Fed Cuts by 50bps, Then 200bps: Who's Next?

The Federal Reserve, as the world's most powerful central bank, has caused many heavily indebted assets to burst with each frenzied interest rate hike.

In 1990, the highest interest rate set by the Fed reached 8.10%.

It burst the Soviet Union, leading to its dissolution.

In 1996, it burst the Asia-Pacific region.

More recently, the subprime crisis in 2008, which was burst, triggered a global financial crisis, and Europe erupted into a debt crisis.

In 2000, the crazy interest rate hikes burst the internet bubble, and at the same time, it began to flood the market, leading funds to the East to shop, but the funds did not go, and it promoted the real estate bubble in the United States.

Advertisement

At that time, China was gradually opening up, causing hot money to be squeezed in and unable to grab the core assets in the East, which was frustrating.

Who does the United States want to burst this time?

Of course, it's our country.

On one hand, it sings the threat of China, saying we are too strong.

On the other hand, it says that China is very weak, and it blows the theory of China's collapse.

As a result... India has risen.

A big guy in the East has made the United States very painful, and now another bigger guy has risen in Asia, and even more unscrupulous, eating with his hands, borrowing from primitive society, and moving around.

Indian descendants have now given birth to the British Prime Minister, and now Harris is also competing to be the President of the United States.

What the United States is most afraid of now is that it will burst itself.

The United States now carries more than 35 trillion US dollars in national debt, and it needs to continuously harvest the world to fill these gaps.

Fortunately, the United States has abundant resources, and they are not worried about resource issues.

Even if they restart the country again, they are still strong.

So we can't say that he will collapse.

Because the world is entering the era of three or five countries, at least it is entering the era of big countries.

China, India, China.

In short, the population is the infrastructure, the larger the scale, the larger the ecosystem.

What technology and other thresholds are no longer a problem.

Because technology is facing a bottleneck, you will, I will, everyone will, and in the end, it can only be compared in scale.

The United States and India are both super populous countries.

Yes, the United States is now driven by immigrants, and they are really about to become a populous country.

Coupled with the fact that both are countries with relatively backward infrastructure, they urgently need to renovate the country, and the huge demand for infrastructure makes them still have a larger economic growth space.

At least you can continue to issue national debt, but it is difficult to produce and manufacture by yourself.

In the end, you still have to pull China's brother to help.

It's just that it's still being negotiated.

At 2:00 a.m. on Thursday (September 19), Beijing time, the Federal Reserve announced a 50 basis point interest rate cut, lowering the target range of the federal funds rate from 5.25% to 5.5% to 4.75% to 5%.

It fell another 200 basis points.

The median forecast also shows that by the end of the year, there will be another cumulative interest rate cut of 50 basis points on the current basis.

19 policymakers believe that by the end of 2025, the interest rate will be between 3.25% and 3.5%, that is, by 2025, there will be a cumulative interest rate cut of 100 basis points; in 2026, there will be a 50 basis point interest rate cut, and it will be maintained at 2.75% to 3% in the long term.

The development law of each industry and event is that the initial stage is fierce, the middle stage enters a wide range of shocks, and the later stage enters a low and stable cycle.

The real estate market is the same, and the stock market is the same.

Look at the stock market in the West, and it is also crazy at the beginning.

Later, it slowly shocks, and those who can rise slowly rise.

Those who don't rise are merged or eliminated.

Now the world has entered the era of big countries, and the global economy has entered a balanced cycle.

The United States cannot destroy the East, nor can it kill India, and it is even difficult to do a Ukraine, and it is even more difficult to carry a slipper army.

So the world has entered a brand new unprecedented new cycle.

In this new cycle, it is important to focus on the leader.

Because the big economy wants to have a big wave and a big move like the dissolution of the Soviet Union, it is no longer possible.

So the world has entered a global capitalist era.

When everyone is a wolf, the last thing that can be harvested is the injured wolf, not the sheep.

Because the sheep has become a wolf, and everyone has become a capitalist.

So at this time, what is good?

It is good for the wolf king.

That is, the leader of each industry, not the leader has the risk of being hit by the street.

The Western index bull is like this.

The East will also enter the index era, the initial stage is slow, or the middle stage may also be slow, as long as the marketization is slower, the industry integration, the leader integration is slower, the index is slower.

And the development process is to hinder marketization, because the impact of marketization is too fierce, and if it is not controlled, it will be out of control and there is a risk of being controlled by Jewish capital.

Let the marketization slow down a bit, in order to cultivate local capital.

Until it can compete with Western capital, it can be released.

The current market has fallen deep, and under the global flooding, funds will always enter the stock market.

But it is no longer a situation where everyone rises together, because the market itself has lost balance.

For example, some blue-chip stocks are now equivalent to 6000 points, and some small-cap stocks have been delisted directly, and the negative point.

So if you want to rise, you have to think like a wolf king, that is, to find a potential growth theme.

At least even if it is value investment, large capital layout, you also have to lay out a big wolf king with growth and integration space.

To put it directly, this kind of company must have the ability to eliminate others.

It is so cruel!

It is as cruel as the wolf king.

The world is the same, and after becoming a capitalist, it enters the wolf era.

Otherwise, why fight, of course, because growth has to be a wolf eating a wolf.

To be a winning wolf.