Quote:
Originally Posted by Robbie
It's mostly tech stocks. According to analysts the market is "nervous" because the Fed is raising the interest rate.
For those people that follow what is really going on in the world...Pres. Trump spoke on this the last 4 or 5 days about his displeasure with the Fed raising interest rates too fast.
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is it really that hard to understand?
the us economy is booming while the us is generating higher deficits month after month.
So where does the money that makes the economy boom come from?
Right ! From the banks. It is borrowed money!
The private debt in the USA has grown since Trump to the highest level of all times.
So borrowed money cheers the economy on and this high demand leads to inflation. Inflation MUST be countered by the FED with higher interest rates because otherwise the same thing happens as in Turkey.
The indebted people now have to bear a higher interest burden and in addition the demand for the dollar rises with higher interest rates.
Higher dollar = less exports especially since many emerging countries are indebted in dollars and now also get into the crisis which will lead to unemployment in these countries.
The unemployed, however, buy nothing and import nothing and certainly not from a country whose currency is much too expensive.
Every normal person could have seen and predicted what would have happened here from the very beginning and the "normal" people did the same.
Others seem to become probably only then smart if everything lies in broken pieces.
Trump might know how to prevent paying his own debts back but he has no fucking clue about world economy and how much the USA depends on it.