China Fires A Monetary Bazooka... Will It Be Enough?

prices around the world. And right now China's central bank is pulling out all the stops and literally pumping in trillions of dollars into their financial system. The monetary bazuka was loaded and it's been fired. So in this video, we're gonna dig into what does China's latest move mean

for you as an investor. We're going to dive into the data to see how similar moves in the past affected stocks, real estate, and bitcoin, and of course, what you can do to position yourself to benefit from this. And by the end of this video, you're gonna have a clear understanding of whether this monetary bazuka could be your next big opportunity or a warning sign to state casts either way, Knowing how China's actions could impact your assets is going to give you a serious edge and

navigating the market ahead and real quick. For do the Channel. My name is Mark Moss. I've been investing in my own money, and I've been building companies now through four economic crisises. I've been writing a financial newsletter and coaching thousands of investors for almost nine years, and I'm a partner in a leading bitcoin focused VC hedge fund, and a lot of the research that we use is going

into this video. So let's go all right, So we're going to just jump right into this because this is hot news, and this is massive, it's drastic, It's something I've been talking about for a long time and it's here, okay, So hopefully you've been ready for this, and if you're not, don't worry. We're going to catch you up. So why why do we have a monetary bozuka in the first place?

And of course it's because China is struggling. China's in trouble, and of course when China's in trouble, the rest of the world's in trouble. Maybe that's why the Federal Reserve is acting we'll come back to that in a minute. But basically, China has been in big, big trouble for a long time. It's nothing new. China has been goosing, faking stimulating their economy for a long time, which of course has adverse effects, and lately it's finally been catching up.

So here is China's ten year yield that they pay out on their treasure. And look at that is what we call deflation. Now, if you follow my channel or you're paying attention to macroeconomics, you know that's central banks around the world. The entire system, because we're in a debt based monetary system, needs inflation to survive. It'sa ponzi. If it doesn't continue to expand, it crashes. And deflation is the number one fear that all central bankers stay

up at night worrying about. And this is what China has been seeing. Now. That is their bond, that's their yield, their ten year bond. Here we have this is their stock market going down compared to the S and P five hundred, the US market going up. This is a bad sign, and again not just for China before the rest of the world. Why, well, turns out the US needs the Chinese economy. Just like the Chinese economy economy needs the rest of the world. We can see this

really in the real estate sector. You've probably been hearing about it. I've done videos on it. The real estate sector has been getting completely hammered. Here's real estate sales, here's real estate starts again, massive deflation again. This is what keeps central bankers up at night, and we can kind of keep going in. This is another big problem

that China has. China's got a lot of problems. So while they're apparently to people that are not paying attention taking over the world, when you just kind of peak under the hood, you see they've got serious problems. This is the unemployment rate, China's youth unemployment rate. As a matter of fact, we're at greater than twenty percent. Twenty percent, I'm going to pause on that. The US, you hear about all these jobs being lost, unemployments going up, but

we're like at four percent for twenty percent. It's a big deal, especially when it comes down to the youth, especially when it comes down to the men. So China has lots of men. They had a one child policy for about three decades where they didn't have girls. All they had was men, and now they have hundreds of millions of men, but no girls, and they have no jobs. It's a big problem for China, as you might imagine. So this is sort of the place that they've gotten

the men. One more chart to show you the deflation. This is the money supply. This is M one and again look at that trend. It's big, big news. So China's been in a bad place for a really long time, which has caused drastic times, can for drastic measures. Okay, so now they've got the monetary bazuka boom. They shot this out into their economy, but of course it's the

global economy now, the bazuka, it's massive. Before we get into the specifics of the bazuka, we also want to understand what happens as all of this goes through, and more specifically, what's happened in the past when we've seen China do This is not the first time, as a matter of fact, this is the fourth time in just the last several years. Okay, so what happened? So first of all, let's just break this down. Basically, they're doing every kind of monetary students they can basically trying to

expand the money supply, how well. They've cut bank reserve requirements. So basically, they're cutting rates and cutting the reserve requirements so the banks are able to lend out more money. Actually, I have a whole breakdown right here. Let's run through this. Before we run through that, let's just take a look at some of the things that we see in China. So, for example, this rollout shows this is a very big piece. But it's so big I want to come back to it.

Let's look at this. Let's look at the specifics real quick. What we can see is that PBOC lowered reserve requirements by half a point, which doesn't sound like a lot, but it is. And the reason why is because by doing that they unfreeze, or they unleash about a trillion yuan, which is about one hundred and forty two billion dollars for the banks. That's massive. They did a seven day repurchase rate reduction from one point seven to one point five,

again another massive drop. They changed or lowered the loan prime rates by twenty to thirty basis points, so basically they're making money cheaper. And again, right when money's cheaper, the goal hopefully people buy more of it right, increased loan amounts of in a debt based monetary system. They cut interest rates on existing mortgages by an average of

fifty basis points. Imagine in the United States or whatever country you're in, if they just said, oh, everybody's rates, mortgage rates is half a point cheaper, or imagine what that would do. They lowered the minimum down payment for second homes from twenty five percent to fifteen percent. Imagine if they did that. Imagine how many more people would get those investment properties they always wanted. That's exactly what

they're trying to do. The Central Bank introduced cheap loans to local governments for buying up unsold properties, covering one hundred percent of the loans. So China has this massive problem with all this real estate they built and hasn't been purchased, and they're basically saying, hey, local governments will just give you as much moneys you want to go buy all the properties, and we're going to give you

a hundred percent of the money. If the government gave you a hundred percent of money to go buy a bunch of properties, do you think you do that? And you understand exactly what's going on. Liquidity for the stock market, This is a pretty big one. The PBOC has launched two new tools to boost liquidity for equity markets, one hundred and thirteen billion dollars swap program and to fund

and access liquidity for purchasing stocks. The PBOC the Central Bank is literally giving hundreds of billions of dollars for them to buy stocks and prop up the market forty two point five billion in loans to commercial banks for stock market interventions or maybe we'd call them manipulations, whatever you want to call it. So this is sort of the specific is what's going on. You can understand it's a big deal, a really big deal. Why is this even a bigger deal. It's a bigger deal because it

shows intent. If you've been following me for a while, you know that I say that since two thousand and eight, the market's changed, and you can't look previous to that to extrapolate a lot of information. One of the big things that's changed was the introduction of quantitative easying, but more importantly, it was a psychological shift. You can't really

measure this. I mean you can, and we can go through that, but it's a psychological shift, and it shows the willingness that central banks and governments have to intervene in markets, and with quantitative VIASA, they've levered up the system so hard they can't allow it to unravel. Than in twenty twenty, we've seen that escalade. Right in the US it was about eleven trillion dollars of stimulus to

prop up the markets. China was even bigger. The question you might ask yourself is if they did all that in twenty twenty, in two thousand and eight, and then did even more in twenty twenty, and then in twenty twenty three in the US, right with three banks collapse, hundreds of billions more to save the banks, why would they stop? Now ask yourself that question. And this exactly answers that. It says the publicistized roll out showed authorities

are taking seriously. Authorities are taking s say, the warnings that China risks missing its growth target of around five percent, so they want to grow by five percent a year. That's their target, and they're afraid they're not going to make that target, and they're taking that seriously. They're doing everything they can to stay on track. The policy barrage likely puts that goal back within reach. So they want to maintain or sustain that growth rate at all costs,

no matter what. Do you see what I'm talking about. This is a psychological thing. It's not just a data things. What a lot of analysts miss. Okay, yet to unveil more forceful measures to boost authorities have yet to unveil more forceful measures to boost demand among consumers, so they still have more in their back pocket, is basically what it's saying here. It says right here, more needs to be done in order to help solidify fourth quarter growth.

So they still need to do more to stay on that five percent target by the end of the year. So what they're saying is that they are going to stay on target no matter what, whatever it takes. This baraj this bazooka that they fired is only just the beginning. They have more, more forceful measures and more needs to be done, and they're willing to do whatever it takes. Now. It's something called the sunken cost fallacy. Once you've gone

so far, it's harder and harder to quit, right. Once they've pumped in hundreds of billions of dollars, why would they stop now? And you're starting to understand where this world is going, which direction we're heading. I want to take a second, just real quick, to just give you a reminder. The reminder is take control of your bitcoin. Look, for the first time in history, we have a way to preserve our property, take custody of our property and

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don't want something safe. That's why I use Treasure. And if you don't use Treasure, use something. Please get your bitcoin off the exchange, use a hardware device to secure your private key. And if you like Treasure, check out the link down below. Okay, now I want to just jump back in time, not that far. We're going to jump back in time too, about six weeks ago, and I made this video right here talking about a meltdown

or magic setup. And I was talking specifically at this time about what was going on with the jap the Japanese markets and the carry trade was blowing up. If I remember that video, where let's go ahead and put it right here. We'll link to it in the show notes down below as well. You should probably go watch it now. I remember at that time, the whole world was calling for this is it, This is the final prick in the liquidity bubble. The whole world's going to crash.

Of course, I made a video calming you down, and I talked about global liquidity and again how this always continues to expand. Now, at that time, I showed you this chart. I've used it many times. If you watch my channel, you're familiar with this chart. And this basically shows that all the debt in the world, about seventy five percent of it, seventy five percent of the world, has a maturity rate of about one to five years.

So let's call it a four year average. So about seventy five percent of the debt in the world has about a four year average. And remember, the debt can't get repaid, it can't get destroyed, it gets rolled over. We need more debt to pay the existing debt, so you might remember this. So every four years we have to create more debt to continue to roll it over, which is why we end up on these four year cycles that look like this. This is what it's supposed

to look like. Of course it doesn't match perfectly, but it pretty much does. Now you can see that right now, the global equity is turning up right on pace. Now again, these four year cycles started in two thousand and eight, because that's when the whole world went to zero rates, and they just so happened to coincide with the four year business ism cycle and the four year election cycle. Oh yeah, and the four year bitcoin having cycle at the same time. Pretty interesting, isn't it. But you might

remember this video if you saw it. Let me just play you this clip from this video from six weeks ago. Now, the problem is that and what we've seen going on is that we're in this what we call like a liquidity pocket. There's debt that needs to get rolled over. The world needs the FED, the central banks, the FED in the United States, but other major central banks. Other major central banks are the ECB European Central Bank, the boj Bank of Japan, and the PBOC, the Chinese Central Bank.

Those are sort of the major ones. And what we can see is that they need liquidity because they need to keep their markets or their debt rolling over to keep their markets going. But the problem is that we have been the world world has been The FED has been in a tightening cycle, so they wanted to tighten up the monetary supply, but right now the other nations of the world needed to start easing so they can

get that liquidity they can roll that debt over. Now what's happening is China desk really needs this, but they can't go into an easing right now while the FED is still in the tightening. All right, So what did I say there that was so prophetic? I said that all the central banks need to ease in sync. And what happened is that two of the most important central banks in the world, Japan and China, they really needed

to ease, like really really bad. Japan couldn't wait anymore, so they moved without the FED and it almost crashed the entire globe. So the Japan said, well, whoa, Okay, we'll wait for the FED. So we needed the FED to announce easing, which they just did. And just like we talked about six weeks ago, the FED announced they would ease, and now the PBOC is doing it because all this needs to be done in sync. They were waiting, and so we have all the major central banks of

the world easing. We also have Switch easy, Canada easying Sweden easying the Eurozone easy. UK is easy, and again the US is easy, and that means the rest of the world is okay. Now let's jump back in history because or again, we don't invest in the markets as we want them to be, or as we think we can, as they as they should be, or what our gut or emotion tells us we need to get the emotion out of it. Let's look at the data, all right, So let's go back in history to see when this

happened before. Now, we know in twenty fifteen to twenty sixteen the Chinese stock market crashed really really hard. Right. We know that in twenty eighteen to twenty twenty it also crashed as well. There was this trade war going on. You might remember Trump and the tariffs and all of those things happening, which again crashed the market. And again the Chinese market has been trying to de leverage for

a long time. That's what crashers are. They're trying to de lever the system, which of course we can't have. We saw it happen in twenty twenty one, if you remember, in twenty twenty one, they cracked down hard on technology and real estate as well. They're trying to kind of low the bubble in real estate down and they crack down too hard. You might remember that. Now. What's interesting about this is you might remember I made this other video about six months ago, and I talked about this

phenomena called the Imperial circle. Now it's the George Soros Imperial Circle. A lot of you guys might not like George Soros. I certainly don't. Just forget about his name for a minute. It's about the secret circle, the imperial circle. And basically what this tells us is that money moves globally.

And the irony of what happens is when the United States goes into a rate hiking cycle where they're trying to slow or tighten the economy down by raising rates, it pulls liquidity from the rest of the world, and so it sort of negates what they're trying to do, right, So they raise rates and then it makes it more attractive for money from other countries to come in. And so what we're seeing. You have to remember that money moves globally. So when the Chinese market becomes restrictive or

money starts leaving, where do you think it goes? If you guess the US markets, global commodities, yes, you might be right. So we can see this. Let's take a look at these three data points in time. Let's take a look at this is the Let's look at this chart here. First, this is the S and P five hundred, all right, so this is the US stock market. It's like the main index, the benchmark that we look at so during the first period that China had the same

situation happening. During the same period, we saw the S and P five hundred up about nine percent, not major, but it didn't lose money. It went up. That was actually pretty good for US stocks. The second time, twenty eighteen to twenty twenty, we saw the S and P five hundred go up by almost twenty percent. That's pretty good in a short period of time. We averaged what eight percent over a fifty sixty year period, it's pretty good. The third time it happened, the S and P five

hundred went up over twenty percent. Again. So as China is restricting the market, so the markets are stumbling, the money's come into the US. Now that's the US market, that's S and P five hundred. What about a global asset like commodity like bitcoin. We can see in the same period the first time, bitcoin went up by three hundred and sixty five percent, pretty good, better than the eight percent the S and P five hundred did. The second time it happened, bitcoin went up by ninety two percent,

again almost double your money. Not bad. And the last time it happened, bitcoin went up another ninety percent. So you see what happens is as they're easing, they're bringing out the monetary bozuka so to speak. Right, they're going to be putting billions trillions of dollars in an economy.

How much of that goes into other assets like bitcoin, other commodities, as well as how much comes to the US market, And now you have an idea all right, Now, the important thing to understand is that a rising tide lifts all boats, so to speak. And so we're not seeing the asset in the bubble in assets. What we're seeing is the bubble in the denominator or in the US dollars. So really what we want to do is

we want to follow the money. Right, so just because the Bank of Japan or the Bank of China or the ECB European Center Bank they're printing money, doesn't mean that it's going to stay in that region or in those banks, right, It's going to go around the world's we want to follow the money. We want to understand that easing, these easing policies, lowering rates, lowering reserve requirements, lowering down payments, things like that, it's increasing the money supply.

When money gets cheaper, people buy more of it. Just like if Apple announced that the new iPhone sixteen was on sell for ten dollars, would they sell more of them? Yes, of course. We want to understand that different assets have different sensitivity to the rates and the increasing liquidity, right. I go over this all the time. So we know that the S and P five hundred and the US real estate goes up at about the rate of monetary increase. We know that gold goes up about one point five

times that. We know bigcoin goes up at a nine times sensitivity, So not all boats go up at the same speed. We want to understand that different assets have differences to rates. Now, as for bitcoin itself, we also want to understand that there's a lag, all right. I just did a video on this showing how when global equidity breaks out, bitcoin has a lag. We'll link to that video down below. If you want to understand the timeframe of when you can expect bitcoin to take off, go

watch that video. And then overall, the assets that I think are the best to invest into during this period follow what I call the quantum wave cycle, which is a fifty year technology cycle, and you want to be investing right there, I'm gonna have a life presentation I think next week where we're going to break down all those assets. Is free. If you want to come hang out and ask me questions. We'll put a link to

it down below. But just know that as this money is being printed and we have just started to see it, as I said, China said that a lot more will be needed just to get them through Q four. The FED hasn't even started yet, and so if you're not prepared for what's about to happen over the next twelve to fifteen months, you better get ready right now, and

you can start by joining me week Live. It's a there's a link down below, or you may want to just watch this video about the investing black hole right here and that'll help you. That's what I got, all right, Give me a like if you liked it. If you don't, you can give me thumbs down. That's okay either way. Tell me why in the comm's down below. That's what I got to your success. I'm out