What is the reason for extremely low interest rates?

the debt is growing at a rate much higher than new money is created by the economy. it's a flaw in the system, because continuously more negative money (debt) appears than new money.
central banks are trying to counter-act it, so countries can remain stable. At some point there will be hyperinflation for any currency inenivitably.
that's the main reason why I'm in crypto, there is simply currency and no debt, which could be managed out of the blockchain. if you own a bitcoin, it's yours.

>more significant than The French Revolution.

*yawn*

>Rothschilds cementing their control over France and Britain which led to the entire world
>not significant

people arent spending

looked for this until now
pic related just to freak you out burger

Interest rates are the price of money. When interest rates are low it is more profitable to borrow money and invest, during recessions governments try to stimulate the economy offering low interest rates to encourage investing.

The problem is that when too much new currency is issued it loses value compared to other currencies, the thing is that un the case of the US dollar other countries don't want their currency to appreciate against the dollar so they follow suit and start lowering their interest rates to keep their currency from appreciating too much, which would make them less competitive in global trade.

So when one major economy lowers their interest rates all others follow suit, so if you want the keep your fiat from losing value you don't really have a viable alternative.

Thank you.
Just to clarify, I think I got this correct

What you are saying is other countries follow the low interest rates because otherwise their economy would suffer?
Because if their interest rates are higher then the dollar for example their economy would be less likely to stimulate investing compared to dollar?
Maybe even causing them to invest in us economy instead of their own country.

I can't agree more, after the Bretton Woods system collapsed the Nixon administration struck a deal with the arab nations so they would only sell oil in exchange of US dollars, so when China, Japan or whoever wants to buy oil from them they need to first acquire dollars. This keeps demands for dollars high so they can keep printing lots of new dollars.

But what happens when we move to renewable energies and other countries stop demanding dollars? They could increase interest rates and reduce supply, but I don't think they will do that they would have to reduce spending a lot. It is more likely that they keep doing the same and the dollar plunges very hard.

A strong currency makes everything you produce more expensive in the international markets, so you can't compete in prices with other countries that have weaker currencies. That's why nobody wants to have a stronger currency than their competitors.

contractionary = low interest
expansionary = high

your economy will be heading to a crash soon

Ah okay thank you

The Jewish bankers want you spending more money and preferably lending money from one of their institutions.

>armchair economist
copy that

Institutional investors are chasing higher yields so when they are trying to decide which countries to invest in they chose the ones with highest yield. Of course taking into consideration the risk of that country so they aren't just going to go invest in high risk like brazil or russia.
So with that you have hundreds of billions of flows being invested into a country. That's flows out of one country with lower interest rates and into a country with higher interest rates. That's hundreds of billions worth of selling the lower yield currency and buying the higher yield currency. For an explicit example of what it's like to suddenly shift hundreds of billions on a major cross check the all of the euro crosses after the SNB stopped buying euro.
Think of it this way. Let's say you're in Europe and your savings account will earn like 0%, but if you could somehow move your savings account to New Zealand it would earn around 1.5%. Wouldn't you rather your money earn the higher yield?
But there is a problem. Let's say you own an Euro company that exports widgets to the rest of the world and you have to sell your widgets for 10eur. Next month the euro is up 10% higher so the rest of the world has to spend 10% more of their money to buy more expensive euros to use those euros to buy your widgets. They might decide to buy it from the chinks instead. And that means fewer people are selling their currency to use to euros to use those euros to buy widgets that means the demand for the euro currency goes down which means it's value goes down. So the over next month the euro currency falls back down.

This is part of a whole thing related to price parity and so on. But that's not the only thing at play here. In the meantime the ECB has released a statement that they think the euro is too high and they are going to intervene in the exchange rate, by that they mean they are going to go perform open market operations. So they might do something like set the interest rate lower, which will drive large institutional investors to sell hundreds of billions of euros and they'll use those euros to buy something else that is higher yielding. Or the ECB may do it themselves and sell billions of euros to buy the equivalent amount of foreign currency. Either way that creates a huge supply in euro and with extra supply the value must go down.

2018 crash remember that

Ill give you the full redpill on this.

currently the system is falling apart, record global debt everywhere. Shipping companies with ships either idle or carrying a reduced amount of products across seas. Retail and Oil sector decimated. With rising state debt.
First the debt, it is so high and so wide ranging that an increase of 1% to 3.5% could mean national bankruptcy. Tax rates sky rocket.
Because america was made the defacto reserves currency and the global economy is so interconnected
the coming stock market collapse will make the 2008 collapse look like bargain. DOW 6000. Yeah Laugh but i said it.

TPTB knowing that they are running out of time and decided to distract the masses, with pointless identity based politics. Notice no one cares about infrastructure or massive national projects like around roosevelt or jfk time. No highways, no highspeed rail, no suez canals, no rocket ships or extra planetary bases just bearded trannies in fucking bathrooms.

The system has reached its limit.
And ((they)) are hoping for another miracle, migrants and refugees by the multi multi millions flowing into europe and america to help pump the system and keep it afloat. This is all desperation tactics from here on out to keep the system afloat. The tensions created will be used put in place a full fledged police state to take root, they'll put up snazzy commercials with a smiling officers. Think "officer john with his high powered rifle scanning little debra with her teddy bear as she smiles". You;ll have checkpoints and constant scares, all to keep the citizenry from rioting and calling for their heads.

So why are interest rates so low...its all about buying time for whats to come

So all of that what they are doing whenever they have appetite to take on risk. But when they are shrinking their appetite to take on risk they do the opposite and unwind all that. So for an example for many years these institutional traders like to sell jpy because it's near zero interest rate and use that to then go buy higher yielding currency mainly the NZD and AUD. Don't forget the rule greater risk requires greater reward and greater reward requires greater risk. So the reason AUD and NZD have higher rates is because they are considered to have more risk. So when there is a major event that happens that causes these large institutional to reduce their risk exposures to do that they will have to sell AUD and NZD that they bought and buy back the JPY they sold before. So this is why JPY is considered a safe haven because in times of risks it's expected a lot of money will be flowing in to buy the JPY.

we lent all the black people money, they defaulted on their payments and irreparably destroyed the banking system.

nobody could have seen it coming

Some may think this user is just meming but actually there is a lot of truths to it because the subprime crisis that took down the two largest investment banks was being heavily forced by people with a leftists social justice type agenda.
This would probably be a decent place to start going down that rabbit hole:
en.wikipedia.org/wiki/Subprime_crisis_impact_timeline

...

Thats a scary future you're predicting there.