Due to concerns about the danger of deep recession, as the Federal Reserve repeatedly raises interest rates, the Bank of Japan and insurance funds have launched a plan to continuously reduce foreign debt, especially the US bond , which is considered to be the "financial Pearl Harbor incident" launched by Japan against the United States. The international financial market unanimously believes that the reason why Japan "fights without declaration" is to control the depreciation of the yen. In the face of huge financial crisis or even economic crisis, the sovereign wealth as its own currency can be equated with territorial sovereignty; a series of actions of the US dollar's interest rate hike are undoubtedly a plunder of sovereign wealth in countries around the world, including American allies; if the financial battlefield is switched to a military battlefield, it is equivalent to the United States beginning to invade sovereign territory of countries around the world.
The United States used the US dollar as a weapon to force the door to other countries and openly snatch the wealth of other countries. The result of such actions was no different from the colonial war that year.
Therefore, unlike the Japanese lost power and was unscrupulous and unanimously declared war by the allies after attacked Pearl Harbor that year, the "financial Pearl Harbor incident" in which Japan undeclared war has received more support from allies. More and more countries have also participated in the sale of US debt.
Models released earlier by Fed economists Bertow and Judson show that since May 2022, central banks have become net sellers of U.S. bonds, which will mean that total U.S. bond holdings will drop by nearly $270 billion in 2022.
In previous analysis, the question of "who is the biggest funder to buy US debt" has been raised below. Central banks in various countries have joined the ranks of selling US bonds, and the funder at this time is undoubtedly the Federal Reserve. So what is the Federal Reserve using to buy US bonds?
As we all know, US dollars are used for trading and settlement of US bonds; and we have seen before that the United States has quietly launched the unlimited money printing model. Most of the US dollar printed in the United States flows into the financial market through various channels; and most of the US financial markets are controlled by Wall Street .
gives an example to illustrate that if a company's debt such as Evergrande and Sunac is overdue, it can be resolved by selling assets or going bankrupt; while US debts overdue, it can be bought by printing money. With repeated cycles, more and more US dollar bills circulating in the international financial markets, and in countries that use the US dollar as the main settlement currency for trade and investment, inflation will become more and more serious.
In order to maintain the national credit of the United States, the Federal Reserve can only recover US dollar capital from the financial market by hiking interest rates; and the method of hiking interest rates is actually to use printed US dollars to pay interest. The more interest rates are increased, the more dollars accumulated in international capital. When the currency cannot be effectively circulated to the real economy, it will inevitably trigger an economic recession. At this time, various assets calculated based on the sovereign wealth of various countries will drop prices, and international capital that has long been hiding in the dark will take the opportunity to buy at the bottom of and complete a new round of plundering of sovereign wealth of various countries.
Of course, the best way to avoid being caught is to control the entry of overseas capital; however, except for a few countries such as China and Russia, countries that use the US dollar as international currency for investment and trade settlement have almost no ability to say no to US dollar capital.
US dollar capital is used in turn through the strong dollar and weak dollar monetary policies , which is essentially a round of wealth harvesting. Therefore, central banks of various countries can only use their feet to vote for distrust of the dollar hegemony; we can imagine that when all countries sell US bonds, it is equivalent to the Federal Reserve eating almost all US bonds; at this time, the United States can only play the currency war game of US dollar bonds with itself, and can only cut its own wool until it is cut.
US dollar hegemony will certainly not surrender. You can choose currency war 's regular war and nuclear war .Conventional warfare is to use currency weapons such as the US dollar, US bonds and US stocks and to confront sovereign currencies in various countries; according to the current dominance of the US dollar in the world, countries will inevitably be defeated one by one; even if they encounter tough thugs like Russia, the US dollar hegemony can press the financial nuclear bomb button on it, and directly send the country's sovereign wealth denominated in US dollars into the "domain of the world".
Therefore, while selling US debt, all countries are launching the local currency settlement system that replaces SWIFT. However, the problem is that the US dollar, as the settlement tool for international trade, is based on its very complete credit system.
. When the US dollar has gradually lost its credit, whether other countries can establish a similar credit system is the biggest question; after all, a country's currency represents the country's sovereign wealth. If this country uses monetary policy to regulate its economy , , other countries will face greater credit risks.
gives an example to illustrate that today Country A used ten yuan A coins to buy goods from Country B that are equivalent to ten yuan worth of currency A. Country B received ten yuan A coins, while Country A obtained equivalent goods; once Country A adopted a special monetary policy, the ten yuan A coins depreciated to five yuan, then Country B obtained can only purchase materials worth five yuan worth of country A, which is equivalent to half of the sovereign wealth lost by Country B.
can avoid this dispute unless it is settled with internationally recognized gold or another recognized token; therefore, Europe used euro with a consensus mechanism as a unified currency, which is based on the optimal currency zone theory of Mondale teacher, making the monetary policies of euro zone countries consistent.
The biggest crisis now is that before the next token recognized by countries around the world appears, the US dollar will still affect international investment and trade settlement, US bonds will still affect the amount of foreign exchange assets of various countries, and US stocks will still affect the value of US dollar assets of various countries. In addition, through the penetration of US dollar capital, it will also affect the bond market and stock market of various countries, such as our Hong Kong stock market and the mainland Chinese stock market.
Therefore, as long as the US dollar's status as an international currency exists for one day, such an impact will exist for one day; only if the national capital of each country establishes offensive and defensive alliances can the plunder of US dollar hegemony; and this is an almost impossible task for the "free democratic countries" that implements the market economy .
What's more, the United States can also use financial nuclear bombs like SWIFT to conduct indiscriminate attacks on the financial markets of various countries.
Russia has fought a model of a financial counterattack for countries around the world. Russia, which has rich energy and resources, has the confidence to deal with it. It is difficult for other countries with relatively single resources and relatively scarce major strategic resources to withstand it, and the national economy will inevitably suffer a significant impact; and The economic foundation determines the superstructure of . If the economy is not good, it will affect people's livelihood, and the political situation will be unstable; at this time, another color revolution will come, and the country's regime will be replaced by the foreign comprador political group bribed by US dollar capital.
To sum up, selling US bonds and launching local currency settlement system are not enough to fight against US dollar hegemony, especially the Asia-Pacific region where US dollar hegemony is currently mainly aimed at.
Under such a major change that has not been seen in a century, it is not realistic to appear another international currency like the US dollar that can be accepted by the whole world. At this time, what countries around the world need most are the best currency zones like the euro zone, as well as the economic, political and military strength to defend national sovereign wealth. Asia-Pacific is more urgent in this regard.
After the Twenty National Congress, the heads of state of Southeast Asian countries and even the German Chancellor visited China; perhaps it was because of the realization that when the hegemony of the US dollar has already emerged, even countries like Japan have fought back but still cannot prevent the end of their sovereign wealth. It will be a matter of time before other countries in the Asia-Pacific region fight alone and be hollowed out sovereign wealth.
The hegemony of the US dollar cannot harvest Russia because Russia has an independent energy and resource system; the hegemony of the US dollar cannot harvest China because China has the world's largest and most complete industrial manufacturing system and independent financial market.
As long as Russia and China establish an offensive and defensive alliance in the Asia-Pacific optimal currency zone in the process of dealing with the US dollar currency war, and unite more developing countries in the Asia-Pacific region to join this alliance, it will be difficult for the US dollar hegemony to continue to plunder like this; and once the US dollar hegemony loses its ability to plunder, it will no longer be able to transfusion blood to the country's economy through the financial market, and the state capital will vote with its feet, and the drama of Exodus will also be staged one after another, and God will not be able to save the country even if God comes.
At that moment, this country may launch the largest nuclear blackmail in history; unless a more wise and leading elite class appears, bringing this country back to the camp of a community with a shared future for mankind.
In this way, only through consultation, joint construction, win-win sharing can countries around the world achieve peace and development on earth. We hope that the elites like Bill Gates and Musk who can settle the general ledger will awaken more, turn the tide and support the building to collapse; and advocate the reconstruction of the world order that advocates peace and development, as the biggest competitor of the United States, China has the responsibility to take the initiative to take responsibility and prove the feasibility of different paths with practical actions.
Note: The author of this article is Wu Lifeng, a researcher at the "Qin'an Strategic Think Tank", and is the original work of on this platform. In the new year, I wish everyone join hands, overcome the epidemic, curb hegemony, and move towards a better future together.
