was pretty much everybody back in 2020 and 2021, they borrowed as much money as they could because it was essentially free. You were borrowing money for the lowest interest rates in the history of time in 2020 and 2021.
[08:49] And now those five-year loans are readjusting in 2026. So we have business owners, real estate investors, developers that are now seeing their loans readjust in 2026.
[09:02] and the value adjusting at 2, 3, 4%, which was the interest rates that we had five years ago, they were adjusting at 6, 7, 8%. And now as interest rates are going up,
[09:14] they could be going a little bit higher as well. So now the business owners that were hoping for relief, the real estate people that were hoping for relief actually got the opposite. They said, well, your debt is now going to become even more expensive
[09:29] because now as you go to borrow that money to readjust those loans it going to cost you more money So the cost of doing business if you have debt just went up And that means your expenses went up And in order to service the higher expenses
[09:43] you have to be making more money. And that's where pain starts to be felt in the economy. Now, the reality is there is a consequence to higher interest rates, like I'm talking about pain in the economy, it's downward pressure on the stock market, downward pressure
[09:58] on asset prices, but it is a net positive for the dollar. Why? Because the dollar gets hurt when you dilute the dollar. As you cut interest rates, more inflation happens. As
[10:13] you print more money, more inflation happens. Inflation is when you dilute the value of the dollar, and as you dilute the dollar, the value of each individual dollar goes down, causing the prices of things to go up. When you raise interest rates, now all of a sudden
[10:25] the dollar becomes stronger. And that's exactly what we saw happen. When we saw the Federal Reserve Bank raise these interest rates, the dollar went up in value. And that's what I want you to pay attention to.
[10:37] Is anytime something happens in the economy, the Federal Reserve Bank raises interest rates, the Fed cuts interest rates, President Trump passes a new policy, passes a new regulation, there's a new executive order,
[10:50] money moves. And a lot of people get caught up into the politics of this is right, this is wrong, and the reality is it doesn't matter what you feel, this is what's happening, and you want to understand how can you profit from this thing happening,
[11:04] because as interest rates go up, different investments have better opportunities. Let me explain it this way. As interest rates go down, investors start to become a lot more speculative.
[11:19] As interest rates go down, investors start to become a lot more speculative, because now you can borrow money for very cheap and as you can borrow money very cheap, now you just have to make more risky bets, more risky decisions
[11:31] because, well, the money is cheaper. And so that's where you see startups and those early stage growth companies, they get to borrow a lot of money and valuations start to go through the roof because now investors have access to a lot of money
[11:45] because banks are handing out money left and right because money is cheap. And so now as the venture firms and the investment institutions and the hedge funds have access to so much more money, they need a place to put it, so they're going to make more risky investments.
[11:58] And that's what drives up valuations. As interest rates go up, it's the opposite. When interest rates go up, now investors have to be more cautious with their money because now what investors are doing is they're saying,
[12:10] hmm, we have to get a better rate of return on our money. We can't be as risky because this money that we're investing is more expensive. It costs us more money to get this money because the interest rates are higher
[12:22] that we have to pay back to the bank. So we can't make as risky of investments. We need more stable, more secure investments. And so you start to see less money going into speculative investments or money going into the more profitable, more secure, more proven investments.
[12:38] And that's why you start to see a shift in where money is moving. Not to mention the fact that now, when you have interest rates that are going up, that is good for people that have money. Why? because now all of a sudden if you have cash,
[12:52] you can get a better rate of return on your cash. Interest rates go up on your savings account. Now, if you have a traditional bank and a traditional savings account, it's really not going to make much difference. Maybe you go from 0.5% in your interest to 0.6% in your interest,
[13:08] which is not good. I mean, it's better than nothing, but it's not good because the inflation rate is much higher than that, so you're still losing value every single day. But the nice thing is, if you do have that extra cash and it's sitting in a high-yield savings account, well now, you should hopefully see a little bit higher interest on those high-yield savings accounts coming.
[13:30] Or, if you're putting your money into short-term treasuries, something like a short-term loan to the United States government or their ETFs that give you exposure to short-term treasuries, for example, SGOV.
[13:42] And I'm not telling you what to invest in, I'm showing you how to think like an investor. this means that those short-term treasuries will now start to pay a little bit more. So you go from, what, 3.5% to a little bit higher or maybe closer to 4% a year in interest,
[13:55] which, again, it's not going to make you rich, but it's a little bit extra on that extra cash. And so the reason why higher interest rates are great for people that are sitting on cash is not only that, number one, you get the extra interest on your money,
[14:10] But the number two is higher interest rates bring downward pressure on asset prices. Why? Well, let's think about it in terms of the housing market. There's a house on sale, $500,000.
[14:25] Mortgage rates are 3.5%. What's going to happen today? Well, today, if it's a good house, you're probably going to see 15 offers on that house over the next three days.
[14:38] and somebody's going to offer $565,000 because they're saying, you know what, we can pay more money because the debt is cheap. Well, now let's flip that situation.
[14:50] The same $500,000 house, great house, but now it's a 7.5% mortgage. Now, you're not going to see the same number of offers because people are going to say, well, I can't afford that same house at 3.5% interest, but I can at 7.5% interest.
[15:07] So the number of offers go down. Now maybe instead of 15 offers, maybe there's only three offers, and the highest offer is $485,000. And so what that means, however, is it puts downward pressure on asset prices.
[15:20] And a lot of people assume, and they make a false assumption here, is that it means that asset prices fall. And that's not what I'm saying. Higher interest rates put downward pressure on assets.
[15:32] So stocks can still go up, but they might not go up as fast as they would if interest rates were lower. Between 2022 and 2023, we saw the stock market fall in 2022 but then it went up in 2023.
[15:47] But if interest rates were lower, we would have seen the stock market go up even more. So higher interest rates don't guarantee that asset prices fall but they put downward pressure on asset prices and it's great news for people that are sitting on cash
[16:01] because that creates more investment opportunities because it will create more pain because there are people that are over leveraged. There are people that are underwater and the people that are over leveraged,
[16:14] underwater, they hate higher interest rates because they don't get any relief with higher interest rates. People that are struggling on their assets because maybe their own real estate and they got in way over their head
[16:26] or they own certain stocks or speculative investments and they took on too much debt. What they want is to be able to see is growth of money going into the market, so either the asset price goes up, or number two, that way they can refinance their debt
[16:39] so it's cheaper, that way they have a lower servicing cost of that debt, but when interest rates go up, now it's more pain to them, and so you do generally see more defaults, more bankruptcies, more foreclosures
[16:53] as interest rates go up. Not good for the people that have too much debt, great use for people that have cash, because now that creates more investment opportunities. So higher interest rates are good for people that are prepared, bad for people that are not.
[17:10] That's the part that I want you to understand. Now, I do want to talk about the Federal Reserve Bank here, because one of the things that I said in the beginning part of this video is that the Federal Reserve Bank made a unanimous vote to raise interest rates.
[17:22] And the reason why this is so important is because the Federal Reserve Bank has been divided for a very long time. And you might have heard me talk about this word, stagflation, for a while. and this is where we're starting to see people start to understand
[17:36] where we are in the economic cycle. Again, this is why I'm hosting a workshop on September 29th. If you haven't registered for it yet, I have that link for you down in the description. But we actually had one of the most divided Federal Reserve Banks in modern history
[17:53] because we had a big chunk of the Fed who said we need to cut interest rates and we had another big chunk of the Fed that said we need to raise interest rates. And that's a very strange thing because normally, traditionally,
[18:08] the Federal Reserve Bank is generally united. There are economists and people that are supposed to be very smart and they say we need to raise interest rates to fight inflation or we need to cut interest rates to stimulate the economy.
[18:20] But when you have half of the Fed saying we need to cut interest rates to stimulate the economy and the other half saying we need to raise interest rates to fight inflation, you can't do both at the same time
[18:32] and this is where a lot of people were talking about stagflation and were very concerned about stagflation. Stagflation is when you have a slowing economy but raising prices at the same time. It is the worst
[18:44] of both worlds it's when the prices of things are going up but people are also losing their jobs and that was what everybody was concerned about when you start to see a divided Fed because we were seeing high inflation
[18:56] we're still seeing high inflation but not that we were seeing pain in the economy and even the Federal Reserve Bank couldn't decide what needed to be done to fix the economy because we had a lot of people saying we need to cut interest rates and then we had people saying we
[19:08] need to raise interest rates so what they do they kept interest rates the same and now we have a unanimous Fed again and now what the unanimous Fed is saying is that there are two problems in the economy
[19:21] One is the economy. One is inflation. Inflation is significantly worse. And now the Federal Reserve Bank is becoming united to say we are going to focus in on the inflation problem, not the economic problem.
[19:34] and that's why now they're uniting to say we are going to raise interest rates to bring inflation down. We also heard from the Federal Reserve Bank that we will likely see another interest rate hike in 2026.
[19:49] Then we'll see what happens in 2027. And the reason why this is so important is history. because what we saw happen in the 1970s was the Federal Reserve Bank
[20:02] that got swayed by the president and they would raise interest rates and then cut interest rates and raise interest rates and cut interest rates and that created a disaster for the United States economy
[20:15] because what we saw happen is in the early 1970s then President Richard Nixon took the dollar off of the gold standard and printed a lot of money. Once he started printing that money we had an inflation problem. So the Federal Reserve Banks then started to raise interest rates.
[20:28] And then they calmed inflation down. And once they calmed inflation down, President Nixon then said, we need to cut interest rates to stimulate the economy again. So that's what they did. They cut interest rates to then start stimulating the economy again.
[20:43] But then inflation got bad. And then inflation got worse because there was an oil spike because the United States entered a war in the Middle East in the early 1970s, making inflation worse again. So then the Federal Reserve Bank went from cutting interest rates to raising interest rates to now cutting and raising again.
[21:02] So now the Federal Reserve Bank is raising interest rates after the most recent inflation. And we then saw a huge inflation problem in the 1970s. We went from around 3% inflation to then double-digit inflation in the 1970s
[21:18] because the Federal Reserve Bank did not stop inflation in its tracks. They just tried to mitigate and manage inflation, and then the economy, and then inflation, and then the economy, then inflation, and then the economy.
[21:30] And that flip-flopping allowed the inflation to linger, and then it made the ultimate bubble of inflation much worse. And so inflation went to the highest levels that we have seen in modern history.
[21:43] It was worse than what we saw during the pandemic. and then to solve that new inflation problem, the next Fed chairman, Paul Volcker, had to come in and raise interest rates to around 20%,
[21:55] which meant when you were to get a mortgage, you weren't paying 6, 7, 8, 9, 10, 15, 16%. You were paying 17% to 20% interest on your mortgage. That was very painful for the economy.
[22:08] It caused extremely high unemployment. It caused a lot of pain in the stock market. It caused a lot of pain in the economy, but it saved the dollar. And this is where what we don't want to see is a repeat of the 1970s.
[22:25] The Federal Reserve Bank can either strengthen the dollar or stimulate the economy. They cannot do both at the same time. And now the Federal Reserve Bank has become unanimous to say,
[22:37] we're going to focus in on the dollar because the dollar has become a big concern. This isn't something that I've been talking about. and that's why I'm hosting a workshop again on September 29th, this is what you want to understand because sometimes the Federal Reserve Bank is a little late
[22:51] and all of these things have implications because as the Federal Reserve Bank makes these decisions, money moves. Investment opportunities will change and that's what you want to pay attention to as an investor.
[23:05] Now, we talked about some of the consequences of the higher interest rates which include pain in asset prices but I also kind of mentioned the national debt, because now a $40 trillion of national debt for the United States government is going to get more expensive.
[23:19] Not just because we're borrowing more dollars, but because the interest rate on servicing that debt becomes more expensive. Not to mention that the government has been facing one more problem,
[23:31] which is that the Federal Reserve Bank, for the first time in more than 100 years, is losing money. Now, I am looking at doing a full deep dive video on this. If you would like to see a full deep dive on this, just let me know in the comments.
[23:46] But the Federal Reserve Bank is a very unique entity because we talked about how they're not a bank, they're not a reserve, they're not federal, but they can print money. And then they print money and then they buy assets.
[23:58] It's kind of a cool business, right? You can create money out of thin air and buy some investments with it. But the assets that they generally buy are United States Treasuries, Meaning they print money on a thin air and then they lend it to the United States government.
[24:11] Well, that's great, but then they also have some expenses. Because as banks lend money to the Federal Reserve Bank, the Federal Reserve Bank then has to pay interest back.
[24:23] And when I say lend money to the Fed, I mean that the banks are keeping the money at the Fed. Kind of like how you keep your money in your bank savings account, the bank pays you back interest. banks also save them money at the Federal Reserve Bank
[24:36] and then the Fed pays them back interest. Well, what has happened now with everything post-pandemic is the Federal Reserve Bank bought a lot of United States Treasuries during the pandemic era when interest rates were dirt cheap.
[24:48] They're making next to nothing on that interest and now they're paying out much higher interest rates to these banks so now the Federal Reserve Bank is losing money. And the reason why that matters is for 100 plus years the Federal Reserve Bank was making a profit
[25:00] and then giving that profit to the United States government where the government has no money to spend. That money is gone. So if you'd like to see more of a deep dive on this, I'm happy to make you a video on it. Just let me know down in the comments. And then the third thing is
[25:13] we're already seeing pain in the economy. And now that we're seeing higher interest rates, it's going to contribute more to that pain in the economy. And the talks about a recession now become real.
[25:25] And it's very difficult because you can start to see that rock in a hard place So on one hand, the Federal Reserve Bank is trying to protect the dollar against inflation. And all the talks have been about worries about the dollar falling, losing its world reserve status.
[25:41] Now as we're going to go into fighting inflation, those talks are going to shift to a recession. And it's not that you can't win. It is that you cannot fix the economy without causing some sort of pain.
[25:56] And either the pain is going to be inflation, or the pain is going to be economic pain. And the reason why I talk about that is we're already seeing pain in the job market. We're already seeing pain in the housing market. We're already seeing pain in the car market.
[26:10] And now that we have higher interest rates, while inflation is still high, that is going to cause more pain in the economy. The housing market matters. Why? Because when people buy houses, realtors get paid.
[26:22] Mortgage bankers get paid. Title companies get paid. Construction companies get paid. And if people are not buying houses, they're not getting paid. Same with the car industry. Same with the business lending industry.
[26:34] And so you can start to understand now that as borrowing money becomes more expensive, it has a trickle-down effect to many different parts of the economy. During the time that the job market has been struggling, partially due to artificial intelligence.
[26:48] But the big thing here that I want to highlight, that could change everything, which I know is a very bold statement but it really is is geopolitics.
[27:02] In the early part of 2026 everybody had expected much lower interest rates by the end of the year. Everybody had expected that the Fed would be pumping up the economy.
[27:14] Everybody had expected that the government would be pumping up the economy. But that's not happening. And it's because one thing happened that a lot of people did not expect. The United States attacked Iran.
[27:27] That attack in the Middle East, which was supposed to last only a couple of weeks, is now many months in with no end in sight. And the reason why that matters is that the war in the Middle East has driven up oil prices.
[27:41] And now that it has driven up oil prices, the cost of everything has become more expensive. Because remember, oil is not gas. Oil is used for gas. oil makes gas more expensive but it also makes diesel more expensive that means shipping goods
[27:55] from the farm to the grocery store becomes more expensive so your groceries become more expensive it means that fertilizer becomes more expensive so producing the crops become more expensive so groceries become more expensive and now as the cost of groceries and gas and diesel and travel
[28:10] vacations become more expensive what does that mean it means a lawyer starts to charge more money because now the cost of everything else is more expensive and that's what then drives up the prices of everything. I use a lawyer just as an example because it's so unrelated to
[28:22] everything, but that's what you start to see happen as the prices of so many different industries go up. Other businesses that are unrelated say, we have a higher cost of everything. We need to raise our prices and we need to make more profit. We need to make more money.
[28:36] And so now you start to see the prices of things go up. And so we have this war in the Middle East. We don't know how much longer it's going to take, but that is having a direct impact on the prices of things.
[28:48] Not to mention that it has a direct impact on you not just because of inflation because it an expensive war And somebody has to pay for it And the United States government has one source of income, tax dollars from taxpayers.
[29:04] Which means every day that the war goes on, more of your tax dollars are going to fund the war. So now we have a higher burden of expenses on the United States government. But the government is not raising taxes.
[29:17] I mean, last time I checked, I didn't get a bill in the government, or in the mail from the government, saying, due to the war, we're going to raise your taxes. In fact, what we saw is in the 2025 press, that Trump signed the one big beautiful bill act, which is a tax cut bill.
[29:33] So the government is trying to lower taxes, but they're also raising their expenses. So expenses are going up, but taxes are not keeping up. That means the government has to borrow that difference.
[29:45] And if the government is borrowing the difference, there's more debt going into our economy. Now, what do we talk about? That debt is not more expensive. Why? Because interest rates just went up.
[29:57] Not to mention that some of that debt has to be printed by the Federal Reserve Bank, which is inflationary. And so the war is creating money printing, which is creating inflation,
[30:09] which is then causing the Federal Reserve Bank to raise interest rates to be able to fight the very same inflation. that inflation is hurting the economy, now the raising of interest rates is hurting the economy as well. So you can start to see why this is such a big problem.
[30:22] And this is why I say, if the war were to end tomorrow and oil prices fell significantly, it would drastically change the trajectory of our economy and what the Federal Reserve Bank does.
[30:34] Now, it doesn't mean that the problems are gone. Because what we've seen throughout history is that when you see an oil price shock, the worst of the pain doesn't happen while oil prices are high.
[30:47] It comes after. It comes months after. That's what we've seen in history. But this is something you want to pay attention to because we know that many people, and most people, want the war to be done.
[31:00] But we don't know how long it's going to take. And it's also had other impacts on the economy as well. You might have heard me talk about helium. And I made a video about helium many months ago and it did well as a video,
[31:13] but I think it caught people by surprise because what I said about helium is that, number one, helium is this limited supply element in the world. And then because of the war,
[31:26] a helium center in Qatar, as some people pronounce it, Qatar, was destroyed. They reduced the amount of helium even more. Now the world's supply of helium has gone down significantly because of the war.
[31:39] Why do people care about helium besides its balloons? Because that helium is used to produce chips. Computer chips, memory chips, semiconductor chips, because it's used to cool down the facilities producing these chips.
[31:52] And now we are getting the news of memory chip prices skyrocketing. Why? Because we have this huge demand for memory chips. We don't have enough memory chips. And now to produce memory chips, it's going to take years.
[32:06] And now there's this added part to that whole memory chip fiasco, which is we don't have as much helium as before. So producing those memory chips just got even more expensive.
[32:18] And so that shortage of memory chips isn't happening right now. That shortage of memory chips is going to make your phones and your computers, your cars, and now your refrigerators more expensive as well.
[32:33] And I'm not just saying this. The CEO of Apple, Tim Cook, in his last speech before he retired and left the CEO of Apple, he said you should expect electronic prices to go up.
[32:45] You should expect phone prices to go up. You should expect car prices to go up. You should expect appliance prices to go up. Not just because of inflation, but because of this memory chip shortage.
[32:57] And so there is this whole dynamic and concern about inflation. and now as we talk about interest rates, there's a whole dynamic and concern about a recession and everyone's going to say, well, oh my God, so many different types of pain. Why are people talking about this?
[33:09] The reality is there is a problem in the economy and it cannot be solved without some sort of economic pain. Everybody's going to try to kick the can down the road, but eventually that pain will happen. What you want to do is not panic or freak out,
[33:21] but understand what's happening that way you can find the opportunity because as money moves, somebody becomes wealthier. And that's the thing that I want you to understand. is as a financially savvy investor,
[33:33] you want to understand where the money is moving, that way you can find the best opportunities to invest your money, because if you can find the best opportunities to invest your money, that creates opportunities to grow your wealth even faster.
[33:45] And truly, there are two ways to grow your wealth faster. Number one is you can invest your money during the market crash. Like if you invested your money during the 2022 market crash, or the 2020 pandemic, or the 2008 great financial crisis,
[33:59] or the 2000 dot com bubble bursting, chances are if you put your money into something that was strong, you grew your wealth incredibly fast. Option number two is you can put your money where the money is moving.
[34:13] This does not require a market crash. Rather, it's just identifying market shifts. It takes more work, it takes more research, but this is where now you can find other investment opportunities to grow your wealth without waiting for a crash to happen.
[34:27] So it's not about just sitting on the sidelines. It's about understanding what's happening, that we're number one, you can be prepared for a crash, but also looking for opportunities to invest your money. That's the way the financially savvy think, and that's how you can grow your wealth even faster.
[34:43] Again, I have a workshop on the 29th. That link is for you down in the description. Investing your money is hard, and on this channel, I teach how you can start investing your money yourself. But for some of you, working with a financial advisor, somebody who is a professional will be a better option
[34:57] because now it's more hands-off, and you can work with a professional who will manage and invest your money for you. And that's why I partnered with my sponsor, Money Pickle. The reason why I like Money Pickle is because first they get to know you and what your needs are,
[35:10] and then they match you with a vetted financial advisor who will be best suited for your needs, and then they give you a free consultation call with a financial advisor. that way you can get a feel of the financial advisor and see if they're right for you or not.
[35:24] That way you don't have to go through a high-pressure sales process with somebody who might not even be a good fit for you. If you're interested in learning more and you have over $100,000 in assets, the process is pretty simple.
[35:36] All you have to do is complete a short form. I have that link for you down in the description. It takes a few minutes to complete, and once you do that, Money Pickle will review your answers and then pair you with a vetted financial advisor who they believe is best suited for you.
[35:49] It's a completely free process that initial consultation, again, is free. And then if you decide to move forward, then you can negotiate and discuss what your rates and terms look like with that financial advisor directly.
[36:01] So if you want help managing your money and you want to work with a vetted financial advisor, my sponsor, Money Pickle, can help get you paired up with a financial advisor at no additional cost. If you want to learn more, I have that link for you down in the description.
[36:13] What we talked about in this video is that Kevin Walsh raised interest rates for the first time in years. President Trump is not happy, but those higher interest rates are going to have a direct impact on our economy.
[36:27] The stock market is going to have an impact on businesses. It's going to have an impact on mortgage rates and car loan rates. But it's also going to have an impact on the national debt. And the reason why he raised interest rates is because of the inflation problem. and the inflation problem became such a big problem
[36:41] especially due, more recently, to the war in the Middle East because the war in the Middle East was expensive and in order to fund the war in the Middle East we needed to print a lot of money.
[36:53] That's inflationary. And as a consequence of the war in the Middle East oil prices went up. The higher oil prices have contributed to higher energy costs it's contributed to higher grocery costs and these higher grocery costs are also now contributing to higher prices
[37:05] for everything else in the economy. and now because of that inflation that we're seeing the better is your bank now is to combat the inflation through interest rate hikes the inflation was hurting the economy
[37:18] now the higher interest rates are going to have some pain in the economy as well so what you're going to start hearing is more and more talks about recession because higher interest rates bring asset prices downward pressure
[37:30] and they bring downward pressure on the economy so that's what I want you to be prepared for because as an investor, you don't want to be panicking when you hear these things. You want to understand the way your economic system works.
[37:42] That way you can be a smarter investor because what most people do is they panic. They are reactionary. They are emotional. Well, I hate to be the bearer of bad news, but emotions are the enemy of profits.
[37:54] And as an investor, if you can understand what's happening by cutting through the emotions, it's going to help you find better investment opportunities. If you got value out of this video, the best thing to do is a referral. So if you could, please share this video with a friend. family member, colleague, or fellow investor.
[38:07] That way we can continue to spread this type of financial education. Thank you. Elon Musk and Tim Cook say that America is facing a once-in-a-hundred-year investment opportunity that has nothing to do with the Federal Reserve Bank, has nothing to do with the dollar,
[38:20] and has nothing to do with oil prices that most people are overlooking. Take a look. Tim Cook, in his last speech as the CEO of Apple, just said that America is facing a one-hundred-year...