Many people may not have noticed, but changes in the US dollar have a significant impact on the lives of ordinary people like us. When the US lowers interest rates, global capital flows to other countries like a flood. Many businesses and factories take advantage of this trend to expand their operations. However, the US's approach is not about making others wealthy but ultimately harvesting the world's wealth. When the time is right, the US begins to raise interest rates, and capital suddenly flows back, exposing economic issues.
This matter dates back to the US's financial strategy. During the financial crisis, in order to save its own economy, the US implemented a policy called "quantitative easing," which, in simple terms, involved releasing a large amount of dollars. As a result, a flood of dollars spread across the world, especially to countries in need of funds for development, and everyone was eager to get their hands on dollars.
Developing countries were naturally delighted to see the money coming in, much like a long-drought-stricken land suddenly receiving a heavy rain. Everyone began to expand factories, develop infrastructure, and grow their economies, feeling more hopeful for the future. Old Wang was no exception. Seeing his business grow, he expanded his factory, added several new machines, and hired more workers, making everything seem prosperous.
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However, behind this prosperity lies a significant pitfall. The US is like an experienced fisherman, casting bait and waiting for the fish to bite. The dollar is this bait, attracting capital from around the world and creating a dependency on the US currency. When the time is ripe, the US starts to raise interest rates, causing capital to flow back rapidly, currencies to devalue, capital to flee, and the economy to fall into chaos.
As someone in foreign trade, my business has been directly affected. My main clients come from Western countries, and due to the appreciation of the US dollar, their purchasing power has decreased, forcing them to reduce orders. Workers in the factory have also been laid off, and several machines have been idle, making Old Wang's life suddenly difficult.
This situation is not unique to Old Wang. Many enterprises dependent on foreign trade are struggling, and some countries' economies have fallen into recession due to the return of dollars. The dependency of developing countries on the US dollar makes them powerless in the face of financial storms. As the US dollar appreciates and other currencies depreciate, import costs increase, and export businesses become difficult, ultimately leading to social and economic instability.
The US holds a dominant position in the global financial system. As an international reserve currency, the US dollar is indispensable for the economic operations of many countries. When the US lowers interest rates, capital flows to other countries; when it raises interest rates, capital flows back. In this ebb and flow, global wealth is redistributed. The US can use this to maintain its economic hegemony, while other countries can only rise and fall in this "dollar tide."
I am now constantly monitoring orders, but there is no good news coming. It is at this time that he realizes that the prosperity of the past years was just an "illusion" released by the US, and now the interest rate hike has brought everything back to its original state. With fewer orders and difficult business, many people are in the same predicament as him.
Faced with such financial manipulation by the US, everyone is passive, but we are not entirely without options. The most important thing is to maintain a clear mind in the face of this global financial storm and not be intimidated by external economic fluctuations. Only by focusing on ourselves and developing our own economic systems can we avoid being easily dragged down by external environments.
The dollar tide continues, and this financial war without smoke will not end easily. For small businessmen like me, and for the entire country, only by recognizing the situation and being prepared can we withstand the fluctuations and welcome new opportunities.