Why do people say that when the Federal Reserve cuts interest rates, it benefits the U.S. stock market and the cryptocurrency market, potentially creating a bull market?

When the Federal Reserve cuts interest rates, funds can no longer stay in the banks and will flow out.

However, the state of U.S. manufacturing is so poor that there are basically no investment opportunities, and ultimately, all the money flows into the stock market.

So theoretically, the U.S. stock market should rise. The investment sentiment in the U.S. stock market will be linked to the rise in the cryptocurrency market.

When the Federal Reserve raises interest rates, funds will run back to the banks, leading to a lack of funds in the stock market.

Under normal circumstances, the stock market should definitely decline at this time.

Of course, the above follows normal economic laws.

But if the economy does not develop according to these laws, it indicates that there is human intervention.

So when the Federal Reserve raises interest rates, if the U.S. stock market defies normal economic laws and rises sharply, it must be due to some kind of interference.

So who is interfering with the U.S. 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 supply of U.S. dollars in the market.

However, at this time, U.S. national debt is continuously and rapidly expanding; for every dollar the national debt increases, it equals an additional dollar injected into the domestic market.

This anomaly is already significant enough, and it's very peculiar.

On one hand, they are withdrawing U.S. dollars from the domestic market through interest rate hikes, while on the other hand, they are injecting more dollars into the domestic market.

The current liquidity of dollars in the U.S. is like a strange math problem we learned in our childhood, where everyone used to complain about how unreasonable the problem was.

What was that problem?

Water is being added to a pool from the bottom while simultaneously being poured in from the top. The question is, when will the pool be full?

As long as U.S. national debt expands quickly enough, even if the U.S. is raising interest rates, the liquidity of funds within the U.S. will still be sufficient.

As long as the flowing dollars can overflow, the stock market will rise.

As we grew up, we felt that this math problem was already very peculiar, but we never expected that such a bizarre situation actually exists.

So why is the U.S. doing this?

Because the U.S. hopes to use interest rate hikes to tighten foreign exchange dollars in other countries, ideally leading to economic collapse due to a lack of dollars.