Recently, someone asked, what is going on in the United Kingdom? I heard that they are going to China?
We checked carefully, and there is really such a thing, but there are also many strange places in it, which makes it difficult to conclude that this is the United Kingdom going to the East? Or a two-pronged bet? Or just want to test the wind and see which way the wind is blowing?
Let's start with one thing, on September 19, the Fed announced a rate cut, then on the same day United Kingdom said that it would not cut interest rates, and on September 20, Japan also announced that it would not move, do you see the problem?
This is a slightly more complicated question, so you can check out the rest of our content in the last two days. To put it simply, United States two most hardcore younger brothers United Kingdom and Japan did not follow the Fed to cut interest rates, which is very abnormal.
Why is it not normal? Because the Fed very much wants the major currencies such as the yuan, euro, pound and yen to follow the dollar to cut interest rates, maintain high interest rate differentials, and avoid the rapid loss of dollars, but United Kingdom and Japan did not listen this time.
The Fed cut interest rates and the dollar capital fled too quickly, which could easily trigger a collapse of U.S. stocks, the U.S. dollar and U.S. bonds, dragging down the United States economy.
I want to tell you that after the change of government in United Kingdom, the current attitude is very delicate, and everyone can better understand the story we are going to tell next.
Since Labour came to power in July, United Kingdom has approached us five times in a row.
1. In August, the leaders of the two countries had a telephone conversation.
2. Subsequently, the heads of the diplomatic departments of the two countries met.
3. The United Kingdom Treasury Department has a dialogue with Chinese financial institutions.
4. In mid-September, Mandelson, a veteran of the Labour Party who is considered to be an "important adviser" to United Kingdom Prime Minister Starmer, visited Hong Kong, China, and said that the new United Kingdom government intends to mend the deteriorating Sino-British relations and hopes that China can respond.
5. On September 18, the China-UK Economic and Financial Dialogue, the leaders of the two sides had a telephone conversation to exchange views on restarting the China-UK Economic and Financial Dialogue and strengthening economic and trade cooperation, and the United Kingdom participant was Chancellor of the Exchequer Reeves.
In just two months, 5 contacts, the frequency is not high, and United Kingdom's desire is very obvious, but their real purpose, what they want to do, still has to put a question mark, because United Kingdom is too bound to United States.
What the hell are they going to do? Let's see, what important words did Labour veteran Mandelson and United Kingdom Chancellor of the Exchequer Reeves say?
Mandelson said in Hong Kong that the United Kingdom government "wants to rebuild the strategic dialogue between United Kingdom and China in the future," and that was the tone.
During the phone call, Reeves said that the British side is willing to strengthen dialogue and cooperation with China to establish a stable and lasting foundation for the development of long-term and mutually beneficial relations between China and the UK.
Pay attention to this expression, "long-term mutual benefit", "stability and long-lasting", these are all very positive statements, I hope it is a long-term relationship and business.
This shows that after United States the Biden administration's four-year-long "new Cold War", United Kingdom at least clearly expressed the desire to reorganize the economic relationship between China and the UK.
Even so, United Kingdom's operation is still shocking, because in the past four or five years, United Kingdom has closely followed United States and actively distanced itself from us, and the current confrontation between United States and China is still intensifying.
In this situation, United Kingdom has behaved so proactively, we can only sigh that the old capitalist countries still know how to look at the direction of the wind.
This trend is not only the unprecedented changes in a century and the rise of China, but more importantly, what should be done about the mess of the United Kingdom economy?
What about the United Kingdom economy? It can only be described as very bad.
In 2023, United Kingdom's real GDP grew by 0.1% year-on-year, with a five-year average growth of 0.68%.
In the first half of this year, United Kingdom's GDP grew by 1.3%, and the Bank of United Kingdom forecasts an average growth of 0.3% in the third and fourth quarters. The United Kingdom economy has not grown for three months in the past four months.
In addition, United Kingdom has left the European Union, cooperation with the European continent has always been vigilant, not to mention cooperation with United States, the current United States is cooperating while cheating people.
Not long ago, the Starmer government publicly announced that "United Kingdom is bankrupt", which shook the world, and some people even speculated whether it would be United States bankruptcy next, and then 35 trillion US dollars will not be repaid?
At present, except for United States, the whole world is cooperating with China, and if the confrontation continues, United Kingdom I am afraid that I will not even be able to drink soup.
In the face of this situation, after the Starmer government came to power, it must be eager to change the status quo, and it is impossible to avoid cooperation with China. In addition, Starmer needs to do something different from his predecessor in the Conservative Party, and he also needs to cooperate with China.
Therefore, United Kingdom's initiative to engage with China is a practical need of the United Kingdom economy, everything is for the sake of interests, and of course we cannot be sentimental and think that United Kingdom is going to turn around.
The United Kingdom may also have no bottom in their hearts, one does not know what the attitude of the big brother United States is, and the other does not know what our attitude is, so let's talk about it first? Have you negotiated a preliminary plan, and then report to Big Brother United States?
It is estimated that the big brother of United States also has this attitude, and it is not good to directly threaten United Kingdom not to cooperate with us, so I have to pretend not to care and say that you can talk about it, and then talk about it.
To say that United Kingdom is really in decline, this little brother deserves to be bitter.
What about us? Be vigilant, if you can cooperate, you can cooperate well, and it doesn't matter if you can't, it's been like this for several years anyway.