Replying to Avatar Dr. Bitcoin, MD

Perhaps this is a new paradox: interest rates rise whether there are too many or too few dollars.

I asked Grok: If there is a massive dollar shortage around the globe, what happens to interest rates?

Grok says interest rates will rise.

If the dollar suddenly devalues, grok says interest rates will rise.

If massive increase in dollars causes high inflation, Grok says interest rates will rise.

There must be more to this game…because it’s tempting to conclude that interest rates rise when there are too few and too many dollars.
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Jimmythegent 0mo ago

Also have to factor in that Central banks control the short term rates, but the market has more inpact on long term rates

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Karadenizli 0mo ago

I wouldn't call it control over the long term, more like a prediction market on the future fed decisions. If the fed released the rates for the next 20 years today, you would see it right away in the 10 year rate.