Washington, D.C.

Referred to as Washington.

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

It is also the location of most U.S. federal government agencies and various embassies in the United States.

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 news from Washington may directly or indirectly affect any country in the world.

including politics and economics.

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

Also in Washington.

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

Like central banks in other countries, the Fed uses interest rate decisions primarily to regulate the economy.

Any news from the Fed will affect the pattern of the world economy.

Therefore, every move of the Federal Reserve will be concerned by governments and consortiums of all countries in the world.

September 12.

The Fed meeting on interest rates was held on time.

"Data released by the Labor Department showed that non-agricultural employment increased by 130,000 in August, the highest increase in 17 months.... According to the statistical results, I support this rate hike."

"Core inflation continued to rise in August, with prices up 0.7% after five straight months of 0.8%...Based on inflation statistics, I support rate hikes."

“Labor costs have been on the rise — average hourly earnings growth hit a new cycle high in August, according to Department of Labor employment data. ….”

"…"

Alan Greenspan.

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

He is known as the world's "economic czar" and "dollar president", and wherever he goes, he will be greeted like a head of state on the red carpet.

Of course, this time the Fed's interest rate meeting was chaired by Greenspan.

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

12 Federal Reserve Bank chairmen believe that the current US economy still applies to the decision to raise interest rates.

But before the official vote, Alan Greenspan made a speech.

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

After all voting colleagues had their say, Greenspan gave a five-minute speech based on his views.

Ultimately, he said.

"I think the current economic environment calls for lower interest rates to maintain current economic growth."

On the eve of the 1996 U.S. election, Fortune magazine slapped on the cover with a statement saying: "Idiot! It doesn't matter who is president, just let Alan Greenspan be the 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 asked Greenspan questions after discussing with each other.

When the questions were answered by Greenspan, voting began.

More than 80% of the votes supported Greenspan's resolution to cut interest rates.

…

New York, Wall Street.

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

Greenspan's speech was broadcast on television.

There is a saying in the American financial circle: Greenspan coughs and it rains all over the world.

Just two months into Greenspan's tenure as Fed chairman, "dark clouds are rolling in and the wind is blowing" on Wall Street.

That "Black Monday" that still lingers in my heart.

The Dow Jones index fell 508.32 points within 3 hours after the market opened, setting an unprecedented record.

More than 500 billion US dollars were wiped out, which was 1/8 of the annual gross national product of the United States that year!

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

Investors on Wall Street went to great lengths to study each of his speeches, trying to catch even the slightest hint of his phrasing, but in vain.

After the announcement of the final vote on interest rate cuts, the Wall Street investment bankers habitually cursed their mothers again.

Of course, it was Greenspan's mother.

Beginning in 1994, the U.S. monetary policy has changed from its previous easing policy, with a two-year interest rate hike cycle to restrain inflation.

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

"Dry…."

"Look at you smiling like Greenspan..."

"Ha ha….."

"The Tsar's gone, **** it..."

"Greenspan, I'll punch you in the lungs..."

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

Cursing is very excited, mother is very excited.

But scolding does not necessarily mean hatred or resentment.

The Dow Jones Industrial Average and Nasdaq rose nearly 3 percent on the day after the Fed's interest rate decision was announced.

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

Zhao Jiangchuan also had a smile on his face when countless traders celebrated that day's sharp rise in the stock market.

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

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

Logically speaking, the Fed lowers interest rates, which means releasing monetary liquidity.

It's the same as opening the gate to release water.

When the deposit and loan yields decline, capital will be driven into the market by banks for investment because of the decline in yields.

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

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

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

But the result was the exact opposite.

Half a month later, after the Federal Reserve announced that interest rates were cut by 25 basis points and there was a possibility of further reductions, the dollar rose strongly for a full two weeks.

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

Under this influence, global safe-haven capital began to flow into the United States, further promoting the strength of the dollar.

This has put pressure on Asian and European markets.

September 28.

The Bank of Japan suddenly announced.

Raise bank deposit and lending rates by 0.5 basis points.

But what is surprising is that after Japan ended the era of zero interest rates, the yen did not strengthen because of this, but began to enter a downward space.

The strength of the dollar begins to draw blood around the world ~lightnovelpub.net~ The weakening of the yen puts Asian currencies under pressure again.

In order to avoid capital outflows, Southeast Asian countries have raised interest rates in an attempt to retain and avoid capital leaving.

Thailand took the lead.

The bank deposit and loan interest rates will be raised to 6% from the currently implemented 4%.

Immediately afterwards, central banks in Southeast Asia took action one after another, and also chose to increase the bank's loan-to-deposit ratio to retain the liquid capital that was about to leave.

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

Central banks don't see what's going on.

But how could Zhao Jiangchuan not know.

The U.S. dollar became stronger after lowering interest rates, while the Japanese yen weakened after raising interest rates. The monetary policies of the two major economic systems were later called double ghosts.

What such a horrible term means can be imagined.