You found this place for a reason. If you think know everything and the world makes sense exactly as you have been taught, then this place is useless for you.
I am not a financial expert as may shortly become apparent but I see it like this.
Imagine if your country is actually a savings bank. When you drop the interest rate people will move their money from your bank to another one with a better rate.
So, when the Fed lowers the interest rate the country will lose money because it will be moved elsewhere.
This is not true.
You found this place for a reason. If you think know everything and the world makes sense exactly as you have been taught, then this place is useless for you.
I am not a financial expert as may shortly become apparent but I see it like this.
Imagine if your country is actually a savings bank. When you drop the interest rate people will move their money from your bank to another one with a better rate.
So, when the Fed lowers the interest rate the country will lose money because it will be moved elsewhere.
Then what is the truth? Tell us the net effect this will have on the flow of $ and the economy. Obviously you know.