Washington, D.C.

Abbreviated as Washington.

It is the political center of the United States of America.

It is also home to most U.S. federal government agencies and embassies in the U.S.

The headquarters of international organizations such as the World Bank, the International Monetary Fund, and the Organization of American States are also located here.

Any piece of news that comes out of Washington can directly or indirectly affect any country in the world.

including politics and economics.

The Federal Reserve System (Fed) is the central bank of the United States.

Also located in Washington.

As a central bank, the Fed's role is to regulate the U.S. economy.

Like other central banks, the Fed uses interest rate decisions primarily as a means of regulating the economy.

Any message from the Fed will shape the world economy.

Therefore, every move of the Fed will be watched by all governments and consortia around the world.

September 12th.

The Federal Reserve's interest rate meeting was held on time.

"According to data released by the Ministry of Labor, non-farm payrolls increased by 130,000 in August, a 17-month high....... and according to the statistical results, I support this rate hike. ”

"Core inflation continued to rise in August, with prices rising 0.7% after rising 0.8% for five consecutive months...... Based on the inflation statistics, I support a rate hike. ”

"Labor costs have been rising, according to Labor Department employment data – average hourly earnings growth reached a new cycle high in August......."

“……”

Allan?? Greenspan.

American Jew, Chairman of the 13th Federal Reserve Board of the United States.

He is known as the "economic czar" and "dollar president" of the world, and wherever he goes, he is received by the head of state on the red carpet.

Of course, this time the Fed interest rate meeting was presided over by Greenspan.

Most economic data show that the employment rate and inflation rate have been at a high level in recent months, and there is a possibility that they will continue to rise.

The chairmen of the 12 Federal Reserve Banks believe that the current US economy is still suitable for raising interest rates.

But before the official vote, Alan?? Greenspan spoke.

"Labor productivity is growing faster than the government's apparent statistics, which will bring down unemployment without triggering inflation, and I think that the current economic growth is an illusion of irrational prosperity......

After all the colleagues who had the right to vote had their opinions, Greenspan gave a five-minute speech based on his views.

Eventually, he said.

"I think the current economic environment requires lower interest rates to sustain the current economic growth. ”

On the eve of the 1996 U.S. election, Fortune magazine put on the cover a sentence that told the world: "Stupid! It doesn't matter who is president, as long as Allen is allowed to do so." Alan Greenspan became chairman of the Federal Reserve. ”

This shows how remarkable Greenspan's achievements and status in the economic field are.

After his remarks, all the MPs discussed with each other and asked Greenspan questions.

When the questions were answered by Greenspan, the voting began.

More than eighty percent of the votes were in favor of Greenspan's proposed decision to cut interest rates.

……

Wall Street, New York.

"Labor productivity is growing faster than the government's apparent statistics, which will bring down unemployment without triggering inflation, and I think that the current economic growth is an illusion of irrational prosperity......

Greenspan's speech was broadcast on television.

There is a saying in the American financial circles: Greenspan coughs, and the whole world has to rain.

In the first two months of Greenspan's tenure as chairman of the Federal Reserve, "dark clouds rolled and winds raged" on Wall Street.

That "Black Monday" still makes people feel uneasy to this day.

The Dow Jones index fell 508.32 points in the first three hours of the market, setting an unprecedented record.

More than $500 billion was wiped out, which was 1/8 of the annual GDP of the United States that year!

Therefore, Greenspan's words and deeds are particularly compelling.

Wall Street investors have gone to great lengths to study each of his speeches, trying to catch even the slightest clue from his choice of words, but the results have always been in vain.

When the final vote on interest rate cuts was announced, people in Wall Street investment banks once again habitually scolded their mothers.

Of course, it's the mother who scolded Greenspan.

Since 1994, the U.S. monetary policy has changed from the previous loose policy to balance the policy, and the two-year interest rate hike cycle has been carried out to rein in inflation.

But this time, the Fed suddenly announced that it would cut its benchmark interest rate by 25 basis points.

"...."

"Look you're smiling like Greenspan....."

"Haha....."

"The Tsar is mad, damn ....."

"Greenspan, I'll give you a ....."

In the Wall Street investment bank, a group of traders are excitedly scolding Greenspan.

The scolding is very excited, and the mother is very excited.

But scolding doesn't mean it necessarily hates or resents.

After the Fed's interest rate decision was announced, the Dow Jones Industrial Average and Nasdaq rose by nearly three percent on the day.

Under the sharp rise, countless securities investors have obtained rich returns.

When countless traders celebrated the stock market rally that day, Zhao Jiangchuan also had a smile on his face.

He knew that the real decisive battle was about to begin.

After the Federal Reserve's interest rate decision was announced, the dollar first fell and then rose, rising nearly 1 percent on the day.

Logically, when the Fed cuts interest rates, it is releasing monetary liquidity.

It is the same as opening the sluice gate and releasing water.

When the income from deposits and loans falls, the capital will be driven into the market by the bank to invest because of the decline in returns.

The logic of the rise in the US stock market is based on this.

According to this logic, the liquidity of the dollar in the market increases, and the amount of dollars in the market will also increase.

According to the basic factors of supply and demand, if the scale of dollar circulation expands, the dollar index should weaken.

But as a result, it turned out to be the exact opposite.

Half a month later, after the Fed announced a 25 basis point cut in interest rates and the possibility of further cuts, the dollar rose strongly for two whole weeks.

A stronger dollar means that dollar assets have entered an appreciation cycle.

As a result, global safe-haven capital began to flow into the United States, further driving the strengthening of the dollar.

This has put pressure on Asian and European markets.

September 28th.

The Bank of Japan suddenly announced.

Raise bank deposit and loan rates by 0.5 basis points.

However, it is surprising that after the end of the zero interest rate era in Japan, the yen did not strengthen as a result, but began to enter the downside headlessly.

The strength of the US dollar is starting to pump blood around the world, and the weakening of the yen is putting pressure on Asian currencies again.

In order to avoid capital outflows, Southeast Asian countries have raised interest rates in an attempt to save money from leaving.

Thailand was the first to strike.

The interest rate on bank deposits and loans will be raised from the current 4 percent to 6 percent.

Subsequently, the central banks of Southeast Asian countries have taken action, and they also chose to raise the bank deposit and loan ratio to save the liquid capital that wants to leave.

After receiving the news from the central banks of various countries, Zhao Jiangchuan had a cruel smile on his face.

Central banks don't see what is going on.

But how could Zhao Jiangchuan not know.

The strengthening of the US dollar interest rate cut and the weakening of the yen interest rate hike, the monetary policy of the two major economic systems came to be known as the double ghost knock.

One can imagine what such a terrifying term means.

。 m.