China/PBOC eases their monetary policy - page 2.

Wind_FURY

legendary

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Quote from: Moreno233 on September 25, 2024, 10:30:34 AM

Quote from: Wind_FURY on September 25, 2024, 04:01:06 AM

For the doubters/bears, that probably will confirm that we are indeed in a bull cycle, no? Cool

What are the best investments that's not Bitcoin?

To me I think stocks should be a perfect option beside Bitcoin. Since rate cut is becoming a trend among the biggest economies, money will definitely move to stocks because investor are following where the maximum profit is possible.

It's probably Gold and other surging precious metals if you ask me. Plus don't hold everything in Gold certificates. Buy a vault, and HODL actual Gold coin pieces that you can trade physically. Cool

Quote from: Lucius on September 26, 2024, 05:37:21 AM

Quote from: Wind_FURY on September 25, 2024, 09:09:55 AM

~snip~
It's very VERY good, but the Federal Reserve and the Central Banks around the globe should be careful of re-inflation. Because the world uses the Dollar was its reserve currency and all their currencies are pegged on the value of the Dollar, the U.S. has the ability to "export" that inflation.

Everyone who knows a little about economics is aware that things that have been happening for decades cannot be fixed with these kinds of measures. Central banks simply have no choice but to raise interest rates in certain periods, and then cut interest rates afterwards, because this is obviously the only mechanism they can use to save the financial system from completely collapsing.

If everything in the world is measured in constant economic growth, which is simply not possible because we live on a planet that we use to the extent that we spend twice as much as the same planet can regenerate, then a very gloomy future awaits us unless there are drastic changes at all levels of society in which we live.

It is true that the USD is still holding up well as the world's reserve currency, but do you think that the BRICS will manage to change something about that? USD dominance has fallen by approximately 7% since 2016.

Interesting link with more info : Dollar-dominance-monitor

But the problem - Monetary Policy is controlled by a Cabal, and therefore it could be highly politicized to favor a small group of individuals. That's a sort of poison that's harming our society. Bitcoin is the antidote.

Lucius

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Quote from: Wind_FURY on September 25, 2024, 09:09:55 AM

~snip~
It's very VERY good, but the Federal Reserve and the Central Banks around the globe should be careful of re-inflation. Because the world uses the Dollar was its reserve currency and all their currencies are pegged on the value of the Dollar, the U.S. has the ability to "export" that inflation.

Everyone who knows a little about economics is aware that things that have been happening for decades cannot be fixed with these kinds of measures. Central banks simply have no choice but to raise interest rates in certain periods, and then cut interest rates afterwards, because this is obviously the only mechanism they can use to save the financial system from completely collapsing.

If everything in the world is measured in constant economic growth, which is simply not possible because we live on a planet that we use to the extent that we spend twice as much as the same planet can regenerate, then a very gloomy future awaits us unless there are drastic changes at all levels of society in which we live.

It is true that the USD is still holding up well as the world's reserve currency, but do you think that the BRICS will manage to change something about that? USD dominance has fallen by approximately 7% since 2016.

Interesting link with more info : Dollar-dominance-monitor

Moreno233

sr. member

Activity: 434

Merit: 253

Quote from: Wind_FURY on September 25, 2024, 04:01:06 AM

For the doubters/bears, that probably will confirm that we are indeed in a bull cycle, no? Cool

What are the best investments that's not Bitcoin?

To me I think stocks should be a perfect option beside Bitcoin. Since rate cut is becoming a trend among the biggest economies, money will definitely move to stocks because investor are following where the maximum profit is possible.

Quote from: avikz on September 25, 2024, 09:19:59 AM

I am sure, some more Nations will decide to decrease the interest rate as the global spending slows down. Government needs to find ways to increase it and rate cut is just one of the ways.

While most big economies are cutting rates to boost their economies, the reverse is happening in most African countries. Nigeria for instance, raised interest rate to 27.5% from around 15% that it was previously amidst excruciating economic realities in the country, the reason for this I do not know because the economy is practically dead.

avikz

legendary

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When you hear news about the rate cuts in multiple Nations, it is usually a good news for the overall economy. Rate cuts usually happens when the inflation falls within a controllable zone. Rate cut happens to encourage the population to spend more so that more money is circulated in the economy. So China is probably trying to increase spending of their citizens to revive their economy. Same applies for the United States of America.

I am sure, some more Nations will decide to decrease the interest rate as the global spending slows down. Government needs to find ways to increase it and rate cut is just one of the ways.

Wind_FURY

legendary

Activity: 2898

Merit: 1823

Quote from: Lucius on September 25, 2024, 04:24:06 AM

In the last days (and months) everyone decides to push their economies in this way, and now it's up to investors to accept the game and start new investment cycles. China is no exception in this sense, and according to what can be read, they have big problems with companies in the real estate business, which they obviously cannot solve at all.

It's probably contracting, or projected to contract. They're pivoting to a "less tight" monetary policy like the lowering of required down payments for buying real estate.

Quote

Rates cuts are probably a good signal for global markets, and as far as investing in BTC is concerned, it is logical to expect that part of the money will flow in that direction, although one should not expect a large share of China, which still has a firm attitude towards the ban of such activities. Of course, people in China continue to invest in cryptocurrencies, but it's all on the black market and makes up a very small share of what it was before the ban.

It's very VERY good, but the Federal Reserve and the Central Banks around the globe should be careful of re-inflation. Because the world uses the Dollar was its reserve currency and all their currencies are pegged on the value of the Dollar, the U.S. has the ability to "export" that inflation.

Lucius

legendary

Activity: 3234

Merit: 5637

Blackjack.fun-Free Raffle-Join&Win $50🎲

In the last days (and months) everyone decides to push their economies in this way, and now it's up to investors to accept the game and start new investment cycles. China is no exception in this sense, and according to what can be read, they have big problems with companies in the real estate business, which they obviously cannot solve at all.

Rates cuts are probably a good signal for global markets, and as far as investing in BTC is concerned, it is logical to expect that part of the money will flow in that direction, although one should not expect a large share of China, which still has a firm attitude towards the ban of such activities. Of course, people in China continue to invest in cryptocurrencies, but it's all on the black market and makes up a very small share of what it was before the ban.

Wind_FURY

legendary

Activity: 2898

Merit: 1823

Quote

The most important move was a 20bp cut to the benchmark 7-day reverse repo rate, bringing the new rate to 1.5% from 1.7%. Given previous patterns, markets had been leaning toward expecting multiple 10bp rate cuts, so a 20bp cut represents a slightly stronger than expected move. However, the net impact will depend on whether we see further cuts ahead or whether the PBOC falls into a wait-and-see mindset after today's policy package.

The second more well-signalled move was a 50bp cut to the required reserve ratio (RRR), bringing the RRR for major banks down to 9.5% from 10.0%. This move in our view is mostly to help buoy sentiment, as the current issue is not banks lacking the funds to lend, but rather a lack of high-quality borrowing demand amid downbeat sentiment. As we saw with the February RRR cut, this is unlikely to have a major impact on credit activity by itself, but in conjunction with the rate cut could help support credit activity.

https://think.ing.com/snaps/pboc-unveiled-a-monetary-policy-easing-package-in-bid-to-support-growth/

It's not turning on their money printer to make to go "BRRRRR", but this is definitely a stimulus package to encourage more spending and growth in China's economy.

For the doubters/bears, that probably will confirm that we are indeed in a bull cycle, no? Cool

What are the best investments that's not Bitcoin?

Topic: China/PBOC eases their monetary policy - page 2. (Read 286 times)