Sources: All information stated in this article is based on reliable information, and is summarized at the end of this article.
On April 10, Fitch, one of the three major international credit rating companies, changed its rating outlook for China from "stable" to "negative".
US Treasury Secretary Janet Yellen has come to China with a purpose in mind, and the mainland has clearly recognized the essence of US nonsense and no credibility in her repeated exchanges with the United States.
China is reluctant to buy U.S. bonds and make concessions in its relations with the United States, and every time Yellen returns disappointed, the United States will take action against the mainland. The intention of these moves is very obvious, to coerce the mainland into giving in.
Different from the previous "small fights", the United States has fallen heavily on financial issues this time, the international gold price is turbulent, the yuan has fallen below 7.1, bank credit has been downgraded, and China is going to be fully harvested?
The world's three major rating agencies serve the United States
Standard & Poor's, Medi Investors Service and Fitch International Credit Rating are known as the most influential credit rating agencies, but like the International Atomic Energy Agency, they seem to be fair and impartial, but in fact they have been controlled by the United States and used as a tool to fool the world.
The global financial crisis that erupted in 2008 is a prime example. The three major credit agencies have whitewashed the cloak of "real estate securities" and assigned triple-A ratings to "debt-backed bonds".
As ordinary investors, they don't understand the twists and turns inside, what they see is a huge system composed of eight major parts, such as banks, economics professors, stock and futures exchanges, and rating agencies, and the professional judgment made after careful analysis and data demonstration has a certain "authority".
Mistaken in the judgment of the three major institutions, banks and investment funds around the world have suffered a wave of harvesting.
Only 16 years have passed since the financial crisis of '08, and the pain of the past is still vivid, but the United States has once again bet on Fitch. It's an old-fashioned trick, but it works.
When Fitch announced that it had revised its outlook to "negative", the mainland could not resist and had fallen into the political and economic trap set by the United States.
Why?
Because Fitch's rating is a "self-fulfilling prophecy", what it considers to be a "negative" rating for mainland China will be a prediction that will appear in the future.
This trick can be described as not evil.
Fitch believes that China's real estate, population, national debt, and economic growth rate are all putting risks to the mainland's public finances, leading to a "deterioration" in the mainland's economic outlook.
Using psychological and communication knowledge, the United States and Western countries have used Fitch to brand China's "deteriorating economic prospects" in the hearts of people around the world, perhaps for the purpose of verifying the "prediction", and negative news may induce unfavorable behavior against China. At that point, the fake also became real.
A week later, on April 17, the United States and Western countries used Fitch to attack the state-owned banks on the mainland.
The rating outlook of the six major banks, including the Bank of China, the Agricultural Bank of China, and the Industrial and Commercial Bank of China, has all been downgraded to "negative", and even the mainland's Tencent, PetroChina, Three Gorges Corporation, Alibaba and other companies have not let go.
Bringing China's reputation to the United States is only the first step of the United States, so where does the second step of the United States' more vicious fate fall?
Wounding the enemy by a thousand, and inflicting self-damage by 800, the United States raised interest rates to harvest the world
According to the Financial Associated Press, Federal Reserve Chairman Jerome Powell's recent public speeches have hinted that the postponement of interest rate cuts has been "closed".
The United States has been raising interest rates for nearly two years in a row, and has used interest rate hikes to bring down Egypt and Sri Lanka and so on.
In the past two years, the U.S. interest rate hike has indeed played a certain role in curbing high domestic inflation, but its harm has continued to deepen, such as more people depositing their money in banks to eat interest, and because of high interest rates, no companies are willing to lend to expand......
Interest rate hikes are harmful to all countries, and the United States cannot escape them. When the borrowing interest rate of banks gradually approaches the interest rate of US bonds, or may exceed the interest rate of US bonds, a large number of countries will sell US bonds, which may cause a wave of US bond sales and cause the US debt to collapse.
But the United States has other means. Previously, gold was pegged to the US dollar in the Bretton Woods system, and the United States dominated global finance for more than 20 years.
Recently, the international gold price has skyrocketed and plummeted, and some people have questioned that it is the game of the United States to harvest the world, which is related to the policy of the Federal Reserve.
This is not a trick of the United States to shoot a false shot, after several operations, the United States has started a exchange rate war, the dollar has strengthened, and the yuan has fallen, falling below 7.1.
All of this, combined with the fact that the U.S. is using Fitch to downgrade China, will only make more people unoptimistic about China's economic prospects, so that the U.S. can boldly use high interest rates to suppress mainland companies that hold large amounts of U.S. debt.
For example, as long as Chinese companies such as Country Garden and Vanke fail to renew their loans or have no ability to renew their loans, they will thunder one by one, causing a real estate crisis in the mainland.
The financial war between China and the United States has started in full swing, and the strategies of the United States are interlocking, how should the mainland respond?
Time will tell
Although it is the Bank of America, JPMorgan Chase, Wells Fargo and other banks that are really in trouble, as well as large, medium and small banks, the world's three major rating agencies have covered the United States and have not lowered their rating outlook.
However, with the scale of 34.5 trillion U.S. debt and the problems caused by long-term interest rate hikes, the United States can cover up the past in a short period of time, but it cannot hide it from the world forever.
With the support of good policies such as the Nine Articles, the mainland will be able to maintain its economic vitality, use facts and figures to break the smears of the United States, and let the rest of the world see China's world potential.
As long as it drags on, the loser will inevitably not be us.
Resources:
Guangming.com: Brazilian Scholar: Fitch Downgrades China's Sovereign Credit Rating Is Backed by Deep-Rooted Economic and Political Interests.2024-04-16
Finance: HP: China's Large Banks Gradually Approaching International Standards in Global Importance Ratings.2024-04-17
Finance Associated Press: Powell's last speech before the silence period "Eagle Voice": The delay in interest rate cuts has been "closed in the coffin"?2024-04-17