economy 2024-07-19 47

Hope fades, the Federal Reserve in September is very likely not to cut interest

The hope for a Federal Reserve rate cut in September may be dashed. Despite economic data and financial institution forecasts pointing towards a rate cut, the actual situation is quite different. The BRICS countries' new settlement system is encountering obstacles, the Bank of Japan may raise interest rates again, and JPMorgan Chase is significantly withdrawing capital from Hong Kong— these three factors together suggest that the probability of a Federal Reserve rate cut is almost zero.

On the surface, the Federal Reserve's rate hike is to curb inflation, but in reality, it is a well-orchestrated "global robbery." By draining liquidity from countries, American capital giants are waiting for the right moment to acquire high-quality assets from various countries at low prices. This is not only about the fate of the United States but also involves the reshaping of the global economic landscape.

Can the United States maintain its increasingly shaky global strategic system through this "harvest"? Where will the global economy go from here? Let's delve into this economic game that affects the whole world.

The Federal Reserve's "Wishful Thinking"

Will the Federal Reserve really cut rates in September? This question may disappoint many. The seemingly imminent rate cut may actually be a carefully designed "global harvest" drama by the United States.

Why do we say this? Let's look at the current international situation. The BRICS countries originally planned to launch a new settlement system in October, which should have put great pressure on the dollar hegemony.

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However, due to India's non-cooperation, this plan has encountered a significant setback. At the same time, the Bank of Japan seems to be considering raising interest rates again, which will undoubtedly further drain global liquidity. What's more noteworthy is that the American financial giant JPMorgan Chase has recently withdrawn capital from Hong Kong, selling Hong Kong stocks worth up to 1.1 trillion Hong Kong dollars.

These three factors are intertwined, painting an unsettling picture: The Federal Reserve seems to be in no hurry to cut rates, but instead, it is preparing for the next round of "global harvest."

Undercurrents in the Global Economy

So, what exactly has led to this situation? Why is the Federal Reserve so committed to this "harvest"?The answer is actually not complicated, but it is thought-provoking. The real purpose of the Federal Reserve's interest rate hike is far more than just the "suppression of inflation" as claimed on the surface. In fact, this is a carefully planned global capital harvesting operation.

By raising interest rates, the United States is draining global liquidity capital, forcing other countries' economies into difficulty. Under such circumstances, American capital sharks can take the opportunity to acquire high-quality assets from various countries at low prices.

What is the ultimate goal of this strategy? It's simple: to control the world's most profitable companies and continuously transfer global wealth to the United States. This not only creates huge tax revenues for the United States but also eases the pressure of its $35 trillion national debt. It can be said that this "harvesting" operation is crucial to the fate of the United States and is a key step in maintaining its global hegemony.

The Dilemma of the United States' Global Strategic System

Why is the United States' global strategic system so important? This question is worth delving into.

First, we need to understand the dual benefit structure of this system:

The visible part: mainly various revenues brought by the global circulation of the US dollar, such as seigniorage.

The invisible part: the United States uses its strong position to force other countries to grant the United States special rights in various fields, thereby creating a huge competitive advantage.

However, the cost of maintaining this system is astronomical. Just for military expenses, the United States spends trillions of dollars every year. In addition, there are various expenses for training and supporting pro-American forces. These huge expenditures have already accounted for about 25% of the United States' annual tax revenue.

The problem is that today's United States is no longer the superpower that accounts for 40% of the global GDP. With the rise of other countries' economies and technology, the relative strength of the United States is continuously declining. Under these circumstances, how to maintain its global strategic system has become the biggest challenge faced by the United States.Global Harvesting: America's Last Gamble?

Faced with this predicament, the United States has chosen a path that seems risky but is actually astute: global harvesting.

Why is this considered America's last gamble? Because according to current international rules, if the United States wants to increase its tax revenue, it can only do so by controlling all the profitable companies globally. This is why the Federal Reserve is so committed to its interest rate hike policy, not easily letting go even under immense pressure.

Originally, under the threat of the BRICS countries' new payment system, the United States might have been cautious and temporarily abandoned the harvesting plan. After all, the importance of the dollar payment system to the United States is self-evident. However, India's wavering stance has given the United States a chance to catch its breath. With the pressure of the new settlement system gone, the Federal Reserve does not need to rush to lower interest rates.

What is more noteworthy is that the Bank of Japan's interest rate hike seems to be in line with America's strategy. By leveraging the special status of the yen, Japan's interest rate hike will undoubtedly exacerbate the tightening of global liquidity, creating more favorable conditions for the harvesting actions of American capital.

Future Outlook: Optimism and Pessimism Coexist

So, how will this global economic game unfold? Let's analyze it from both optimistic and pessimistic perspectives.

Optimistically, countries around the world have already realized America's strategic intentions and are actively taking countermeasures. Although the BRICS countries have encountered obstacles in launching a new settlement system, this trend of cooperation will not easily change. In the long run, the dollar hegemony is likely to face greater challenges.

Pessimistically, if America's "harvesting" plan succeeds, the global economic landscape may undergo fundamental changes. Many countries' high-quality assets could fall into the hands of American capital, which would further exacerbate the unequal distribution of global wealth and might even trigger a new round of economic crisis.

In the face of this situation, governments and enterprises of all countries need to be prepared. On the one hand, they must strengthen financial regulation to prevent their high-quality assets from being acquired at low prices; on the other hand, they should also actively seek international cooperation to jointly address America's economic hegemony.Netizens' Heated Discussion: A Variety of Opinions

This incident quickly sparked a heated discussion online. Netizens engaged in fierce debates, with a wide range of viewpoints.

"The United States is playing with fire! Does it still think it's the post-World War II America that dominated the world? The world has changed, and other countries are no longer lambs to be slaughtered at will," commented a netizen with the username "Economic Observer."

There were also netizens with different perspectives, saying:

"One has to admire America's strategic vision; this move of 'making money breed money' is really smooth. But speaking of which, the damage this approach inflicts on the global economy is also huge, and it may eventually backfire on the United States itself."

Some netizens analyzed from a historical perspective:

"Throughout history, every empire has adopted similar 'harvesting' strategies at the time of its decline. What the United States is doing now is just repeating the old paths of ancient Rome and the British Empire. The question is, can this strategy still be effective in today's context of globalization?"

Others offered unique insights:

"Instead of worrying about America's 'harvesting,' it's better to think about how to enhance one's own economic strength and technological level. Only by becoming truly strong can one remain invincible in this global economic game."

This discussion reflects the public's concern and anxiety about the global economic situation, as well as the wisdom and insight of netizens.Conclusion: The Alarm Bells Ring Loud

The likelihood of the Federal Reserve not cutting interest rates in September is very high, which conceals a thrilling global economic game. The United States, through its policy of raising interest rates, is draining global liquidity with the intention of acquiring high-quality assets from various countries. This is not only about the fate of the United States itself but will also profoundly affect the global economic landscape.

The obstruction of the BRICS countries' new settlement system, the possibility of Japan raising interest rates again, and JPMorgan Chase's large-scale capital withdrawal from Hong Kong - these seemingly scattered events are all pointing in the same direction: the United States is preparing for the next round of "global harvesting."

In the face of this situation, governments and businesses around the world need to remain highly vigilant and take proactive measures. At the same time, we must recognize that in this global economic game, there are no eternal winners. Only countries and businesses that continuously adapt to changes and keep pace with the times can remain invincible in fierce competition.

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