Japan's $98k Bailout, Egypt's $20b Exodus

Being an adversary of the United States is dangerous, but being an ally of the United States can be lethal.

As everyone speculates on how long the U.S. interest rate hikes can last, news comes from Japan once again.

Japan openly acknowledges this currency war, spending 9.8 trillion to save the market.

They were hesitant to disclose it before, but now they announce it openly.

Is Japan shifting from covertly opposing the U.S. to doing so openly?

As Japan fails to reap benefits and turns to Egypt, the Egyptian president once again chooses China.

Will the U.S. harvesting path be intercepted by China again?

Is the global landscape about to enter an accelerated reshuffling phase?

Truth exposed: The 9.8 trillion market rescue is the foundation of allied cooperation and the cornerstone of nation-building.

Touching interests is harder than touching the soul.

Japan, which has always followed the U.S., finally reveals the truth: 9.8 trillion funds to save the market.

Is Japan going to oppose the U.S. for its own interests?

Recently, Japanese authorities finally announced the so-called market rescue scale, not 8 trillion or 9 trillion, but 9.8 trillion, which translates to about 62 billion U.S. dollars.

It can be said that this move is very aggressive.

You must know, out of 195 countries and regions worldwide, there are only a few that have 62 billion in foreign exchange reserves, and Japan's one-time investment of such a large amount shows its determination to save the market.

The stronger Japan's determination, the more intense its confrontation with the U.S. is likely to be.

Because everyone knows that the reason the U.S. is harvesting Japan is because the U.S. itself can't hold on and needs to sacrifice its allies to sustain itself.

Now, its allies are starting to resist, and the force is not small.

Moreover, now that Japan has used its foreign exchange to save the market, who will buy U.S. Treasury bonds?

Not to mention that the U.S. will have nearly a trillion in Treasury bonds maturing in June, needing to be replaced from an almost zero interest rate to a high interest rate of about 5.5%.

And for the entire year of 2024, this scale is even closer to 8 trillion, which can be said to be very large.

And all of these need to be purchased by other countries.

Everyone knows that we have been emphasizing a soft landing, and the U.S. has also been emphasizing a soft landing.

The foundation of the U.S. soft landing is that Treasury bonds are taken over by other countries, inflation is low at 2%, and GDP growth needs to be above inflation.

Now, not only is China not taking over, even its own allies are starting to plan for themselves.

China is not taking over, Japan is spending money to save itself, then who will take over these Treasury bonds?

If the U.S. takes over itself, it means that the U.S. is going to have a hard landing.

And just a few days ago, the U.S. even revised its first quarter GDP, and according to the revised data, the U.S. GDP growth has come to about 1.3%, far below last year's 5.2%.

And at this time, the U.S. inflation index is still around 3.4%, which means that the U.S. is not only harvesting, but may even enter a new period of stagflation.

Meanwhile, the U.S. has turned its attention to Africa, that is, Egypt.

Previously, in order to save the economy, Egypt relaxed exchange rate controls according to the requirements of the IMF, and the Egyptian pound depreciated by nearly 40% that day.

It can be said that decades of efforts in Egypt were destroyed in an instant, a large amount of capital fled, and the entire capital scale was close to 20 billion U.S. dollars.

It can be said that this is exactly what the U.S. is happy to see.

However, when the U.S. thought that Egypt would be the first domino, and more countries would follow in the future, it didn't expect that Egypt would once again turn to us, and Egyptian President Sisi even visited China in person, and Egypt had previously proposed that trade within BRICS should be settled in local currencies.

Is the U.S. harvesting going to be intercepted by China again?

On one side is Japan's betrayal, and on the other side is Egypt and us getting closer again.

Is the U.S. going to repeat the story of 2008?

The global currency pattern is about to be reshuffled.

Currency is a manifestation of a country's strength, and as a financial hegemon, the U.S. dollar is the foundation of its survival.

Today, the U.S. dollar's frequent failures are all indicating that the U.S. defeat is already showing, and the global currency pattern is on the verge of a major reshuffling.

We all know that the U.S. has always been doing one thing, that is, using the dollar hegemony to harvest global wealth, and at the same time harvest global brainpower, thereby strengthening its technological hegemony, and using technological hegemony to support its financial hegemony, such as the stock market, while at the same time transforming technology into military power to maintain all of this.

It can be said that all of this is a huge cycle, and the supplement of this cycle is U.S. Treasury bonds.

However, today we see that U.S. Treasury bonds, as a supplement to this cycle, have gradually been abandoned by countries around the world.

And it's not just us, even the global financiers such as Saudi Arabia and the United Arab Emirates are reducing their holdings of U.S. Treasury bonds.

In addition to the depletion of sources of U.S. Treasury bonds, we now see that the weaponized dollar is increasingly powerless, pressing down on an Egypt, but Egypt has turned to us, and there is the upcoming BRICS summit.

And even the recent China-Arab joint statement mentioned strengthening cooperation in trade and other aspects.

It can be said that the U.S. has once again started early and ended late.

And we can also clearly see that the U.S. technological hegemony is also shaking, let alone the U.S. military hegemony, which has been stripped of its last face by the Houthi militia.

And all of this is indicating that the U.S. cycle is no longer working.

Since the big cycle of the dollar is no longer working, it means that the U.S. harvesting will become more and more difficult.

And now we can clearly feel that the U.S. is in a dilemma.

The U.S. interest rate has now reached about 5.5%-5.75%, but other countries have survived by relying on the Chinese market.

The U.S. has drained the liquidity of the dollar, but China has injected liquidity of the yuan, and this change is the retreat of the dollar and the attack of the yuan.

The U.S. wanted to make a comeback, but found that it hadn't come back yet, and the market was occupied by China.

And as long as the U.S. raises interest rates for long enough, this phenomenon will become more and more obvious.

And it will be very difficult for the U.S. to regain the market by lowering interest rates.

Because we all know that the yuan brings not only funds but also trade, while the dollar cannot provide goods and markets for trade.

And the funds released in the future will stay more and more in the U.S. market.

And we can see that in recent years, our trade volume with third world countries has continued to soar, and countries are also seeking to de-dollarize, which is exactly what we need.

And the current environment may be the best time for us during the dollar vacuum period.