Interests rates affect Investment

The fed, (federal reserve bank), is the entity that prints US money (paper). It's privately run (and lets pray that it remains this way). Now, due to the fact the fed prints money, that means they control the price of money/demand for me. (Stay with me, i'm going somewhere with this). Interests rates and more specifically the rate which you and i borrow money is largely controlled by the fed. If there is more money in the market circulating the price of money drops, interest rates decrease. On the other hand, if there isn't a lot of money in the market, interests rates go up - the price of money is higher. So what? Who cares?

You and i should care. When interests rates go up, it means that the cost of borrowing money from banks and other institutions also increase, additionally, bond prices go up. All of this stuff affects our ability to repay loans, credit card payments, car notes, you name it. Everything is like. Including commodity markets and stock markets. When interest rates go up, data shows the stock market is more active, ppl trade more. Also investors are more inclined to buy gold as their commodity of choice. This is because gold is stable, and is hardly affected by changes in interests rates nor is sensitive to changes/fluctuations in inflation. Gold is safe. That is why ppl are so inclined to buy gold. It's one of the best investments you could make (somethinglike an education).