The U.S. interest rate hike has a profound impact on the global economy. The United States can not only raise interest rates to increase its own national bond yields, but also attract foreign exchange to return through interest rate hikes to buy more resources and commodities, and at the same time, it can also transmit inflationary pressures through interest rate hikes and make other countries pay for the monetary policy of the United States. This is a means by which the United States uses the hegemony of the dollar to harvest the whole world.
However, there is also a huge risk of raising interest rates in the United States. The U.S. interest rate hike will weaken the U.S. economic competitiveness, hit the U.S. and banks, trigger the U.S. financial crisis, intensify the social contradictions in the U.S., lead to the decline of the U.S. international status, and even lead to war. This is the price that the United States does not hesitate to sacrifice its own national fortunes in order to maintain the hegemony of the dollar.
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First, the hegemony of the dollar is both an advantage and a disadvantage of the United States.
The U.S. dollar is the most important currency in the world, accounting for the vast majority of foreign exchange reserves. The United States can use the status of the dollar to print money at will, and enjoy the world's resources and goods without labor. The United States can also use the influence of the dollar to sanction and intervene in the economies and politics of other countries.
However, the status of the dollar has also put the United States in a difficult situation. The U.S. must maintain the credibility of the U.S. dollar or risk a depreciation of the U.S. dollar and a collapse of U.S. debt. The U.S. must also maintain demand for dollars, or risk a repatriation of dollars and a contraction of the U.S. economy. The United States must also maintain control of the dollar, otherwise it risks being replaced and the United States losing its hegemony.
Second, is the U.S. interest rate hike to control inflation, or is it to harvest the world?
During the epidemic, the United States released a large amount of water, which stimulated the U.S. economy and **, but also led to a rise in inflation in the United States. In order to control inflation, the United States began to raise interest rates, raised the lending rate in the United States, and tightened the monetary policy of the United States. This seems to be to stabilize the U.S. economy, but in fact it is to harvest the global economy.
The U.S. interest rate hike will make the U.S. dollar appreciate, attract foreign exchange repatriation, increase the purchasing power of the U.S., and at the same time, it will also reduce U.S. exports and reduce the U.S. deficit. The U.S. interest rate hike will increase the yield of U.S. Treasury bonds, attracting investors to buy, and at the same time, it will also increase the cost of U.S. debt and increase the fiscal pressure on the United States. The U.S. interest rate hike will make global capital flows tight, leading to a rise in global interest rates, and at the same time, global commodities will lead to an increase in global inflation.
Third, is the U.S. interest rate hike aimed at suppressing China, or is it trying to kill itself?
The U.S. interest rate hike has special significance for China. The U.S. interest rate hike will hinder China's economic growth, affect China's exchange rate stability, interfere with China's financial reform, and challenge China's international status. This is a step-by-step strategy adopted by the United States in order to contain China's rise.
However, raising interest rates in the United States will also have huge consequences for itself. The United States will raise interest rates, which will weaken its own economic competitiveness, hit its own ** and banks, trigger its own financial crisis, intensify its own social contradictions, lead to a decline in its international status, and even lead to war. This is the price that the United States does not hesitate to sacrifice its own national fortunes in order to maintain the hegemony of the dollar.
Fourth, is China's response to stability or to usher in a leap?
China is fully prepared and responded to the US interest rate hike. China will not be swayed by the US interest rate hike, nor will it be intimidated by the US interest rate hike. China will adhere to its own path of development, its own reform and opening up, its own international cooperation, and its own peaceful development. This is a prudent and flexible strategy adopted by China in order to maintain economic and social stability.
At the same time, China will also seize the opportunity brought about by the interest rate hike in the United States, accelerate its industrial upgrading, accelerate its financial innovation, accelerate its internationalization process, and accelerate its scientific and technological breakthroughs. This is a positive and proactive strategy adopted by China in order to usher in an economic and technological leap.
In short, the great power game between China and the United States has reached a critical moment, and the United States will face an embattled and crisis-ridden situation. And China will usher in the spectacular of economic and ** flying together!