When it gets hot, the FED prints money (they call it quantitative easing) (for 5-year-olds: throw money at the problem).
Look at 2008, where they ramped up the money stock like crazy. And afterwards, all these upward bumps were quantitative easing steps to &quot;stabilize&quot; the markets.<p>However, just realize this is exponential growth. You don&#x27;t need a maths degree to realize that you can&#x27;t keep on printing money like crazy and expect the markets to stay stable for much longer.<p>It takes one person to dig into the matter and ask the question: &quot;But what covers this money?&quot; and bang, you got a stock market crash.<p>And let&#x27;s not call it money. What the FED &quot;prints&quot; is currency, sheets of paper. Money has inherent value (gold is money for instance), but not this FED-Dollar lie we live in every day.
Since 1914, America has been tricked into believing into this system. When Nixon turned off the Gold standard in 1971, the entire Bretton-Woods-System (built on top of the Dollar) sort of went Berserk.<p>It&#x27;s a system built to fail.