| Kasz216 said: First off... normal 8-10% Interst rate? the interest rates have been manipulated since 1913 but they really started going into all out manipulation after 1971 nixon shock. all the FED has been doing since 1971 is reduce interest to stimulate the economy which is stopping the natural flow of things.
5% before the crisis,the FED was there before the financial crisis too so even those rates were fake Intrest rates would never hit 8-10 in the current world enviroment. what the hell do you mean by current? if you mean till the time dollar stays the world reserve currency and FED is there,then yes as any increase in interest rates would collapse the global economy. interest rates naturally around the world have always been around 8-10%,sometime they go to 5% of sometimes 20%
the economy either goes up or down,their is never stagnation or the system collapses.same in the case of interest rates,they go up or down.FED since 1971 has been lowering the interest rates,right now they are at 0% if they increase the economy collapses,that is why they are talking about negative interest rates now
Funny thing is... in times of economic crisis even without fed intervention, US interest rates drop. Even when the US is the cause of the problem. Why? The US is generally seen as the most stable country in the world when it comes to debts, and is the least likely to ever default. At least to investors, despite what credit ratings agencies say. lmao,usa the most stable country. stability has nothing to do with it. the way you talk,it seems like you have no sense of time and trends and you live in present and follow the norm.
after World War 2,USA had close to 50-60% of the world's gold reserves.that is the reason of USA's dollar standard. all of the world's industrial production had been destroyed,so USA told the nations if they make Dollar the world's reserve currency then they would get loans. In those days USA used to be a very reliable nation and a rich hard working nation unlike today. what does USA produce today?..........lol - reality television,porn,video games,bombs and war,etc
also you don't seem to understand the defualt,which country has defaulted that you say the usa is more reliable,USA is only reliable because of world reserve currency.thats all.counrties just don't default like that,its a long process,any investor would know that.
Which is why for example.. when the US credit rating was dropped. It was seen as a negative... markets were down. if the rating agencies had any real merit,USA would have junk rating today. markets today are so manipulated,they go up or down on anything. in such a controlled economy,it is hard to identify where to invest or not as the FED and the other banks of the world keep of pumping money Even though by all accounts it should make rates higher. rates higher on what? borrowing money has been the cheapest in history of the world.
why would the rates go higher |
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