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MP3 Download: http://www.fdrpodcasts.com/#/3058/stock-market-meltdown-there-will-be-no-economic-recovery Last week, the Dow Jones Industrial Average fell more than 1,000 points, its worst weekly performance in approximately four years. On Monday, the index plunged by over 1,000 points early - and closed the day down 588 points. In terms of the number of points lost, Monday August 24th, 2015 was the eighth-worst single-day loss in the index’s history. A third of S&P 500 companies have declined over 20% from their peaks and many retain high valuations despite disappointing earnings numbers. The United States Dollar Index dropped the most it has in over 5 months today to seven month lows - losing against the Euro and Yen. Oil prices plunged, with the U.S. oil benchmark settling down 5.5% at $38.24 a barrel, its first close below $40 a barrel since February 2009. Some analysis are blaming the China currency devaluation and the drop in the Shanghai Stock Exchange Composite Index – but what is really going on? Freedomain Radio is 100% funded by viewers like you. Please support the show by signing up for a monthly subscription or making a one time donation at: http://www.fdrurl.com/donate Get more from Stefan Molyneux and Freedomain Radio including books, podcasts and other info at: http://www.freedomainradio.com Background http://www.europac.com/commentaries/fed_spooking_markets_not_china http://www.marketwatch.com/story/vix-fear-index-skyrockets-to-highest-level-in-nearly-7-years-2015-08-24 http://fortune.com/2015/08/24/stock-market-august-decline/ Effective Federal Funds Rate https://www.quandl.com/data/FRED/DFF-Effective-Federal-Funds-Rate Major Stock Indexes vs. Federal Reserve Interest Rate https://research.stlouisfed.org/fred2/graph/?g=1Gvm http://www.wsj.com/articles/u-s-stocks-set-to-tumble-again-as-global-market-selloff-continues-1440418890 Quantitative Easing https://research.stlouisfed.org/fred2/graph/?g=1GuH http://www.ft.com/cms/s/0/69e8c92c-e758-11df-880d-00144feab49a.html http://www.academia.edu/6943181/Quantitative_Monetary_Easing_-_the_history_and_impacts_on_financial_markets http://money.cnn.com/2010/11/03/news/economy/fed_decision/index.htm http://www.ft.com/cms/s/0/d3dd363a-e918-11df-a1b4-00144feab49a.html#axzz1A9nIrzex http://www.guardian.co.uk/business/2011/jul/13/bernanke-ready-for-more-quantitative-easing http://www.bloomberg.com/news/2012-09-13/fed-plans-to-buy-40-billion-in-mortgage-securities-each-month.html http://community.nasdaq.com/News/2012-09/qe3-launched-the-ever-decreasing-effects-of-monetary-stimulus.aspx?storyid=174677 http://www.federalreserve.gov/newsevents/press/monetary/20121024a.htm http://www.foxbusiness.com/economy/2013/06/19/fed-decision-on-tap/ http://www.bloomberg.com/news/2013-06-20/fed-seen-tapering-qe-to-65-billion-at-september-fomc-meeting.html http://www.al.com/business/index.ssf/2013/06/dow_jones_down_43_percent_sinc.html http://www.reuters.com/article/2013/09/19/us-usa-fed-banks-analysis-idUSBRE98I07B20130919 http://www.federalreserve.gov/newsevents/press/monetary/20140129a.htm http://www.nytimes.com/2014/10/30/business/federal-reserve-janet-yellen-qe-announcement.html Federal Reserve: Total Assets http://www.federalreserve.gov/monetarypolicy/bst_recenttrends.htm Major Stock Indexes vs. Federal Reserve Assets https://research.stlouisfed.org/fred2/series/DJIA https://research.stlouisfed.org/fred2/series/NASDAQCOM https://research.stlouisfed.org/fred2/series/SP500 http://www.federalreserve.gov/monetarypolicy/bst_recenttrends.htm