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01 The True Purpose of Interest Rate Hikes

Currently, the global community is speculating: Is the Federal Reserve's interest rate hike meant to curb inflation, or is it a financial tactic of the United States?

Even with the emergence of a banking crisis, the Federal Reserve continues to raise interest rates, which must indicate some underlying strategy.

The risks released by the United States due to interest rate hikes, coupled with the risk crisis in the banking industry, could normally lead to a larger storm, and the Federal Reserve has no reason to ignore it.

This can only suggest that the Federal Reserve is well aware that this banking crisis will not lead to a domestic financial crisis and can also resolve the internal issue of bank runs.

For the United States, the funds that were to be lost have already been lost when the banks first experienced trouble; there is no need to lower interest rates now. On the contrary, the United States plans to take a gamble by continuing to raise interest rates to reap global benefits.

02 This Time It's Different

As early as the onset of the pandemic, the United States stimulated the economy by releasing a large amount of funds, and at that time, the United States had already anticipated future economic inflation issues, which was part of the plan.

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However, the United States' initial intention was to shift the resulting inflation to other countries. Because of this, Europe experienced the highest inflation in nearly 40 years, and many countries in Asia and the Americas have entered a vicious cycle of inflation.

It was just that the United States did not expect that the inflation, which could be successfully shifted abroad in the past 40 years, would remain domestically this time.In fact, from this perspective, it is already different from the past, but the United States chooses to ignore it.

Subsequently, the Federal Reserve has raised interest rates again and again, which actually has not had a significant effect on easing inflation, but it is still raising interest rates, which may be to trigger greater global turmoil.

At that time, the United States released a huge amount of money, which was not only circulating within the United States. The United States controls the flow of money by raising and lowering interest rates, thus the interests of these countries will be harvested by the US dollar.

The United States often harvests the world. In many previous financial crises, there have been operations by the United States to financially harvest some countries.

And many countries, due to the United States' economic strength and military strength and other comprehensive strengths, can only helplessly accept the operations of the United States and do not have the ability to resist.

But now, you see that the United States itself is difficult to guarantee, and the world has started to de-dollarize and sell US debt, and the hegemony of the dollar will begin to be shaken.

03, from countries to enterprises

Since entering 2023, more and more countries have started to de-dollarize in various forms. In Europe, there are France and Germany. In South America, Argentina and Brazil have proposed initiatives. In the Middle East, Saudi Arabia leads, along with Iran, Iraq and other countries. In Southeast Asia, Dongmen leads, with Malaysia as a representative.

Moreover, this trend has spread from the national level to the corporate level, including even American companies that have seen this reality.

There are media reports that Tesla's CEO plans to visit China in the near future.Tesla is planning to establish a factory in Shanghai for the production of energy storage devices, with the intention of targeting the global market with its products. The specific plan is to begin construction in September of this year, with production scheduled to commence in June 2024.

It's not just Tesla's CEO who has visited China; currently, a multitude of foreign corporate executives are also coming to China in search of investment opportunities.

At the end of March, executives from 11 foreign companies across the automotive, financial, and technology sectors visited China, all eager to tap into the investment potential of the Chinese market.

Foreign executives are demonstrating their confidence in investing in China and their interest in the Chinese market through their actions, which ultimately reflects their faith in the rising value of the Chinese currency, the yuan.

04. Joint Efforts by China and Russia

As the status of the US dollar is on the decline and international currencies are gradually becoming multipolar, a new global monetary order is on the horizon.

Therefore, in March of this year, China and Russia reached an agreement to settle future trade directly in yuan, without using the US dollar as an intermediary currency. This is a win-win solution.

Currently, Russia is not only looking to break free from its dependence on the US dollar but also from the British pound, Japanese yen, and even the euro.

Facts have shown that the United States does not adhere to international rules and only considers maintaining its own hegemony, which has already damaged the credibility of the US dollar and put its status as the world's currency in jeopardy.

On the other hand, with the continuous development of China's economy, the ongoing investment by foreign enterprises in China, and the increasing trade between China and numerous countries, the importance of the yuan is growing higher and higher.In the future global monetary new order, the Renminbi will inevitably occupy an important link.