Science popularization topic on countdown to interest rate cuts (2) Why is everyone saying that if the Federal Reserve cuts interest rates, it will benefit the US stock/cryptocurrency market and create a bull market? Regarding this issue, let's briefly sort it out for our brothers Actually, the basic logic is quite simple If the Federal Reserve cuts interest rates, funds will not be able to stay in banks and will run out. But the bear like manufacturing industry in the United States has basically no investment opportunities, and in the end, they all end up in the stock market. So theoretically, the US stock market will rise. The investment sentiment in the US stock market will be linked to the rise of the cryptocurrency market. If the Federal Reserve raises interest rates, funds will flow to banks, and the stock market will inevitably lack funds. At this normal time, the stock market is bound to decline. Of course, the above are normal economic laws. But if the economy does not develop according to the law, it indicates that human intervention has occurred. So when the Federal Reserve raised interest rates, the US stock market violated normal economic laws and experienced a significant rise. It must be because someone interfered. So who is interfering in the US stock market? In fact, by finding another anomaly, we can know who is interfering. When the Federal Reserve raises interest rates, it is also tightening the market's US dollar currency. But at this time, the treasury bond of the United States has been expanding rapidly. Every dollar increase in the treasury bond of the United States means that the United States has invested another dollar in its own territory. This anomaly is already large enough. And it's also very weird. On one hand, raising interest rates to withdraw US dollars from the United States, while on the other hand, adding US dollars to the domestic market. The current liquidity within the United States is similar to a strange math problem we learned when we were children, which everyone used to criticize as unreasonable. What is this question? Put water under a pool and add water on top at the same time. When can the water tank be filled with water. As long as the treasury bond of the United States expands fast enough, even if the United States is raising interest rates, there will be enough funds flowing in the United States. As long as the liquid US dollar can overflow, the stock market will rise. We grew up feeling that this math problem was already quite bizarre, but we never expected that this bizarre thing would actually exist. So why is the United States doing this? Because the United States hopes to raise interest rates and tighten the foreign exchange of the US dollar in other countries around the world, it is best to let you experience an economic collapse due to the lack of the US dollar. However, raising interest rates will also affect the liquidity within the United States itself. Don't let the tightening of the US dollar cause the economies of other countries around the world to not collapse, but your domestic liquidity will decrease and you won't be able to hold on for the time being. The stock market and real estate market collapsed first. That's why this weird thing happened.