Fed rate hike 0.25%! The United States is now caught in a dilemma – raising interest rates, dying the economy; not raising interest rates, dying the dollar. If you don't raise interest rates, the people will suffer.
The United States is too screwed up now. The Fed obviously only dares to increase a little bit today and does not dare to make substantive moves.
Add too much, and the U.S. economy will collapse immediately! At that time, [unemployment has soared], and it is time to "buy zero yuan";
- But not at all, not at all! Inflation in the United States in February has been 7.9%, a record of 40 years, [price surge], or will "zero yuan purchase".
Why is the United States in a dilemma? The reason is very simple: when the epidemic came in 2020, the United States did not fight the epidemic and printed money, which eventually led to a surge in the book numbers of the economy, and the US stock market deviated from the real economy to grow wildly, but [funds were idle], and the economy did not really grow! If the rate hike is too fierce, you can see that the United States is [swimming naked].
The root cause of inflation is that too much money is printed. I've learned this in middle school.
It is said that the state prints some money, in fact, it is okay, as long as it is used on the right path, the economy can really grow, and then raise interest rates to suppress the inflation caused by printing money. This path has always worked, but in today's United States, it does not work.
Because the United States printed a lot of money but did not fight the epidemic, the epidemic is still dragging down the US economy. So the road of "printing money - inflation - raising interest rates - alleviating inflation" has become "bottomless printing money - inflation - raising interest rates a little more - economic collapse" has become .)
What makes it harder for the United States to raise interest rates is the Ukraine crisis. This is even more ironic – the Ukraine crisis was provoked by the United States itself, but it is eating up the US economy. If the rate hike is not careful, the United States will fall into "stagflation", the economy will stagnate, and prices will continue to rise.
Because of the outbreak of conflict between Russia and Ukraine, global oil prices soared. As soon as the price of oil rises, the United States will increase the price of everything, because the United States is a "country on wheels", the rate of using cars is much higher than that of China, Americans have to drive to burn oil when they go out, and the meals they eat every day, the toilet paper they use, etc., are transported with oil from the car.
This part of the price increase is not caused by printing money, but by oil prices, and interest rate hikes cannot be alleviated! Therefore, even if the United States raises interest rates, it is difficult for prices to come down - prices do not fall, and interest rate hikes lead to economic slowdown, which is naturally "stagflation".
[If I've made it clear above, I'll say one more layer below.] 】
In fact, the United States is also a dilemma on whether to provoke the Conflict in Ukraine. Today, Biden also openly declared putin to be a "war criminal", and with a big stroke of the pen, he sent $800 million in military aid to Ukraine and continued to "hand over the knife"! At the same time, China's third batch of humanitarian relief materials will soon arrive in Ukraine, including children's milk powder, quilts, moisture-proof mats and so on.
Let's put aside the political and moral war of words, just look at the economy, and the United States is also a dilemma:
If the United States does not provoke the conflict in Ukraine, the euro will continue to grow, and it will be difficult for the dollar to harvest high-quality assets in Europe, it will be difficult to cut a few wool, and finally it will only cut the wool of the United States itself.
But if the United States provokes a conflict in Ukraine, energy prices will skyrocket, and if interest rates are raised a little carelessly, the United States will fall into [stagflation].
Faced with the dilemma of whether to raise interest rates, today the Fed had to choose to shyly answer the 0.25% interest rate hike, first look at the market reaction, and then decide the next move; in the face of the dilemma of whether to provoke the Conflict in Ukraine, Biden today had to pay lip service + sell some weapons, and did not dare to send the army directly to harden.
The fundamental reason behind this "double dilemma" is that the United States has printed money without a bottom line during the epidemic, but it has not been used to develop the economy and save the people. In the end, the money does not know whose pocket it has gone to - interest rate hikes, the people are suffering, no interest rates, the people are suffering!
Rest assured, of course, in English. Especially the United States to Ukraine to transport weapons, China to Ukraine to transport humanitarian supplies that, on the CGTN Facebook account, only 2 hours there are more than 800 comments, 3.5K likes, see screenshot, much higher than my headline account traffic! In the comment area, foreign netizens unanimously condemned the hypocrisy and shamelessness of the United States.
Whether it is a dollar rate hike or public opinion pouring dirty water, China has enough morality and strength to deal with it.
