The Fed continues to raise interest rates and is playing a big game!
The Fed continues to raise interest rates. From the first rate hike on February 2, 2023, to the eighth rate hike on December 14, 2023, it is rumored that there will be more rate hikes after June 2024. The US dollar interest rate has reached 6%, and some institutions predict that it may be as high as 8%. This is undoubtedly a bad news that shocked the world. This is definitely not just a simple strategy to absorb the return of US dollars. The United States is playing a big game. We are likely to underestimate their wisdom and means, resulting in systematic misjudgments.
The target of interest rate hikes is debt, which inhibits economic development. Usually, the greater the investment, the greater the debt, and large-scale debt-funded investment projects will be hit hard. The return on depositing the same amount of money in the bank is higher than the return on investing in factories and doing business. Who would invest? Isn't it nice to make money lying down? Looking at the world, my country has the largest investment scale and the most debt. Obviously, the ultimate target of the US dollar interest rate hike is China. The Americans regard us as the most threatening opponent, and they will definitely gather their main forces to deal with us. Don't listen to those confusing remarks, thinking that the goal of the US interest rate hike is to harvest Europe. Why did Yellen come to China again? Some people actually interpreted it as she came to borrow money and ask for help, which is ridiculous! It is true that she is weak, but is she really weak? She hopes that you will do as she asks, and die faster and more miserably. She just wants to create an illusion to let you relax your vigilance, so that it is easier to succeed. People's hearts are sinister, and we must be on guard.
The US uses the siphon effect to absorb global hot money by raising interest rates, and at this stage it has not invested in traditional projects on a large scale. There is only one explanation that is logical, and a new round of technological revolution is about to begin. We can no longer invest a lot of resources in the construction of non-advanced productive forces.
