The market went completely crazy, and the A-share market rose from 2,700 points to 3,263 points. What kind of game is behind this?

First of all, the first level of game is a nuclear bomb-level trick to stimulate the economy. Everyone knows that the past two years have been a period of spiral decline in Chinese assets. Whether it is the real estate market, stock market, funds or business, it is basically difficult to make money. Under such a background, the whole society has seen a clear consumption downgrade. Everyone is holding their purses tightly, and no one is spending money, so that there are signs of deflation in the country for a time, which is a very dangerous signal. So from top to bottom, everyone hopes that the top leaders can release money by releasing water, which is the most effective way to solve the problem. But two years have passed, and we have not seen particularly obvious rescue measures. The reason is very simple, because the Federal Reserve is hanging over our heads. Once we take the initiative to release water, the further widening of the interest rate gap between China and the United States will follow, and capital will flee crazily for profit. Therefore, even in the past two years, no matter how difficult it was, we did not choose to release water. But everything changed on September 19, that is, the United States took the initiative to cut interest rates. When the channel for the Federal Reserve to cut interest rates was officially opened, our policy operation space immediately appeared instantly, and releasing water and issuing money became something that could be operated. This is why I have been emphasizing the importance of the Fed's interest rate cuts over the past few months. Now that the money has been released, the next thing to consider is where to put it. As we all know, China has three major capital plates that can take on massive amounts of funds, namely real estate, the real economy and the stock market. Can it be put into the real estate sector? The answer is no. The reason is very simple, because China's real estate market has completed its historical mission. If more money is put into it, no one can bear it. So why can't it be put directly into the real economy? Because of the previous pessimistic expectations, many companies dare not expand production. Even if banks keep lowering loan interest rates, they dare not borrow money. In such an environment, money simply cannot flow into the real economy. So after thinking about it, the most suitable place to undertake this round of large-scale money release is the stock market. The reason is that the total market value of China's stock market is very low, only one-fifth of that of the United States, so there is room to absorb funds.Secondly, the stock market is usually regarded as a barometer of the economy. Regardless of whether this conclusion is right or wrong, many people think so. So when the stock market rises, it is conducive to enhancing the confidence of the people and foreign capital in the Chinese economy. Seeing this, everyone will understand what the main idea of ​​this round of economic stimulus is. The first step is for the financial department to set the tone for water release, the second step is for the central bank to implement it, the third step is for the stock market to take over the funds, the fourth step is for shareholders to get dividends first, the fifth step is for other groups in society to benefit together, and the sixth step is to finally revitalize the Chinese economy. This is our first level of game, and it is also a nuclear bomb-level trick to stimulate the economy.

The second level of the game is to attract foreign investment back to China. According to the prediction of international organizations, with the Fed's interest rate cut, more than 1 trillion US dollars will flow back to China, and more than 2 trillion US dollars of foreign exchange funds will be suspended overseas waiting for the opportunity. The reason why this money did not come back before is that in the past two years, the returns on doing anything in our country were not high, so they would rather drift abroad than bring the funds back. In this way, a magical scene appeared, that is, China's foreign trade has been rising steadily and breaking historical records. But domestic consumption is sluggish, and there is a shortage of money everywhere. What is the root cause of the problem? It is that the returns on China's financial market are too low, so it is impossible to attract foreign investment. Now with the Fed's interest rate cut, a large amount of US dollar funds are about to flow out. If we want these funds to invest in China, we must make them believe that they can make money in China. So we must find a way to boost the stock market, and then make them believe that investing in China is safe. Ah, why does no one dare to invest in Ukraine now? Because there is a war there, your investment today will be wasted tomorrow. So the same logic applies. If you want China to integrate into China, it means that China is safe enough, so there is the risk of foreign war. This is one of the important reasons why Dongfeng Express arrived in the Pacific Ocean on September 25th. It was to show global capital that it is safe here and to quickly boost our economy.

The third level of game is to hedge against the pressure of RMB appreciation. Everyone knows that the RMB exchange rate against the US dollar has broken through 7 two days ago. This is a major manifestation of foreign investment in China's economy. It shows that everyone is ready to start casting China, so the RMB exchange rate will soar. If the Fed continues to cut interest rates, the RMB will continue to rise in the future. But at this stage, the RMB exchange rate has risen too much, which is actually not conducive to China's industrial upgrading and commodity exports, so we must find a way to control the speed of the rise. What is the way? The answer is to use water to hedge against the pressure of RMB appreciation. When there are more RMB on the market, the exchange rate will also come down. The purpose of doing this is to take the initiative of the rise and fall of the RMB exchange rate into our own hands, and to adjust it according to the rhythm of our industrial upgrading. This is the best outcome. So why has there been a big surge in asset prices in the past few days? Because this is a big layout that has been planned for a long time, waiting for the Fed's official interest rate cut, otherwise you can't explain why there will be such intensive policy adjustments in just a few days. This shows that we have already prepared the ammunition, and we are just waiting for an intensive opportunity. Even when Dongfeng Express fell into the Pacific Ocean, we were not just targeting the scoundrels, but we were also telling everyone that China's economic counterattack has officially begun.


The current position of the US stock market is very awkward. In the past few days, the price has not risen despite the volume. The Nikkei index triggered a circuit breaker today. On the other hand, the domestic market is very good. In order to curb China's attraction of global capital, how will the US stock market, which plays an important role, move? This will in turn drive the future direction of the pie. Everyone is welcome to discuss. (The views of this article are quoted from the financial expert: Capital)
#美联储11月降息预期升温 $BTC