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Recently, the Asian economic turmoil has attracted the attention of countries around the world.
In this storm, the currencies of many countries have depreciated sharply, even Japan, an old economic powerhouse. The yen exchange rate has fallen sharply, and the value of the Japanese currency has also fallen sharply.
In addition to Japan, all other Asian countries have also suffered from this economic shock. South Korea's currency, Vietnam's currency, India's currency, and so on have depreciated one after another, but only the mainland renminbi has always maintained a relatively stable state.
How did the renminbi survive this financial turmoil, and why did China's economy remain in a relatively strong state of development?
In response to the debt crisis, economic crisis, and fiscal deficit faced by the United States, the Fed raised interest rates more than 10 times in just a few months in 2022.
Originally, the Fed hoped that through this policy, other countries would obediently hand over their wealth.
Due to the global influence of the US dollar, under the influence of the continuous interest rate hikes in the United States, the hegemonic role of the US dollar has been further exerted, and the wealth outflow of many countries around the world has also been brought into the pockets of the United States.
However, the abundance of wealth has not been able to alleviate the severe inflation and fiscal deficit in the United States.
Over the years, the United States has been spending more and more on development, which has also caused the US government to face a very serious inflation problem, and the large fiscal deficit cannot continue to support the operation of the US government.
In addition, there are more and more contradictions in the US economy, which have exceeded the scope of free regulation, which is also the main cause of inflation in the United States.
However, in the face of these predicaments, the United States is still constantly stirring up the situation around the world, not only in the Russia-Ukraine conflict, but also in the ACCCIM's presence from time to time, resulting in a sharp rise in the price of global oil and some resources.
The main purpose of the United States in waging wars is to make money, but it never thought that after the outbreak of these wars, it will be beyond the control of the United States.
In the case of constant instigation of war, it is necessary to pay higher military costs.
In recent years, US military spending has shown a rapid upward trend every year.
The GDP growth in the first quarter of 2024 is far from meeting the expectations of the US government, and the inflation problem is getting worse.
This made the Federal Reserve, which was originally preparing to implement a policy of cutting interest rates after the end of the first quarter, once again propose to raise interest rates.
At the same time, the U.S. government is also directly targeting China and other Asian countries.
This was followed by a full-blown currency storm in Asia. The United States often uses the game of capital to absorb the world's wealth, and with the help of the tide of the dollar, other countries will pay for it.
Since in the past, the goal could be reached every time the dollar tide was exploited. This gives the United States full of confidence, believing that this time it can also easily defuse the various pressures it is currently facing.
Relying on the irreplaceable position of the US dollar in the world, the United States can take advantage of the opening and tightening of the flow of the US dollar, and in the process of opening and closing, it can take other wealth as its own.
Although the United States has directly set its sights on China during the Asian economic turmoil, judging from the current situation, the policies pursued by the United States have not had an impact on the mainland's currency.
The reason why the mainland's economy has been able to maintain a stable state is related to the fact that the development of the past few decades has doomed the resilience of the economy, and both monetary and fiscal policies are in a very independent state.
In particular, after the United States launched various economic strikes against Russia, it also made the mainland more aware of the disadvantages of over-reliance on the United States.
In the past years of development, the mainland has always followed the path of independent development. In the past two years, China has also reduced its U.S. debt by a large margin to reduce the impact of dollar fluctuations on the mainland economy.
In the case of a large reduction in US debt, the central bank also bought a large amount of gold as reserves. In the face of economic chaos, gold is a better hedging tool.
The mainland has stepped up its gold reserves, which can better cope with the impact of the US dollar. Although the United States has been waging a constant currency war, the mainland economy seems to be unmoving.
In fact, if we look at the current situation in the United States, we will find that although raising interest rates can help the United States alleviate the inflation problem to a certain extent, in fact, this policy will also bring many disadvantages to the United States, leading to the aggravation of the economic crisis in the United States.
Whether it is the current crisis of commercial real estate in the United States or the banking crisis, it is actually directly related to the interest rate hike promoted by the US government.
While the United States is launching a full-scale currency storm, it will inevitably suffer a heavy backlash, and the bankruptcy of the American banks is the best illustration.
What do you think about the Asian currency turmoil? Welcome to discuss in the comment area!