Before reading this article, I sincerely invite you to click "Follow", which is not only convenient for you to discuss and share, but also brings you a different sense of participation, and it is more convenient to come back at any time to read more exciting content, thank you for your support.
In the global economy, the United States has always been at the top of the list.
Judging from the current international economic situation, most countries are working for the United States and providing the United States with a variety of products it needs.
The United States, on the other hand, uses the hegemony of the dollar to buy products made in other countries, and then asks other countries to pay for them in the form of government bonds.
Since the end of the previous two world wars, the economic influence of the United States in the international community should not be underestimated.
The U.S. government has been building up the hegemony of the dollar, and it is also relying on the hegemony of the dollar to do whatever it wants in the international community.
In the 70s of the 20th century, US President Richard Nixon issued a new policy to no longer link the dollar with gold.
In the following development, the United States will continue to manipulate countries in the Middle East and other countries by virtue of its strong military strength and scientific and technological strength.
In addition, the U.S. government has set its sights on a fast-rising China.
In order to limit China's development and rise, the U.S. government has pursued a variety of policies, but judging from the current global economic situation, only the renminbi can effectively compete with the dollar.
In the past, the U.S. government controlled the financial forces and constantly made attendances to the mainland.
The Chinese side must reserve US dollars, otherwise there will be no way to resist in the event of a surprise attack.
It is precisely because of this that China has begun to hold a large amount of US Treasury bonds. However, as the global economic situation continues to change, a new pattern is gradually taking shape, breaking the hegemony of the US dollar.
No longer allowing the United States to enjoy the privileges of world capital alone has become the goal of many countries.
However, judging from the current situation, the United States still has a high voice in the global economy. Many of the previous crises have been resolved through interest rate hikes and loose monetary policy.
This time, the United States has continued to raise interest rates in the face of various pressures and crises.
Since 2022, the U.S. government has launched a number of interest rate hike policies. In fact, the introduction of these policies also indirectly shows that the US dollar is indeed facing many difficulties at present, and the US government must raise interest rates to curb inflation.
Of course, the implementation of the interest rate hike policy is not entirely aimed at eliminating the inflation problem in the United States, and there is another very crucial reason for absorbing global wealth to ensure the hegemony of the dollar in the world.
The policy of raising interest rates has indeed allowed the dollar to maintain its hegemony in the short term, but it has been a serious shock to other countries.
In the event of a rate hike by the dollar, a lot of capital will flow to the United States.
Originally, the U.S. government planned to cut interest rates in 2024, but judging from the current situation, the U.S. government is likely to continue to pursue interest rate hikes, and this round of interest rate hikes is obviously aimed at Asian countries.
However, what the US government did not expect was that the impact of the interest rate hike policy did not affect China, but caused its ally Japan to suffer heavy losses. Recently, the yen exchange rate has been declining one after another, and Japan is facing a severe economic crisis.
There is news that the exchange rate difference between the yen and the dollar has set a record low in almost 34 years.
The reason why the yen exchange rate has fallen so much is closely related to the United States, and it is precisely because of the interest rate hike policy in the United States that a large amount of capital has begun to short the yen.
Some analysts believe that the current problem of declining exchange rate in Japan is much more serious than people think.
Relative to other Asian countries, Japan will face huge losses in this crisis. Although Japan and the United States have always been friendly and even visited the United States some time ago, the problem of the collapse of the yen has not been avoided.
The reason why the yen has developed into this state is not only due to the impact of changes in the domestic economic structure and international monetary policy, but also because the Japanese government has not taken any policy to stop this phenomenon.
The Bank of Japan (BOJ) is still keeping interest rates low, leading to massive capital outflows.
The depreciation of the yen has had a great impact not only on the Japanese economy, but also on the entire Asian economy.
In order to counteract this effect, some Asian countries will certainly intervene accordingly, although some policies will stabilize the value of the currency.
But in fact, if other Asian countries implement new policies, they may lead to the depletion of foreign exchange reserves, which will ultimately affect the economic stability of the entire country.
In fact, this effect is already being felt in some Asian countries, such as South Korea, India and Vietnam. For example, Japan is a country with a huge foreign exchange market, and Japan's government bonds are also relatively large.
Against this backdrop, an economic collapse would be a fatal blow to Japan.
Unlike Japan and other countries, the depreciation of the mainland currency is not large, and it is still in a controllable state. However, the dollar's economic harvest in Asia has not yet come to an end, and we should not take it lightly.
What do you think about the Fed's continuous interest rate hikes? Welcome to discuss in the comment area!