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With the economic crisis in the United States easing, the U.S. government has set its sights on the economic wealth of other countries.
Although the U.S. government has repeatedly stated that the interest rate hike policy is to alleviate the inflation problem in the United States, anyone with a discerning eye can see that the fundamental reason for the Fed's interest rate hike policy is to harvest the wealth of other countries.
In the past, whenever the United States faced economic risks, the first thing that came to mind was to control the funds of other countries through the hegemony of the dollar.
First, the loose monetary policy will be used to print a lot of money to allow these dollars to flow into the market, and then the US government will raise interest rates to attract capital inflows from other countries.
When the value of the dollar continues to rise, it will inevitably attract the attention of capital, and then a large amount of capital will run to the United States to complete the harvest of wealth from other countries.
However, when the United States implements the interest rate hike policy this time, it still cannot make up for the huge debt owed by the United States under the development model.
The United States has been relying on a borrowed development model, which has led to a growing fiscal deficit. In addition, the U.S. government has successively introduced the debt ceiling several times, so that the scale of the U.S. national debt continues to expand.
This, coupled with the fact that U.S. military spending is rising every year, further increases the cost of U.S. government operations.
Although the Fed has implemented several rounds of interest rate hikes since 2022, it still cannot alleviate the economic risks that the United States is currently facing.
Recently, the Federal Reserve, which was originally planning to cut interest rates, has continued to promote the value of the dollar to continue to rise. According to a person familiar with the matter, the Fed's purpose in doing so is to short China.
Recently, the US Government has sent a number of officials to visit China in the hope of receiving further economic assistance from China.
But the U.S. officials did not get a satisfactory answer during their trip to China. In the context of the growing economic crisis in the United States, the Fed must act.
The Fed's target of this action is the Asian region, which is dominated by China, and is trying to alleviate the current risks of the United States by harvesting the wealth of some Asian countries such as China.
As the value of the US dollar continues to rise, many Asian currencies have depreciated sharply, with the yen depreciating even faster.
Even though the Japanese government has recently launched an interest rate hike policy, breaking the negative interest rate for more than 10 years, the yen exchange rate has not changed due to the rise in interest rates, but has continued to maintain a downward trend.
The original plan of the United States to short China was not implemented, and Japan became the main target of the United States' harvest.
In addition to the huge impact on the Japanese yen, the foreign exchange markets of other Asian countries have also suffered a severe blow.
At present, some Asian countries have begun to adjust interest rates to mitigate the impact of the financial turmoil through interest rate hikes. Compared with these Asian countries, the mainland currency has not been greatly affected and remains in a relatively stable state.
How did the Chinese currency break through when the U.S. failed attempt to short the Chinese economy?
At present, the exchange rate of the mainland offshore currency has always remained at 7.25, although it has depreciated to a certain extent compared with before, but the depreciation is not large, and it is still in a controllable state.
Some analysts believe that the fundamental reason why China's currency has been able to maintain a stable state is the rapid development of China's economy, which has further strengthened the stability of China's currency under the impetus of the economy.
In addition to strong economic support, in the course of economic development over the past few years, the mainland has formed an effective risk resistance system in response to the economic crisis.
Especially after the last Asian financial crisis, China has begun to build a firewall in the financial market.
At the same time, it is also fully aware that the United States has a strong ability to manipulate the economy in the world by taking advantage of the cycle of the dollar.
In order to prevent China's economy from being affected by this under the manipulation of the United States, the mainland has formed a relatively strong defense system over the years of development.
Although the United States has been relying on the hegemony of the dollar for many years, it has freely controlled the economies of other countries in the international community.
However, judging from the current economic situation in the United States, under the Fed's continuous interest rate hike policy, the economic collapse problem faced by the United States is becoming more and more serious.
Although the global status of the dollar is still high, the harvesting power of the dollar has decreased significantly compared with before.
Especially as more and more countries begin to remove the effects of dollarization, the dollar's ability to harvest the wealth of other countries is far less than it once was.
In order to better protect the wealth of the mainland, China's holdings of U.S. bonds have been decreasing in recent years.
At the same time, limited foreign exchange control measures have been implemented to limit large-scale capital flows through effective controls, which have played a significant role in stabilizing the country's economic development.
What do you think about the exchange rate of Asian currencies?