The financial crisis triggered by the Fed's historical interest rate hikes
In the seventies of the last century, Latin America took off, because it was protected from the impact of two world wars and the suzerainty was attacked by war, Latin American countries became independent and made a lot of money by exporting raw materials, so they began to improve people's living standards and improve national welfare. At the same time, a large amount of US dollar hot money poured into Latin America, further pushing up asset prices in Latin America, and as a result, with the Federal Reserve raising interest rates for 18 consecutive months and running at a high level for nearly a year of water collection operations, the US dollar hot money quickly returned, and pulled a large number of domestic assets in Latin American countries to follow the flight, the local currency depreciated sharply, and then the Latin American debt crisis broke out. The essence of the debt crisis is actually the depreciation of the Latin American currency, and it is necessary to pay more assets to repay the dollar debt, at this time, the dollar index is at a high level, and the dollar float smoothly enters Latin America to acquire a large number of assets, mainly involving mineral resources, food and energy, but the people in Latin America live easily and difficult, this is the famous "middle class trap", since then Latin America has been in a slump, to 2022 when Brazilian President Lula returns to power and cry that as the world's top food producer, Some people in Brazil actually starved to death, in fact, because Brazil's grain is basically in the hands of the four major grain merchants in the United States and the West, and a large amount of grain is exported for money.
The middle-class trap
This is the underlying logic of the Fed harvesting the world for the first time after World War II with the weapon of financial crisis, and since then it has opened Pandora's box, and the use of this weapon has become more and more familiar, because the dollar has mastered the rules of the game, and the linkage is rapid and numb.
In the process of harvesting Latin American countries, the second largest beneficiary country is Japan, because Japan made a fortune in the two wars in East Asia (the Korean War and the Vietnam War) at that time, and by the end of the seventies it had become the world's second largest economy, accumulating a lot of wealth, so when it was copying Latin America, it also acquired a lot of assets, which also accelerated Japan's expansion and laid the groundwork for the Plaza Agreement.
With the Fed began a new round of interest rate hikes in February 1988, the financial crisis against Japan also came, when the Japanese stock market and real estate had a serious bubble, and the main help to push the bubble was also from the dollar capital, with the signing of the Plaza Compact between the United States and Japan in 1989, the dollar liquidity was frantically withdrawn, and the Japanese bubble burst, and the dollar money once again made a lot of money.
Plaza Protocol Caricature
When these floating funds retreated, they entered East and Southeast Asia, and it was at this time that some Japanese companies went overseas to East and Southeast Asia, creating the "Asian Four Tigers" and "Asian Four Tigers", and of course, China also followed suit.
In 1994, the Fed's interest rate hike began, dollar investors have long been impatient, this time led by Soros's quantum fund, when the interest rate hike cycle has not yet been full, it took the initiative to launch a crazy plunder of Southeast Asian countries, just in order to eat the first bite of the fattest meat, directly detonated the Southeast Asian financial storm, causing a large number of Southeast Asian countries to collapse, a large number of assets were taken away by dollar capital.
The withdrawal of US dollar capital coincided with the rise of the Internet, but fortunately directly entered this emerging industry and directly pushed the Internet bubble, in fact, the Internet was still in its infancy at that time, and could not withstand such a toss.
But this game no longer needs global coordination at this time, all dollar funds are old players who have cleared the level three times, all the process is already clear, as long as the Fed starts to raise interest rates, all liquidity linkage is instantly consistent. With only a short cycle of interest rate hikes of less than a year, they scrambled to flee the Internet industry, leaving a lot of chicken feathers. The pace has been messy, stampedes have occurred frequently, and the game has been almost broken.
European countries have also made a lot of money in these games, in fact, they are also part of the dollar capital, but they are also afraid, afraid that the next object of the dollar capital is themselves, this is the division within the capital, the European Union at this time launched the euro against the dollar to protect itself, but how to stop the game until now?
With the Fed's interest rate hike in 2004, the players in this game began to divide, because this is a confrontation between players, so the most exciting scene appeared, dollar funds and the converted euro funds began to attack and defend each other, with the outbreak of the US subprime mortgage crisis, the game officially entered the white heat, the European debt crisis also broke out at the same time, the two sides did not give in to each other, and the final result was to fight both defeated, and raised a third player - the Eastern Dragon.
There is a scientific reason why the triangular structure is the most stable structure, since the number of players has become three, the difficulty of this game has suddenly become hell.
In 2015, the Fed began to raise interest rates again, and the struggle of the three players also began, you make a move, I make a move, he makes a move, the struggle is wonderful, quite interesting, and no one is directly eliminated. This interest rate hike cycle lasted for three whole years, still did not divide the winner and loser, during this period the dragon players have accumulated a lot of experience in the struggle, the understanding of this game has been better than blue, and then play is jade, the game collapsed, in 2018 the Fed began to cut interest rates, the first to quit the game, in fact, this time should be the game over, the three main players to discuss the development of a new game, but at this moment, a black swan flew out - the new crown epidemic is coming.
At this time, players have their own surprise moves to fight against the new crown boss, dragon players choose to close themselves, and US dollar funds and euro funds also bleed each other. (The United States and Europe especially like bloodletting therapy, and there is a president in the United States who actually bleeds to death, hehe, magic.) ）
In 2022, these two bloodletting players finally released a big inflation, terminally ill, no way, the old routine continues. In March 2022, the Fed began to raise interest rates again, but the game is about to collapse, how to play?
We can only "walk to the bottom of the water and sit and watch the clouds rise".
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