by Jim Sinclair, JS Mineset:
A lesson on what interest rates are:
1. Interest rates are the price of federal paper in the federal paper bond market for all the various common periods of time.
2. Interest rates rise if the price of binds fall in the Federal bond market.
3. Interest rates fall if the price of Federal paper rises in the Federal bond market.
That is the total definition.
QE is the act of the Federal Reserve or any similar central banks making bids in the Federal bond market.
If the Fed wishes it can bid forever at any price to keep interest rates low but the unintended consequence is pressure on the US dollar or currency of the country doing QE.
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