US Can't Hold On, Forced to Cut Rates!

US Can't Hold On, Forced to Cut Rates!

2024-07-27 158 36

Recently, the news of the Federal Reserve's interest rate cut has rocked the global financial community, marking the first time in four years!

What grand strategy is being played out here?

Many are wondering: What does the U.S. rate cut have to do with us?

Let me tell you, behind this lies a grand drama of Sino-American rivalry, and guess what, China has actually won!

Many may not believe it, but this is something you need to ponder over.

Today, let's delve into this matter and reveal the three major truths!

First, we need to understand why the Fed suddenly decided to cut rates.

It all started with its frantic rate hikes a few years ago.

The U.S. is no stranger to rate hikes; it aims to attract global capital to America by raising interest rates.

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Money, naturally, flows where the returns are higher.

The U.S.'s goal is simple: to use this tactic to destabilize the economies of other countries, especially China.

To illustrate, the U.S. strategy is akin to opening an extremely attractive "bank" at its doorstep, prompting global investors to send their money to America, potentially causing other nations' economies to collapse.

Don't be surprised, this tactic has worked to some extent on Japan and Europe in the past.

Japan's economy was once severely impacted by this, with a massive exodus of capital, resulting in the U.S. taking advantage and acquiring Japanese assets at "dirt-cheap" prices, making a fortune.

What the U.S. didn't anticipate is that China is no longer the Japan of old!

Faced with this wave of rate hikes, China made a "beautiful counterattack."

We consolidated many key assets under the State-owned Assets Supervision and Administration Commission, not giving the Americans a chance to take advantage and bottom-fish, leaving them in vain.

It's like you're ready with your seat to watch the other side collapse, but instead, they not only don't fall apart but thrive even more, which has the U.S. in a panic!

Seeing that the rate hike tactic wasn't working, the U.S. wanted to stir up trouble with other means.

For instance, suppressing Chinese enterprises, sanctioning our high-tech companies under the guise of national security, and even threatening to kick us out of the international financial payment system (SWIFT).

Their moves were quite aggressive, but we didn't back down either, countering several rounds.

Although the process was tough, the result was that America's playbook did not bring us down.

Speaking of which, some might ask, is there really no problem with the U.S. rate hike?

The impact of the rate hike on the U.S. itself is not small.

This round of rate hikes is like stabbing oneself in the foot—the U.S. debt is soaring, and the interest on national debt is astronomically high.

You see, with higher interest rates, the country has to repay more and more, which is nothing but self-inflicted trouble.

A large amount of capital flowing back to the U.S., coupled with a rapid contraction of the dollar, has led to more and more countries around the world considering using other currencies for settlement.

China, in particular, has seized the opportunity to promote the use of the renminbi in the international market.

Now, look at ASEAN, Africa, BRICS countries, and Central Asia; the market share of the renminbi in these places is soaring, even shaking the status of the dollar a bit.

At this point, the Americans finally couldn't sit still, realizing that continuing to raise rates would only lead to their own demise, and rate cuts became the only way out.

So, the Fed's rate cut this time is actually a move for the U.S. economy to save itself.

Let's look at China's side.

Faced with the U.S. rate hike, we were not knocked down; instead, we continued to expand our international market during this process.

We strengthened cooperation with ASEAN, Africa, and other countries, and used the renminbi for settlement extensively, not only avoiding the impact of the dollar but also raising the international status of the renminbi.

More importantly, China's technology companies have also risen rapidly during this period.

Companies like Huawei, ZTE, and SMIC have not only withstood the blockade of the U.S. but have also been expanding in the global market, forcing the U.S. to resort to some "not-so-glorious" means to suppress them.

This financial game has sparked widespread discussion among netizens.

Some netizens think that the U.S. rate cut is like lifting a rock only to drop it on its own foot.

They intended to suppress China, only to find that they themselves were about to collapse.

A netizen named "Economic Observer" joked, "The Fed's move is just a fancy way of courting disaster, thinking they are very smart!"

Another netizen, "Global Perspective," analyzed, "The U.S. strategy has been on the wrong path from the start.

Financial warfare is just the appearance; behind it is the global strategic game.

China's victory is not only reflected in the economy but also in the overall victory of international strategy."

Everyone should have some understanding of this Sino-American financial war.

The Fed's rate cut is not only to save the U.S. economy but also the result of Sino-American rivalry.

China has shown great resilience and wisdom in this game, successfully resisting the pressure from the U.S.

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