The "Sichuan cuisine" that Yellen came to China to eat seems to be very unsuitable. As soon as she returned to Washington, the United States began to bomb China indiscriminately at the financial level. On the one hand, the China-US Economic Working Group held a meeting, and Yellen once again pressured China on the issue of so-called "overcapacity" and demanded that China make concessions.
On the other hand, Bloomberg said that according to the latest analysis of UBS, the Fed is likely to continue to maintain a high interest rate policy as the US core CPI has risen more than expected for many consecutive months, and even does not rule out the possibility of further interest rate hikes. By the middle of next year, the US federal funds rate may even hit a high of 6.5%.
The Federal Reserve's hawkish release has led to a sharp drop in the currencies of many countries, and Japan is currently the most "affected". Within a week, the yen had fallen below the red line of 154 against the dollar, approaching 155. Obviously, the United States wants to replicate the playbook of the Asian financial crisis in the last century, shorting and blowing up emerging market countries with high interest rates, and completing a round of harvesting.
And the object of this round of short selling by the United States is undoubtedly China. The U.S. effort to short China is not limited to financial means. Under the pretext of Iran's counterattack against Israel, the United States pulled the G7 group to collectively announce that it would prepare for a new round of sanctions against Iran. Yellen also called on China, hoping that China will cooperate with the United States and the West to jointly contain Iran in this matter.
At the same time, the U.S. Congress is pushing through a bill to increase sanctions against China. The main content of the bill is to expand the scope of secondary sanctions against Iran, and if Chinese financial institutions are involved in Iranian oil transactions, then all of them will be classified as "major financial transactions" and will be beaten by Wall Street's financial stick.
It is obvious that this round of US rhetoric about sanctions against Iran is actually aimed at China. China is not a party to the Palestinian-Israeli conflict and the current Israeli-Iranian conflict, and with China's style of acting, it will certainly not follow the G7 in sanctioning Iran. When China refuses, the United States can take this opportunity to pour dirt on China and thus poison China's energy trade and financial institutions.
China and the United States
In addition, on April 17, the Office of the U.S. Trade Representative announced the launch of a Section 301 investigation against China's maritime, logistics and shipbuilding industries, and Biden will also announce that he will increase tariffs on steel and aluminum to China by more than three times. China strongly deplores and resolutely opposes this, and bluntly says that the US has made mistakes again and again, and will take all necessary measures to resolutely defend its rights and interests.
Biden's style of attacking China this time is quite a bit of the legacy of when Trump first took office, and he tried to intimidate China into bowing his head when he was in office. This time, the major rating agencies, from the Federal Reserve to Wall Street, have all shown their old faces and launched a full-scale "financial war" against China.
The idea of the United States is very good to speculate, domestic inflation is now uncontrollable, continue to raise interest rates banks will explode, and the release of dollars will explode thunder. In this case, it is better to launch a charge against China while there is still a fight.
Biden
If this series of financial means can blow up China, then the US fiscal hole will naturally be filled; if it cannot blow up China, scare China, and let China bleed 4 trillion yuan to buy US bonds that are already rotten like in 2008, it can also help the United States continue its financial hegemony for at least another 10 years.
The Biden administration is shrewd, but the problem is that it has made the mistake of idealism, which is, to put it bluntly, detached from reality. In the past few years of the epidemic, the whole world has seen the "money printing magic" of the United States, and it is only a matter of time before the dollar system explodes.
At present, the price of gold is soaring, and the interest rate of US bonds, especially long-term bonds, is still unattended at 5.5%, and it is up to Yellen to sell around, which is a clear proof that all countries are not optimistic about the financial credit of the United States. Whoever has a financial hole between China and the United States to fill is a clear account in the world's heart. Otherwise, there would not be more than 40 countries lining up collectively to join the BRICS.
BRICS
Against this background, the downgrading of China's credit by these rating agencies in the United States will not be China's, but only the ratings of these financial institutions themselves. Let the world further realize the fact that the US financial hegemony has no "ammunition" and can only barely make a living by pointing at the deer as a horse, and its performance art is comparable to "painting a circle to curse you".
The evidence is that the renminbi, the currency of the Asian country, has fallen against the US dollar, but it has remained in a stable range, outperforming almost all other countries in the vicinity, even though the yen's collapse is almost out of control. China, which the United States wants to harvest, has instead become the "anchor" of the global economy.
Not only is the financial credit of the United States now declining, but its military and political credibility is also on the verge of collapse. This is also supported by clear evidence. Recently, European countries have frequently "eye-to-eyed" with China, essentially because they are too disappointed with the performance of the United States in the two conflicts between Russia and Ukraine and Palestine and Israel, so they come to Beijing to seek a new political solution.
Dollar
Scholz has just concluded his visit to China; Putin's visit to Beijing has also been put on the agenda; according to French media reports, it is very likely that the Chinese high-level will go to France in May this year as a "return visit" to Macron's visit to China last year.
Just before this year's G7 foreign ministers' meeting, Italy, the host of this year, made a meaningful remark. That is, it is necessary for the G7 to make a "Western voice", but if it wants to truly achieve a "lasting peace" on the Russia-Ukraine issue, then China must be invited to participate, otherwise it will be difficult to achieve the goal.
Ukraine also takes a firm position on this issue. Recently, Zelensky shouted at China in a video in a high-profile air, hoping that China will attend a new round of "peace summit" held in Switzerland in June this year to help Ukraine achieve peace.
G7 Foreign Ministers' Meeting
Compared with the past, it can be clearly found that when dealing with the Russia-Ukraine issue, Europe has changed from the attitude of being a "teacher" to a more rational and realistic direction from last year. The United States is incapable of helping Israel win this round of conflict with Iran, and Biden is now thinking of only four words, to calm things down.
The Ukraine issue has been directly marginalized by the United States, 60 billion military aid has been delayed again and again, Russia is about to launch a counteroffensive, and the US House of Representatives is still "grinding foreign workers". Under such circumstances, it is inevitable that the global credibility of the United States will be lowered, and China's global credibility will be further enhanced.
It is true that the United States can use its public opinion hegemony and financial hegemony at hand to continue to sing the praises of China, but in the face of bloody facts, this kind of "singing about decline" has been reduced to the self-amusement of a small circle, which will not only fail to tarnish China's reputation, but will further overdraw the national credibility of the United States. The more the United States feels good about itself, the more likely it is to be exposed to its "emperor's new clothes" on the street.
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