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The Dollar Is Unique: Big Appreciation Is Equivalent To Suicide.

2017/3/18 20:51:00 36

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The US dollar index fell, US stocks rose and the yuan rose.

Confused and confused, contrary to the imagination.

The result of the Fed's rate hike was that the US dollar remained weak. On the same day, the US dollar fell sharply against the major currencies in March 15th, while the US dollar index fell to two week lows, and the late dollar dropped 0.9%, to 100.78.

All imagination is completely lost. This is just the image of history, not the essence.

The idea that the money market can operate completely in accordance with the free market can rest. Don't be so naive. The money market has always been the biggest dealer in the world. The United States is the biggest dealer. This evil village has harvested a bunch of leeks, so that the developed countries in Japan can only listen to their lives. The countries such as Thailand, Mexico and Brazil are not on the way to the outbreak of the financial crisis. They are also on the way to the outbreak of the financial crisis.

There is always such a picture in my mind.

financial crisis

After that, the United States passed the cost to all the countries in the world, and brought the economy back to life through quantitative easing.

The economic recovery and inflation began to raise interest rates aggressively, so that global funds were returned to the United States. Uncle Sam shook hands with green money and laughed at everyone.

Next, Asia or South America do not know which bad place will break out of the financial crisis.

The renminbi will become the first victim.

Let us think again, like a hell scenario, the US interest rate hike and China's interest rate spreads, and profit driven funds continue to pour into the United States, which has led to a sharp rise in the US dollar exchange rate and a surge of capital to the United States. The renminbi has to raise interest rates sharply to stop the outflow of funds.

China's wealth has been plundered. A financial crisis has been ignited in China.

That's what happened last year.

The yuan did not rise or fall.

The offshore renminbi (CNH) against the US dollar rose nearly 400 points after the Federal Reserve announced its interest rate decision, the biggest gain in two months and the 6.85 strong side. In March 16th, the central parity of RMB against the US dollar was 6.8862, up 253 basis points from the mid day 6.9115 of the previous day, and the increase was the largest in nearly two months.

The new US president, trump, will never allow the US dollar to go against major economies, especially the renminbi against the US dollar.

depreciation

In the process of increasing employment, the US dollar has a strong appreciation, which is equivalent to committing suicide.

The United States can cheat all over the world, but it can't deceive itself.

There are two major problems in the United States. One is the gap between the rich and the poor, the two is high debt.

Trump saw clearly, so he suppressed the manufacturing of other countries with one hand and shouted at Obama.

At present, except for a small number of high-tech companies in the US economy, most manufacturing enterprises have not really improved. The middle income class is unhappy and the gap between the rich and the poor is becoming more and more obvious.

Trump is also playing the role of raising the level of employment in the US manufacturing industry and increasing the investment rate of American manufacturing enterprises.

If the US dollar continues to rise to 110, then US manufacturing exports will be finished.

Plus debt pressure is to borrow ten courage.

Federal Reserve

Nor dare to raise interest rates substantially.

The US government is facing unprecedented debt pressure. The Fed's interest rate increase is superficial. It is to maintain interest rate stability in the money lending market so as not to get out of debt.

Now it's not just whether the Fed raises interest rates, but also on the lending rates of US financial institutions.

This time, the Fed's interest rate increase is a mixed interest rate increase, not to curb inflation, but to avoid market securities and interest rates out of control.

This is also the reason why the US stock index is soaring. Interest rate hikes cannot be suppressed. Tax cuts are a good thing to do.

In response to the Fed's interest rate increase, the Central Bank of China slightly moved interest rates to show its response.

In March 16th, the central bank's reverse repurchase and medium-term loans facilitated the winning rate of MLF. Since the beginning of the year, the central bank has moved up the 10BP again. The market interpreted it as a disguised increase in interest rates to deal with the Fed's interest rate increase. The central bank resolutely refused to recognize it.

The winning rate is not an increase in interest rates.

The term "interest rate increase" refers to the increase of the benchmark interest rate for deposit and loan, and the uplifting of winning rate is the performance of the market which is affected by the demand and supply of funds, mainly determined by the market.

We are pleased to see that the Central Bank of China has learned the essence of the Fed, while the underlying interest rate remains unchanged, but the market lending rate has increased, preventing inflation and preventing the outflow of profit driven funds.

With Chinese culture and the essence of the United States, the renminbi holders finally have a backing.

Since the Bretton Woods system, there is no real interest rate marketization. Only the United States has taken advantage of Japan and Europe to help the United States get out of the 780s first Century risk.

I see that the call for a fall in the RMB exchange rate also wants to laugh. Where does it fall? Is it like Thailand in the Southeast Asian financial crisis? It is not enough to have a short market.

The current market needs a bottom line "hooligan" to guard against the basic market bottom line, and to safeguard the basic well-being of the people.

For more information, please pay attention to the world clothing shoes and hats and Internet cafes.


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