srclogistic.com.

If the US dollar was once the object of everyone's desire, now it's more like a rat crossing the street, a target for everyone to shout at and hit.

With the US national debt breaking through the 35 trillion mark, the dollar is like a grenade that could explode at any moment.

Yet, the US remains stubbornly oblivious, using its dollar hegemony to continue raising interest rates.

When everyone thought the US would lower interest rates, on the last day of July, the Federal Reserve announced that there would be no rate cut in August.

But they still repeated the old tune that there would be a rate cut in September.

When the US thought that the US stock market and the dollar would still strengthen as before, it didn't expect that on August 2nd and 3rd, the dollar and the stock market would plummet consecutively.

Advertisement

US tech stocks fell by more than 6 trillion dollars, with tech giant Intel's stock price plummeting by nearly 30%, setting a record for the largest single-day drop since 1982.

Now, this financial war has come to a decisive moment.

In this protracted financial game, China has also shown its attitude to the US, and the situation between China and the US seems to have reversed at this moment.

Why did the dollar and the stock market suffer a double kill?

When the whole world was looking forward to the era of dollar rate cuts, the Federal Reserve poured a bucket of cold water on everyone.

After all, with the current weak domestic economy in the US, rising unemployment rates, and the rapid growth of US debt, people thought that a rate cut was a foregone conclusion.

However, on the last day of July, the Federal Reserve repeated its old trick, but this time the global capital did not buy it.

The Federal Reserve announced that there would be no rate cut in August, leaving people in suspense again, maybe there will be a rate cut in September.

Why does the Federal Reserve maintain high interest rates even under pressure from all sides?

In summary, it is necessary to blow up a medium to large economy to continue to prolong the life of the dollar.

When the US thought that the situation would be the same as before and would rise due to the expectation of rate cuts.

Unexpectedly, something happened that the US did not expect.

On August 2nd and 3rd, the US stock market plummeted consecutively, and tech stocks fell by more than 6 trillion in market value.

Intel's stock price plummeted by 26%, and Amazon's stock price fell by more than 8%.

The NASDAQ plummeted by more than a thousand points in two days, while the renminbi surged by 1,000 points.

So, why didn't the play follow the US script?

Because international capital is already withdrawing, which also indicates that the US's attempt to harvest Chinese assets this time has completely failed.

People only know that this is the method the US has always used to harvest global assets, but they don't know how the dollar rate hike harvests global assets?

In July 2019, the US started this round of rate cuts, and with the Federal Reserve's rate cuts, a large amount of dollars flooded into the global market from the US, providing some financing opportunities for some small economies that lack development funds.

This influx of dollars will lead to an increase in domestic money supply.

Since dollars need to be exchanged for local currency to be used, the influx of dollars and the increase in local currency supply will inevitably lead to inflationary pressure and the rise of asset prices.

If the initially inflow of dollars chooses to sell at a high price, it can achieve the first harvest of dollars.

Next, the US began the final harvest - the dollar rate hike.

With the dollar rate hike, the dollars that were originally invested in other countries gradually flowed back to the US.

To avoid a large-scale capital flight, some small economies were forced to follow the US and raise interest rates to retain capital.

However, this is exactly the strategy of harvesting wealth in the process of the dollar rate hike.

Due to the implementation of the interest rate hike policy, domestic currency will return to the banking system, resulting in a reduction in the number of circulating currencies in the market.

Under this background, the asset prices that were previously raised will face a sharp decline.

The dollars that were stranded abroad returned to the US banking system, and with the decline of foreign asset prices, the US could use low prices to harvest some high-quality companies, which is the first step of the dollar rate hike harvest.

The second step of the dollar rate hike harvest is that US technology companies take advantage of the gap in the dollar rate hike to publicize their breakthroughs in key technologies, thereby attracting foreign capital to flow into the US market, and the asset prices in the US soar.

In this way, the dollar rate hike not only allows the dollars that were stranded abroad to return to the US banking system, maintaining the hegemonic status of the dollar, but also allows the asset prices abroad to plummet, and the asset prices of its own country to soar.

In this process, if some small countries do not have a complete financial system and solid foreign exchange reserves, then in this financial war, they can only be slaughtered at will by the US, and may even lose national leadership, becoming a puppet of the US.

And this is also the purpose of the Federal Reserve's frequent use of the dollar rate hike.

Now the Federal Reserve is reluctant to cut interest rates, because the US's appetite for harvesting has not been satisfied.

However, with a large amount of foreign capital flowing into the US, the US technology companies that invested in the end, did they really create the same or more value?

This is the important reason for the US stock market crash this time, because the US relies on the concept of AI or artificial intelligence, and the story is that AI can drive the development of global industry.

This attracts global speculative capital to invest in the US stock market, but the direct driving force of the stock market rise is capital.

Now that the US wants to cut interest rates, this batch of tens of trillions of capital is to withdraw, which leads to the US stock and exchange double kill.

Since the capitalist economic crisis basically occurs every ten years, the US's interest rate cuts are basically every ten years, and the US hopes to continue to insist, trying to blow up China, and even forcing Japan to raise interest rates.

But so far, the US has not harvested us, if it is necessary to harvest assets, then it is China's real estate in this round of interest rate hikes, due to the impact of dollar debt, causing some losses, but it is only one of the various complex conditions, not the leading one.

US debt has now exceeded 35 trillion, fiscal revenue is only 4 trillion, according to the current basic interest rate of 5.5%, the annual interest to be paid is more than 2 trillion.

Not only interest, but also about 3.5 trillion will expire every year, so it is necessary to cut interest rates, only by lowering the interest rate to below 1%, the US can continue to live.

The dollar bubble is strong, and only the strong have the right to make rules, while the weak can only be slaughtered in the game created by the strong.

At present, the US, as the world's largest economy and with the support of the dollar hegemonic status, seems to regard the whole world as the processor of its mess.

The dollar rate hike attracts the world's funds to the US, filling the loopholes in the US's funds.

However, with the influx of a large amount of capital, has the US really created so much value?

According to data, last year's issuance of dollars was five times that of 20 years ago, but the actual economic output of the US last year, which bears a large amount of US debt, was only nearly twice that of 20 years ago.

So you think, isn't it that two-thirds of the dollars and US debt are printed out of thin air?

However, they can buy a variety of goods and resources in the world, which are not the results of our ordinary people's hard work, and which are not real wealth?

But how many of the dollars we get in exchange for these things are really valuable?

Let's talk about the two financial crises, the 98 Asian financial crisis and the 08 subprime crisis, the culprit of the dollar is still free and easy, and those hardworking and kind-hearted people around the world bear all the losses.

Why can the seven private enterprises in the US, with those ostentatious so-called "technological innovations", attract the hot money that pursues high profits from all over the world, and let their total market value exceed the amazing 17 trillion US dollars, which is almost equivalent to our country's annual economic output?

But have they really created so much value?

Artificial intelligence models can't even solve the most basic mathematical problems, Apple's mobile phones are in a mess when facing the competition of Huawei mobile phones, and their market share is continuously declining.

Tesla can't protect itself in the global electric car price war, and its net profit has plummeted by 40%.

The US has created a large number of financial bubbles with the dollar, but the final bearer is only the ordinary people living at the bottom.

Why are the rules made by the dollar always used to restrict others, but never to restrict itself?

Because in the eyes of the US, the dollar, as the only international currency in the world, we can only accept it and have no other way.

This is also the reason why the US frequently launches financial wars, and through financial means, it defeats the economies of other countries.

However, the US forgot that the river east of thirty years, the river west of thirty years, the US frequently uses the dollar rate hike to try to harvest the world, create a large number of financial bubbles, and defeat the economies of other countries, which will eventually be backfired.

China's open card to the US is not so much a financial war between China and the US as it is a struggle of the world against the dollar hegemony.

In this war without smoke, China took the lead, and this struggle against the dollar hegemony, China has persisted for 20 years.

Now the Federal Reserve is reluctant to cut interest rates and still tries to use the dollar rate hike to harvest the world.

China is no longer hiding from the US, and victory will stand on the side of justice.

On the one hand, it calls for a free market, and on the other hand, it tries every means to suppress China.

The US's double standards are unparalleled.

It says that our electric vehicles have developed so rapidly because of subsidies, but when we no longer use subsidies, the US is crazy to subsidize its own industries, and the subsidies are only given to US enterprises invested by the US, and Chinese enterprises in the US not only have no subsidies, but also have to endure various raids.

On the one hand, it carries out a trade war against China, and on the other hand, it uses the dollar to harvest the world.

The world has endured the bullying of the dollar for too long, and the world has suffered from the dollar for a long time.

A punch opens, and a hundred punches come.

At the critical moment of the financial war, China, as a brave man, stood out and took the lead in showing its attitude to the US.

According to US media reports, the US Air Defense Department found Chinese and Russian aircraft in the international airspace near Alaska.To understand that previously, China and Russia's joint exercises mostly took place above the Sea of Japan and the East China Sea.

Now, striking directly at Alaska, China has proven to the United States its capability to conduct intercontinental strikes.

This is also a strong counterattack by China against the United States' Pacific Rim military exercises in the Indo-Pacific region, which are directly aimed at China.

The United States has always been immersed in a self-centered dream, never taking a serious look at other countries, believing that with a little trickery, it can make the whole world revolve around it.

But it seems to have forgotten that China, as a formidable opponent to the United States, is not merely a theoretical discussion on paper.

This is also a strong resistance by China against the hegemonic position of the US dollar and a declaration of war on the United States' hegemonic status.

But on this day, many outdated aircraft wandered around the northeastern corner of the North American continent for five or six hours.

On this day, people from all over the world witnessed a hero standing up for them, fighting against the financial hegemony of the US dollar that has lasted for more than 20 years.

Thus, a seed of thought was quietly planted, and from that moment on, everything became different, and victory will ultimately stand on the side of justice.