Another constellation is aligning and a big financial crisis is brewing this time. - Part 11

We are picking up signs of impending financial stresses in the US in 2022 and we will be sharing our opinions.  Please note that this is the first time we are putting a timeline for our projected financial crisis.

The US FED has accumulated a lot of assets with its QE program since the pandemic.

However, the excess liquidity provided by the US FED did not go to the main street.  Instead, most of the liquidity went into the financial market which caused the velocity of M2 to decline significantly.  Furthermore, the excess liquidity had created many zombies firms and these firms would get into financial troubles when the FED started to rein in its QE.  Many of such firms will default on their debts.

Bloomberg had indicated that the US would start to conduct bond tapering in Q1 2022 which would impact the financial market and zombies firms.

https://finance.yahoo.com/news/fed-taper-bond-buying-fourth-040000553.html

Moreover, scientists had indicated that the current vaccines could be ineffective in 2022.  If there is no new vaccine in 2022, there will be another major covid outbreak again.

http://sg-stock.blogspot.com/2021/03/scientists-current-vaccines-could-be.html

Last but not least, continuous China's monetary tightening will cause the US treasury yield (risk-free rate) to exceed 2% in 2022 and the conflation of these factors may cause a US financial crisis in 2022.

http://sg-stock.blogspot.com/2021/04/chinas-monetary-tightening-will-impact.html

As you can see, I keep mentioning 2022 in my analyses and I don't believe in many coincidences. 

When I predicted the US recession with my analyses, I also saw many coincidences which led me to believe that the US recession would happen in 2020 (Please see below).

http://sg-stock.blogspot.com/2019/12/the-recession-constellation-are.html