And it happened...
Have you been following me for a while? Have you been reading my posts? Then you must have expected this, right? Surely you were ready for this! Ready for more interest rate cuts!
Just like I mentioned a few weeks ago Powell said that the Fed was going to do whatever the Fed needed to do to sustain the "expansion", which anyone that knows a little about economy knows that roughly translated it means" We are going to cut interest rates to allow more people to take out loans and expand their businesses!". And it happened!
After a two days meeting, the Fed announced that it would take down interest rates to a target of 1.75% to 2%. This is the second time in a short time that the Fed is cutting interest rates... something that they hadn't done in 11 years! The issue with cutting interest rates is that it's something that the central banks also do to prevent recessions, and with all the geopolitical issues that I've talked about in some of my posts, what most investors are hearing from the Fed is a giant "Recession!" scream! And even more now!
Read very well what the shaded areas indicate and compare them with the past interest rates cut!
It seems that the Fed is losing control of the machine! In less then 48h they had to inject more than 100 Billion dollars in the financial system to prevent interest rates in the money markets from going out of balance... normally they add and remove whatever they need to, to keep things in balance, but usually they only need to do these types of critical situations during huge crisis and recessions, not in the middle of "stable times"!
Like APompalino said in one of his tweets, this is just adding more fuel to the Bitcoin Rocket! Fuel made out of cutting interest rates and printing more money, the Fed is justing pumping and pumping the rocket, and if the financial system goes under and the ECB and Fed aren't able to prevent this next recession, Bitcoin and gold will surely pump. Keep stacking those sats and saving them up! Secure your future because it ain't going to secure itself!
Additional reading material:
- US Fed cuts interest rates for second time since 2008
- Analyst view: Fed's day two of cash injection into U.S. banking system
- Fed Cuts Interest Rates by Another Quarter Point
Images Free Source - 1, 2,3,4,5,6, 7, 8, 9, 10, 11, 12, 13, 14, 15, 16, 17, 18, 19, 20, 21, 22, 23, 24, 25, 26, 27 - Tradingview snapshots too.
I won't have much time to write for some months because of college, expect fewer posts and with less text.
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just keep printing! lol
Sooner or later that is what is going to happen if we continue down this road... we need to either change the whole industry and financial system to a third industrial revolution, better than any of the previous ones, or we need a new world to suck every resource and everything out of... Both would be better
The fact they intervened in the money markets definitely shows the cracks are beginning to show. Unfortunately, the way down is much faster than the way up!
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Indeed it was, and Trump is pushing the Fed for a big quantitive easing, they are only delaying the inevitable, our whole economy peaked many decades ago, we need to revolutionize the whole financial system and industry, we need to change everything, money is just one of the many issues we have, our whole world is working on oil, we need a better way to power everything, to produce everything!
Damn, I'm both excited and fearful at the same time, excited that I'm still young and that I have the opportunity to make a better tomorrow, and fearful that I might not do it in time and our whole world might implode/explode...
The house of cards is definitely on unstable ground.
This is going to be a very hard collapse. It might make the last time look like a minor pullback.
The lowering of interest rates makes it a lot easier to buyback stocks which the market loves. For such a strong economy, the Fed is acting like it is very leery of what is coming.
The big elephant in the room, China, is having issues. It led the global economy up for two decades pushing an enormous amount of debt. Now, with a slowing growth rate, that debt load could become an issue.
I agree that reducing one's exposure via crypto is a great move.
One of the best things I learned in life, with politicians always see what they are doing and not what they are saying xD They tell everyone to go right while they go left, it's always the same thing... over and over again...
I think the only way to stop this upcoming financial disaster ( or at least decrease the threat of it) would be to either change the whole finance and industrial sectors by having a third industrial revolution and going back to true money, or to go to another planet and start sucking everything out of it too...
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let's see what will happen within the crypto market!
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