The wave of bankruptcies swept the United States.
Is the inflection point of the global capital frenzy really coming? You may not know that two major events have happened recently.
First, the United States is facing the worst wave of corporate bankruptcies since the '08 financial crisis. As of the end of August, the United States has filed for bankruptcy protection more companies than in the past two years combined.
Second, the yield on the US 30-year Treasury note has soared to 5% in the past two days. This surge forced the Fed to stretch out its left hand and pump its right face.
What do you mean? For example, if you open a supermarket in the United States, your supermarket can buy 1 million US Treasury bonds at an annual interest rate of 3%. Now you want to buy this treasury bond, if you only hope that you can earn 3% interest in a year, that is, 30,000 yuan, then you can directly pay 1 million to buy this treasury bond.
But what if you're greedy and want 6% interest? Then you have to bargain with the United States, if you can bargain to 970,000 to buy 1 million treasury bonds, then won't you be able to earn 60,000 yuan in a year? So the higher the yield on U.S. bonds, the lower the price of U.S. bonds, and vice versa, the lower the yield, the higher the price of U.S. bonds.
The Fed has bought a large amount of U.S. bonds a few years ago, and now that the price of U.S. bonds has fallen, his Fed is naturally losing a mess, and high interest rates also mean that the Fed pays high interest rates on his debt. Under double pressure, the Fed lost more than $57.3 billion in the first half of this year. Yes, you heard it right, the Federal Reserve, which controls the ebb and flow of the dollar on this earth, has begun to lose money, and it is still the dollar. Some financial experts say that sooner or later the Fed's interest rate hike will end in the bankruptcy of the US government and banks. Goldman Sachs and JPMorgan Chase and Co. have warned that if you continue to raise interest rates like this, it is likely to threaten the financial stability of the United States.
These remarks are not just panic. Throughout the history of the global economy, the Fed's previous interest rate hikes have ended in chicken feathers, and everyone knows that he The Fed has raised interest rates with his life. The biggest reason is to control inflation, but the US CPI rose by 3.7% year-on-year in August this year. Rising interest rates have led to a sharp increase in bank interest rates, and many U.S. companies have laid off employees or even closed down because they cannot afford to take on high loans.
Since the beginning of this year, a large number of Americans have launched large-scale strikes because they are dissatisfied with the wave of layoffs and bankruptcy, which has dealt a great blow to the US economy. In particular, the recent wave of auto workers' strikes has caused nearly $4 billion in damage as of September 29. For American workers, in the context of high inflation, a failure to raise wages would mean a reduction in real wages, which is unacceptable.
So I see that the wave of strikes is still going on now, and the number of people covered is increasing. But even so, there are still many people in the Fed who say that they want to continue to raise interest rates, and they can only say that if they continue like this, the good life of American companies is simply far away. At this point, the U.S. economy would be in real danger.
