Is the Federal Reserve's interest rate manipulation really a miracle tool for stabilizing the economy? one ️⃣ Low interest rates make the market full of illusions: 🟡 Enterprises mistakenly believe that financing costs are low and blindly expand. 🟡 Investors mistakenly believe that assets will always rise, including in the cryptocurrency industry, and are crazily adding leverage. 🟡 The government mistakenly believes that debt has no cost, and the fiscal deficit is getting bigger and bigger. 🟡 But how can economic growth be that simple? Real growth relies on efficiency improvement and innovation driven, rather than the illusion of "printing money+low interest rates". 🟡 When the foam bursts and the market collapses, no matter how the Federal Reserve "rescues" the market, it will only be robbing Peter to pay Paul. The problem has been postponed time and time again, but it has never been resolved. Whenever macro data is released, the market always feels like riding a crazy roller coaster? Sometimes revelry, sometimes plunge. The world is watching the actions of the United States. Is this due to the market being too sensitive, or is there a 'fatal flaw' in interest rate regulation itself? Can the so-called 'stable economy' interest rate tool really stabilize the market? Or is it just creating new instability? two ️⃣ Federal Reserve: "God's Perspective" or "Human Intervention"? What does the Federal Reserve rely on to manipulate benchmark interest rates? The logic is simple - they believe they have "economic wisdom" and can calculate the most "reasonable" interest rates to adjust the market pace. Economic downturn? Interest rate cuts, lower borrowing costs, stimulate corporate investment and household consumption. Is the economy overheating? Raising interest rates, increasing the cost of capital, and cooling down the market. Sounds great, right? But the problem is—— Does the market really need the Federal Reserve to 'guide' interest rates? Imagine in a free market, interest rates should be determined by countless individual games. Bank lending, measuring risk and return; Depositor deposits, considering returns and inflation expectations; Investor financing, evaluating costs and opportunities. Supply and demand determine prices, and interest rates naturally form. But what about the Federal Reserve? The interest rates they set have nothing to do with market supply and demand, the interests of depositors, or even the normal business logic of banks. Their decision has only two paths—— Relying on the wisdom of a few people, confidently believing that one can manipulate the market. Adapt to political pressure, adjust interest rates, and serve short-term interests. As a result, we can see that under low interest rates, borrowers revel, depositors are silent, and the financial foam is blowing bigger and bigger. three ️⃣ Interest rate manipulation: economic regulation or wealth harvesting? If interest rates are the "thermometer" of the economy, who decides the temperature? Is it the market or the Federal Reserve? A simple fact: the interest rate of a free market is naturally formed by countless individuals through competition, game theory, and supply-demand relationships. Banks lending must consider risks, returns, and competitive environment; Depositors need to weigh interest rates, inflation, and future expectations when depositing money. The market mechanism naturally seeks the optimal solution. But the Federal Reserve's interest rate decisions have nothing to do with these. Their adjustments often serve political needs rather than economic laws. Is low interest rates really beneficial to the economy? In the short term, low interest rates make borrowing cheap, the housing market is booming, the stock market is soaring, and consumption is strong. Everyone feels that they have become wealthy. But what about the long term? The cost of capital is artificially lowered, companies misjudge market demand, investors ignore risks, and governments are caught in a frenzy of debt expansion. result? Foam expands, risk accumulates, and finally crisis erupts. What else can the Federal Reserve do when everything collapses? Cut interest rates? Continue to release water? mend the fold after the sheep have been stolen? Can this game really be played forever? four ️⃣ Politics and Economy: Who is Truly Manipulating Interest Rates? Do you think the decisions of the Federal Reserve are entirely rational economic judgments? Don't be naive, there is a deep political logic behind interest rates. What does the president like most when he wants to be re elected? Low interest rates. Economic data looks good, stock market is prosperous, voters are satisfied, and political achievements are shining. What is the most desirable thing for financial capital to arbitrage? Low interest rates. When borrowing money to hype, the leverage is full, and the foam is inflated, the profits are full. But what about ordinary people? Deposits shrink, purchasing power decreases, and wealth is quietly diluted. Sadly, depositors are dispersed individuals with weak voices, unable to influence policies at all. The lie of 'low interest rates are advantageous' has become a political correctness that has been instilled. However, the fact is that low interest rates do not necessarily equate to economic health; they simply conceal problems and push risks back. Low interest rate scam: Seemingly prosperous, but actually in crisis Prosperity is an illusion, crisis is the truth. five ️⃣ What if the market decides its own interest rates? What would happen if we set aside the Federal Reserve and let the market decide its own interest rates? How would a banker make interest rate decisions? If the borrower's risk is high, the interest rate will be high; If the borrower's risk is low, the interest rate will be low. The longer the deposit term, the higher the interest rate; If the deposit term is short, the interest rate will be low. With more market funds, interest rates are lower; If there is less market capital, the interest rate will be high. This is the logic that a market economy should have. Interest rates are a product of market supply and demand, rather than a subjective decision made by the central bank. But the Fed's interest rate adjustments are completely detached from market rules and are more based on political considerations rather than economic logic. What was the result? The United States has transformed from a 'country of savers' to a' country of borrowers'. The financial market is increasingly reliant on cheap funds, and the real economy is becoming increasingly hollowed out. Every financial crisis is the result of low interest rates. Conclusion: Does the Federal Reserve's interest rate regulation stabilize the economy or create a crisis? The benchmark interest rate of the Federal Reserve may seem like an "economic stabilizer," but in reality, it is—— It distorts the market, distorts the investment signal and inflates the financial foam again and again. A truly healthy economy requires free market competition, not the "smart" manipulation of a few people. Do you think the Federal Reserve is saving the economy or creating a bigger crisis? Buy some BTC honestly.