Imagine you were a Bank
Usually Banks have to pay 1,5% - 4,5% Interest on the loans they take from the Fed and they can usually borrow funds around 10x the colletteral reserve they own ... we would call this a 10% colletteral reserve ...
FED Yesterday : Interest Rate = 0% & Colletteral reserve = 0%
Now Banks don't have to pay any Interestto the Fed and they can borrow unlimited amounts independant of the colletteral reserve they own ???
Now that's a money machine for the Banks ... they can literally create infinite amounts of cash from now on ... INSANITY ... This is so totally insane it actually means that the dollar is going to be worth close to nothing very soon ...
Why would you let lost Banks print infinite amounts of money anyway ?
It's a life threatening stimulus for the halfway halted markets because the almost completely broke banking sektor can now save their bankrupt businesses by creating this cheap money and speculating the shit out of the halfway dead markets and blow up a bubble of dimensions that you will be able to hear the burst beyond deep space nine ...
This is dead serious not only for the US of A the Oil Price is a Strong indicator for the US Dollars health because Crude Oil is traded in Dollars and Oil traders have to keep a certain amount of USD in their portfolio in order to be able to trade ... Now that the Oil price is at 30USD instead of 60USD these traders actually just move or even hold half the portfolio they used to wich leaves great stains on the dollars real value ...
Actually Crypto is the only Option left ... !
Even the Governments and Global Players agree that a Blockchain based and Digital Currency is necessary to save our economy we have missed out on this way too long ... The Problem is the Governments of the World don't like the decentralized concept they feel the loss of Power ... But that exactly that is the point ... The Government needs to loose this Power because it proved its own incapability to manage the economy repetetively ...
Fed Rate Cut to ZERO and Colletteral Reserve to ZERO !
By stereoIII6 | Cryptoholic | 17 Mar 2020
How do you rate this article?
0
a widely held but fixed and oversimplified image or idea of a particular type of person or thing. #weMakeImpact #PAYC
Crypto Research... Crypto News... Crypto Alerts...
Send a $0.01 microtip in crypto to the author, and earn yourself as you read!
% to author / 80% to me.We pay the tips from our rewards pool.