I collect gold fingers in the heavens

Chapter 759 Interrupted rate hike cycle
Capitalist countries have no secrets.

Soon.

The stock market of a certain country is once again in the green for a long time.

Many stocks that had previously fallen by the limit, once again rose by the limit.

Big money has entered it again.

This ups and downs of the stock price directly suffocated a large wave of leeks all over the world.

Many stockholders who used leverage directly liquidated their positions and went to the rooftop to queue up.

A certain country originally took advantage of the war between the Great Mao Country and the Ermao Country to exaggerate the crisis in the Europa continent, harvested Europa's capital, and started a cycle of interest rate hikes.

On the bright side, the purpose of a certain country's interest rate hike cycle is to curb high inflation.

That's what officials said at the time, with indicators of economic activity and employment continuing to strengthen.Job growth has been strong in recent months, and the unemployment rate has fallen sharply.Inflation remains elevated, reflecting supply-demand imbalances, higher energy prices and broader price pressures related to the BD pandemic.

The Mao-Mao-[-]-Mao conflict caused enormous human and economic difficulties.The impact on a country's economy is extremely uncertain, but in the short run, conflict-related times could put additional upward pressure on inflation and weigh on economic activity.

As a result, a certain country hit the highest inflation level in 40 years.

Over the past year or so, strong growth in consumer demand and supply chain bottlenecks under special circumstances have pushed up inflation in a certain country.

Inflation has become so severe that even the [First Lady] complains that meat is expensive.

Of course, from a later point of view, this statement is more of a show. Why does the [First Lady] need to go shopping by herself?
However, inflation in various aspects of the country is indeed very serious, especially in terms of food inflation.

Meat, eggs, and milk are essential supplies in the lives of residents. At the end of October last year, a certain type of beef in a certain country had risen to $10 per pound (about 16.97 yuan per kilogram). The price of beef is only 237 US dollars per pound (about 4 yuan per kilogram).

Not to mention oil prices.

A certain country is a country with cars, and its residents are much more sensitive to oil prices than the people of China.

After the conflict between the Great Mao and Ermao countries, the price of energy represented by oil became more unrestrained, soaring all the way up, further pushing up the inflation level.

The price of crude oil in a certain country soared to US$3 a barrel again on March 4 local time, the highest level in 115.68 years.

For this reason, a certain country had to start a cycle of interest rate hikes.

Of course, this is the obvious reason.

In fact, a certain country started the interest rate hike cycle for another purpose, which is to reap the benefits of the whole world.

A certain country relies on the US dollar, or in other words, the hegemony of the US dollar.

The U.S. dollar is the most important reserve currency and settlement currency in the world, and the spillover effect of a certain country's monetary policy is significant.

As they say, "The dollar is a country's currency, but it's the trouble for the people of the world."

When a country implements quantitative easing monetary policy, a large amount of funds flow to emerging market countries.However, once the Fed raises interest rates, it will bring huge capital outflow pressure to developing economies, promote imported inflation, and squeeze their own policy space.

A certain country absorbs the high-quality assets of emerging economies by raising interest rates, transfers its own crisis, and easily "shears the sheep" to harvest the whole world.

The specific pattern is this:

In the first round of "harvest", when faced with a major economic shock, large-scale borrowing and money printing were used to stimulate the economy with the low financing cost of the US dollar, and a large amount of US dollars flowed overseas, which was essentially a forced borrowing from other countries;

In the second round of "harvest", after the excess liquidity of the U.S. dollar and the expectation of economic recovery led to global inflation, the Fed tightened monetary policy by raising interest rates and other means, which objectively promoted the return of capital, and eventually caused many countries to suffer from hyperinflation and capital outflows. Double shocks, and even the tragic scene of asset prices plummeting.

In the third round of "harvesting", when asset prices in other countries plummeted, a certain country printed a large amount of money to "buy the bottom" and harvested other people's high-quality assets.

This has been the case over the years, over and over again.

From historical experience, once the Fed starts to raise interest rates, it will widen the interest rate difference between a country and other countries in the short term. The expectation of dollar appreciation and the rise in U.S. bond yields will attract international capital to return to a country, leading to global funding tensions and rising interest rates.

Under such circumstances, vulnerable economies are usually faced with a dilemma - if the domestic currency appreciates in line with the dollar, the weak economy will continue to be under pressure due to the loss of competitiveness of exports; if the decoupling of the dollar depreciates, capital outflows may occur.

Of course, a certain country cannot raise interest rates as much as it wants.

The Fed also needs to make trade-offs based on reality.

If the interest rate is raised too sharply, it will seriously hurt the economy of a certain country in a state of recovery, which will lead to an excessive increase in the cost of funds used by enterprises, restrain the consumption of residents, and deeply hurt the capital market of a certain country within a certain period of time, and then affect the The level of direct financing of the firm.

The worst case scenario is that instead of blowing up the economies of other countries, it crashes its own domestic stock market. This will make other big countries on the blue star die laughingly, and start eating happily, just like a certain country in The 90s happily ate up the Soviet Union, thus forming more than 20 years of economic prosperity.

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The Federal Reserve is a seasoned hunter. It has already had a lot of experience in raising interest rates, and is better at managing expectations. Through various simulations of ambiguity, it blows the wind to the market to make the stock market run smoothly.

It's been doing pretty well before.

But not now.

why?
Because Wu Siyuan passed a news of [Natural Disaster Warning], which almost tossed the stock market of a certain country to death.

The stock market can go down all the time, and it can go up all the time.

But it cannot suddenly plummet or skyrocket.

During this period of time, Wu Siyuan also learned from a certain country by visiting [Natural Disaster Anticipation Management], repeatedly playing up the atmosphere, and releasing various remarks, making the stock market of a certain country feel like riding a roller coaster, which is extremely exciting.

So far, Wu Siyuan has made waves in the global stock market through "Four-Armed King Kong", especially in the stock market of a certain country, and has made nearly 4000 billion US dollars, and the price is that the stock market of a certain country evaporated in a very short period of time Five or six trillion dollars is about to collapse.

Under such circumstances, the central bank of a certain country, the Federal Reserve, dare not continue to raise interest rates. In addition, the domestic stock market and the economy have collapsed for you to see, so they have to be forced to enter the channel of interest rate cuts.

It's just that the interest rate hike cycle in a certain country has been interrupted. Now the interest rate is only a few points, and there is not much room for interest rate cuts.

Moreover, after the interest rate cut, capital will flow out to the global value depression.

And now where is the world's largest value depression?

There is no doubt that the country of Hua, where the [Chaoqun Group] is located, is the most attractive place.

As a result, the Chinese Congress ushered in a new round of economic growth.

And a certain country will be much more passive.

The domestic thunder could no longer be completely suppressed, so it exploded directly.

(End of this chapter)