Now a war without gunpowder is quietly starting in the global financial market, only this time, the head wolf is eyeing the whole world.
Dollar harvesting
The United States, once the economic hegemon, is now like an aging lion, trying to maintain its crumbling hegemony with its last fangs.
In order to pass on its own economic crisis and gain more wealth, the United States could no longer bear to use its "killer weapon" - the dollar.
In fact, since 2022, the Federal Reserve has begun a crazy mode of raising interest rates, with the aim of setting off a global financial crisis by manipulating the US dollar interest rate, so as to sweep away the wealth of other countries.
This is a well-planned "harvest game", and China, the European Union, Russia, and other countries with huge economies and huge development potential, have naturally become the primary targets of the United States.
However, it soon became clear to the United States that their wishful thinking was wrong this time.
China, the giant dragon of the East, has shown extraordinary resilience and determination in the face of the United States' pressing forward step by step.
Over the years, China has always adhered to the general tone of seeking progress while maintaining stability, continuously deepened reform and opening up, steadily improved its economic strength, maintained a stable RMB exchange rate, and built a stable financial system, building an impregnable "firewall" that has allowed US financial attacks to return again and again.
In addition to China, the EU has also made preparations in advance, and has already transferred some funds and industries, leaving no opportunity for the United States at all.
Russia has been confronting the United States for many years, and has long cultivated a "copper skin and iron backbone", and the US financial sanctions are just "tickling" for it.
What people did not expect was that the United States turned its greedy eyes to those former allies, those countries that once obeyed their words and looked at the horse.
Japan is one of the allies of the United States, Japan was once an economic power in Asia, but he was also a loyal "little brother" to the United States, but Japan never imagined that it would eventually fall victim to this financial war and be ruthlessly pushed into the abyss by the United States.
From "Allies" to "Outcasts"
The yen-dollar exchange rate has plummeted from 100:1 at the beginning of 2022 to 160:1 in June 2024, and even broke through 161:1 at one point, setting a new record for 37 years.
This means that in just over two years, Japan's national wealth has evaporated by nearly a third, people's assets have shrunk dramatically, and corporate profits have been devoured.
Japan's once prosperous economy is now in a depression, small and medium-sized enterprises are struggling, prices are soaring, people's living standards are declining, and social contradictions are becoming increasingly acute.
As an "ally" of the United States, Japan has long been obedient to the United States, highly dependent on the United States economically, and even willing to act as a "pawn" of the United States in the Asia-Pacific region.
However, Japan has been reluctant to turn back for a long time, but it has to wait until the United States' "financial sickle" is wielded before it reacts, and the so-called "allies" are nothing more than "leeks" that they use to harvest.
In the face of the collapse of the yen, the Japanese government did not fail to take measures, as early as when the yen exchange rate fell to 150:1, the Japanese government quietly intervened and invested 9.8 trillion yen to save the market, but all this is now in vain.
In the face of the powerful "dollar harvester", Japan's resistance paled in comparison, and it could only watch as Japan's exchange rate continued to fall.
In June 2024, the Japanese government is still in a hurry, and Japanese Finance Minister Shunichi Suzuki publicly stated that in order to save the yen, the Japanese government will not set a capital ceiling and make every effort to intervene in the exchange rate.
However, this statement has put them in a dilemma, and they also know in their hearts that if they continue to follow the United States, then the yen will only depreciate one after another, and eventually become an economic colony of the United States.
However, if we resist the United States and sell US bonds to save the market, we will inevitably be retaliated against by the United States, and the consequences will be equally unimaginable.
With the abyss of economic collapse on one side and the political coercion of the United States on the other, Japan, once an "excellent student", is now like a lamb waiting to be slaughtered, which can only be slaughtered.
The rise of China
In stark contrast to Japan, China, a country that is regarded by the United States as a "thorn in the side and a thorn in the flesh", has shown great resilience and strength in this financial turmoil.
In the face of the Federal Reserve's interest rate hike offensive, China has adhered to the principle of stability and seeking progress while maintaining stability, and has adopted a series of effective measures to stabilize the RMB exchange rate, maintain financial security, and make steady progress in economic development, injecting valuable confidence and impetus into the world economy.
The mainland also profoundly understands that the ultimate goal of the United States is not simply to harvest Japan, but to use this to contain China's development and at the same time maintain its hegemonic position in the international arena.
Fortunately, China has not been deceived by the superficial appearance of the United States, but has maintained a high degree of strategic determination and has always insisted on doing its own thing well and doing its own thing well.
In recent years, China has actively promoted the transformation and upgrading of its economic structure, vigorously developed high-tech industries, continuously enhanced its ability to innovate independently, and made a series of achievements that have attracted worldwide attention.
China's new energy vehicles, chip industry, artificial intelligence and other fields are rising rapidly, forming a strong challenge to the traditional advantageous industries of the United States.
At the same time, China actively advocates the building of a community with a shared future for mankind, promotes the high-quality development of the Belt and Road Initiative, shares development opportunities with other countries in the world, and creates a better future, which has won wide recognition and support from the international community.
China's rise is an irresistible historical trend, and the United States' attempt to maintain its hegemonic status by suppressing China is doomed to failure.
The awakening of allies
The United States does not hesitate to sacrifice its allies for the sake of its own interests, and this practice has also made countries that have been associated with the United States in the past see the true face of the United States thoroughly, and many countries have begun to re-examine their relations with the United States.
European countries, under pressure from the United States, began to strengthen internal solidarity and promote the internationalization of the euro in an attempt to get rid of dependence on the dollar.
Developing countries in Southeast Asia and Africa are gradually turning to China to seek opportunities for cooperation and development with China.
At present, the hegemonic system that the United States has painstakingly managed for many years is accelerating its collapse, and the hegemony of the dollar, which was once an unstoppable "financial empire", has now come to an end of its rope.
The United States' continuous interest rate hikes are not only harming the interests of other countries, but also overdrawing its own credibility.
More and more countries are beginning to realize that the dollar has become an "unstable factor" in the global economy, and the wave of de-dollarization is sweeping the world.
U.S. debt, which was once regarded as a "life-saving straw" by the United States, has now become a hot potato.
epilogue
Against this backdrop, countries are faced with a choice: continue to cooperate or choose confrontation? Is it a win-win situation or a zero-sum game?
This is not only a test of wisdom, but also a sense of responsibility.
As far as the United States is concerned, it is faced with the dream of choosing to continue to pursue hegemonism, or to follow the trend of the times and pursue peaceful coexistence and win-win cooperation with other countries.
History has clearly shown that hegemonism has no future, unilateralism will not be widely supported, and the Cold War mentality has long been outdated.
Only by adhering to win-win cooperation can we achieve common development, build a community with a shared future for mankind, and usher in a better future.
Resources
The Belt and Road Research Institute of Hainan University, "[In-depth Analysis] Professor Zou Tianshi: How the United States Will Be Dragged into Economic Disintegration by China"
Global Network "The rescue efforts are unprecedentedly difficult to cover the huge interest rate difference, and Japan's "defending the yen" action has little effect"
Daily Economic News "The exchange rate of the yen against the US dollar has refreshed the lowest record in 37 years!" The market continues to sell, and the Japanese Finance Minister: For the sake of the yen, you can spend as much as you want......"