People used to say that when the interest rates are lowered because it wants to encourage growth, it will also cause people to take out their money from the bank and perhaps investing into other financial instruments to earn dividends. Some of these people may invest into gold and this will push up the demand, thus pushing up the price of the gold too. Is this true?
When the US economy is not well, every country in the world will feel its impact. It’s just a matter of how big or how small. Well, their budget deficits are going up and has reached a new high.
According to AI overview by google, this is budget deficit definition. “A budget deficit occurs when a government spends more money than it receives in revenue during a specific period of time. The amount by which spending exceeds revenue is called deficit spending”
Briefly, the government is spending more than the revenue it gets, so it has to borrow to cover this amount and thus it’s in a deficit.
Sorry, the answer is not ONLY the home owner. In fact you will soon see why home owner does not necessarily enjoy more when they are compared to the tenant. As usual, these are my views as both a home owner and also a tenant since my college days all the way to my working days. In fact, I told my wife that maybe we could become a tenant again after we retire! Haha. Truth is, when we are 60 etc, there is really no need to stay at one place and that one place only. Just my thoughts. We could move a bit more.