Comments by "Curious Crow" (@CuriousCrow-mp4cx) on "The REAL Reason Interest Rates are TANKING" video.

  1. If you look at interest rates as the price of money as commodity, then demand and supply impacts the price. Too little supply interest rates go up. Too little demand interest rates go down. Price reflects sentiment with the market. So from that perspective interest rates are a symptom of economic activity. More economic activity, interest rates go up; less economic activity, interest rates go down. But interest rates or The Federal Funds rate is just base price. On top of that goes the Risk Premium and Margin= final market price as % = interest rate to borrow. So the risk premium is assessed by the lender based on their credit criteria. So basically, the borrower's creditworthiness + Grade and amount of collateral they can offer= interest rate on a loan. In the financial markers, liquidity and collateral are the real drivers of interest rates.
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  2. Inflation did not impact the carry trade.
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