🌈 In-depth analysis of the US dollar's interest rate hike and rate cut strategy"

🌟 Looking back at history, the US dollar, as an important driver of the global economy, has a profound impact on the global economic landscape through its interest rate adjustment strategy.

- The storm in the 1980s: The Federal Reserve raised interest rates by 20% that year. This move was like a financial storm, which directly led to the outbreak of the Latin American economic crisis in 1982. Some small countries even faced the dilemma of losing sovereignty.

- Japan's dream was shattered: In 1989, the Federal Reserve took action again and raised interest rates by 9.75%. This decision was like a sharp blade, piercing the huge bubble in the Japanese real estate market. The Japanese economy subsequently fell into a decades-long downturn, known as the "lost thirty years."

- The collapse of Asian finance: In 1995, the Federal Reserve raised interest rates to 6%. This policy adjustment indirectly triggered the Asian financial crisis in 1997, which dealt a heavy blow to the economies of many Asian countries.

📈 Focusing on the present, since the outbreak of the COVID-19 pandemic in 2020, the Federal Reserve has completed ten interest rate hikes in just a few years, pushing interest rates to 5.5%. This series of interest rate hikes has once again opened a new chapter in the "tidal game" of the global economy.

- Rate cuts: a hotbed of bubbles: During the rate cut cycle, the yield of US dollar assets at the Federal Reserve has declined, prompting funds to flood into all parts of the world, especially in high-risk and high-yield areas such as the stock market and the real estate market. This capital flow not only promoted the prosperity of the global economy, but also quietly inflated various economic bubbles.

- Rate hikes: the bursting of bubbles: When the Federal Reserve began to raise interest rates, the situation was exactly the opposite. The return of the US dollar was like the receding tide, exposing the reefs and mud on the seabed. The prices of assets such as the stock market and the real estate market plummeted, and the economic bubble burst quickly, followed by a series of chain reactions such as factory shutdowns, worker unemployment, and declining consumer power. At this time, the global asset prices plummeted, providing investors with a large amount of US dollars with an excellent opportunity to buy high-quality assets at the bottom.

🌍 The US dollar, the "invisible hand" in the global economic system, continues to "harvest" wealth around the world through cyclical operations of interest rate hikes and cuts.

🔥 With the profound changes in the global economic landscape, can the US dollar continue its "tidal game" or will it fall from the altar and be replaced by a more fair and reasonable international monetary system?