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In recent years, the US fiscal deficit has become more and more serious.
With the scale of debt growing, any decision made by the United States in the economic field is likely to have a huge impact on the global economic market.
It is precisely because of this that the outside world has paid extensive attention to the economic trends of the United States.
As the U.S. Treasury Secretary Yellen made it clear during her recent trip that the U.S. economy is still relatively good, and although the nominal economic data is not outstanding, the overall economic situation of the U.S. remains relatively stable, and there are many outstanding points in sustained economic growth.
Obviously, this is Yellen's response to the US GDP data for the first quarter of 2024.
In recent years, the risks of the U.S. economy have been increasing, but the U.S. government remains relatively optimistic about economic growth.
In this regard, some analysts believe that the reason why the United States is so confident in the economy is because it has the hegemony of the dollar in its hands.
After all, in many economic crises in the past, the United States has successfully used the hegemony of the dollar to pass on economic risks.
When the economic and financial risks of the United States are presented again, the first thing that comes to the Fed's mind is to raise interest rates. In the past two years, the Federal Reserve has raised interest rates several times.
The Fed's interest rate hikes are aimed at easing inflation and at the same time aggressively reining in the wealth of other countries.
Over the past few years, the Fed has repeatedly used such measures to successfully mitigate the economic risks facing the United States, while also harvesting the wealth of other countries.
This time is no exception, under the dual influence of the most loose monetary policy and interest rate hike policy, it has caused a huge sensation in the global financial field.
The United States has always believed that it has a very large economic base, and even now there is a high inflation problem in the United States, but Yellen pointed out that even if the data is high, it does not necessarily mean that it has entered a high-speed inflation time.
According to the US official, the reason why the various price costs in the United States are rising is due to housing problems.
If the level of rent is relatively stable, it will be reflected in the price index.
At the same time, the U.S. job market is also very hot, and these hot scenes are the main cause of inflation.
In addition to responding to the current state of the U.S. economy, Yellen also warned Japan that it will not be allowed to take any measures, let alone stand up against it, even in the face of a sharp decline in the yen exchange rate.
The United States has continued to use its interest rate hike policy to set off fluctuations in global financial markets, and even pointed the butcher's knife directly at Japan.
In order to carry out a new round of harvesting, the US government not only used the interest rate hike policy to launch a financial war in the Asian region in an attempt to harvest China's economy on a large scale, but never thought that China's economy would always remain in a relatively stable state, and the United States' plan to harvest China's economy failed.
Obviously, the United States is trying to protect its economic interests at the expense of Japan, South Korea, and other countries.
In the midst of the financial turmoil unleashed by the United States, the currencies of many Asian countries have depreciated a lot, which has dealt a heavy blow to the Asian economy. Seeing the battle to defend the Asian currency begins.
As the yen exchange rate has fallen sharply, the value of the yen has also been declining, and at the same time, the currencies of South Korea and India have also depreciated to varying degrees.
Against this backdrop, Japanese and South Korean officials have issued a joint plea in the hope that the United States can play football to prevent the financial turmoil from continuing.
At the same time, Japan and South Korea also began to fight back in the financial field, and even two originally hostile countries began. Joining forces to try to mitigate the risk of a domestic economic collapse.
In recent years, Japan and South Korea have been very close to the United States, and they have always obeyed the United States in many policies and provided many services to the United States.
However, under the influence of the continuous interest rate hike policy of the United States, the depreciation of the yen is getting faster and faster, and in a very helpless situation, the Bank of Japan has made a very important decision - to raise interest rates.
At that time, some analysts believed that the Bank of Japan was likely to pursue these policies in response to the financial war that the United States continues to launch.
The United States is trying to use this means to firmly lock Japan down, and then encircle China in all aspects.
Originally, the economic crisis launched by the United States was to hit China's financial sector and to short China's economy.
Although under this financial turmoil, some of China's assets have indeed been affected to a certain extent, but because they have always taken precautions before.
The United States could not cut China's wealth, so it began to sacrifice the interests of Japan's allies, and now Yellen has warned Japan that Japan will not be allowed to take any measures to resist.
What is your opinion on the issue of Japan's exchange rate? Welcome to discuss it in the comment area!