RE: U.S. Stock Market SELLOFF One of the BIGGEST IN HISTORY! Wild Panic Like 2009!

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U.S. Stock Market SELLOFF One of the BIGGEST IN HISTORY! Wild Panic Like 2009!

in stocks •  7 years ago 

In your opinion, what kind of impact will interest rates have on the stock market?

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Sir, I believe you are absolutely right. Companies are using free money form central banks to buy their own stocks and rise the price in the process. Once they run out of free money, there will be blood. And I mean it literally, I see millions of people in the streets protesting the governments, across USA and western Europe especially

It will have to happen unfortunately. All major cities will burn.

Central bankers make their policy according to prof. Knut Wicksell's theory about interest rate - for us it is "pump and dump" model od economy:
https://mises.org/library/value-capital-and-rent-0

Of course, interest rates will demolish the economy, but they are a lagging indicator. Interest rates are only going up in response to inflation and a weak dollar. Thus why gold usually does well during rising interest rate cycles. People are buying gold as a hedge against the dollar, interest rate rises are just playing catch up.