A commencement of the United States' interest rate decreases, or the beginning of the showdown between the United States and China.
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A fresh conflict is on the horizon.
In recent times, people who are paying attention to exchange rates have become aware that the RMB ( China Yuan ) is fast appreciating.
As for the particular reasons, I believe you comprehend them, and everyone believes that the reduction in the United States' interest rate for the month of September is already predetermined;the only question is the amount and for how long ?
At the end of August, an American economist , who is also the chief economist at Morgan Stanley London Company expressed his belief that Chinese corporations may sell one trillion dollars' worth of assets in the United States when the Federal Reserve reduces interest rates.
As a result of this wealth flowing back to China from the United States, the RMB will increase by between five and ten percent. Many people were ready to welcome the big influx of wealth back to China as soon as this news broke, and they have judged that the United States has already declared defeat in this round of financial warfare.
At the end of August, an American economist , who is also the chief economist at Morgan Stanley London Company expressed his belief that Chinese corporations may sell one trillion dollars' worth of assets in the United States when the Federal Reserve reduces interest rates.
As a result of this wealth flowing back to China from the United States, the RMB will increase by between five and ten percent. Many people were ready to welcome the big influx of wealth back to China as soon as this news broke, and they have judged that the United States has already declared defeat in this round of financial warfare.
Additionally, many people were ready to open their arms to embrace the information.
Please do not have this way of thinking; the complexity that lies behind this is beyond your ability to comprehend. I am not trying to put a damper on this situation.
You have to realize that the Americans are the pioneers of financial games, and the cycles of the dollar's interest rate are harvest cycles; they are the ones who started this conflict. They rule in the arena of this game
The fact that the United States has begun to reduce interest rates does not necessarily guarantee that it will continue to do so in a rapid and consistent manner. The rates can be lowered gradually, or even after two or three reductions, they can be raised once more, as has been the case throughout history.
You have to realize that the Americans are the pioneers of financial games, and the cycles of the dollar's interest rate are harvest cycles; they are the ones who started this conflict. They rule in the arena of this game
The fact that the United States has begun to reduce interest rates does not necessarily guarantee that it will continue to do so in a rapid and consistent manner. The rates can be lowered gradually, or even after two or three reductions, they can be raised once more, as has been the case throughout history.
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The interest rate on the dollar fell from 6% to 4.75% between the years 1995 and 1998, but by the end of those three years, it had only decreased by 1.25%, which meant that it continued to retain high interest rates. In 1999, it resumed the process of increasing interest rates. The interest rate went up from 4.75 percent to 6.5 percent, and immediately after the rate increase, it caused the dot-com bubble of the year 2000 to burst, which resulted in widespread financial chaos around the world.
In spite of the fact that history does not always repeat itself, it frequently rhymes. Back then, it was the bubble of the dot-com industry; could it be a bubble of doom this time around?
It is therefore not impossible to re-create the same situation that occurred back then. In addition, if Trump were to win the election in the United States this year, his anti-globalization and trade protectionism policies, particularly his assertion that if he were elected, he would impose tariffs of at least sixty percent on all Chinese goods, would undoubtedly cause inflation in the United States to return to high levels, which would increase the likelihood of another rate hike in the United States market.
Now Trump might forego all in exchange for Peace for the World as he made a Vow to save America . anything can be reverse for the betterment for USA ..this round he may Not follow what the treasury suggest as their suggestion lead to possible WWIII . Trump need to apply new wisdom to reverse and bring Peace to the whole World
Based on this research, it appears that the reduction of interest rates in the United States is not only an economic strategy, but rather a component of a strategic plan that aims to impose financial influence all over the world, particularly on China.
Based on this research, it appears that the reduction of interest rates in the United States is not only an economic strategy, but rather a component of a strategic plan that aims to impose financial influence all over the world, particularly on China.
There is a bigger strategic aim behind the United States' decision to reduce interest rates, according to your argument. This intention may be complemented by other strategies, such as financial warfare, proxy conflicts, or the creation of geopolitical problems around China in order to prevent capital from flowing into the nation.
According to this point of view, the United States' rate reduction interact with both the political landscape and the global economy because the United States is the global leader in the financial sector.
According to this point of view, the United States' rate reduction interact with both the political landscape and the global economy because the United States is the global leader in the financial sector.
There is a long-standing correlation between the reduction of interest rates in the United States and the occurrence of global crises, like the Asian Financial Crisis, hostilities in the Middle East, and even the Global Financial Crisis.
It gives the impression that the United States' financial policy is frequently accompanied by geopolitical instability, which may be a tactic to weaken competitors such as their Chinese counterparts.
It is a suggestion that a reduction in interest rates in the United States could result in the outflow of money into China. In order to prevent this from happening, the United States might first engage in a financial "harvest," which would involve shorting banks, stocks, and cryptocurrencies in order to eliminate a portion of the capital. Using this technique, controlled capital movement within the United States is ensured, hence limiting the likelihood of capital leaving the country.
This perspective serves as a cautionary tale, advising China to be careful of the financial tactics of the United States and the geopolitical hazards that these actions may involve.
It is a suggestion that a reduction in interest rates in the United States could result in the outflow of money into China. In order to prevent this from happening, the United States might first engage in a financial "harvest," which would involve shorting banks, stocks, and cryptocurrencies in order to eliminate a portion of the capital. Using this technique, controlled capital movement within the United States is ensured, hence limiting the likelihood of capital leaving the country.
This perspective serves as a cautionary tale, advising China to be careful of the financial tactics of the United States and the geopolitical hazards that these actions may involve.
The reduction of interest rates in the United States may signal the beginning of a new period of conflict between the United States and China, which may be accompanied by a number of difficult financial and geopolitical situations.
In a nutshell, this is a complicated and multi-faceted set of circumstances, which is not merely a question of economic policy but rather a global strategic game.
Disclaimer:
The contents of this report are for informational purposes only and do not constitute financial advice. Readers are encouraged to conduct their own research or consult with a qualified financial advisor before making investment decisions. The opinions expressed here are based on available information and market speculation at the time of writing and may not accurately predict future outcomes.
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