Overview
Historically interest rates does not exist during ancient times when Feng Shui first came about. Here, I will try to give my own personal perspective in connection with the coming Period 9 starting 2024.
Interest Rates Direct Impact
At the time of writing, the US Dollar is still the world’s preferred currency for transaction. Therefore the world will try to benchmark their currency with the US Dollar. Any rise in the US interest rates will send a “Shockwave” to the world. In usual circumstances, most major currencies (controlled by their central banking system respectively) will raise their interest rates as well.
A rise or a fall in interest rates will direct impact a country’s currency, namely the foreign exchange. Depending on the country’s borrowing from external debt point of view, it can have a significant impact. If a country has lots of external debt, then a rise of interest rates in the US will usually led to a rise in the country interest rates as well.
Why does the world needs to follow a rise in interest rates to the US as well?
This is a hot topic, but I will going to make simplistic generalization here.
- the world needs to benchmark with a currency (US Dollar was the chosen one)
- US trades with every (or almost) countries in the world (from oil to apps)
- Almost all (i think) countries have a significant part of their foreign reserves in US Dollar.
General Reasons for a rise / fall in interest rates
I know that I am generalizing here also, but this is not an article for discussing pure economics here.
Fall in interest rates
To stimulate borrowings and encourage business and economic activities. Businesses are not expanding and GDP growth slows (from the point of view of the Central Banking System).
Rise in interest rates
To tame the rising inflation. Prices are rising fast (or too fast from the point of view of the Central Banking System point of view). Therefore, by increasing interest rates, it encourages businesses and people in general to save more and hopefully think twice before they borrow from banks (even if they could afford).
Impact to the financial institutions
Will the bank and other financial institutions earn more money as interest rates rise? Their likelihood of earning more money from interest income increases as interest rates rise. This is supported by historical evidence. The banks will lend you the same quantity of money with higher rates of interest.
Nonetheless, during high interest rates times, the financial institutions need to be aware of potential rising bad debts. There might be a risk of going into insolvency for a prolonged period of high interest rates.
Impact to entrepreneurs & businesses
The rise in interest rates will denote a rise in the cost of borrowings. Most entrepreneurs and businesses will be reluctant to expand or borrow from the banks, and this will slow down business activities and even the GDP growth.
Impact to general public
A rise in interest rates generally sparks a warning to the general public in rising mortgage payments for their houses. This will have a direct impact to the banks as their source of income is being depleted slowly but surely if continuous high interest rates is prolonged.
Potential impact to the central banking system
All central banking system in the world wants to tame inflation, especially the US Federal Reserve. The risk of getting eaten by inflation or becoming like another Argentina like inflation should be avoided at all cost.
Surprisingly at the time of writing this article, most Asian economies have an opposite point of view and does not increase their interest rates as frequent as the Federal Reserve.
There are perhaps other reasons. But what if the banks starts to collapse one after another due to high interest rates? Will the central banks starts to rescue them or risk a systemic risk in the banking system?
Elements of Fire Period 9
Literally we have less than 8 months before Period 9 in Feng Shui is approaches in 2024.
Fire Elements controls (or destroy) Metal Elements in Feng Shui.
In the context of Feng Shui, metal can represents all financial related institutions, but it does not mean as we transition to Period 9, all financial institutions will disappear. It simply means that the world will most probably be using more and more digital currencies, and physical banks will no longer be as relevant. To stay relevant in Period 9, most banks need to reinvent themselves.
Period 9 will be mainly dominated by Fire Elements. Other than a digital banking system, can we possibly see the rise in cryptocurrencies? Unlike the current physical notes and currencies, cryptocurrencies are born in the systems and servers themselves.
Reinvent the banking system?
This could be a difficult topic for discussion, but the current banking system will ultimately be reinvented again. There are lots of discussion on whether the cryptocurrencies will be the future currencies or not due to regulation in almost every country.
In my point of view, there needs to be a certain form regulation if cryptocurrencies are to be used to replace existing ones. Businesses and other economic activities cannot be properly conducted without regulation if the use of crypto currencies are to be the future.
Fire controls Metal
Does it mean that we will see the end of the financial institution and the banking system in Period 9? The prolonged high interest rates will definitely be here for a couple of years more, even the Eurozone is signaling this.
Financial Institution around the world will most probably be restructured, and the usage of artificial intelligence (AI) will most probably be presence in these institutions replacing humans in most scenarios. Programmers and IT graduates will most likely be highly desirable to be recruited.
Interest Rates as one the Indicator
Interest rates is one of the indicator for changes. It indicates the transition from one period to another period indicates a volatile shift. This shift is about 3 years before the change in Period and 3 years after.
If we take this into consideration;
Period 9
3 years before 2024 & 3 years after 2024
Period 8
3 years before 2004 and 3 years after 2004
Period 7
3 years before 1984 and 3 years after 1984
I am not going to do the analysis here on what really happen to the world or stock market during 3 years before and 3 years after the year 2004 (Period 8) or even the period 7 here. You can definitely find some correlations if you look at the charts in between the rise of the interest rates before any Period commence.
3 years before 2024, the world has witness some dramatic changes, what about 3 years after 2024? Do we need to wait until 2027 for everything to stabilize for Period 9?
Summary
As we are entering a new era of Period 9 in Feng Shui, a more digital world for all of us. The elements of Fire also denotes fast changing landscape. Certain countries now even have digital banking licenses.
Does the rising interest rates marks a Greater Shift into the future of the banking system? I believe in Period 9, this will definitely be the reason. Perhaps the rise in the interest rates will accelerate this transition.
Perhaps the only reason for a rising interest rates now in Feng Shui indicates a greater need and the inevitable shift towards another a different kind of banking method such as the cryptocurrencies.
How will the Greater Shift be? How will the current banking system be reinvented? Will we be using the cryptocurrencies in the future? Will we be using a human implants such as those from Neuralink from Elon Musk? When will it happen?
Regrettably, I do not have all the answers. But I think most top central bankers around the world had already taken a good review into this.
Whatever happens during Period 9, it will definitely be a swift, the word stability will have a shorter time frame than we anticipated. We should generally should pay more attentions to what is happening around the world and increase our awareness to a higher level.
Note: This is an article that try to draw some correlation between the changing Periods in Feng Shui and interest rates. It does not serve as an indicator for any purposes of financial gains or advise in any manner in the speculation of interest rates .
