Matt Prez on Nostr: Over the last few weeks, banks have been dropping their fixed interest rates by up to ...
Over the last few weeks, banks have been dropping their fixed interest rates by up to 0.60%.
This usually happens when they have intentions of dropping variable rates shortly after.
Normies think this is a good thing.
Because lower rates reduces their mortgage repayments, which will leave more money left over to counter the rising cost of living.
But…
What they fail to see is, lower interest rates means more people can borrow more money.
And every home loan that settles is new money injected into the economy.
In short, lower rates equals more money printing…
Which equals more inflation.
And the cost of everything continues to go up.
Forever.
//
Conclusion:
If you don’t own #Bitcoin or other scare, desirable assets, lower rates in a broken money system mean you’ll slowly get poorer.
The worst part is, most people will never see this, and will think the government and banks are doing them a favour.
//
I was a mortgage broker for 12 years and never really understood this until I discovered Bitcoin. 😳
This usually happens when they have intentions of dropping variable rates shortly after.
Normies think this is a good thing.
Because lower rates reduces their mortgage repayments, which will leave more money left over to counter the rising cost of living.
But…
What they fail to see is, lower interest rates means more people can borrow more money.
And every home loan that settles is new money injected into the economy.
In short, lower rates equals more money printing…
Which equals more inflation.
And the cost of everything continues to go up.
Forever.
//
Conclusion:
If you don’t own #Bitcoin or other scare, desirable assets, lower rates in a broken money system mean you’ll slowly get poorer.
The worst part is, most people will never see this, and will think the government and banks are doing them a favour.
//
I was a mortgage broker for 12 years and never really understood this until I discovered Bitcoin. 😳