Lowering interest rates is commonly known as flooding. Why does the cryptocurrency market grow wildly when the US dollar lowers interest rates?
First, commodity prices and stock prices are in a seesaw mode. When one end goes up, the other end will go down.
Second, what will happen if the US dollar lowers interest rates?
Answer: 1️⃣ Commodity prices in flooding countries will rise. 2️⃣ Funds will flow into developing countries. 3️⃣ Stocks in flooding countries will fall. Is it different from the analysis of big Vs, because many big Vs don't understand shit.
Why does the US stock market rise when the US dollar raises interest rates, and the stocks of countries that do not raise interest rates synchronously fall.
Answer: The interest rate hike will cause thunderstorms in economies related to the US dollar, and the exchange rates of these countries will be unstable, the US dollar will appreciate, and the money from all over the world will gather in the United States. Then, the United States will give this money to Wall Street giants through treasury bonds, and they will invest in US stocks. The opposite is true for interest rate cuts.
What is the biggest risk of a US dollar interest rate cut?
Answer: It is the risk of capital outflow from the United States.
What should the United States do if it wants to level the risk?
Answer: Export force abroad to reduce financial risks. To lower financial risks, we must raise geopolitical risks. Therefore, every time the interest rate is lowered, the United States will export military force. This was the case in the first five Middle East wars.
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