Last night, the Us Federal Reserve’s (FED’s) is that the interest rate is again decreasing by 25 basis points. This is the range of interest is between 1.5 and 1.75 per cent in.
Contents
The amount of new money, the higher rate of inflation
This means that it is easy to borrow money, the FEDERAL reserve is required to meet the global economic slowdown. The new money should allow for an increase in inflation.
This is the third time this year that the Federal reserve’s interest rate cuts. In July and september, the rate of interest has also been revised downwards. Bitcoin has only existed for ten years, and during all that time, the interest rates have never been revised downward, until this year.
When is it noticeable?
The news has a direct impact on the financial markets, but it will take some time before the real economy, there is something of that feeling, even if it does happen.
The S&P 500 surged following the announcement of the light at 0.3%, but it is not certain that this is due to the FEDERAL reserve. The cryptomarkten seem to have very little to worry about, the expected interest rate cut. The bitcoin and its contributors even a bit of value in it.
A reduction in the rate of interest is used to expenses to simulate the cost of borrowing and influence. They tend to give a boost to the mortgage markets because there is an incentive for you to refinance or a new mortgage. Or is that a good idea is another matter, as the U.S. has already had a huge mortgage debt of 23 trillion dollars.
Similar to Europe
A similar pattern is also seen in the Netherlands. The European Central Bank has set itself a target imposed at the rate of inflation to just below 2% and to keep it.
The ECB’s two resources, they can have the interest rate adjust, and the economy is pumping out. The two resources are not the issue.
Interest rate cuts have made the money to keep it in a savings account is pretty pointless, and that pensions are less cost-effective. It has also made it cheaper to get a home financing.
Learning from the past
De Hypotheekshop is reporting that major banks like ING and ABN-Amro bank, the interest rates for this year are already four times have been reduced. Rabobank has made three times and the SNS, and Aegon, two of the times.
This year, have a mortgage for more interest rate changes will be reflected in the end of 2018. There are a number of suppliers, which is two to three times a week, interest rates change.
In addition to that, the financial burden is the increase in the value of the property. If you want a house, then it becomes attractive to borrow, but you will need to have a higher amount of loan. If the interest rate is to be adjusted, then this could be for a lot of people have problems. That is what it appears to be the lead-up to the financial crisis of 2008.
A loss of purchasing power, as second means of
In addition to the tinkering with the interest rates, the ECB will also have the money in the economy to inject it. They do this mostly by buying government bonds. Since we informed you on Tuesday all about.
Last month, it decided, outgoing president of the ECB, Mario Draghi, have been opkoopprogramma of the state and the corporate to be able to resume it. Writer Koen Haegens for de Volkskrant, wrote today that, in total, for the 2.500 billion in bonds have been purchased. He argues that the time has come for the ECB to be their obsession with a 2% or less of release.
He looks to be
Back in the united states. The interest rate cut should be music to the ears of the Home (judging from the tweet below, it doesn’t sound like music, and the interest rate is much lower, according to Trump). He has FED several times called upon to take the interest rate down. He is even a proponent of negative interest rates, and want to be as intentional as the value of the dollar is decreasing.
The People are VERY disappointed in Jay, Barry, and the Federal Reserve. The Federal reserve has called it wrong from the beginning, too fast, too slow. They just tightened it in the beginning. Others are running circles around them and laughing all the way to the bank. The Dollar and Rates are you’re hurting…
— Donald J. Trump (@realDonaldTrump) October 31, 2019
Make no mistake about it, what is happening in America, happening around the globe rimpeleffecten. The ECB and China have not yet responded, but today, the bank of Japan, the interest rate is lower. They also have an inflation target of 2 per cent. Japan does not slide under the chairs or sofas that they have ETF’s to buy in order to stimulate the economy, but this tool doesn’t seem to work any more. They have, in fact, too many ETF’s are sold.
So what does this mean for bitcoin? Or better yet, what can bitcoin this mean?
You should be able to say that the more money there is, the more money there is available to you for bitcoin and altcoins to get the value of the increase. That would be, but in this case, it is not of interest to you.
The big picture is that central banks are not subject to political pressure, and a is an arbitrary inflatiegetal to pursue. In order to do this, and are hunting more and more people and companies are in debt, and at the same time, the domestic currency devalued. Euros and dollars are worth less and less as more money is injected. That new money is not circulating in the real economy.
Bitcoin offers a way out of this rat race to the bottom. The cryptomunt is to be decentralized, and to listen to any central banker or a government. Bitcoin can’t be freely reprinted, and there is a maximum range. The rate of inflation, it is well-known, and transparent.
In addition, bitcoin is global and it doesn’t have to compete with other government agencies. A loss of purchasing power does not exist in bitcoin.
Yes, the price can go up and down, but it’s the choice of the market. Not the bankers and the government. There is no safer and better way to get the value to store in bitcoin.