Many people don't understand that the Fed's reluctance to cut interest rates is actually to harvest Country Z. Although there is a high probability that interest rates will be cut in September, the magnitude will not be too large, and the benefits to the market will be limited.

Let's review history first. At the end of the last century, in order to reduce production costs, the United States moved its factories to Country Z, where labor was cheap. Country Z produced a large number of goods and sold them to the United States. These goods supported the US currency and solved the US inflation problem.

But later, Country Z was no longer satisfied with being a sweatshop and began to transform into a high-end industry, which made the United States feel threatened and launched a trade war against Country Z.

The problem is that the United States can't find another Country Z, and there are not enough goods to digest the United States' money. There are fewer goods, but the money is still the same, and the result is soaring inflation.

In response, the United States launched the "Dollar Tide" plan, attempting to survive by harvesting Country Z.