After much deliberation, the Federal Reserve has decided to lower interest rates.

This is the first time in four years that the Fed has chosen to cut rates, and it will initiate a new round of consecutive rate cuts.

Although this is a national policy of the United States, it actually reveals the game between China and the US, and it is an important sign of China's comprehensive victory in the competition.

Many people don't understand how we win if the US lowers interest rates.

This matter must be explained from the beginning!

And we must be clear about the three truths behind this.

We all know that in recent years, the Federal Reserve has been continuously raising interest rates to bring capital back to the United States.

Advertisement

One of the purposes is to "blow up" our economy through the return of investment.

This is a common tactic of the United States because once interest rates rise significantly, a large amount of capital will flow into the US stock market and invest in the United States.

It can be said that this is part of the US financial war against China.

Because in the global financial field, the United States has only one real opponent, which is China.

Objectively speaking, a large amount of capital is indeed flowing out, and the US approach is very insidious.

Because after the capital escapes, there will be a result, a large number of our assets will depreciate, and when they depreciate to "cabbage price", the United States will open up investment and carry out large-scale bottom-fishing.

In the past, this strategy of the United States against Japan and Europe was very effective.

However, what the United States did not expect was that we have taken many assets back to the management of the State-owned Assets Supervision and Administration Commission through large-scale reforms, and the United States has no chance to bottom-fish.

So the United States began to get desperate, and sanctioned our enterprises in the name of supporting Russia, and suppressed Chinese enterprises under the so-called "threat to national security".

It even threatened to kick us out of the SWIFT system.

But a series of policies have actually been cracked by us one by one, although we also have to pay a certain price in this process.

Looking at the current situation, the US policy of continuous interest rate hikes is like a bullet hitting a steel plate, and finally it bounced back.

This has led to serious problems in the US economy, the first being the crazy rise of US debt.

Because if interest rates rise, many countries will buy US debt, and the interest the United States has to repay will also increase a lot.

This approach is like drinking poison to quench thirst, not a long-term solution, because if the United States continues to raise interest rates, it will not only fail to see China being blown up, but will also destroy its own economy.

In addition, after the United States raised interest rates, a large amount of capital flowed back to the United States, causing the rapid contraction of the US dollar globally and a serious decline in market share.

On the other hand, China has strengthened economic cooperation with ASEAN, Africa, BRICS countries, and Central Asian countries.

In these cooperations, we use our own currency for settlement, which has led to a situation where the market share of the yuan has expanded rapidly.

In such a contrast, if the United States does not lower interest rates and promote the US dollar, the dominant position of the US dollar may be completely destroyed in the short term.

After reading the above analysis, if we say that China has won, we should be very clear.

In fact, this is just our victory in the field of financial warfare.

In the trade war and technology war, we have also achieved great success.

Since 2018, the United States has started a trade war because it wants us to always be the world's factory and the "downstream" of the United States.

However, Chinese brands continue to rise, and the technological content has been greatly improved.

From the world's factory, it is changing to the global industrial and trade center, and the United States can't stand it.

So, during the Trump era, it launched a trade war against China, trying to stop the export of Chinese goods by imposing tariffs, and the United States also turned some factories to South Asia and Southeast Asia.

As a result, the United States found that China's export volume was not affected at all, but continued to increase year by year.

This is because we have expanded a new market, including ASEAN, Africa, America, and so on.

The trade volume between China and the United States is only a part of China's foreign trade, totaling more than 500 billion US dollars.

The United States came up with an excuse of "excess capacity" and began to suppress China, but the strength is very small.

In terms of the technology war, with the rise of giants such as Huawei, ZTE, SMIC, and CATL, the US technology blockade is also failing for us.

It has to be said that we have survived the most difficult period.

The Chinese nation has a 5,000-year civilization and wisdom, and it is not a country like the United States, which has only existed for more than 200 years, that can defeat it!