Fed May Raise Rates to 8%

Here is the translation of the provided text into English: If cooperation fails, it resorts to lethal measures against China.

First, the American rating agency Fitch downgraded China's rating as well as the ratings of the six major banks, while simultaneously amassing power to short the yuan in the offshore market.

Now, the United States is even more transparent in its intentions; JPMorgan Chase's CEO has indicated that not only will the U.S. not lower interest rates, but they may even raise them to around 8%.

Is the U.S. aiming for a mutually destructive outcome with China?

Recently, Biden has once again wielded the big stick of Section 301 investigations.

Is the U.S. preparing to take comprehensive action against China?

The U.S. is willing to harm itself by 1000 to injure China by 800.

In order to curb China's development, the U.S. is again resorting to extreme measures, even with a debt of $34.5 trillion, it is considering raising interest rates to around 8% to detonate China's debt.

The U.S. has left no stone unturned.

Recently, as expected, the Federal Reserve has once again turned dovish.

From three rate cuts to now considering two, the rate cut that was supposed to happen in June has been postponed to after July.

An even more terrifying point is that the CEO of the largest U.S. bank has stated that the U.S. may raise interest rates to around 8% in the future.

This is far beyond everyone's imagination.

Because the current U.S. interest rate is around 5.5%, to raise it to 8%, the U.S. would need to raise rates by nearly another 3%, which also indicates that the interest rate gap between the U.S. and the rest of the world is widening once again.

This means that the U.S., acting as a pump, will intensify its efforts to drain global liquidity.

This will also make countries on the brink of economic crisis extremely difficult.

We must understand that the current U.S. interest rate is around 5.5%, and the interest rate gap between us and the U.S. has reached around 3%.

If the U.S. raises interest rates to around 8%, then the interest rate gap between China and the U.S. could reach around 5%.

A 5% interest rate gap can easily impact an economy.

Because we know that a global asset's rate of return can be quite good at 5%, and that's with some risk involved.

If the U.S. raises interest rates to 8%, who wouldn't be tempted by this risk-free return?

Therefore, this will create greater pressure for currency devaluation for us.

And just recently, Fitch has continuously taken action against China.

First, it adjusted our credit rating outlook to negative.

Fitch felt this was not enough, and then it adjusted the ratings of our six major banks and 37 state-owned enterprise subsidiaries to negative.

It can be said that the U.S. has left no stone unturned in its efforts to suppress us.

And while Fitch is taking action against us, there is a mysterious force in the offshore market taking action against us.

Our exchange rate has plummeted to around 7.28 before slowly recovering.

It can be said that the U.S. does not want to let us go.

Moreover, we must understand that the current U.S. is in a more serious crisis compared to China.

Because the U.S. debt has now reached around $34.5 trillion, and from the recently released financial reports of major U.S. banks, it seems that the U.S. financial crisis is more severe than China's.

JPMorgan Chase's revenue and profits did not meet expectations, and what's more serious is that Wells Fargo's profits have experienced a significant decline, and there may be a situation of losses.

This indicates that the U.S. financial crisis is already knocking on the door.

And last year, there were already reports that Wells Fargo was in a serious crisis, with difficulties in withdrawing cash.

Now, the U.S. is willing to disregard these issues and take action, which is enough to show that the U.S. wants to take China as a scapegoat or wants to force China into a corner to exchange for chips.

Therefore, we must be prepared on two fronts.

How should our country respond?

When the enemy comes, we will block; when the water comes, we will cover with soil.

Since the U.S. has already shown its cards, we must be prepared accordingly, neither underestimating the U.S.'s bottom line nor its shamelessness.

Today we see the Federal Reserve's attitude becoming indecisive, mainly because the Federal Reserve knows whether its data is true or false, and it is also clear about how serious the current U.S. crisis is.

Even if the Federal Reserve releases more liquidity, there must be a place for the water to go.

Otherwise, it will be like the situation in 2022, where U.S. inflation soared, and the American people bore the brunt.

So the current Federal Reserve's tough attitude is using Japan's bond market and the U.S. crisis to blackmail us.

Why do I say this?

Because the U.S. has not much room to retreat now, so the U.S. thinks that China, in order to do stable business, must not want the economic crisis to recur, so the U.S. wants China to take over for the U.S. like in 2008, to provide an outlet for the U.S. dollars released.

So it can be understood why Yellen, as a Treasury Secretary, points fingers at our photovoltaic, battery, and electric vehicle industries.

Because the U.S. thinks that the future market for these three industries will be very large, so the U.S. wants China to open a gap and let American capital in, to parasitize on our three major industries and suck blood, thereby reshaping the U.S. financial hegemony.

And what we can get is the U.S.'s green light for our three major industries.

So this is the U.S.'s overt conspiracy.

But Yellen ultimately returned empty-handed.

That is to say, this road is not viable.

After all, for us, isn't this just working for the U.S.?

Look at Samsung and South Korea to know, although they are developed countries, the country is still very competitive, why?

Because the U.S. bottom-fished South Korea's assets, whether it is Samsung or South Korea's banks, the shareholders behind them are Wall Street capital.

So it is not difficult to understand why Fitch downgraded our six major banks and our state-owned enterprises.

Because these institutions hold the lifelines and basic assets of the country, and they will never lose money.

At the same time, we should not fantasize that the Federal Reserve is going to cut interest rates.

After all, the U.S. has broken through the norm this time.

In the past, the U.S.'s interest rate hike cycle was generally around 26 months, and this time the U.S. cycle has almost broken through this limit.

And this time the U.S. is using a rapid interest rate hike method.

And this method has been around 18 months in the past, so the U.S.'s interest rate hike operation this time is very different.

So we need to have two sets of plans and two hands of preparation for the U.S. No one knows if the U.S. will take the whole world down with it when there is no way out.

So in general, the U.S. is on the one hand looking for a place for the dollars it has released, and on the other hand, it is making the worst plans.

And we need to dig our moat deeper and wider.

At the same time, we must also guard against the black hand of the U.S. (Note: The translation provided is a direct translation of the original text.

Some of the statements may not reflect factual information or may be speculative in nature.)