World is rich because low rates but how long ?

[Fullbear2222]

You see world go dubai monaco miami london switzerland you see people spend a lot money expensive cars designer clothes many of them invested on risky assets gold btc and stock market.
We see people who is not even geniuses they took advanche of situation the low rates we all member 2021 covid times a lot money was printed.



Now the guestion is how long low rates? Do we understood that all this wealth been built up with lower rates.


Many will think wealth is kind of CD you record your wealth in and it stays there yes it works on lower rates economy but wealth is something wich connected to world work and production and trades it cant be just some "stone" like jamie dimon said.


My question is how long ? And what happens when rates goes higher?

Im sure many of you have same toughts!  Obviously fiat currency will be valueble they prepare world into stablecoins and you allready can earn fiat based stablecoins yields are we preparing for higher rates envoirement?

[lodocus]

Not every country in the world is rich because of low interest rates. There are different reasons why the countries you mentioned are rich. There is no personal income tax in Dubai. That attracts many people there. Monaco is a place where the wealthy go. There is no personal income tax there either; it’s an extremely safe place, and even though it’s a tiny country, it’s like a meeting place for all the wealthy. Switzerland is a global banking powerhouse and politically neutral.

The wealth of these countries isn’t something that will disappear overnight. The wealthy people there are the result of the policies these countries have followed for years.

[ColdLava40]

Im sure many of you have same toughts!  Obviously fiat currency will be valueble they prepare world into stablecoins and you allready can earn fiat based stablecoins yields are we preparing for higher rates envoirement?

Your English is not quite clear but readable at very least.

From what I can say, theirs no perfect economy. It would be bad for anyone to not prepare himself for the periods of inflations. Every country has to some extent a level when inflation rises but how it could be tackled depends on the government.

There's no one who won't be happy to buy assets at lower rates. You buy low and sell high, it's a standard strategy for everyone in different aspect of investments.

[Agbamoni]

You do need to work on your grammar and also on the usage of punctuation.

To be frank, most rich people got rich because of their hard work, smartness, and consistency. They didn't get rich due to the low interest rate in the country's economy. If the economy favors someone, it means the person was on the right track and got favored in the process. You can't do anything to get rich.

There are several opportunities in countries where we see many rich people. It is the reason billionaires from other countries go there to invest.

[adultcrypto]

We don't have low rated in my country, the rates are actually terrible and killing the middle class. There is a rapid increase of people sliding into the lower class from the middle class following harsh economic realities and high rates. This is not going to change soon because inflation is still there and government will not stop printing money. The rate is actually making some people richer especially those who are able to take advantage of it. But generally, the high rates is not good for a healthy economy.

[348Judah]

You can't expect everything to be well balanced as we needed of them, because even all fingers are not equal, our leaders are trying to boost out the economy to perform more better, but there are other areas that we also needed to pick up our individual challenges for and amend in our own capacity, we should not always depend on government for low rate or any other economic planning if we don't want to be highly disappointed by some of their policies.

[Fortify]

You see world go dubai monaco miami london switzerland you see people spend a lot money expensive cars designer clothes many of them invested on risky assets gold btc and stock market.
We see people who is not even geniuses they took advanche of situation the low rates we all member 2021 covid times a lot money was printed.

Now the guestion is how long low rates? Do we understood that all this wealth been built up with lower rates.

Many will think wealth is kind of CD you record your wealth in and it stays there yes it works on lower rates economy but wealth is something wich connected to world work and production and trades it cant be just some "stone" like jamie dimon said.

My question is how long ? And what happens when rates goes higher?

Im sure many of you have same toughts!  Obviously fiat currency will be valueble they prepare world into stablecoins and you allready can earn fiat based stablecoins yields are we preparing for higher rates envoirement?

You really don't have a clue about half the stuff you post about it seems, because rates have spiked since historic lows 5+ years ago and they were slowly coming back down but that trend could reverse with central banks putting interest rates back up to help slow inflation. Just 10 years ago people were getting mortgages for 1% and now they're paying 5%+ which doesn't sound like a lot but when borrowing hundreds of thousands for 20+ years it has gotten a lot more expensive. Wars and natural disasters seem to be causing all sorts of problems right now, so the last thing we need is any more bad news but it seems like there are quite a few irresponsible world leaders right now. The clever people are looking at the long game, which right now looks like stacking up on government bonds, but that could also turn out to be a bad idea if leaders like Trump continue to make poor decisions that drag the average person down.

[lombok]

You see world go dubai monaco miami london switzerland you see people spend a lot money expensive cars designer clothes many of them invested on risky assets gold btc and stock market.
We see people who is not even geniuses they took advanche of situation the low rates we all member 2021 covid times a lot money was printed.



Now the guestion is how long low rates? Do we understood that all this wealth been built up with lower rates.


Many will think wealth is kind of CD you record your wealth in and it stays there yes it works on lower rates economy but wealth is something wich connected to world work and production and trades it cant be just some "stone" like jamie dimon said.


My question is how long ? And what happens when rates goes higher?

Im sure many of you have same toughts!  Obviously fiat currency will be valueble they prepare world into stablecoins and you allready can earn fiat based stablecoins yields are we preparing for higher rates envoirement?

It is appropriate that an asset ownership bubble has been formed as a result of the easy money period that can easily burst whenever interest rates increase once more. The increase in the cost of borrowing will attract liquidity in the high risk markets to the instruments that have guaranteed returns.

Wealth is perennial but a moving ecosystem that is anchored on actual economic transactions. Creating portfolios in terms of a monetary tightening cycle is a must by the contemporary responsible investor.

[Odogwu-Blockchain]

We don't have low rated in my country, the rates are actually terrible and killing the middle class. There is a rapid increase of people sliding into the lower class from the middle class following harsh economic realities and high rates. This is not going to change soon because inflation is still there and government will not stop printing money. The rate is actually making some people richer especially those who are able to take advantage of it. But generally, the high rates is not good for a healthy economy.

I am just wondering the country where OP is residing in, such country will be too healthy with good living where everything is at low rate, everyone can live their dream lives because they could afford whatever they want, build business they imagined about at the best rate.

Where I live is different, you must be a public funds embezzler before overcoming higher rate and start living healthy.

[Grace333]

Im sure many of you have same toughts!  Obviously fiat currency will be valueble they prepare world into stablecoins and you allready can earn fiat based stablecoins yields are we preparing for higher rates envoirement?

Op what gives ypu the confidence that fiat currency currency will be valuable in a world that inflation is eating up. Even though most countries will likely do well in the future compared to their present economy they might still be considered having inflation when you compare their economy and their peak economic growth or performance. Be not deceived by how most government tend to hide their understanding of what's really going by not communicating it with their citizens. The truth of the matter is, things are going to get more expensive the the value of your fiat currency will depreciates overtime time. The best decision to make at this point is to tie you money to an asset to appreciates over time so you have an edge over the economy.

[Bluebird1357]

Now the guestion is how long low rates? Do we understood that all this wealth been built up with lower rates.

This is probably why this proverb is often heard on people's lips "One man’s gain is another man’s pain" meaning that a businessman is being discriminated against due to political and geographical reasons.The thing will become even more clear when you see the chart.

source
And this is exactly why Europeans are much richer than Africans and Asians. Whereas an African or Asian has to work very hard to get a loan from a bank and pay interest most of the profits to the bank, a European citizen does not have to work very hard to do this, which can lead his business to progress much more in a very short time.

[Hewlet]

Im sure many of you have same toughts!  Obviously fiat currency will be valueble they prepare world into stablecoins and you allready can earn fiat based stablecoins yields are we preparing for higher rates envoirement?

There's more to an economic growth above exchange rates and the likes. Wealth at an individual level and even at a national level is birthed through key economic policies and government decisions that's independent of whatever the exchange rate is at the time. As a matter of fact, the exchange rate is the least consideration when setting up government policies and even from an individual point of view, you don't sit back hoping that you will get favoured by a better exchange rate. It only goes to show a lack of economic strength that's capable of coming to play in continental discus.

World his rich because factors like land, labour, capital and technology is put into good use. These produce wealth than whatever rate you're dealing with.

[ZAINmalik75]

What are you even talking about? And no, we don't think of such things because we don't want to waste our time on thinking about useless things. What low rates are you talking about? Those who have money and wealthy have worked to earn it, and they earn while others talk about things like these. And those with enough resources will never face any problems because money makes money; when you have a bunch of it, you can basically just use it to make more, and it is not that difficult as long as you have a brain.

So, even if the rates go high if you believe they are still low and that is why people are able to have expensive cars and are able to buy designer clothes, let me give you a reality check: a good percentage of the world's population will always be capable enough to have all those privileges. You could be one of them if you manage to become successful in life. That is why, there is no question about how long this will be going on, because this is a part of the world and life, and you will keep seeing this until you are gone.

[tabas]

Obviously fiat currency will be valueble they prepare world into stablecoins and you allready can earn fiat based stablecoins yields are we preparing for higher rates envoirement?

They don't have to prepare the world for it because they are the ones who are making these systems. And in fact, it will continue to be used because that's how the government has set each country that they govern. As for the stable coins, they might push it or not. We heard of the CBDCs but what's with them right now? And so, if they'll have people to get into either of these with that kind of yield, then there will be the banks that will be assigned to it or exchanges will have to work on with them or has to work like them.

[coin-investor]

You see world go dubai monaco miami london switzerland you see people spend a lot money expensive cars designer clothes many of them invested on risky assets gold btc and stock market.
We see people who is not even geniuses they took advanche of situation the low rates we all member 2021 covid times a lot money was printed.
Now the guestion is how long low rates? Do we understood that all this wealth been built up with lower rates.

You're looking at one side of the world, and the title of your post is misleading; it's not rich. A large part of it is so poor that they can hardly eat three times a day.

The countries you mentioned are rich because of their economic structure; they achieve growth and economic stability, something many countries have failed to achieve or are still trying to achieve.

These rich countries have low tax rates because their governments have other revenue streams to sustain them.
Here in our country, we cannot impose low rates because our country is not an oil-producing country or has other means to sustain itself; we rely on taxes, which is why we have higher rates or taxes.

[YOSHIE]

Now the guestion is how long low rates? Do we understood that all this wealth been built up with lower rates.

There is no accurate certainty regarding the period of time for interest rates to fall, usually this can happen for years, it all really depends on the economic cycle in the country, whether global or domestic.

When inflation is no longer under control in the country the low interest rates do not persist, everyone will experience the phenomenon for themselves in the economic sector.

Of course, with cheap interest rate loans, the government and companies engaged in development will implement it more quickly.

My question is how long ? And what happens when rates goes higher?

Companies operating in the credit/loan sector went bankrupt, they had to pay off high interest rates, people's lives were in chaos, prices of all goods rose.

[BTC FutureKing]

The world is rich but it is not permanent. The prices of the world can increase at any time.That is why it is not right to consider low rates as a present happiness.That is why one should take advantage of the low rates of things and do something that is profitable because the prices of things in the world keep increasing.But if the government increases employment income in production and technology along with low rates then it is beneficial.For example if an item is available for Rs 100 because raw materials and electricity are cheap but if raw materials and electricity are expensive then the same item will be sold for more money.If everything is in balance then the world will be called rich otherwise there is no trust in the prices of the world.

[ruykeri]

I don't think that just because the future of high interest rates means that stablecoins will become more attractive for long-term wealth. Suppose the bank is giving you 5% interest, it may seem good, but if the value of the currency decreases, what is more important is whether you will actually benefit. But the entire fiat system runs on fiat currency. That is why we have to ensure our financial security by relying on the fiat system. For the future, middle class people should invest in Bitcoin, even if it is a small amount, if there is an additional part from their income. Because all the assets or currencies that people have control over will definitely be manipulated and only some particular people, the government or those who are policy makers will benefit. But for the financial freedom of the common people, Bitcoin should be chosen. Its fixed supply has made it more valuable and acceptable than any other asset.

[Dogedegen]

You see world go dubai monaco miami london switzerland you see people spend a lot money expensive cars designer clothes many of them invested on risky assets gold btc and stock market.

Gold, BTC and most stock are not risky assets. Maybe you wanted to write a list with risky assets first and then place a comma between each thing? If that was the case then I understand, but if you think that those 3 are risky assets this part of your post is wrong.

We see people who is not even geniuses they took advanche of situation the low rates we all member 2021 covid times a lot money was printed.

A very large amount of money was printed that is true, and the effects of this printing was delayed and is being felt only in the recent years everywhere. Who had access to that money first has gained a lot of value and now that the money is circulating everywhere, we are suffering increased costs.

Now the guestion is how long low rates? Do we understood that all this wealth been built up with lower rates.

The current rates are not low, they can be considered medium or high. When rates are under 1% could I consider it low. People quickly forget that not long ago rates were 0% and some countries even started considering to enter into negative rates which was completely new at those times if I don't remember wrong.

My question is how long ? And what happens when rates goes higher?

Im sure many of you have same toughts!  Obviously fiat currency will be valueble they prepare world into stablecoins and you allready can earn fiat based stablecoins yields are we preparing for higher rates envoirement?

You have already been living in the past few years with high rates so I don't understand the question. If rates were even higher than they were, then everything you felt would just be worse than it was already and maybe there would be a bigger recession.

[justdimin]

Obviously fiat currency will be valueble they prepare world into stablecoins and you allready can earn fiat based stablecoins yields are we preparing for higher rates envoirement?

They don't have to prepare the world for it because they are the ones who are making these systems. And in fact, it will continue to be used because that's how the government has set each country that they govern. As for the stable coins, they might push it or not. We heard of the CBDCs but what's with them right now? And so, if they'll have people to get into either of these with that kind of yield, then there will be the banks that will be assigned to it or exchanges will have to work on with them or has to work like them.

Well, the CBDC thing isn't happening "right now", but they are all looking into it, and the governments of the world do not do things very quickly, as we all know; it takes time. ETF, for example, took nearly 5 years from being an idea to being a reality, and this was pushed by BlackRock like a nation sized company, so if there is no BlackRock behind CBDC to push now, imagine how many more years it will be. But that doesn't mean it won't happen; it's a digital way of printing money and taking real money away from people.

Governments will always want something like that; they will even desire it. It's not safe right now; they are worried about the potential hacking, because if they ever do it, we are going to see THE WHOLE WORLD going to attack it, and they can't take that risk. Is there a way to do it without any risk? There is none, so it will be postponed more and more. Hell, even the FBI got hacked, and all the info was leaked, so of course anything could happen, and that is why they are postponing until they are certain.