Inflation Vs Interest Rates Explained

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  • เผยแพร่เมื่อ 5 ก.ย. 2024

ความคิดเห็น • 163

  • @Riggsnic_co
    @Riggsnic_co หลายเดือนก่อน +62

    Interesting , the stock market is currently experiencing a decline while bond yields are on the rise. However, there seems to be skepticism amongst investors regarding the Federal Reserve's plan to continue increasing interest rates until inflation is stabilized. As for myself, I find myself at a crossroads, uncertain whether to liquidate my $250,000 stock portfolio> I'm seeking advice on the best strategy to capitalize on this current bear market.

    • @kevinmarten
      @kevinmarten หลายเดือนก่อน +4

      Investing in stocks can be a wise decision, especially if you have a reliable trading system that can lead you to fruitful days of success.

    • @Jamessmith-12
      @Jamessmith-12 หลายเดือนก่อน +1

      It's understandable that the current mass hysteria and panic are palpable. After all, we're not used to dealing with troubled markets. However, as you rightly pointed out, there are options available if you know where to look. Personally, I've been able to make a profit of over $850k in the last 10 months. It wasn't a complicated strategy that I used, I just knew that I needed a reliable and robust approach to navigate these trying times. That's why I hired a portfolio advisor.

    • @JacquelinePerrira
      @JacquelinePerrira หลายเดือนก่อน +3

      You have a very valid point, I started investing on my own and for a long time, the market was really ripping me off. I decided to hire a broker, even though I was skeptical at first, and I beat the market by more than 9%. I thought it was a fluke until it happened two years in a row, and so I’ve been sticking to investing via an analyst.

    • @Jamessmith-12
      @Jamessmith-12 หลายเดือนก่อน +3

      This sound interesting. I’m not really one to use pro analysts, but I guess it would not hurt to try one. My portfolio is in the red waters right now

    • @JacquelinePerrira
      @JacquelinePerrira หลายเดือนก่อน +3

      When ‘Carol Vivian Constable’ is trading, there's no nonsense and no excuses. She wins the trade and you win. Take the loss, I promise she'll take one with you.

  • @owoadeenoch2814
    @owoadeenoch2814 ปีที่แล้ว +53

    I'M NEW TO BTC AND I'VE BEEN MAKING LOSSES TRYING TO MAKE PROFIT MYSELF IN TRADING...I THOUGHT TRADING ON DEMO ACCOUNT IS JUST LIKE TRADING THE REAL MARKET... CAN ANYONE HELP ME OUT OR AT LEAST ADVICE ME ON WHAT TO DO?

    • @Judynowakowski
      @Judynowakowski ปีที่แล้ว

      That is true, you need an expert trader to make good profit from cryptocurrency trade

    • @Judynowakowski
      @Judynowakowski ปีที่แล้ว

      And this is the perfect time to invest in cryptocurrency because of the rise in cryptocurrency.

    • @allimohammedmohammed8299
      @allimohammedmohammed8299 ปีที่แล้ว

      Trading with an expert is the best strategy for newbies and busy investors who have little or no time to monitor their trade.. I will advice you to stop trading on your own it's very risky. Seek advice of a professional trader.

    • @arinzeamaonye2936
      @arinzeamaonye2936 ปีที่แล้ว

      How can someone know a professional trader that is trustworthy when legit ones are hard to find this days.

    • @arinzeamaonye2936
      @arinzeamaonye2936 ปีที่แล้ว

      💯💯💯

  • @megumidono343
    @megumidono343 2 ปีที่แล้ว +47

    Very straightforward and easy to follow. Everything was made simple to understand and not one bit overwhelming. Thank you for making this video.

    • @KINGCADEMY
      @KINGCADEMY  2 ปีที่แล้ว +4

      Thank you for your comment Megumi, I'm really pleased you liked the style. Stay tuned for more :)

  • @lindonnikprelaj5403
    @lindonnikprelaj5403 ปีที่แล้ว +3

    Im confused at the segment at 2:28
    I have a normal salary job like most people
    Why would i spend more money if interest rates are low, when i'm just paid a regular salary
    I'm not aware of people borrwing money from the banks so they could buy more things, dinner, vacation, etc.

  • @Mike-gz4xn
    @Mike-gz4xn 2 ปีที่แล้ว +19

    No. Your causation ultimately is supply and demand. Low interest rates causes higher demand = higher prices. . This is NOT inflation folks. To ad to that, higher demand equals higher short term prices, but long term causes more supply (more incentive) and prices come down. You ultimately gain more jobs and a more abounded product or service. Everyone is better off.
    What we have here is monetary inflation caused by excess digital and physical currency from the fed. This gives the government more money short term (essential a transfer of capital to them) but causes long term devaluing of everyone’s dollar.

  • @ayushkalia5245
    @ayushkalia5245 2 ปีที่แล้ว +8

    You explained this concept in the simplest way...I loved it

    • @KINGCADEMY
      @KINGCADEMY  2 ปีที่แล้ว

      Hi Ayush, really glad you liked it. Stay tuned for more vids!

  • @kortyEdna825
    @kortyEdna825 17 วันที่ผ่านมา +4

    The belief that the Federal Reserve would stop raising interest rates was the driving force behind the entire economic chaos. What should we do now that we have a situation where interest rates are crashing? At this point, how would you suggest that I safely allocate $300k?

    • @PatrickFitzgerald-cx6io
      @PatrickFitzgerald-cx6io 17 วันที่ผ่านมา +3

      Although the market is currently volatile, aren't the current valuations a result of the Federal Reserve's monetary policy and low interest rates? Therefore, my recommendation is that you consult a financial advisor who can give you entry and exit points for the shares that you are interested in.

    • @brucemichelle5689.
      @brucemichelle5689. 17 วันที่ผ่านมา +2

      Agreed, my portfolio is well-matched for every market season yielding 85% from early last year to date. I and my CFP are working on a 7 figure ballpark goal, tho this could take another year. IMO, financial advisors are the most sought-after professionals after doctors.

    • @foden700
      @foden700 17 วันที่ผ่านมา +2

      How can I participate in this? I aspire to establish a secure financlal future and am eager to participate. Who is the driving force behind your success?

    • @brucemichelle5689.
      @brucemichelle5689. 17 วันที่ผ่านมา +1

      There are a handful of experts in the field. I've experimented with a few over the past years, but I've stuck with ‘’Aileen Gertrude Tippy’’ for about five years now, and her performance has been consistently impressive. She’s quite known in her field, look-her up.

    • @foden700
      @foden700 17 วันที่ผ่านมา

      Thanks a lot for this suggestion. I needed this myself, I looked her up, and I have sent her an email. I hope she gets back to me soon.

  • @Yourluxuryhomelady
    @Yourluxuryhomelady ปีที่แล้ว +1

    Thankyou this was very helpful - would be amazing if someone did weekly/ monthly updates so we could see visually the movement in things

  • @MartinHaumann1
    @MartinHaumann1 8 หลายเดือนก่อน

    Very good and simple. Good thing you mention that "this is just the theory".

  • @hosseinhayer5618
    @hosseinhayer5618 3 หลายเดือนก่อน

    the only video that made my mind clear about this topic

  • @kellyja8
    @kellyja8 2 ปีที่แล้ว +1

    We are told cpi represents inflation, but cpi leaves many essential things out. Rent, for example. Rents in many us cities doubled from 2010 to 2020, yet cpi was one or two percent.

    • @KINGCADEMY
      @KINGCADEMY  2 ปีที่แล้ว

      Correct, I did a video on CPI as well, check it out :)

  • @jamesmiyotheVocalist
    @jamesmiyotheVocalist หลายเดือนก่อน

    NICELY EXPLAINED

  • @jibranmukhtar1
    @jibranmukhtar1 2 ปีที่แล้ว +4

    I don't understand. According to your explanation, they are inversely correlated but in the chart you show at 3:47 it appears directly correlated.

    • @doddamanga
      @doddamanga 2 ปีที่แล้ว

      So is it inversely related or directly related? A bit confused here?

    • @LivingInColumbiaTennessee
      @LivingInColumbiaTennessee 11 หลายเดือนก่อน

      If you look closer at the chart you see that there is cause and effect. Interest rates rise first, then with a delayed response you see inflation drop as a result. There is always going to be a delay as in most economic scenarios people don't know what's happening in the economy until 6 months has past and there is data to analyze. Just my two cents. @@doddamanga

  • @steph-se2yw
    @steph-se2yw 3 หลายเดือนก่อน

    In Canada, even with higher interest rates, the price of food in grocery don't stop going higher and higher

  • @Saxondbeat
    @Saxondbeat 2 หลายเดือนก่อน

    This was explained excellently. Great video !

  • @johnpham2450
    @johnpham2450 4 หลายเดือนก่อน

    Super straightforward. Clear and simple explanations showing the relationship btw the two. Thanks! Hope you're well and looking forward for more contents!

  • @priyankavasam8769
    @priyankavasam8769 ปีที่แล้ว +1

    Amazing explanation in a simple way. Thanks for making the concept understand easily..❤❤

  • @cocoarecords
    @cocoarecords หลายเดือนก่อน

    Excellent

  • @MengerMania
    @MengerMania 4 หลายเดือนก่อน

    Increasing the quantity of money tends to influence interest rates in a downward direction, not the other way around.

  • @martyn7988
    @martyn7988 2 ปีที่แล้ว +1

    I understand the concept BUT, how are people expected spend less (because interest rates are high) when the things they are spending all their money on are energy and food which have gone through the roof. We can't operate in modern society without purchasing energy and food. We don't have the real estate to generate our own energy or grow our own produce

  • @zy2870
    @zy2870 2 ปีที่แล้ว +1

    higher interest rate, less money on the market, so people spend less and save more. so lower inflation. But what explains the comovement before the oil crisis?

  • @ick6698
    @ick6698 10 หลายเดือนก่อน

    Very well explained thanks bro

  • @oldcrow9704
    @oldcrow9704 2 ปีที่แล้ว

    Easiest video to follow to help me with my report.

    • @KINGCADEMY
      @KINGCADEMY  2 ปีที่แล้ว

      Glad it helped OldCrow! 🙏

  • @user-io5rn1qc8m
    @user-io5rn1qc8m ปีที่แล้ว

    Discussing the potential of GOGY as an investment.

  • @reidmybooks8294
    @reidmybooks8294 ปีที่แล้ว

    Great presentation. Well-spoken. Very clear. Thanks.

  • @johnholme783
    @johnholme783 2 ปีที่แล้ว +1

    This is excellent stuff! Both simple and Comprehensive! Thanks!

    • @KINGCADEMY
      @KINGCADEMY  2 ปีที่แล้ว

      Much appreciated John! Glad you liked it.

  • @TheBreadPirate
    @TheBreadPirate ปีที่แล้ว

    This was very helpful. Thanks!

  • @bernhardsmuts2265
    @bernhardsmuts2265 ปีที่แล้ว

    Great video! Thanks, nice way of explaining. Maybe one or two practical examples (I think in pictures and stories) but overall a great video! Thanks for the effort!

  • @Bocca202
    @Bocca202 ปีที่แล้ว

    Thank you. I like explanation that I can understand.

  • @debnarayandutta8551
    @debnarayandutta8551 5 หลายเดือนก่อน

    Very helpful ❤️

  • @lateefsohail
    @lateefsohail ปีที่แล้ว

    Very lovely 🌹 explained

  • @KajiAwaley
    @KajiAwaley ปีที่แล้ว

    inversely related. Thank you so much easily explained.

    • @KINGCADEMY
      @KINGCADEMY  ปีที่แล้ว +1

      No problem. My pleasure.

  • @Thankgod-The1st
    @Thankgod-The1st ปีที่แล้ว

    so when 10 year treasury price increases we are in deflationary market right?

  • @jeremiahaondoakaa5077
    @jeremiahaondoakaa5077 9 หลายเดือนก่อน

    THANK YOU

  • @kevinevans8505
    @kevinevans8505 2 ปีที่แล้ว

    Important stuff simply and clearly stated. Thank you.

  • @Wikikiman
    @Wikikiman 2 ปีที่แล้ว +2

    This concept is explained well herer. I don't agree with this theory though- (I understand this is not the author's theory but an explanation of a widespread theory believed by many top economists) My thoughts on why this is a false economy theory is that interest rates don't impact whether I save or not. I save because I want to. Now, it may impact upon where I save my money (stacks, bonds, precious metals, etc) The only thing that an increase in interest rates does is to make the rich richer, therefore the banks spread this false theory to make us believe it to be true. One big con by banks and politicians, the elite that control the world.

    • @KINGCADEMY
      @KINGCADEMY  ปีที่แล้ว

      Hi Ronnie, thanks for this comment. You have a point. This is just the wide believed theory, but like you said, people spend and save when they want to.

    • @ripster9713
      @ripster9713 3 หลายเดือนก่อน

      Hit the nail on the head. Its pure propaganda.

  • @Tom-jt1rv
    @Tom-jt1rv 2 ปีที่แล้ว +1

    Great video!

  • @Jnf458
    @Jnf458 ปีที่แล้ว

    That was perfect! Thanks for posting.

  • @simplesixtus6541
    @simplesixtus6541 ปีที่แล้ว

    Well explained... Thank you

    • @KINGCADEMY
      @KINGCADEMY  ปีที่แล้ว

      Glad it was helpful!

  • @neiltoland3669
    @neiltoland3669 2 ปีที่แล้ว

    Explained it so simply!!! Brilliant video

    • @KINGCADEMY
      @KINGCADEMY  2 ปีที่แล้ว

      Thank you Neil 🙏 Stay tuned for more.

  • @helicoptergunship
    @helicoptergunship 5 หลายเดือนก่อน

    Brilliant vid, thank u

  • @alvaeriksson3623
    @alvaeriksson3623 2 ปีที่แล้ว

    Really nice helpful video, hopefully I will pass my test on economics

  • @lindad1582
    @lindad1582 2 ปีที่แล้ว

    Thank you for this explanation

    • @KINGCADEMY
      @KINGCADEMY  2 ปีที่แล้ว

      My pleasure Linda!

  • @BlizzGMX
    @BlizzGMX 2 ปีที่แล้ว

    Appreciate the quick overview

  • @johnvagues7524
    @johnvagues7524 ปีที่แล้ว

    New subscriber

  • @momotaakter7589
    @momotaakter7589 ปีที่แล้ว

    Helps a lot❤
    Thankkkkksssss ❤❤❤

  • @echendugloria8706
    @echendugloria8706 2 ปีที่แล้ว

    Wel analyzed and explained. You've won a new subscriber

  • @scooby7877
    @scooby7877 2 ปีที่แล้ว

    Amazing

    • @KINGCADEMY
      @KINGCADEMY  2 ปีที่แล้ว

      Thanks Scooby... Doo?

  • @becomingfrench8474
    @becomingfrench8474 2 ปีที่แล้ว

    Why do we talk about inflation “RATE”? It’s just “the prices of goods”? it’s not a rate/percentage/figure moving, it’s a static (at any one moment) figure as a result of the theory arising from interest rates well explained.

  • @MuhammadRafy
    @MuhammadRafy 2 ปีที่แล้ว +2

    my country has high interst rates and high inflation

  • @goatrockhunters7866
    @goatrockhunters7866 2 ปีที่แล้ว +3

    We are screwed!!!

  • @blueapple9135
    @blueapple9135 ปีที่แล้ว

    i finally understand them. Thanks

    • @KINGCADEMY
      @KINGCADEMY  ปีที่แล้ว

      You are more than welcome!

  • @tejastennis3290
    @tejastennis3290 2 ปีที่แล้ว

    Thanks so much loved it

    • @KINGCADEMY
      @KINGCADEMY  2 ปีที่แล้ว

      Hi Tejas, thank you 🙏

  • @zarakikenpachi1238
    @zarakikenpachi1238 2 ปีที่แล้ว

    Thank you for the video :)

  • @tariqmamood286
    @tariqmamood286 4 หลายเดือนก่อน

    I think interest causes inflation. If you borrow £1000 at 6% interest it means you have to pay back £60 per annum, depending on the length of the loan. Straight away have devalued the £1000 because you are say that your £1000 is actually worth £940 and that you have to pay £60 more to bring it up it's future value to £1000. I believe devalue-ing money triggers inflation as everything has to increase to match the general devaluation.

  • @talentreel
    @talentreel 2 ปีที่แล้ว

    Great vid 👍 thank you!

    • @KINGCADEMY
      @KINGCADEMY  2 ปีที่แล้ว

      TalentReel Productions, many thanks. Hope it helped!

  • @namlah1
    @namlah1 2 ปีที่แล้ว

    Keep up these videos amazing content man ! Can you also please make a video about Venture capital i think it would be awesome 🙏👍

    • @KINGCADEMY
      @KINGCADEMY  2 ปีที่แล้ว +1

      Thank you Ibrahim, means a lot. I have one coming out in a few weeks on investing in VC stage companies so look out for that one. Do you have any particular area of Venture Capital you are interested in learning about?

    • @exiledazazel1844
      @exiledazazel1844 2 ปีที่แล้ว

      @@KINGCADEMY I am in!!

  • @DeepPatel-lz8fj
    @DeepPatel-lz8fj 2 ปีที่แล้ว

    Thank you so much!

    • @KINGCADEMY
      @KINGCADEMY  2 ปีที่แล้ว

      You're welcome Deep!

  • @nessprojects8923
    @nessprojects8923 2 ปีที่แล้ว

    Hi, can you help me with some economic questions regarding to business cycle fluctuations?

    • @KINGCADEMY
      @KINGCADEMY  2 ปีที่แล้ว

      Hi Agnes, feel free to post your questions here. If I can't answer then perhaps other viewers may be able to :)

    • @nessprojects8923
      @nessprojects8923 2 ปีที่แล้ว

      Hi ofc:). I was wondering, why is there a need to reduce business cycle fluctuations?

  • @alexbradbury5967
    @alexbradbury5967 ปีที่แล้ว +4

    I used to feel overwhelmed when my portfolio would drop a few dollars. Now that I've learned how the market works, I see bear markets as a giant opportunity to build generational wealth for me and my family. In just 5 months my portfolio have accrued gains of over $300k

    • @lorihomer1721
      @lorihomer1721 ปีที่แล้ว

      Hello. I’m keen on getting started but have close to zero knowledge on how it works. How are you able to do it?

    • @alexbradbury5967
      @alexbradbury5967 ปีที่แล้ว

      @@lorihomer1721 Working with an FA will help put you through on your wealth-building journey if you're just starting out is a wonderful way to get started and that's how i was able to accrued good gains . They helps to manage investment overall risk profile , prevent permanent loss of capital consider maintaining a broad diversification of your investments that reflects your personal risk tolerance, time horizon, and the nature of your fin goal

    • @lorihomer1721
      @lorihomer1721 ปีที่แล้ว

      @@alexbradbury5967 How can one find a verifiable fin Planner, I buy the idea of employing the services of a Financial Advisor because finding that balance between saving and living requires counsel.

    • @alexbradbury5967
      @alexbradbury5967 ปีที่แล้ว

      @@lorihomer1721 DOROTHY DONNA TAGLIENTE is a good one. been enjoying a good working relationship with her. you can look her up online

  • @bigsidable
    @bigsidable 2 ปีที่แล้ว +2

    That’s just market manipulation. Your damn if you do. And damn if you don’t. That’s not sound financial principle. You should always save more. And spend less. Not easy to do. I had to learn that the hard way. But I was able to rectify it. Stop impulse buying. Budget. Save every Penny. Invest. Live below your means. Become financially literate. Learn,learn,learn. Grow grow grow your future.

    • @KINGCADEMY
      @KINGCADEMY  2 ปีที่แล้ว

      Thank you very much Bitu, you're too kind! Stay tuned for more. :)

  • @GameChanger-ep8mg
    @GameChanger-ep8mg 2 ปีที่แล้ว

    Thanks

  • @emperror4734
    @emperror4734 2 ปีที่แล้ว

    W video

  • @christianchellis9057
    @christianchellis9057 9 หลายเดือนก่อน +2

    Lower inflation is always more important than lower interest rates.

  • @valeriansteele
    @valeriansteele 2 ปีที่แล้ว

    THANK UOU!

    • @KINGCADEMY
      @KINGCADEMY  2 ปีที่แล้ว

      You are welcome!

  • @yeasungkim7760
    @yeasungkim7760 2 ปีที่แล้ว

    Inflation and interest rate move in the same direction not inverse relationship according to my perspective. Each governments have specific object about managing inflation.
    If the inflation occurs, they want to decrease by raising interest rate.

    • @KINGCADEMY
      @KINGCADEMY  2 ปีที่แล้ว

      Hi Yea Sung Kim thank you for your comment. But that’s exactly what I am saying here. As you said yourself, governments want to decrease inflation by raising interest rates. There are lots of factors at play but this video is highlighting the general consensus around the world that inflation and interest rates typically have an inverse relationship.

    • @jerrysamuels1113
      @jerrysamuels1113 ปีที่แล้ว

      @@KINGCADEMY If that was your point you completely missed your mark.

    • @jerrysamuels1113
      @jerrysamuels1113 10 หลายเดือนก่อน

      So, oh wise one, please explain his thesis. Chances are you can't?@heywherearemypants

  • @SonLe-gh3dz
    @SonLe-gh3dz 29 วันที่ผ่านมา

    Increase interest rate make borrowing more expensive and inflation make those things more expensive. Its a lose lose

  • @sufianaldib9469
    @sufianaldib9469 2 หลายเดือนก่อน

    Islam fights both inflation and poverty
    "Allah condemns exploitation, and He blesses charities. Allah does not love any disbelieving sinner."
    Quran 2:276
    Islam brings peace and mercy to society

  • @michaeld2963
    @michaeld2963 2 ปีที่แล้ว

    I suggest that the Interest Rate Hike is Punitive and raises prices in a general sense. This is percieved to reduce the demend and spend, however this is not true as the demand merely grows causing the increase to compound, maintaing the comodity to increase in price.
    The fact is that should you take any commodity of 50 years back and measure the increased price currently the theory does not calculate to control nor reduce the effective price. This means that the COST OF LIVING will increase causung the affordability to diminish.
    I WOULD APPRECIATE YOUR COMMENT?
    modity

  • @Khaled_Fadl
    @Khaled_Fadl 11 หลายเดือนก่อน

    I feel like if you are explaining it to experts

  • @andoapata2216
    @andoapata2216 ปีที่แล้ว

    It isn't in the parasite's interest to kill the host

  • @christopheravinger7248
    @christopheravinger7248 2 ปีที่แล้ว

    This what happens when your president sells his country oil preserve and that money gone even know that wasn't what it supposedly been for.

  • @robinpeppin
    @robinpeppin 7 หลายเดือนก่อน

    retailers & service corporations use any excuse to raise prices. & it seems there is no regulations going on. that grocery stores are allowed to price gouge obnoxiously. the lower middle class feel the pain of that the most. the working poor who make just a few pennies too much to qualify for help they shouldn't have to ask for, just miss out of much needed help. the world of finance is constantly spending millions just to put in place every racket to squeeze our last pennies out of us. i just want to enjoy the last years of my good health at 69 years but i am living in stress at new rate increases & higher interest rates. it's defeating & getting more stressful everyday. it's a confusing mess trying to work out a payment plan to pay these overwhelming back taxes. i worked myself into a state of exhaustion to have a comfortable retirement, but here i am trembling with upset because nys wants every penny of profit i made renting to my grandson at. a nice discount.

  • @user-sf2ci2ly2o
    @user-sf2ci2ly2o 2 ปีที่แล้ว

    Very narrow understanding about inflation.

    • @KINGCADEMY
      @KINGCADEMY  2 ปีที่แล้ว

      Yes, inflation is a very large concept with many factors affecting it. This is one particular view I chose to talk about. :)