On September 28, 2022, the RMB exchange rate broke through the 7.22 mark. Why did the exchange rate rise steadily with the continuous hike rate in the US dollar? How could the US dollar have such a powerful deterrent force? When talking about this issue, you need to explain the logical relationship between the US dollar interest rate hike in detail so that you can get an authoritative answer!
hike rate. Many of our pseudo-experts say that the United States started hiking interest rates in order to curb inflation. Because if interest rates are not raised, the inflation in the United States cannot be suppressed, resulting in the economic crisis in . These views only analyze the appearance and do not reveal the essence of the US dollar interest rate hike.
$3 interest rate hike is mainly to allow the more issued US dollars to return to the United States and promote the recovery of the overall US economy. It requires a large amount of funds to support the United States. Traditional issuance of bonds and direct printing of money will lead to inflation. The most important thing is that inflation will rise, and the US dollar will definitely depreciate. As the world currency, of course, it cannot depreciate at will, otherwise the hegemony will shake. Therefore, only by increasing the deposit interest rate of the US dollar, increasing it from 1% to 5%, and directly raising the interest rate, the US dollar will definitely enter the US mainland, and the funds in the US will reach an astonishing amount in the short term, faster than printing the US dollar. The US dollar interest rate hike is to solve the capitalist country economic crisis. The US dollar interest rate hike has become the killer weapon of the United States. Just a few days ago, in order to achieve better results in the US dollar rate hike cycle , the US government announced that the epidemic has ended and reviving the US economy has become the president's top priority.
The logical relationship of the US dollar interest rate hike. When the US dollar is at a low interest rate, the US dollar will be printed in large quantities, and then enters all over the world, selecting areas that the United States considers suitable to enter every corner of the economy. Wherever the US dollar goes, it is like a slogan of Mr. Xu, which is to buy. When the US dollar issuance is low and issuance is large, the exchange rate of the US dollar and currencies around the world is at a low level. For example, the US dollar against the RMB is basically around 1:6.5. But the situation has undergone a fundamental reversal. The US dollar raised interest rates several times, but it has not reached 4%. At this time, the US dollar began to return to the United States, but the exchange rate at this time has reached 1:7.22. At this time, it is still 100 US dollars to calculate. The exchange rate alone, the US dollar has actually appreciated by 72 yuan. If the interest rate on the US dollar is added, we are now about 1%, which is already a 3 percentage point difference.
is calculated in one year. It is 104 US dollars at the end of the year. Coupled with the impact of the exchange rate, if the interest rate of the US dollar remains unchanged and the original RMB is now exchanged for 100 US dollars, the income obtained has reached 105 yuan, and this income has reached 13%. This is the strong harvesting ability of the US dollar and the most essential driving force for the continuous flow of US dollars.
briefly introduces the principle of harvesting the US dollar. So can the Chinese exchange rate keep 8? It is actually hard to say about this issue. Our economy is very resilient. In order to increase the returns of the RMB, or directly reduce the returns of the US dollar outflow, of course, it is best to increase the returns of the RMB to the US dollar. In this case, the US dollar may not flow out again. On the contrary, there may be inflows of US dollars. This is the truth. Therefore, you also understand why many countries raise interest rates as the US dollar raises interest rates. This is the fundamental reason, which is to reduce the rate of return between the US dollar to protect their own economy.
At present, our effective methods are actually very simple, only 2 points, the real estate market and the stock market, but these two are not successful. You know that harvesting the Chinese people and they dare not attack foreign capital at all. If there is a bull market in the stock market this time, the US dollar has a better chance to enter China, and the US dollar's interest rate hike will not be able to continue, nor will it harvest us. But if we are in a bear market, we will definitely be harvested very badly, because the speed of the US dollar flows out faster and faster, because everyone must stop losses in time.
Another one is the real estate market. If housing prices double within one year, then I believe that the US dollar will definitely pour in in large quantities because capital is profit-seeking, but our housing prices are already on the ceiling, and we have been kidnapped by real estate. Originally, China's real estate was a good tool for harvesting the US dollar, but after 20 years of development and continuous input of augmentation agents, real estate is now in danger. This is also the main reason why the US dollar chose this time node to raise interest rates.
I feel very angry after writing this. How many of us economists are considering the country and the people? Originally, it was a good hand. As long as China's stock market and real estate market can be flexibly used, it can completely offset the harvest of the US dollar. If it is operated well, it may harvest the US dollar in the reverse direction. However, we cannot do it now. The stock market cannot move, and the real estate market itself will not be safe. If we cannot find a new growth point in a short period of time, it will not be delusional to our exchange rate break 8. The country needs cohesion at this time, and the whole nation needs to unanimously boycott the US dollar and use new growth points to harvest the US dollar interest rate hike!
In short, Capitalism has a history of more than 300 years. The cyclical nature of the US dollar has made the dominant position of the US dollar become increasingly strong. Only by relying on ourselves, we should not copy the American model, do our own people's livelihood, eliminate the gap between the rich and the poor, develop hard power, and not be self-righteous and work in a low-key manner. Only then can we completely de-dollarize and no longer be afraid of the harvest of the US dollar. Only then can the Chinese people truly stand up!
