World is rich because low rates but how long ?

[Jaweria parveen]

There are many hardworking people in the world who have earned money through hard work and intelligence and have achieved good facilities for themselves. But this will continue until the resources are exhausted. The biggest resource is oil from which people earn millions of money and will continue to earn. Apart from that, there are also many other things from which money will continue to be made in the world. But at the same time, there are some who earn less. They have resources but they do not have capital and nothing to invest, due to which they are behind the world. There are many people in the world whose goals are different, so everyone is working hard to earn money and that thing is increasing more and more among people, so money is increasing in the world.

[tabas]

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.

It does need solid backing by first, the government and with the likes of BlackRock or whichever big company is there to finance and implement it. I thought that there's a big development with it but they seem to have been delayed. Because when I've first seen the news, it became a trend that almost every country have been interested into it. Those with understanding of how it actually works. Now, it probably might have been delayed or totally abandoned when they don't have to complicate it by themselves and by just doing a stable coin for themselves or by adopting one that's already been established. Otherwise, just as you said, it will be postponed just how the Libra project did and other likes.

[AVE5]

I might not get you right entirely due to some communications barriers with the post but least I can contribute to the situation you described is that economic rate has greater role to play or influence in the development of the society's.
When inflation rates also increase, it also affect the exchange rates of the currency which is also a weakness devaluing fiats due to over printing of the cash.
Employment rates and the governments concerns to regulate inflation and security networks is also a plus to yield the country's values that can attract foreign investor's and tourism.

[Taricoins]

OP, you should try and preview your post before you post, I almost destroyed my brain trying to understand, but I think I get the bottom line, I don't think there is anything as low rate for individual countries, almost all the citizens in a country will always complain that cost is high until there is an inflation except China, lol, unless you are wealthy and don't care about the cost. Alot of this people that travel to Dubai has the financial means to pay for there rate because rate there is so high, compare to my country because it's a tourist country.

[M47AK16]

There are many hardworking people in the world who have earned money through hard work and intelligence and have achieved good facilities for themselves. But this will continue until the resources are exhausted. The biggest resource is oil from which people earn millions of money and will continue to earn. Apart from that, there are also many other things from which money will continue to be made in the world. But at the same time, there are some who earn less. They have resources but they do not have capital and nothing to invest, due to which they are behind the world. There are many people in the world whose goals are different, so everyone is working hard to earn money and that thing is increasing more and more among people, so money is increasing in the world.

There are also a lot of people who worked hard but earned not enough money as well. I hate it when people say "hard work gets you money". Because while it is true that rich people all worked hard to make their money (unless they inherited it, in which case they did nothing for it), there are also a lot of people who worked hard and did not get what they deserved. I barely survive; do you think that Jeff Bezos worked that much harder than me? Not saying he did not work harder than me; he did, but THAT much more?

I worked 10-12 hours a day for a long time in my life, even on vacations, even on beaches I opened up a laptop and worked, even in hospitals, even at one funeral; I worked 10-12 hours every day for a long time. Did I get rich? No. So that means it's more than just hard work; that alone is not enough. What you are doing during that time matters more than how much; there are people who work a couple of hours a day and earn more than me for that reason.

[demonica]

Are we talking about the exchange rate or the interest rate? Cause this was hard for me to understand.

If you're talking about the exchange rate, well, those countries you've mentioned are developed countries that's why they most likely to have higher buying compared to other countries. And yes, they may be taking advantage of it, but that's just one of the privilege they have as a first world country. But you also know that their individual wealth isn't just because of the rate, but also because their own hardwork to be able to afford luxurious things and even investing on different assets.

[Bluedrem]

The reason for getting rich is not the interest rate but the effort. When you can earn more, you should not have any difficulty in giving some money to the government. Especially for the development of underdeveloped and developing countries, people's tax money is very necessary because it is not possible for the government to develop the country as a whole from within its own economy. If we look at the Chinese economy, we will see that low interest is not the main reason behind the prosperity of their economy. They have been able to enrich their economy so much only through hard work. They have focused on productivity rather than consumption, and instead of importing various components from other countries, they have thought about exporting from their own country to other countries. Because of all these efforts, the Chinese economy is so strong. Many such examples can be given who have become economically prosperous due to hard work and proper planning.

[hedgeh0g]

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?

In reasonable economies of the world, the dynamics of the economy itself is always similar to a balanced Swiss mechanism that works very clearly and subtly, and perfectly senses any changes that come with it, for example, if you look at how important the US economy is to the world, and you will clearly see that they monitor every tenth % because of their rate, they adjust their financial laws and the scales tilt in the right direction in order for the economy to become balanced again, but if you take some CIS countries as an example, then the economy there is not reflected in real numbers at all, because they all seem to be drawn.. And it does not reflect reality.

[Dareo]

The reason for getting rich is not the interest rate but the effort. When you can earn more, you should not have any difficulty in giving some money to the government. Especially for the development of underdeveloped and developing countries, people's tax money is very necessary because it is not possible for the government to develop the country as a whole from within its own economy. If we look at the Chinese economy, we will see that low interest is not the main reason behind the prosperity of their economy. They have been able to enrich their economy so much only through hard work. They have focused on productivity rather than consumption, and instead of importing various components from other countries, they have thought about exporting from their own country to other countries. Because of all these efforts, the Chinese economy is so strong. Many such examples can be given who have become economically prosperous due to hard work and proper planning.

Of course hard work is a big thing but I don't think any country's economy has become strong just by hard work. In China's case, production and long term policy decisions all played a big role. And in personal life it's not enough to just earn more. In addition to increasing income, where the money goes and how it is used for the future are also important.  Because of two people with the same income, one can build wealth in a few years, while the other can spend it all. So hard planning and productivity make the real difference.

[BTC FutureKing]

The reason for getting rich is not the interest rate but the effort. When you can earn more, you should not have any difficulty in giving some money to the government. Especially for the development of underdeveloped and developing countries, people's tax money is very necessary because it is not possible for the government to develop the country as a whole from within its own economy. If we look at the Chinese economy, we will see that low interest is not the main reason behind the prosperity of their economy. They have been able to enrich their economy so much only through hard work. They have focused on productivity rather than consumption, and instead of importing various components from other countries, they have thought about exporting from their own country to other countries. Because of all these efforts, the Chinese economy is so strong. Many such examples can be given who have become economically prosperous due to hard work and proper planning.

To be rich it is necessary to maintain a balance of all things.Neither a person nor a country will develop due to the interest rate alone. And the difficulty in paying taxes arises when the tax money paid by the people is not used for any purpose.The people should pay taxes on time and the government should spend that money on the welfare of the people and the development of the country.China is one of the most developed countries.We should also follow their methods so that our country can also develop.Due to situation the interest rate is reduced and increased. Today inflation is high so the interest rate will also be in accordance with it.The cooperation of both the people and the government is required for the development of the country.If everyone works together our country economy can also prosper.

[Creeper0]

Low interest rates do not make people rich, and changes in interest rates cannot affect a country's wealth or prevent it from becoming rich. There are many reasons behind a country becoming rich, some of which are the proper use of resources, an investable environment, security, and political stability.

Interest is a cycle that never ends. The government has to print more money to pay the interest charged on the total money in the country, and through this continuity, inflation always increases in the country. An interest-based economy will continue like this, inflation will continue to increase. So if interest rates increase, a country's inflation will increase, although this is not mandatory. It can also be an exception if wealth increases.

[Smartprofit]

Low interest rates are a consequence of a catastrophic economic situation. 🙋

What are low interest rates? It means the Federal Reserve/Central Bank is trying to stimulate entrepreneurial activity. Low interest rates mean low bank lending rates. Central banks are essentially telling entrepreneurs, "Aren't you willing to take risks and start new businesses by borrowing at regular interest rates? Then take the money for free, we desperately need entrepreneurs in this country! Start a business!"

However, if entrepreneurs aren't willing to start successful businesses by borrowing at regular rates, they won't be able to start successful businesses by borrowing at zero interest rates. Low interest rates won't improve the economic situation.

At the same time, high rates will destroy even those businesses that exist today... The problems of the modern financial system are much deeper than they seem at first glance.  These are not economic problems at all, but problems related to power and the desire of the ruling elite to monopolize their current position and influence. 🧑‍💻

[Dogedegen]

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.

If you want to say that it is far away with your they are all looking into it, then you are wrong. Happening "right now" can be interpreted in many ways, but if some country is actively working towards this with a date for release then how can we say that it is not happening right now? It is happening right now, the ECB is planning to release a CBDC in 2029. There may be unforeseen issues of all kinds and some delays, but this is not the same as just exploring an idea for some time and then letting it go. It is happening in the sense that they are actively working towards releasing it because they want to release it, it helps create a system of tyranny and control. Bitcoin gives us freedom but we have to fight to protect this freedom or we may be swallowed up by the new CBDC system. Also comparing the ETF time to release has nothing to do with CBDCs, it is like if you compared growing a potato to some kind of tree that takes many years to grow. The time that is needed for those two things have nothing to do with each other because they are completely different things. The only reason why CBDCs are taking time is because they are very new and require a lot of legal and technical solutions, but they are actively trying to roll them out as fast as they can.

Low interest rates are a consequence of a catastrophic economic situation. 🙋

What are low interest rates? It means the Federal Reserve/Central Bank is trying to stimulate entrepreneurial activity. Low interest rates mean low bank lending rates. Central banks are essentially telling entrepreneurs, "Aren't you willing to take risks and start new businesses by borrowing at regular interest rates? Then take the money for free, we desperately need entrepreneurs in this country! Start a business!"

However, if entrepreneurs aren't willing to start successful businesses by borrowing at regular rates, they won't be able to start successful businesses by borrowing at zero interest rates. Low interest rates won't improve the economic situation.

At the same time, high rates will destroy even those businesses that exist today... The problems of the modern financial system are much deeper than they seem at first glance.  These are not economic problems at all, but problems related to power and the desire of the ruling elite to monopolize their current position and influence. 🧑‍💻

So the conclusion of your post is that low interest rates are bad, high interest rates are bad so everything is bad? How is that supposed to make sense? When interest rates are low they don't have to be a bad thing, it depends why things have reached that point. So if it is a very desperate action to stimulate a rapidly deteriorating economy then it is bad. Now in the second part you have a very weird sentence that is also completely false " if entrepreneurs won't borrow at regular rates, they won't start successful businesses by borrowing at zero interest rates". The cost of capital is one of the major things that is used to determine if a investment is profitable. If  we consider a simple 1 year project and if the profit is 3% then an entrepreneur will not start it if the interest rates are 3 or 4% but he may try if they are between 0 to 1%. You make a very bad framing of low interest rates being a sign of a catastrophe. Interest rates can be low for other reasons like when inflation is low or when its equilibrium is simply low. It really depends on what is happening and why it is happening.

[slapper]

Rates are not low. Thats the thing. Fed is at 3.5-3.75 and three members just voted to raise again. Therefore, I am not sure where this "low rates" framing comes from exactly.

The Cantillon Effect. If not, look it up. New money does not necessarily trickle down throughout the economy. First, banks, second, institutions, third, connected investors. At the time it will reach normal people, it has already jacked up all their costs.

I am glad you brought up the stablecoin thing. The GENIUS Act actually prohibits issuers from paying you interest in the present moment. So the yields you are seeing? These are channeled via tokenized Treasury products. You are lending to a government sitting on $40 trillion in debt spending a trillion per year just on interest payments alone. Does that seem solid to you?

While bitcoin ETFs are authorized by JPMorgan, Jamie Dimon says bitcoin is a pet rock. The hypocrisy speaks for itself as to where the real positioning is versus what gets said on camera.

[Emitdama]

The reason for getting rich is not the interest rate but the effort. When you can earn more, you should not have any difficulty in giving some money to the government. Especially for the development of underdeveloped and developing countries, people's tax money is very necessary because it is not possible for the government to develop the country as a whole from within its own economy. If we look at the Chinese economy, we will see that low interest is not the main reason behind the prosperity of their economy. They have been able to enrich their economy so much only through hard work. They have focused on productivity rather than consumption, and instead of importing various components from other countries, they have thought about exporting from their own country to other countries. Because of all these efforts, the Chinese economy is so strong. Many such examples can be given who have become economically prosperous due to hard work and proper planning.

That is not entirely true. It is true in theory, because if you are a developing nation, taxing people, specially the rich, is a way of getting money, not just "people" but companies who make a lot of money, so that government would have more money and can use that to lift everyone out of poverty and give them a chance to grow, which would allow the nation as a whole to do better.

If every single person in your nation has a home, rent or owned, and all of them have it and all of them can afford it, all of them can afford education for kids, a good education that is, and if everyone can go to the hospital without worry, then your nation will grow to be great. The part that is not true, is the part about governments actually using it like that, because we do pay taxes, and our taxes return to us as nothing at all, I pay taxes and I get nothing, a very bad education where kids learn basically nothing or just whatever president wants to dictate, or I go to hospital and have to wait months for a simple MRI,  basically whatever I paid taxes for, is all gone and I get nothing good in return. This is why nobody wants to pay taxes; it makes no sense, and for that reason we do not have anything good going on anywhere; everyone wants to avoid paying taxes.

[Berry2d]

Low interest rates do not make people rich, and changes in interest rates cannot affect a country's wealth or prevent it from becoming rich. There are many reasons behind a country becoming rich, some of which are the proper use of resources, an investable environment, security, and political stability.

Interest is a cycle that never ends. The government has to print more money to pay the interest charged on the total money in the country, and through this continuity, inflation always increases in the country. An interest-based economy will continue like this, inflation will continue to increase. So if interest rates increase, a country's inflation will increase, although this is not mandatory. It can also be an exception if wealth increases.

Observation, to an extent significant change in interest rate helps in balancing a country's economy that is if it is a positive increment rate, all countries economy depends heavily on interest increment and other related factors before we bring in good governance.
One of the primary objective of an investment is for profit generation, the profit may be at a lower rate or a higher rate before it can be noticeable.  So any operation that never operates with a primary objective of profit generation is definitely a bad investment because it is that said profit that is the joy of any investment.

[Byebyebtc]

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?

Well you do have to take advantage of what so ever you get to witness
Regardless I do feel that its not just about interest rates, yes low rates can help individuals become wealthier, but its not just about the low rates, the ideas, businesses, investments, properties etc.. they do is what actually does the job in making them wealthy
So low intrest can actually contribute, but its not like its the reason, as a matter of fact it does depend on the country you are.