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Where Will All the Money Go?mises.org/power-market/where-will-all-money-go
151 sats \ 6 comments \ @Undisciplined 20 Sep econ
By Mark Thornton
The Federal Reserve seems to have finally committed to, but has not yet begun its “rate cutting cycle” of lower interest rates.
If the Fed lowers rates, what will happen to all that money? Here are most of the alternatives:
  1. Part will stay right where it is in various forms of cash and demand deposits.
  2. Part might be invested in stocks and longer-term bond investments, but which ones?
  3. Part might be used to pay off or pay down debts at higher interest rates, such as credit card debt, mortgages, personal loans, etc. and businesses might do the same.
  4. Part could be spent or consumed, or even invested in new businesses.
  5. Part could be converted to alternative or defunct forms of money such as Bitcoin or the metal silver (Ag) which previously and widely served as money.
  6. Part could be sent overseas to stock markets, bond markets, or foreign currency deposits. This type of flow would be influenced by foreign exchange rates, where the dollar has been falling lately.
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39 sats \ 3 replies \ @Satosora 21 Sep
"My thinking or guessing was based on the notion that the Fed wanted to remain perceived as tough on inflation for as long as possible and that they wanted to be perceived—eventually—as coming to the economy’s rescue, rather than just goosing the stock market higher. The Fed plays a “confidence game” with the general public." Doesnt this just make the Fed sound like grifters? They are just waiting for the right opportune time to screw everyone and leave with the money.
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20 sats \ 2 replies \ @Undisciplined OP 21 Sep
It's always worth bearing in mind that the Fed was created by the banks, for the banks, and is run by the banks.
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29 sats \ 1 reply \ @Satosora 21 Sep
But once the economy falls apart, a lot of their assets fall apart with it. They can only make money when others are making money. Total usury.
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0 sats \ 0 replies \ @Undisciplined OP 21 Sep
Yes, but that doesn't mean that what's best for them is best for us.
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36 sats \ 0 replies \ @jerrybature 21 Sep
What seems to fascinate me is the fact that these central bankers are confidently playing their game, knowing fully no one can push them aside by any force. And the rest of us will only have to keep trying to analyse and predict their next move.
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0 sats \ 0 replies \ @Akg10s33 20 Sep
I think the last option would seriously be good! But the truth is that the Federal Reserve and those who control it... think of everything!! And you never know...
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