Just last week, Idle Finance and Economics issued an article "Biden, Powell, Reversed the Decline of US Economic Decline", especially pointing out that Biden and Powell were able to turn decay into magic and turn passivity into initiative at a time when the US economy was facing great challenges, which was really thought-provoking, especially the heavy stroke of the Ukraine crisis, which could make their opponents beat their chests.
Of course, idle finance and economics have also been criticized by some people, the reason is that some readers think that I am thinking from the standpoint of the United States. Idle Finance reiterates that the purpose of discussing issues is to understand the rules of the operation of American hegemonism from God's point of view, and is intended to explain problems that many people have not discovered.
Cao Cao once said: No anger, anger hurts wisdom, do not complain about others, complain about lost thoughts, hate the enemy, it is better to return to oneself.
If you pay too much attention to your position, you will not be able to objectively analyze and solve the problem, and you will even be unable to expand your vision because of the position problem, and you will become self-contained.
The so-called "knowing oneself and knowing the other, winning every battle", but in fact, in the current chaotic world, financial warfare and local military friction are everywhere, which leads to people who are far away from the financial market and cannot see the essence of the problem, and it is necessary to explore the problem in detail.
Careful friends will notice that this time I put Powell in front of Biden. So why should we highlight Powell's contribution to the U.S. economy?
Friends who have long been concerned about idle finance and economics will know that since 2020, when the United States encountered the new crown pandemic crisis, Powell tried to turn the tide, at that time, our family had sighed: the United States has capable people.
As an observer of the 2008 financial crisis, it's easy to compare the COVID-19 pandemic crisis. It should be pointed out that after the 2008 financial crisis, from 2015 to 2018, the benchmark interest rate in the United States in the last round of interest rate hike cycle of the Fed in three years only touched 2.25%, and in the half year of 2022, the Fed has dried the benchmark interest rate from 0 to 3% in one go! This marks the end of a 14-year era of low interest rates in the United States.
In recent decades, only the 2008 subprime mortgage crisis and the 2020 COVID-19 pandemic crisis have seen the Fed's benchmark interest rate close to zero.
The 2008 financial crisis, it can be said that the United States took 5-6 years to get out, the new crown pandemic crisis, the United States successfully radically raised interest rates, which means that it is difficult for the United States to have a bigger crisis.
After half a day, many people may not know what idle finance and economics want to express, a sentence summary: the subprime mortgage crisis in 2008 made the United States hurt its bones; In the 2020 coronavirus pandemic, the United States has only experienced a small cold.
Especially with the COVID-19 pandemic crisis, even more severe than the 2008 subprime mortgage crisis, how did the United States turn the tide?
No matter how you discuss, you can never get around Fed Chairman Powell as this person.
It should be noted that Powell, who was involved in bank bankruptcy restructuring during the US subprime mortgage crisis before he was the chairman of the Federal Reserve, clearly drew lessons from the experience of avoiding similar major crises.
We may wish to further rewind, if the chairman of the Federal Reserve in 2008 is Powell, and adopts the practice of "unlimited quantitative easing" in 2020, will the United States be able to quickly come out of the financial crisis in 2008?
Obviously, only half the answer was correct.
Because the "extraordinary means" of "unlimited quantitative easing" are difficult to exit, the outbreak of the crisis in Ukraine has very cleverly solved this problem.
Of course, after the outbreak of the US financial crisis in 2008, it was not without the "method of transferring domestic contradictions", and the time of transfer lagged behind by 2 years. That happened at the end of 2010, the "Arab Spring".
It is very coincidental that the Ukraine crisis broke out in 2022, 2 years after the outbreak of the COVID-19 pandemic crisis in 2020. It is still a cliché that both crises triggered a surge in international crude oil prices.
That is to say, under normal circumstances, after an economic crisis in the United States, it will be accompanied by an energy crisis caused by local friction, which is the characteristic of dollar hegemony.
But then the problem comes, involving the "crisis" of crude oil exporters, becoming more and more tricky, because the remaining crude oil exporters, each one is a "strong hand", but the United States can handle the Ukraine crisis with ease, which is obviously Biden's skill.
Roundup: The level of Fed Chairman Powell is beyond any previous Fed chairman, "one shot to the end" interest rate cuts and interest rate hikes, setting a precedent, which allowed the United States to avoid a financial crisis like 2008. At the same time, on the road to dollar hegemony, the space for US maneuverability is getting smaller and smaller, and this Ukraine crisis has laid the foundation for Biden's position among the presidents of the United States.
Idle Finance and Economics can't help but sigh that Powell and Biden are the "absolute double arrogance" that saves the US economy.