The semiconductor stocks I bought in the A-shares have skyrocketed. However, I only invested about 300,000... Now A-shares are really hot, and to prevent a repeat of last year's history where foreign capital heavily bottomed out in A-shares due to the US interest rate cuts, we have learned to be smart this time. We are continuously cutting interest rates to drive up the market, and by the time you Americans slowly cut rates, we will have already risen, especially in the semiconductor chip industry, which is crucial for the future outcome of the US-China competition. This also indicates one thing: our higher-ups are betting on the fact that the US will cut rates in September.

This also reminds me of the drawbacks of the so-called democracy and political struggles in America. Even today, I still believe that the rate cut in June was the right decision, as the A-shares had just hit the bottom in June. Trump's tariff policy is essentially aimed at revitalizing American manufacturing. Some say it's to pay off the national debt, which is pure nonsense; the small amount of tariffs collected is nothing compared to the massive interest on the national debt. The goal is to prevent the hollowing out of American industries, which is actually very similar to what the Dragon Country did in the past: using tariffs to enhance the advantages of domestic industries while lowering interest rates to decrease financing costs for small and medium-sized enterprises, promoting the revival of American SMEs. At the same time, by using both coercion and incentives, making overseas companies return to build factories in the US with tariff exemptions, achieving Made in America once again. This combination is sound and the thinking is correct. In fact, while this approach may only temporarily raise prices, once American entrepreneurs build a large number of manufacturing plants through low-interest financing, the increase in domestic production will eventually suppress prices again and reduce inflation. However, the key point is: the Federal Reserve must cut interest rates. If they don't cut rates, companies won't be able to secure financing, and entrepreneurs won't dare to take loans to build factories. The tariff policy then becomes meaningless and merely raises prices; the little tax collected is not enough to cover the additional 0.25% or 0.5% interest on the national debt, rendering tariffs meaningless. Therefore, interest rate cuts must accompany tariffs. This is why Trump is so anxious and often criticizes Powell: you are making my policies meaningless!

Thus, the political struggles and so-called democracy in America create an extremely inefficient situation. In the past, I was also a supporter of America, but now I feel that, indeed, the American system is also fraught with problems. There are too many meaningless party struggles and inefficient decision-making.