Central banks higher rates will finish wars

[Oneone1]

In the higher rates there is not enough financies to boost wars.
Also there is not enough to keep long positions on oil wheat gas markets with higher rates fiscal situation.
But its too bad for usdt since this liquity was held of blackmarket glencore trades if wars stops it can depegg.
If wars don't stop big instutions like bl vanguard will lose funds only glencore wins not usa.becauase on higher rate no funds for LONG positions.

The truth- our life in world depemds of the markets exchangers long / short even if you can't understood nothing about it the long and short will dictate your life

"Economic truth makes you free understood money and econony u understood politics"

[Mrbuck]

In the higher rates there is not enough financies to boost wars.
Also there is not enough to keep long positions on oil wheat gas markets with higher rates fiscal situation.
But its too bad for usdt since this liquity was held of blackmarket glencore trades if wars stops it can depegg.
If wars don't stop big instutions like bl vanguard will lose funds only glencore wins not usa.becauase on higher rate no funds for LONG positions.

The truth- our life in world depemds of the markets exchangers long / short even if you can't understood nothing about it the long and short will dictate your life

"Economic truth makes you free understood money and econony u understood politics"

It make sense because wall st lose money because of this also it's not time to long oil anymore blackrock want short so its not accepted if both sides hit each other oil fields.

Trump said both of them russia and ukraine need to stop because wall street need to short now all if wars going on they cant short yes now blackrock losing money its a mess

[abhiseshakana]

I think money doesn't stop circulating just because high interest, as long as incentives offered remain attractive, investors will play along. What change when interst rate higher are the level of return demanded by investors, the reduction in leverage, and the allocation of capital becoming far more selective. When interest rates skyrocket, what i will do as investor I will put my money on asset that give profit which can outweigh the current high cost of capital. Higer demanded return is mandatory. I wouldn't think about using debt for investment. I will not spread my investment carelessly, i will choose specific project , commodity or country which truly essential, with commensurate risk and have super profitability.

On war condition, scarcity of energy and foods are really happen and make profit in this sector surged, so because demanded returns is match with rise in commodity price, capital will continue to flow just become more selective. Some risk taker investor think war condition are perfect time to multiple their money. For vanguard and blackrock, money just flowing out of the blackrock portfolio (on paper) shifting towards physical assets controlled by Glencore merely because more fruitfull incentive. I always amaze with market that always finding a way and shortcut to keep informal money circulation flowing. Matter of fact money talking, as long as spreads from international trade (legal or black market) can create profit.

[DrBeer]

The question is, from which perspective should we look at this? For example, a terrorist state with a totalitarian regime will weather this problem quite easily - the economy simply shifts to a "war footing", the "state" takes all resources, and people become full-fledged slaves to the authorities, mere resources that the government uses as it sees fit. And there’s no problem with high interest rates there, because, generally speaking, no market economic laws apply.

For other countries, however, war is a huge problem for the economy.

[GhostOfBitcoin]

I think there’s some hyperbole here regarding how much our livelihoods depend on USDT’s market positioning. While high-interest rates do impede liquidity within markets making maintaining larger long positions more challenging for traders the value of USDT is largely predicated upon trading volumes, regardless if they be found in black markets or otherwise dealing in commodities.

When the dust settles with respect to the current war being waged around us, we can safely assume that normal liquidity levels will once again flow back into these markets. And while this isn’t exactly the most likely scenario to unfold for those engaged in futures markets, it’s highly probable that this won’t prove too great a threat to this particular stablecoin going forward.


With respect to long/short positions maintained at all times within futures markets, this does indeed serve as one means of understanding various economic trends and shifts happening throughout global economies alike but don’t forget that our day-to-day existences are dictated by far more tangible factors such as availability of goods fulfilling market demands, inflationary pressures, and policies established by our respective central banks!

As such, it would behoove us all to take time understanding this intricate dance played out across economic/political landscapes… but let’s try not limit ourselves only focusing on crypto trades?

[Fullbear2222]

In the higher rates there is not enough financies to boost wars.
Also there is not enough to keep long positions on oil wheat gas markets with higher rates fiscal situation.
But its too bad for usdt since this liquity was held of blackmarket glencore trades if wars stops it can depegg.
If wars don't stop big instutions like bl vanguard will lose funds only glencore wins not usa.becauase on higher rate no funds for LONG positions.

The truth- our life in world depemds of the markets exchangers long / short even if you can't understood nothing about it the long and short will dictate your life

"Economic truth makes you free understood money and econony u understood politics"

U mean ? War is LONG and Green ? No War is Short bearish Red?
If so then yes soon wars should be stopped or paused because time for short bearush

[atookz]

High interest rates may increase the cost of debt, but that doesn't necessarily mean wars end. Countries that want to fight a war actually finance it in a variety of ways: taxes, printing money, or incurring long-term debt — not through long commodity positions. The proof is that, despite the skyrocketing of global interest rates since 2022, the Russia-Ukraine war has continued to this day.

One claim is that USDT would depeg if the war stopped, but this isn't true. USDT is backed by cash and T-bills and is not at all reliant on commodity trading of any single entity. If there's any depeg risk, it's about the transparency of Tether's reserves, not war geopolitics.

What makes more sense is what @abhiseshakana said: money doesn't stop flowing just because rates go up — it just becomes more selective. Some institutions may profit from war, as a result of disruptions in supply; not all sectors automatically lose.

[STT]

The current wars are massive loss makers and have no real upside, they are vanity wars engaged by the idle rich is a fair summary.
    Few people would spend their own money, send their own family towards an unnecessary war which achieves no positive for either side and endangers your own country far more then protects any mainstream interest beside oil and gas perhaps.

[Opiate32]

In the higher rates there is not enough financies to boost wars.

I think high interest rates can make war more expensive but not finish wars. Governments can keep financing military deficits, taxes or other sources even when borrowing becomes more expensive. The problem is what happens when interest payments start taking more of the budget and there is less room for other spending.

So for me, higher rates are more of a financial pressure on government than a direct way of ending war. The government may be forced to make harder choices but that does not mean it will choose to stop fighting.

[boyptc]

U mean ? War is LONG and Green ? No War is Short bearish Red?
If so then yes soon wars should be stopped or paused because time for short bearush

As if there's a kill switch for it just we can just pull down to turn it off and stop.

Reality is there's no way for it to stop but only for these leaders to declare peace and truce all over the regions which are affected by the war.

What they need is peace talk, agreement where all parties involved are winning on the deal that they'll offer to each other.

[Accardo]

I think high interest rates can make war more expensive but not finish wars. Governments can keep financing military deficits, taxes or other sources even when borrowing becomes more expensive. The problem is what happens when interest payments start taking more of the budget and there is less room for other spending.

So for me, higher rates are more of a financial pressure on government than a direct way of ending war. The government may be forced to make harder choices but that does not mean it will choose to stop fighting.

The government will have options like forced war bond on investors who would want to finance them during war, though the risks would get higher, and inflation skyrocketing on citizens, the government wouldn't back down on war because of high interest rate, moreover, what war are currently talking about? the kind of war that could get the government in a tight corner financially would be if there's world war III, as for what we're seeing currently, it's not much of a big deal to worry about funding due to high interest rates.

[BlackHatCoiner]

On USDT, you've got it backwards. Tether holds a huge pile of T-bills, so higher rates have made them absurdly profitable. They're basically the happiest winners of the rate hikes. If anything kills the peg it won't be peace breaking out.

I agree with the rest. Understand money and you understand politics...

[Proty]

Most people usually neglect the fact that financial markets decisions can affect them in  many ways. The availability of cash for businesses and transactions can be affected by interest rate, also there are things that can affect a whole economy such as changes in commodities and liquidity. There is no need to know everything about the market, but it is good to have a good understanding on how certain things works like interest rates, money and the market, this can be a guide in making good financial decisions.

[viljy]

~
The truth- our life in world depemds of the markets exchangers long / short even if you can't understood nothing about it the long and short will dictate your life

Well, that’s no longer the case. Nowadays, logistics is becoming more important, and so‑called trading capital is taking the lead. The times when the tail was wagging the dog (when the paper prices of financial speculators dominated the economy) are gone forever. Generally speaking, according to Wallerstein, the growing financialization of the economy is a sign of a descending Kondratiev wave (what we’ve been observing since the 1990s), i.e. the end of a cycle. Now a new cycle is beginning.

The dominance of different forms of capital within the cycle is approximately as follows: the rising wave is trade capital, the peak is industrial capital, and the falling wave is financial capital. This is one variant.

However, many scholars believe that the outgoing wave was actually the last one. Because capitalism is dying. Why will there be no more capitalism? Because the labor of robots will cost about 0. Consequently, there will be no effective demand, mass production will lose its meaning, and capital accumulation will become impossible - which is the main goal of capitalism.

P.S. Perhaps capitalism will return in a new guise in about 200 years. This will happen when the value of control over spaces (both physical and virtual) is devalued. This is likely to happen as a result of expansion to other planets in the solar system, in one form or another. There will be too many spaces, and control will become worthless. An analogy from history: the discovery of the New World (America).

[ruykeri]

Most people usually neglect the fact that financial markets decisions can affect them in  many ways. The availability of cash for businesses and transactions can be affected by interest rate, also there are things that can affect a whole economy such as changes in commodities and liquidity. There is no need to know everything about the market, but it is good to have a good understanding on how certain things works like interest rates, money and the market, this can be a guide in making good financial decisions.

But for a common people  it is not easy to understand how politics can be related to the economy so quickly and why interest rates increase and what kind of impact it has on business or transactions. There is a connection between interest rates, inflation and spending, which automatically affects people even if they do not understand it. Now, if the central bank increases interest people will naturally want to take bank loans less and will be more inclined towards saving if they have this opportunity. And those who have run a business with loans or want to start a new one, will naturally sell their business products at a higher price due to the higher interest rate. Because if they had to pay interest on the loan earlier at $1000 per year, if it increases to $1400 then they will definitely increase the price of their product. Now if the price of a product increases people will not buy that product unless they need it more. So ultimately if the interest rate increases, its effect can be read in various ways. However based on all this it is not possible to actually predict what the financial situation will be like in the future. Therefore it is good to have knowledge about this subject but we should not make hasty decisions. And a person should consider the current financial situation in the world and give concentration how we can ensure his financial security in the future.

[pooya87]

Isn't it the exact opposite?

The higher rates is the warmongers' way of raising more funds for their criminal wars around the globe. They need to raise the rates to encourage people to "lend" them money so that they can wage their wars.

It is also a chain of events that comes back on itself (like a circular thing!).
They wage wars --> It damages the economy --> Price of everything goes up --> They raise the rates --> That damages the economy even more --> They run out of money to wage their wars --> They start borrowing more but the economy is screwed so they need to raise it even higher to encourage people to lend them money --> It damages economy even more ....
This goes on until the whole corrupt system falls apart.

[BlackHatCoiner]

Isn't it the exact opposite?

The higher rates is the warmongers' way of raising more funds for their criminal wars around the globe. They need to raise the rates to encourage people to "lend" them money so that they can wage their wars.

Why going through all this?

The Treasury hates high rates. Every hike makes its own interest bill bigger. If you're a warmonger who needs cash, you want rates on the floor and the printer warm. That's exactly how the big wars were actually paid for. During WWII the Fed pinned long bond yields at around 2.5% and let inflation eat everyone's savings. Nobody had to be "encouraged" to lend. Way more efficient than offering people 5%.

[Cryptomultiplier]

Most people usually neglect the fact that financial markets decisions can affect them in  many ways. The availability of cash for businesses and transactions can be affected by interest rate, also there are things that can affect a whole economy such as changes in commodities and liquidity. There is no need to know everything about the market, but it is good to have a good understanding on how certain things works like interest rates, money and the market, this can be a guide in making good financial decisions.

Financial knowledge helps with financial management practice and it's good as you have said to understand that high interest rates and heavy debts are some of the major causes why money comes into a tight squeeze both for the markets, the individuals and the government as whole.
Modern markets drive global policy and trade and that's why it's necessary to understand how to be at an advantage with the use of long or short positions mostly as it revolves around energy, agriculture, technology and automation.

Also, it's important to know that high interest rates is a major reason why funding wars is very expensive and it's not a reason why wars end in the first place. Other factors play a much significant role.

[pooya87]

Isn't it the exact opposite?

The higher rates is the warmongers' way of raising more funds for their criminal wars around the globe. They need to raise the rates to encourage people to "lend" them money so that they can wage their wars.

Why going through all this?

The Treasury hates high rates. Every hike makes its own interest bill bigger. If you're a warmonger who needs cash, you want rates on the floor and the printer warm. That's exactly how the big wars were actually paid for. During WWII the Fed pinned long bond yields at around 2.5% and let inflation eat everyone's savings. Nobody had to be "encouraged" to lend. Way more efficient than offering people 5%.

Maybe it's a matter of faith now.

Think about it... During WW2 the US was on the other side of the world and the European War II wasn't taking place on US soil. The infrastructure of rest of the world was being destroyed while US remained intact. That's what helped them begin turning the dollar into the world reserve and start dominating (something that helped them win WW3 aka Cold War). At the time everyone had faith in it (and no other choice) so they started buying the lie; also the US didn't need to incentivize them to do so.

Today in the midst of WW5 with strong global dedollarising and the US economy getting weaker every day, with production having long migrated to elsewhere and with its ginormous national debt of over $40 trillion, nobody has any faith in the future of US, its economy or the dollar for that matter. The only way anybody would buy those bonds now is if they are highly profitable. Hence the higher rates as the incentive to "purchase" the faith.

[slaman29]

Think about it... During WW2 the US was on the other side of the world and the European War II wasn't taking place on US soil. The infrastructure of rest of the world was being destroyed while US remained intact. That's what helped them begin turning the dollar into the world reserve and start dominating (something that helped them win WW3 aka Cold War). At the time everyone had faith in it (and no other choice) so they started buying the lie; also the US didn't need to incentivize them to do so.

Today in the midst of WW5 with strong global dedollarising and the US economy getting weaker every day, with production having long migrated to elsewhere and with its ginormous national debt of over $40 trillion, nobody has any faith in the future of US, its economy or the dollar for that matter. The only way anybody would buy those bonds now is if they are highly profitable. Hence the higher rates as the incentive to "purchase" the faith.

And recently there have even been more 'research' and studies that I find in my email and shared in my old groups telling about how stock markets, forex, trading what not, simply can't challenge the returns of bonds in the long term.

While its true that trading is generally unprofitable for most people and guys like Buffet are just overperforming, find it hard to believe bonds perform better than blue chip dividends form tobacco and oil and gas.

This kind of interest rates, who will ignore them?