In recent months, USDT has depreciated with the pace of the Fed's interest rate cuts. If USDT is getting cheaper, is it suitable to use RMB to buy it at the bottom?

Investors avoided the big corrections in July, August, and September by shorting their positions, but they did not avoid the depreciation of USDT from RMB 7.3 to RMB 6.9.

If USDT continues to depreciate with the Fed's interest rate cuts, can it be used to buy at the bottom in RMB?

I think it can, and let's talk about the logic below.

The GDP of the United States in 2023 is about 27 trillion US dollars, and the debt is about 47 trillion US dollars, which includes household debt and institutional debt. Because the US debt is composed of government debt, household debt, and institutional debt, the US government debt is only about 30 trillion US dollars.

China's GDP in 2023 is about 18 trillion US dollars, and the debt is about 47 trillion US dollars. However, this is only surface data. The local debt in the mainland is very serious, especially the city investment has many hidden debts.

In 2023, the debt/GDP ratio of the United States is 174.2%, and that of China is 266.8%. In this comparison, although the media publicizes the debt crisis of the United States, it seems that the debt problem of the mainland government is more serious.

What to do with the heavy debt burden? The US government takes the lead in cutting interest rates and printing money, which will depreciate the US dollar, but it can alleviate the debt to a certain extent. Therefore, the more serious the debt of a government, the easier it is for its currency to depreciate.

Combined with the previous data, the Federal Reserve took the lead in cutting interest rates, causing the depreciation of USDT, and combined with the serious debt of the mainland and the possibility of RMB depreciation, we can draw a conclusion.

USDT depreciates against RMB and you can buy at the bottom, and prepare bullets to welcome the interest rate cut cycle!