RE: Look for Trump to force Powell to lower rates to near zero.
And with that, who’s going to want to put their money in the bank?
There will be mass withdrawals to other assets like ... WHAT?
The EU central bank is already at minus zero percent. Forget savings accounts as a way to invest. Going forward thats not likely to be a viable option anymore.
Once you understand that the Federal Reserve system has one function which is the redistribution of wealth from the American people to banks and corporations you can start to understand how we acquired $25 trillion in debt. The creation of our currency.
The Federal Reserve bank creates dollars out of thin air and then loans them to us at interest. The only way to pay the interest is to borrow more dollars. So over time the snowball just keeps getting bigger. our debt can never be paid off as the Fed creates our currency.
Trump IMO has plans to get us away from the Fed in his second term. All these tweets is Trump’s way of bringing the public along on the issue so they won’t be shocked when he makes his move.
The petro dollar is dying. The US dollar will not be the reserve currency of the world much longer. Trump knows this. Its imperative that we get rid of the Federal Reserve. Obviously Congress will never act. The mechanism to circumvent the Fed is already in place. The US Treasury department can issue its own debt instrument and create dollars at zero interest. Those dollars which have no debt attached can be used to pay off our debt. That is what I believe Trump will do.
I’ve been buying small cap gold stocks.
The ones I bought have tripled on some cases but I won’t make any money cause i’m a greedy slob and have already watched some go back to original price
That’s my investment advice for the day :)
“other assets like ... WHAT?”
Brass & lead... AMMO.
Lolol, did you sleep through the game presidency.
There will be mass withdrawals to other assets like ... WHAT?
Bitcoin!
Rates were zero or near zero for the entire reign of King Zero - Obama.
How about money market funds, how about the same place they put their cash when Obama had a compliant Fed.?
At zero we will still have the highest interest rates in the developed world. Pretty amazing. 30 yr bond at 1.94%, much lower already than it hit during the Great Recession of 2007-9.
Yields are relative not absolute. We are still the best horse at the glue factory. Europe and China in trouble, not sure where Russia sits.
“There will be mass withdrawals to other assets like ... WHAT?”
Cash, gold, bonds, and if you rally believe the market is going to crash you can buy puts, sell short or a bit of all the above. Even bitcoins.
I haven't made money by savings in years and then I didn't have money. I still saved. I also invested in stocks, bonds and annuities via my retirement plans. The problem with high interest rates is high mortgage rates. When I got more on my tiny savings account, I couldn't afford to buy a home.
They are talking of negative interests rates.
At that point, it will be nuts. Go to hard metals like gold, silver, and lead.
Gold? Real Estate?