The core reason the Fed is not lowering interest rates: no profit to be made.


1- Global overcapacity, if someone expands the money supply to boost consumption at this time, wouldn't that person just be a fool? If no one is consuming, are you encouraging the citizens to borrow and spend? Only an idiot would choose that!
2-China has used its extremely large production capacity to drive down the prices of products that can be mass-produced in China to rock-bottom prices, leaving no profit. What is the point of investment? Isn't investing in production knowing that it is futile?
3- Buying high-quality assets at a low point, may I ask where are the high-quality assets globally? Don't say in China, be more specific, where in China? What are they? The real estate market? Are you waiting for the bottom or waiting to take over? Have you figured it out? The stock market? It's the same. Consumer goods? With so much inventory, are you really waiting for it to be digested by you? [捂脸][捂脸] Commodities? Core resources are tightly controlled, and why bother with non-core resources? If there were really any high-quality assets to buy at a low point in the domestic market, the citizens would have already started investing.
4-Loaning money, which countries need it? What is this loan for? For production? Can they compete with China? If they can't compete, how will they repay? Support anti-government forces? What happens after they take down the current government? Occupy resources, and then what? How to monetize? How to recover costs? A lot of questions.
5-USD interest rate cut, the Renminbi will definitely follow suit, just one sentence, I want to sell cheap goods and strengthen the competitiveness of Chinese manufacturing in the global market. By then, the Renminbi will depreciate at home and appreciate abroad, liquidity will increase domestically, driving up prices, improving corporate profits and residents' incomes. The purchasing power of the Renminbi overseas will still be strong, and the accumulation of Renminbi overseas will become even crazier, equivalent to the USD interest rate cut endorsing the Renminbi's liquidity release.
So, it's not that the dollar doesn't want to lower interest rates, it's that it doesn't know what to do after lowering the rates? #Gate 新上线 WLFI# #九月份加密市场能否突破# #今日你看涨还是看跌?#
FARTCOIN-0.65%
PUMP-5.47%
TA-55.66%
SOL-0.28%
BTC-1.31%
View Original
This page may contain third-party content, which is provided for information purposes only (not representations/warranties) and should not be considered as an endorsement of its views by Gate, nor as financial or professional advice. See Disclaimer for details.
  • Reward
  • Comment
  • Repost
  • Share
Comment
0/400
No comments
Trade Crypto Anywhere Anytime
qrCode
Scan to download Gate App
Community
English
  • 简体中文
  • English
  • Tiếng Việt
  • 繁體中文
  • Español
  • Русский
  • Français (Afrique)
  • Português (Portugal)
  • Bahasa Indonesia
  • 日本語
  • بالعربية
  • Українська
  • Português (Brasil)