Has the financial war begun? The global game behind U.S. interest rate hikes

Mondo Finance Updated on 2024-02-07

Recently, there has been a lot of talk about the United States launching a financial war. From shorting overseas** to risk transmission to using Warren Buffett and Wall Street capital to create a false boom, this series of actions seems to point to a clear goal: the United States is trying to harvest global wealth through financial means.

In this process, a series of actions by Moody's, an internationally renowned rating agency, are particularly eye-catching. From downgrading the outlook of sovereign credit ratings to the outlook of a number of major companies and banks, Moody's actions do not appear to be simple business operations, but signals of the start of a financial war.

Financial warfare, as the last hope of the United States in its foreign economic war, one of its means is to raise interest rates by the Federal Reserve. Since March 2022, the Federal Reserve has raised interest rates 11 times, with the aim of forcing other countries to follow suit, and then burst the bubble of each other's assets, resulting in **, the property market, and the foreign exchange market**. Once the asset bubble bursts, the Federal Reserve will cut interest rates, and Wall Street capital will take the opportunity to complete the financial harvest with the lowest price of competitors' assets.

However, this strategy does not always succeed. Historically, the Federal Reserve's aggressive interest rate hikes have triggered global financial crises many times, but each time they have been accompanied by the economic crisis of the United States itself. But this time it seems to be different, with the US** hitting a record high after a series of interest rate hikes, and economic data returning to pre-pandemic levels. Other countries are facing tremendous pressure from the property market and the foreign exchange market.

So, how long will this financial war last? The answer may depend on the timing of the Fed's rate cuts. According to related**, the Fed will not cut interest rates until May at the earliest. This means that until then, other countries will still have to face significant economic pressures.

Faced with such a situation, many people are beginning to worry about the future economic situation. But in any case, we should remain calm and look at the current situation rationally. At the same time, international cooperation should also be strengthened to jointly deal with a possible financial crisis.

The jury is still out on whether the financial war has begun. But in any case, we should be prepared for possible economic risks. At the same time, we should also maintain confidence that through international cooperation and joint efforts, we will be able to overcome this difficult time.

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