World is about collapse If fed don't lower rates
Even if the Fed doesn't cut interest rates this year, it could never cause the world economy to collapse . It might be more difficult if they were determined to keep interest rates high for a long time, but causing a collapse would be unlikely because that wouldn't be in the Fed's interest either.
Have you ever thought that if the Fed let the world economy collapse, how would that benefit them ? They gain nothing by letting the economy collapse.
Don't try to teach them what to do and what should be done to help the economy because they are the creators of this game and we are just their puppets.
they have a vested interest in crashing this. world wide economy is very much like musical chairs. 🪑 there is a lot of wealth and there are chairs and there are people. if you do not play the music every one will stay put in a chair and the wealth won’t flow from sector to sector . the fed is the music 🎶 and raising and lowering rates forces wealth to shift around.
We all know
real estate = a wealth sector
precious metal = a wealth sector
stocks = a wealth sector
bonds = a wealth sector
arts+ collectibles = a wealth sector
cash+ cds = a wealth sector
insurance + annuities = a wealth sector.
high rates mean bonds whale 🐳 high rates are good for insurance and annuities.
In the USA boomers are aging out and becoming demented with dementia.
And boomers hold about six trillion in private Long term care policies and annuities.
The 10 biggest companies running those accounts have five to six trillion in assets which by usa law need to be in bonds.
in late 2021 and early 2022 every one of those ten companies was facing possible bankruptcy due to extended time of low bond interest rates. the only way to save them was to raise fed rates or kill all the demented boomers collecting from their policies .
Well they did kill lots of people in nursing homes in 2020 2021 and 2022 but the pandemic kill rate was not enough for a bailout thus rates got jacked up 🆙. I know all this as I am caring for my bro in law he has two policies one at Genworth one at John Hancock. These companies ratings have risen with the rates.
https://ratings.ambest.com/DisclosurePDF.aspx?AMBNum=6681 john hancock is now A+ and aa- long term
https://ratings.ambest.com/DisclosurePDF.aspx?AMBNum=59780 genworth is now B+ long term
both have picked way up due to high rates
all these companies would like the high rates. but of course real estate wants low. crypto want low stock market wants low.
if the feds can crash things if will stop inflation for a few years. they can lower rates and the cycle repeats.
if the feds lowers rates and prevents a crash inflation will not stagger and its a fail.
I figure they crash it all one more time. So I look for flat rates July 31 and maybe a cut in sept.