The Federal Reserve insisted on raising interest rates, global stock markets plummeted, and the United States also targeted China's food and energy security. Behind this series of events, the United States has taken various measures to reap the global economy. But China has been prepared, and the United States' wishful thinking may not work.
【process】
The story begins in 2022. That year, the US inflation rate soared to 9.1%, a 40-year high. This scared the US government. In response to this inflation crisis, the Federal Reserve began a crazy interest rate hike.
However, this interest rate hike was not smooth sailing. On Monday, global stock markets suddenly suffered a "Waterloo". The Japanese stock market plummeted 12.4%, setting the largest single-day drop in nearly 34 years. The Korean stock market fell so much that it triggered an emergency protection mechanism. Even the U.S. stock market, which has always boasted of its strength, plummeted.
The reason behind this stock market crash is actually very simple: investors are worried about the economic outlook, and this worry is closely related to the US monetary policy.
Some experts pointed out that if the Fed had decided to cut interest rates at its meeting last week, many current problems could have been avoided. But the Fed chose to hold on. Why? It turns out that the US government has a bigger goal: to harvest the Chinese economy.
At this point, we have to mention Presidents Trump and Biden. During their administrations, in order to win over the people and reduce the impact of the economic recession on ordinary people, they chose a seemingly clever trick that was actually a poison to quench thirst: borrowing a large amount of money in the name of the federal government to issue subsidies.
However, good intentions did not bring about good results. Because the United States took the initiative to provoke the Sino-US trade war, there were problems with the supply of goods in the US market. As a result, the extra money not only did not play a big role, but instead aggravated domestic inflation in the United States.
Faced with this situation, the US top brass has adopted a strategy of treating the symptoms rather than the root cause. In order to ease the record inflation, the Federal Reserve has started a record interest rate hike. However, the US cannot withstand the continued interest rate hike. The rising government debt alone is enough to make the White House suffer.
However, in order to achieve its goal of harvesting the Chinese economy, the United States now has to grit its teeth and persevere. Even if many central banks and Wall Street investors oppose it, the US government will turn a deaf ear to it.
However, the resilience of the Chinese economy exceeded the United States' expectations. The continued interest rate hikes failed to bring down the Chinese economy. Now, the United States is anxious. So, they have come up with a lot of new tricks.
Recently, US Secretary of State Blinken just concluded a trip to Asia. The purpose of this trip was to build an anti-China encirclement and exert geopolitical pressure on China, with the intention of forcing China to "surrender as soon as possible."
Even more surprising is the recent remarks by Rahm Emanuel, the US ambassador to Japan, who publicly stated that the US can put pressure on China from two angles: one is food security and the other is energy security.
Rahm Emanuel believes that a large part of the insecurity of China's economy is the food supply. He even claimed that China "cannot provide enough food for its population and productivity." Not only that, he also threatened that the United States could do a lot of things to undermine China's energy security in order to "deter" China.
These two major issues are indeed related to the national economy and people's livelihood, and one move will affect the whole body. However, Rahm Emanuel obviously underestimated China's ability to prepare for a rainy day.
In fact, China has already made full preparations for food security. At present, China's grain self-sufficiency rate is over 100%, and its grain self-sufficiency rate is over 95%. The per capita grain possession is about 480 kilograms, which is higher than the internationally recognized food security line of 400 kilograms.
In addition, the Chinese government has always attached great importance to food security. On August 6, five departments jointly issued a document requiring the implementation of a special action plan to ensure food security through finance and expand financial service scenarios for the entire food industry chain, including food production, circulation, storage, and processing.
China has also made plans for energy security. Currently, China is maintaining close contact with Russia to promote the construction of the "Siberia II" natural gas pipeline.
It can be said that China has long been prepared for Rahm Emanuel's two-pronged approach to put pressure on China, and will not give the United States an opportunity to take advantage of it.
At present, the United States has accumulated considerable internal contradictions due to continuous interest rate hikes. Such interest rate hikes cannot be sustained in the long run. If the White House wants to get some benefits from China before lowering interest rates, it is nothing but a pipe dream.
This economic game has sparked heated discussions among netizens. Everyone has expressed their opinions. Let's take a look at what netizens have said.
One netizen said: "The United States is playing with fire! It has raised interest rates to the point where it can no longer bear it, and yet it is still thinking about how to bring down the Chinese economy. It is really miscalculating."
Another person joked: "The Fed is holding on, and global stock markets are falling like a dog. This is going to drag the whole world down with it!"
A netizen who claims to be an economics major analyzed: "The U.S.'s move of raising interest rates to cure inflation is simply robbing Peter to pay Paul. The stock market has fallen so much, but they are still holding on to not lowering interest rates. Isn't it just targeting China?"
Many netizens expressed disdain for the US's targeting of China's food security. One person said: "With the US's tricks, they still want to make a fuss about food? Our country's granaries are almost full. Are they living in a dream?"
Another netizen added: "Not to mention food, even energy security, China has already laid out its plans. Where is the United States sleeping?"
A user named "Economic Little Master" published a long article: "The United States is playing with fire and getting burned! The continued interest rate hikes not only hurt its own economy, but also caused the global stock market to collapse. They thought this would hit the Chinese economy, but they didn't know that China had already made preparations. Whether it is food security or energy security, China has its own set of plans. The United States really miscalculated!"
Some netizens scoffed at the remarks made by Rahm Emanuel, the US ambassador to Japan: "Does this ambassador know nothing about China? He wants to make a fuss about food and energy, but he doesn't even look at how much preparation our country has made in this regard over the years."
Others said: "The United States is shooting itself in the foot. It insisted on raising interest rates, and ended up taking the global economy down with it. Now, it has done itself wrong, hasn't it?"
A netizen who claims to work on Wall Street said: "As an insider in the financial circle, I can say responsibly that the Fed's actions are really incomprehensible. The economy is clearly in trouble, but they are still holding on to not cutting interest rates. Aren't they trying to kill themselves?"
Many netizens expressed their approval of China's response measures. One person said: "Our country has done a great job in preparing for food and energy security! It is wishful thinking for the United States to make a fuss about this."
Another netizen joked: "Does the United States want to hold the lifeline of 1.4 billion Chinese people in its hands? You are dreaming! Our granaries are almost full, and we are still afraid that you will strangle us?"
A user named "International Observer" concluded: "In this economic game, the United States has clearly underestimated China's strength and preparation. Whether it is the interest rate hike policy or the threat to food and energy security, it is difficult to shake the Chinese economy. Instead, it is the United States itself that has fallen into a dilemma because of these operations."
After reading these comments, it is not difficult to find that everyone is generally critical of the US approach, and at the same time full of confidence in China's response. The outcome of this economic game will probably have to wait and see. But what is certain is that China has made full preparations to deal with various possible challenges. #Ripple于诉讼中取得部分胜利 #PlusToken相关钱包转移ETH #加密市场反弹
