Earlier this year, as the war between China and the United States grew louder, the United States intended to increase sanctions against China in order to ensure its hegemony.
It is reported that the US Congress passed the (21st Century Strategic Competition Act), which is a full 283 pages, advocating all-round competition with China, and the first to bear the brunt is to launch a financial war against China. We know that the game between great powers is often a world-class volume.
Of course, in the face of US hegemonism, we have long been accustomed to it, just stay vigilant and wait to see what happens, and we don't need to be too nervous. In fact, this is not the first time that the United States has advocated being tough on China, as early as 2015, in order to pass on the domestic economic crisis, the United States launched a financial war through dollar hegemony to hit China's economy.
However, the wealth harvest war that has been planned for decades has finally ended in failure, so how did China resolve this financial war, which is known as the turning point of the operation of the two countries?
If we want to trace back to the financial war, the usual means of cutting leeks by American capital have been common in the last century. Long before China's economic rise, another asian country had already soared, and its national strength even surpassed the United States to become the world's first.
However, the country could not avoid the fate of being sanctioned by the United States, and after experiencing the financial harvest of the United States, the Japanese economy directly declined for 20 years. It is worth mentioning that the reason for the rapid rise of the Japanese economy is largely due to the relatively special international environment at that time.
In the context of the Cold War, most countries are busy developing military strength and reform, there is no time to improve the economy, that is, at this time, Japan directly seized the development opportunity, vigorously promoted the economic industry, and finally achieved economic rise in the 70s and 80s, and even surpassed the United States to become the first in terms of economic volume.
At this time, both the US Congress and corporate politicians realized that the situation had developed seriously, feared that its status would be surpassed by Japan, and planned to use exchange rates and financial means to curb the development of the Japanese economy. Subsequently, the United States allowed the dollar to depreciate one by one against other currencies, including the yen, in the Plaza Accord, and the appreciation of the yen seemed completely controllable, but in the market it was completely opposite.
Unsurprisingly, the yen appreciated completely out of control, and various countries sold off the dollar. At this time, Japan was still busy speculating in foreign exchange to make money, and they believed that as long as they sold dollars, they could make a lot of money by buying yen.
Two years after the agreement was signed, the yen had doubled in value, and in order to solve this problem, the Japanese government began to issue laws to encourage people to invest in industry, hoping to reduce the pressure on manufacturing companies, but at that time, no one was willing to invest in industry, most people were keen to invest in stocks and real estate, and these are industries supported by bubbles.
It is undeniable that Japan prospered rapidly through foreign exchange, stocks and real estate speculation, and after the appreciation of the yen, it increased the japanese people's desire to buy, and everyone began to look at overseas assets, and at that time, some people even said that selling Tokyo would buy the whole United States!
However, for a long time, the lifeblood of a country's economy still depends on the real industry, and the bubble economy formed by the stock market and the housing market will one day face a collapse. Then, in 1991, japan's housing prices began to plummet, and countless banks went bankrupt, so Japan ushered in its darkest 20 years.
Obviously, the main reason why Japan ended up in this situation is because it was blinded by the false economy brought about by the appreciation of the yen after signing the agreement. In 2015, the United States intended to replicate Japan's death and deflect the economic crisis by launching a financial war against China.
When it comes to the economic encounter between China and the United States in 2015, we must start from the global financial crisis in 2008, when the United States laid the groundwork with the "exchange rate", and then tried to crush china's economy through foreign exchange, so that we can enter the 20 years after Japan's loss of development.
The global financial crisis of 2008 almost caused an immeasurable economic recession in the world, but in the final analysis, it is the consequences of the selfish desires of the evil capitalists. In fact, the U.S. economy was at its strongest during the 1990s, when another superpower, the Soviet Union, was disintegrating, and the United States became the world's sole superpower.
Subsequently, the gold standard monetary system with the US dollar as the core began to become popular around the world, and the high-tech industries such as information, electronic technology, and computers in the United States also developed rapidly.
Its capital markets reached unprecedented heights, and this capital was injected into its stock market and real estate, and the US capital market has been alive and well ever since. However, in 2001, the information technology industry in the United States began to show signs of recession, and in order to develop the economy, the Federal Reserve had to carry out monetary expansion, which also laid the groundwork for the next bursting of the housing bubble.
Because federal funds had low interest rates at the time, people were spending their money on investment and consumption, and financial markets became very active. Subsequently, under the promotion of low interest rate policies, the development of the real estate market has also developed by leaps and bounds.
Not only that, more and more capital has poured into the real estate market because of various policies, wall Street capital realized that this is an opportunity, began to borrow large-scale debt to those with credit risk and low income, and in order to share these risks, they also packaged loans for these people and sold them to other financial investors, which is also a major inducement for the global financial crisis.
In addition to these investors, Wall Street Capital also set its sights on insurance companies and developed CDS insurance. Wall Street capital is confident that under these multiple insurances, it will not face a debt crisis, however, the real estate bubble is about to burst, and the debt crisis cannot be solved simply by strengthening insurance.
In the next two years, experts almost always warn that sooner or later the housing bubble will burst if it continues like this, but at this time, Americans are still addicted to the immediate prosperity and ignore the serious consequences that may come.
After 2006, the Fed had to keep raising interest rates to curb house prices, and by 2007, house prices had fallen to a certain extent, and it became unrealistic for people to sell their homes to repay their loans, and the debt crisis broke out.
Subsequently, various guarantor borrowing and financial systems also defaulted, and the bursting of the US real estate bubble affected the entire world, and stock indexes around the world plummeted, although the Fed later repurchased a large number of DOLLAR bonds, but it was almost of no help for the global recession caused.
In order to make up for the fiscal deficit caused by the financial crisis, the United States needs to attract foreign capital inflows, after all, if it is not filled in time, the hegemony of the dollar will also be threatened. So the United States wanted to reproduce The Fall of Japan and tried to use foreign exchange to suppress China's economy and continue its prosperity.
Since then, a shocking layout against China officially began in the 2008 financial crisis. In fact, after japan's manufacturing industry went into recession and the economic bubble was disillusioned, the United States was in exactly the same situation as Japan in 2008, when the manufacturing industry with lower profits in the United States could not survive at all, and could only be forced to move abroad.
In this case, Americans spent all their investments in the stock market and real estate, which led to a decline in manufacturing, and even the famous automobile city of Detroit was in a depression. Over the past decade, the U.S. economy has grown by 36%, while the Dow Jones Industrial Index has tripled and the Nasdaq has grown more than fivefold!
At this time, the United States was already imminent, and it was urgent to find a country to replace the previous Japan, so as to revive the economy. Since the beginning of the financial crisis, the US economy has almost collapsed, and the trade deficit with our country has become larger and larger, and the US Congress cannot look at it at this time.
The attempt to raise foreign exchange prices to suppress Chinese exports is, of course, one of the usual tactics used by the United States to try to get the renminbi to take over its economic downturn and thus pass on the economic crisis. In order to balance the trade deficit, the United States can only force the renminbi to appreciate, and the depreciation of the dollar can improve the competitiveness of its products.
Not only that, but the United States is also trying to hit china's economy by plunging it into a financial dream. The United States thinks that China, like Japan, will not be able to control the appreciation of the renminbi, thus turning the housing market and the stock market into an economic bubble.
So after 2014, Wall Street capital began to hunt China, trying to hollow out China with the "dollar tide". The dollar tide refers to the financial means by which the Federal Reserve uses the fluctuations of the dollar to harvest wealth from other countries through the rise and fall of the dollar, after all, since World War II, the United States has made the dollar an international currency with the strength of the world's first superpower.
In other words, the United States is almost a country with the right to print money, it can ignore the laws of economic development, as long as the printing of dollars can be exchanged for the capital wealth of other countries. US President Joe Biden launched a trillion-dollar economic stimulus plan before that, also because of the hegemony of the us dollar.
Every once in a while, the Fed will stamp the dollar, depreciate while flowing to other regions, and lend to developing countries in need, thereby promoting the development of their countries, and when they develop, the Fed will quickly close its hands and reduce the amount of dollar issuance to make the dollar appreciate.
As a result, those developing countries repay more money when repaying their debts than they did at the beginning, and if they can't come up with so much money, a large number of high-quality assets will be taken by the United States to pay off the debt, and the fruits of development for many years will be hollowed out by the Fed one by one. In 2015, the United States seemed to be too poor to open the pot, and it planned to short China with a single blow.
In the second quarter of 2014, while the U.S. stock index continued to soar, the United States also pushed the dollar back into the flow, China's stock price continued to rise, and a large amount of foreign capital began to move at this moment.
Planning to wait for the stock market bubble to reach a certain height and then selling all of them, and then quickly withdrawing, these tricks have been tried and tested by the United States, but they did not expect to encounter China this time.
At this time, China has long understood the intention of the United States, after seeing the US stock index continue to soar, China realized that there may be capital flight next, a large amount of foreign exchange loss occurred, so it quickly took countermeasures.
First of all, Through macroeconomic regulation and control, China has taken administrative measures to split the stock market and reduce the stock market bubble, which not only restricts the funds to enter the market, but also improves the approval speed of these companies.
In a very short period of time, China directly pressed the stock index from more than 5,000 points to 3,000 points, which also directly killed the situation of foreign investors selling stocks. Under the premise that the capital of the stock market has been locked up, china intends to work the exchange rate in order to prevent capital flight.
In 2015, China officially through the RMB exchange rate mechanism, let the market to determine the exchange rate pricing, so that the RMB in an orderly depreciation, it is through these two moves, China completely and fundamentally broke the Harvest Dream of the United States.
At this time, american capital only has two choices, either adhere to the original plan, insist on fleeing with capital, which will not satisfy the United States at all, and will also cause itself to suffer losses, or honestly leave capital in China, which is equivalent to contributing to our country.
In general, if you want to avoid the risk of being harvested by the United States, you also need to promote the use of other reserve currencies, while promoting the process of RMB internationalization, and accelerating the creation of an exclusive channel for RMB in other commodity markets such as iron ore, natural gas, and oil, which is also the goal that China has been trying to achieve since the US financial war launched in 2015.
In addition, China should also be vigilant against the United States to use financial warfare as a chip in the game of great powers, from the previous Taiwan Strait, south China Sea, Huangyan Dao issues, and then to the current Xinjiang human rights incident, we should be careful that the United States may use this as a precursor to launch a financial war, in this case, China should also think backwards to avoid the United States using financial warfare to threaten our country to form strategic suppression.
However, from today's point of view, China's development trend has long been unstoppable, and under the wise guidance of national leaders, China has incomparable advantages in both economy and system. Although the United States is still trying to curb China's technological development through science and technology and other means, using legal means to control Chinese enterprises, and launching financial wars to block our progress.
But all of this has been seen by us, and at this time the United States has long been unable to take care of itself. In 2016, the return of the dollar was far less effective than the United States expected, and the failure of a wealth harvest directly led to the subsequent failure.
And now, with the ravages of the epidemic, the US stock market has also experienced many circuit breakers since the opening of the market, and the United States is slowly swallowing the bitter fruit of its own seeds, and after that we can also see that even if the US economy rebounds during the epidemic, the growth rate is unlikely to exceed China.
At present, the United States is facing the problems of industrial hollowing out and high labor costs, and the countries of the world have long been strange about the hegemony of the US dollar, and the United States basically cannot do anything by printing money.
It is worth mentioning that some people have previously analyzed Biden's economic stimulus plan, saying that this will only make Chinese products more popular, and the rise of the US trade deficit with China will make China cheaper.
Therefore, it is only a matter of time before we rise, and the United States can only do nothing about it.