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I think this is the Fed trying for a long time to keep interest rates down, because they are worried about it crashing the economy. Everyone, ie the government
by topmonk 7y ago
I think this is the Fed trying for a long time to keep interest rates down, because they are worried about it crashing the economy.
Everyone, ie the government and corporations, have gone into record debt, so they are much more dependent on low interest rates then before.
The recent daily pump of billions into the repo market is the latest play to do this.
This as well as the deficit, is adding a lot of money that has to be placed somewhere. That's why the stocks, gold and bonds have all become more bought at the same time.
Some of this money gets into the hands of banks, who use it as collateral, for lending out even more money.
The banks are the ones, becoming overleveraged, who will be the first to fall.
This is also what my guess is that this escalation in Iran is about. This could also have been why 9/11 occurred. The government wants something to blame for the coming crash. They don't want people to suddenly see the economy crash for no reason and then blame the government, so they start a war to distract and give them something else to blame instead.