The US dollar mainly harvests the wealth of various countries through exchange rates. Its actual purchasing power is seriously lower than the ratio with the exchange rates of various countries. For example, ten US dollars can buy one kilogram of eggs in the United States, but at the current exchange rate, it can be converted into 73 yuan, which can buy four kilograms of eggs of the same quality in China. Through exchange rate conversion, the US dollar harvests more than three times the material wealth, and similar situations are common.
This high exchange rate of the US dollar against other currencies is not determined by the value of the US dollar itself, but is supported by the super hegemony of the United States in science and technology, military, culture, public opinion, etc. As long as these hegemonies collapse, the exchange rate of the US dollar against the currencies of many major countries will reverse. For example, the exchange rate of the RMB against the US dollar may reverse from the current 1:7 to 4:1, and then the RMB will be able to buy more US dollar assets.
Therefore, the exchange rate is the main means for the United States to harvest the world's wealth, and the interest rate is only a secondary factor. The United States often uses war, public opinion, revolution and other means to trigger a huge appreciation of the US dollar against other currencies, thereby harvesting assets of other countries. There are countless such cases.
To protect your wealth in this complex economic environment, it is key to understand the exchange rate mechanism and global economic dynamics. Follow my homepage to get more in-depth analysis and investment strategies, and jointly cope with future economic challenges.
