US Hikes Rates, China Cuts Amid Economic Contrasts

In recent days, we have discussed several times the topic of the central bank's interest rate cut. Some netizens asked, facing the huge challenges of the global economy, the United States is raising interest rates while China is lowering them. Why is there such a completely opposite operation? What is the most fundamental difference? What exactly are the Americans afraid of?

Some people say that China's bold interest rate cut action is estimated to shock the Federal Reserve, and what will be the subsequent reaction of the Americans?

Amidst the turbulent global situation and the world economy facing the pressure of recession, for central banks around the world, lowering interest rates is the best choice. However, China and the United States have made completely opposite choices, which is indeed confusing.

To understand this issue, it is necessary to explore the essential differences between the central banks of China and the United States. This determines their decision-making starting points and purposes, which have fundamental differences.

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In fact, since the beginning of this year, the People's Bank of China has not only cut interest rates this time but also made three consecutive actions.

On January 24, the central bank announced that starting from February 5, the reserve requirement ratio will be reduced by 0.5 percentage points, and starting from January 25, for agricultural support re-lending, small business support re-lending, and rediscounting, the targeted interest rate cut will be 0.25 percentage points.

On February 20, the central bank once again announced that the 1-year LPR remains unchanged, and the LPR for more than 5 years will be cut by 25 basis points at one time.

The reserve requirement ratio reduction is to release liquidity and increase support for the real economy. The targeted interest rate cut for agriculture and small businesses is a special support policy for agriculture and small and micro enterprises. This is a set of economic stimulus measures.

The significant reduction in the LPR for more than 5 years is beneficial for medium and long-term loans of enterprises and institutions and housing loans. The impact is very large, especially for the manufacturing industry, which has a relatively long investment cycle, and the overall support is very strong.

Therefore, the People's Bank of China has successively reduced the reserve requirement ratio and interest rates, fundamentally for the purpose of large-scale social benefits, promoting economic vitality, accelerating the start of the year's economy, striving for a good start, and stabilizing the overall economic situation throughout the year.The People's Bank of China is a macroeconomic regulatory department responsible for formulating and implementing monetary policy, maintaining financial stability, and providing financial services. It is a national department with significant missions and roles.

So, what kind of institution is the Federal Reserve? It can be considered the most complex and mysterious central bank in the world, deeply hidden and wrapped in a thick veneer of hypocrisy.

Some say that the Federal Reserve raises interest rates on the dollar to suppress inflation. Everyone knows that this is just a superficial excuse; the underlying intentions are very complex.

Because the Federal Reserve is a private institution, established in the 1910s, it was a special tool devised by capitalists of that era.

In the 1910s, American bankers led by J.P. Morgan, in order to take advantage of the bubble phenomenon in an overheated economy, quickly absorbed social wealth through the cycle of easing and tightening monetary policy, and planned the Federal Reserve system. This was the original intention for its establishment.

Therefore, the Federal Reserve is essentially a super machine for American big capitalists to ease and tighten monetary policy. The real manipulators behind it are the three major Jewish financial groups: the Morgan family, the Rockefeller family, and the Rothschild family.

This determines that all decisions of the Federal Reserve must first conform to the fundamental interests of the three major Jewish financial groups, to maintain the interests of American big capitalists, rather than considering the national interests and social benefits of the United States.

The Federal Reserve keeps saying that raising interest rates on the dollar is to suppress inflation. But who actually caused the inflation? It was the Federal Reserve's crazy money printing since 2020, coupled with the Jewish financial groups' encouragement of the U.S. government to implement high fiscal deficits and flood the market with money, which led to this disaster.

Raising interest rates on the dollar is not atonement for their past misdeeds, but another typical action of easing and tightening monetary policy to absorb social wealth.

On the other hand, raising interest rates on the dollar is also to maintain the world status of the dollar, warning the world not to abandon the dollar.This is because the wealth of the American Jewish financial consortium is spread all over the world, parasitizing on the US dollar, which is the world's currency, and the dollar is their foundation.

In addition, some people say that the American Jewish financial consortium controls finance, while the Anglo-Saxon financial consortium controls manufacturing and the military. The interest rate hike of the dollar has fundamentally increased the financial cost burden of American manufacturing, slowed down the process of "reindustrialization in the United States", and compressed the space for American military expenditure.

Recently, there has been news that the US Congress is discussing to reduce the military budget for 2024, which also confirms this view.

In the past two years, manufacturing enterprises in Japan, South Korea, and Taiwan, China have announced to temporarily suspend their plans to build factories in the United States, precisely because the interest rate hike of the dollar has caused the rise in costs.

Therefore, the interest rate hike of the dollar is also a large-scale offensive launched by the Jewish financial consortium against the Anglo-Saxon financial consortium, and it is the result of internal strife in the United States.

As the United States' national strength declines, its hegemony is challenged, and the status of the dollar is weakened, the Federal Reserve's crazy interest rate hike behavior indicates that Americans, especially the Jewish financial consortium, have great fear in their hearts.

On the contrary, after we have completed the adjustment of the global economic layout and taken major actions to prevent financial risks and build a strong financial country, we have significantly strengthened our independent strategic actions and no longer focus on the dollar.

What will the Americans do next? Some people say that Americans believe that as long as the dollar continues to raise interest rates, we will collapse.

Therefore, the Federal Reserve is likely to have only two directions, either to raise interest rates more crazily, betting that we will collapse, or to quickly lower interest rates and harvest the limited results of the dollar's interest rate hike to continue its life.

Therefore, the major actions of the central banks of China and the United States are a microcosm of the great changes happening in today's world, and also indicate that the great changes that have not been seen in a hundred years have reached a critical moment.