Now the situation is very clear, that is, in this round of financial war, the United States has basically declared bankruptcy, not only failed to meet strategic expectations, but also took advantage of the hegemony of the dollar that has been operating for decades.
Because the Americans' initial idea was like this, first of all, to ignite the situation between Russia and Ukraine, to make stable Europe turbulent, and then the United States took the opportunity to end the game, confiscate Russian assets, receive industrial capital fleeing from Europe, and finally cooperate with the dollar interest rate hike cycle to launch a financial war, and harvest the wealth of our reform and opening up for 40 years in one fell swoop, so that the leeks of the three major economies of China, Europe and Russia can be cut, enough to make up for the debt hole of up to 35 trillion US dollars in the United States, so as to revitalize the US economy again.
But in the process of implementing this strategy, two unexpected events were encountered:
One time was when European industrial capital fled, not only to the United States, but also to us, which led to a great reduction in the wealth harvested by the Americans, and Russia's policy of shrinking at the speed of light also made the United States not get much oil and water, which was far from the expected goal.
The other time is in the process of harvesting us, the two sides broke out a fierce financial war, from Hong Kong stocks to A-shares, from the property market to the exchange rate, the two sides are inseparable, the Americans not only failed to take advantage, but also shook the foundation of the hegemony of the dollar.
Here I will explain why this time it will shake the foundations of the hegemony of the dollar, because this is how the dollar is harvested.
First of all, the Federal Reserve will raise interest rates, and everyone knows that raising interest rates is to tell everyone in the world that it is more profitable to invest with us, so when the United States starts the interest rate hike cycle, there will be a phenomenon of global dollar capital flowing back to the United States. Now the benchmark interest rate in the United States has reached an astonishing 5.5, while China's deposit interest rate in the same period is not even 2, as high as 3.5 interest rate difference directly so that profit-seeking capital with closed eyes know how to choose, after all, it is very simple, the same investment of 100 million, the interest in the United States is 5.5 million a year, but the interest in China is only 2 million, even if it is a nine leaky fish who has not read a book, he can also make the right choice.
So we saw that in 2021, our domestic economy is still thriving, and the GDP growth rate has directly reached 8.1%, but in 2022, as the United States began to raise interest rates in March, our perception has become significantly worse, because as the United States has withdrawn a lot of funds, there will be problems with our domestic liquidity, there is no money in the market, the factory will not get investment, the factory will not be able to expand production without investment, and the factory will not be able to expand production, so naturally there is no way to recruit more people. There could even be layoffs, salary cuts, and a wave of unemployment.
If you don't believe it, look around you, is it what I said? And it's not just our own country, the world's economy has been in a downturn in the past two years with the U.S. interest rate hike.
This is what the Americans want, because only when there are economic problems in various countries, can they have the opportunity to use financial means to blow up the exchange rates of various countries, and when the exchange rates of various countries collapse, they will take the opportunity to buy the assets of other countries at a very low cost, so as to achieve the purpose of harvesting dollars.
Through this way of tidal harvesting of dollars, the United States has harvested many countries in history, basically which country is just about to rise, and will immediately usher in the sickle of the United States, the most typical case is Japan in the 80s and Thailand in the 90s, all of them have been cut away by the United States for decades, and they have not recovered so far.
Of course, the Americans also want to use the same trick against us, but they have repeatedly hit a wall, because of a very important reason, that is, we do not allow the free flow of capital, and our foreign exchange in and out of China must be controlled, for example, we stipulate that each person's annual exchange quota is only 50,000 US dollars, which leads to the United States suddenly having no room for operation.
Because if he wants to harvest our wealth with financial warfare, he needs to meet at least two conditions:
First, they have enough funds to blow up the exchange rate of the yuan, but the interesting thing is that China is the world's largest import and export trading country, with a foreign exchange scale of up to 3 trillion US dollars, and the current United States cannot come up with enough funds to blow up our exchange rate, that is, even if it is a paper-to-paper game, the Americans have no chance of winning.
Second, even if the United States can detonate our exchange rate through other means, because we have strict foreign exchange controls, if the Americans take money to buy the bottom, I am afraid that they will only be able to enter but not be able to get out, and last year's withdrawal from China, the US capital group BlackRock, which suffered huge losses, is the best case.
So for so many years, American capital can only honestly invest and do business in China, as long as you don't think crookedly, you are allowed to take away the money you make from serious business, but if you want to engage in financial harvesting, sorry, the stick of socialism is waiting for you.
That's why the Americans have been shouting internationally that we should open up the financial market and not control the exchange rate, after all, we are so strict, how can they cut the money?
Of course, if we want to harvest our wealth, we don't have to use the model of financial warfare, there is a simpler and more direct way, that is, to wage war.
Why did the Kosovo war break out in 1999? It was because of the birth of the euro that threatened the hegemony of the dollar, so the Americans fought a war on the edge of Europe, which caused panic in Europe, which caused the euro to depreciate sharply, and the European economy was in trouble, and it was no longer possible to challenge the status of the dollar as a world currency.
In the same way, the most direct way for the United States to stop our development is to stir up a situation on our side, start a war, and let global investment see the instability in the East, so as to trigger a large-scale exodus of assets, and the Americans can reap the benefits.
But the problem is that playing strategy with us Chinese, the Americans are still too tender, they think that if we fight with others, they will be able to take advantage of the opportunity to profit, but our idea is that either we will not fight, or if we want to fight, we will directly play big and directly bomb the world hegemon off the throne.
So over the years, we have seen that the United States has stirred up the situation around us, frequently letting India, Japan, South Korea, the Philippines, and small islands provoke us, but our crosshairs have always locked on the Americans, whether it is the radar locking on the American aircraft carrier in 2016, or the 055 chasing the American fleet in 2023, our meaning is very clear, that is, if you want to fight, we will hit the Americans, and we will never let them take advantage of the fisherman.
Seeing that our strategy is so clear, the Americans are in a hurry, and when they are in a hurry, they will make frequent stupid moves, and directly dig the graves of the dollar hegemony one by one.
The first is the collective withdrawal of US troops from the Middle East, which led to a power vacuum in the Middle East, which was taken advantage of by the eastern powers, which led to the emergence of a situation in which the countries of the Middle East collectively turned against the water. It is because the dollar and commodities such as oil are anchored, especially the binding relationship with oil, which is very important! In the past, the whole world knew that if you want to buy oil, you must use US dollars, so the US dollar is a well-deserved world currency.
However, with the withdrawal of the United States from the Middle East, the major oil-producing countries in the Middle East have begun to settle with us in RMB, which has led to a sharp decline in the status of the dollar in global trade.
And not only the financial impact, with the withdrawal of the United States from the Middle East, the overall situation in the Middle East has also undergone earth-shaking changes, in the past, with the support of the US military, no one dared to touch Israel, but with the departure of the US military, Israel has become an isolated island in the Middle East and has become the target of the Arab world.
It doesn't matter if Israel is just an ordinary country, but the crux of the matter is that the whole world now knows that the Jews are the fathers of the Americans, and the fathers were beaten in the Middle East, and the Americans did not say this, which would seriously damage the prestige of the world hegemon, so now the United States has been in a dilemma in the Middle East, and it has been strategically overwhelmed by the great powers of the East.
Because the very simple truth is that if the United States sends troops to help Israel, then congratulations, the United States will be caught in a war situation in the Middle East from which it will not be able to extricate itself, and we will have precious time for development, and when we become a complete body, the Americans will not be able to do anything.
However, if the Americans do not send troops to help Israel, on the one hand, their prestige will be discredited, and on the other hand, the Jews in the country will break out into a fierce conflict with the Anglo-Saxons, which will lead to more and more internal divisions in the United States, and this effect will also be very bad.
And it's not just that withdrawing from the Middle East is a stupid move of the United States, but that it started raising interest rates immediately after the conflict between Russia and Ukraine, which is also one of the stupid tricks of the United States, why? Because first, because the interest rate hike has triggered a credit crisis in the dollar, with the Federal Reserve's continuous interest rate hikes, in the past 2023, the debt interest that the United States needs to pay has reached 896 billion US dollars, and after entering 2024, the situation will become more dangerous, and the total debt of the United States will soon exceed 35 trillion US dollars. are as high as 1.2 trillion, higher than the annual military spending of the United States, according to this trend, in the next 150 years, the United States has no possibility of repaying the principal, so now the world is clear that the Americans will definitely default on their debts, so in this case, is it natural for everyone to no longer credit the dollar and settle in other currencies?
Therefore, in the two years of interest rate hikes in the United States, more and more countries have begun to buy oil and natural gas without using the dollar, and more and more countries have directly used the yuan to buy Chinese goods.
Therefore, forcing a rate hike in such a situation is undoubtedly a proper stupid move.
Of course, I also know very well in my heart that the reason why the Americans make frequent tricks is actually because their national strength is not enough, and there are only so many resources that can be deployed, and if they want to suppress the big countries in the East, they must give up the interests of the Middle East, and even do not hesitate to collapse their dollar hegemony.
But will this really help the Americans achieve ultimate victory? In just two years, Russia has completely turned against the United States, and countries in the Middle East have also found new refuge, even the traditional allies of the United States, Europe, Japan, South Korea and India, have produced a crisis of confidence under the harvest of the United States, and even Israel, the most stable ally of the United States, is now openly singing against the United States. The United States will also end up in a failed way.
Just like countless dynasties in history, it was full of holes, a full-scale thunderstorm, and finally collapsed under everyone's attention, which was the fate of the end of the empire.