The successive interest rate hikes, passing on the crisis, and the hegemony of the US dollar aroused global outrage!

　　The successive interest rate hikes have disrupted the world, exporting inflation and passing on the crisis, and the hegemony of the US dollar has aroused global public outrage!

　　[Global Times Comprehensive Report] "We can all feel the (consequences) of a strong dollar in Europe's record inflation, Japan's explosive trade deficit, and Sri Lanka's food and fuel shortages." The Wall Street Journal of the United States said on the 18th The report rarely mentions in the headline that "a stronger dollar brings trouble to the global economy".

The U.S. dollar exchange rate has continued to rise due to the recent continuous interest rate hikes by the Federal Reserve, while currencies in almost all other countries in the world are depreciating sharply, import costs have risen, imported inflation pressures have intensified, and they are even facing the risk of debt default and economic recession.

As the most dominant currency in global finance, the U.S. government never considers other countries when formulating fiscal and monetary policies. Instead, it uses the hegemony of the U.S. dollar to arbitrarily disrupt the world's financial markets and "cut leeks" on the wealth of other countries, becoming a major source of chaos in the global economy. .

Stern, head of emerging markets research at Oxford Economics, warned: "Emerging market countries are at the tipping point of an economic crisis... If the dollar appreciates further, that will be the straw that breaks the camel's back."

'Worrying phenomenon' before the world

　　The Lebanese Association of Banks announced that banks will be closed for three days from Monday and impose the toughest restrictions on withdrawals, AFP reported.

Lebanese banks were “slammed” last week by numerous depositors who tried to withdraw deposits frozen by the banks, the report said.

In the past week, seven banks have been "targeted for robbery" by depositors, some with real or fake guns trying to "rob" their deposits from the banks.

On the 15th, a woman named Sally rushed into a bank in central Beirut with a plastic gun and an oil drum, demanding to withdraw her deposit from the bank to pay for her family's cancer treatment.

Although Sally was immediately arrested by the police, she became a "hero" on local social media.

"She has the right to do it. If I were as brave as she was, I would do the same," Beirut resident Kara told AFP.

　　While AFP blamed the turmoil in Lebanon on the country's severe economic crisis and government corruption, the immediate cause was the recent devaluation of Lebanon's currency by more than 90 percent as the dollar strengthened.

The "Wall Street Journal" said that a "worrying phenomenon" is now before the world - in the face of the continued appreciation of the dollar, even the efforts of advanced economies such as Japan, the United Kingdom and the European Union to defend their currencies have "basically failed".

The U.S. dollar index has risen more than 14 percent this year, the report said.

With the dollar rising strongly, the euro, pound and yen have fallen to multi-decade lows against the dollar: between January and August this year, the euro lost 12%, the pound 14% and the yen 17%.

The currencies of emerging market and developing countries were hit even harder: the Egyptian pound fell 18% and the Hungarian forint fell 20%.

　　On the 15th, the World Bank issued a report warning that the central banks of major countries raised interest rates in response to inflation, which may bring the world economy into recession, especially this will bring financial crisis to emerging market economies and "destruction" to the people of developing countries. sexual long-term harm".

The report pointed out that the major central banks should not induce a global recession while insisting on efforts to curb inflation.

The World Bank specifically calls on developed economies to fully consider the spillover effects of their own monetary policy adjustments.

　　Although the World Bank did not directly name it, the international economic community is very clear that the World Bank is most worried about the spillover effect of another US interest rate hike on the world economy.

Reuters said on the 19th that global stock markets fell sharply again on Monday, extending last week's decline.

Markets generally believe that the Federal Reserve may raise interest rates by another 75 basis points at its meeting on Wednesday, which will further strengthen the dollar and drag down the global economy.

"Continued dollar strength puts global economy at risk"

　　"The continued strength of the U.S. dollar puts the global economy at risk," Swiss Financial Network said on the 19th. The U.S. dollar, as the global base currency, has shown strength, which will make the world economy more unstable and will become a stumbling block for central banks to curb inflation.

The report said that rising U.S. interest rates and a stronger dollar are good things for the United States.

On the one hand, international capital will quickly flow back to the US to support the US economy.

Meanwhile, for U.S. consumers, a strong dollar means imported goods are getting cheaper as everyday consumer goods are largely imported.

While prices in the euro zone have risen sharply due to inflation, American vacations in Europe are more worthwhile than they have been in years past.

Many American families have been buying cheap houses in Europe, and American capital has taken this opportunity to buy high-quality European companies aggressively.

On the other hand, for other countries, due to the dominant position of the US dollar in the global financial system, the prices of energy such as oil, natural gas and various raw materials denominated in US dollars have soared, so that the import costs of countries have soared and imported inflation pressure has intensified.

　　In fact, the current surge in inflation in the world, including the United States, stems from the economic stimulus and financial "water release" plan launched by the United States in response to the economic recession caused by the new crown pneumonia epidemic.

At the beginning of last year, the international economic community warned that the large-scale stimulus policy of the United States may trigger "inflationary pressures not seen in a generation".

U.S. Treasury Secretary Janet Yellen and Federal Reserve Chair Jerome Powell insisted that inflation was a "transitory phenomenon", fueling a multi-trillion-dollar stimulus package.

This has also become the "power source" of inflation in the United States and the world.

Now, when domestic inflation remains high, the United States has rapidly tightened monetary policy and turned to aggressive interest rate hikes, pushing up the US dollar index and international commodity prices, putting pressure on imports from other countries and regions, and high imported inflation.

Japan goes back 30 years

　　The dollar rose sharply, even as some developed economies face recession risks.

"As the exchange rate of the US dollar against the Korean won approaches the 1,400-won mark, the Korean business community has entered a state of emergency." "The Korean National News" said that the airline industry is the most worried about the exchange rate.

For every 10-won rise in the dollar-won exchange rate, Korean Air and Asiana Airlines will incur losses of 35 billion won and 28.4 billion won, respectively.

Although some export companies such as the auto industry can secure price competitiveness through the devaluation of the Korean won, most companies such as auto parts companies that need to import raw materials will suffer more losses as the exchange rate of the dollar increases.

　　"Japan goes back 30 years ago", "Nihon Keizai Shimbun" said on the 19th, according to the forecast of the Organization for Economic Cooperation and Development (OECD), Japan's nominal GDP this year may reach 553 trillion yen.

Calculated at 1 US dollar to 140 yen, Japan's GDP is about US$3.9 trillion, the first time since 1992 that it has fallen below US$4 trillion for the first time in 30 years.

In the past 30 years, the global GDP has quadrupled, and Japan, which previously accounted for more than 15% of the global share, now only accounts for nearly 4%.

In 2012, Japan's GDP exceeded US$6 trillion, 80% higher than Germany's, but the two countries are now basically the same.

The Nikkei average is down 20 percent this year.

Japanese wages are also returning to 30 years ago, making Japan less attractive to purchasing power and talent.

The report quoted Yukio Noguchi, an honorary professor at Hitotsubashi University in Japan, as saying: "The devaluation of the currency will reduce Japan's national strength. It will be difficult to attract talents from overseas and hinder economic growth."

　　The depreciation of the euro since the beginning of this year has made the United States "huge gains".

Today's Russian TV quoted the analysis of Russian experts as saying on the 19th that the United States is using the deterioration of the situation in Ukraine and the strength of the dollar to "harvest Europe".

The U.S. has made a fortune as the U.S. has replaced Russia as the top supplier of expensive oil and gas to Europe.

At the same time, the Ukrainian crisis caused a large amount of European capital to flee to the United States.

It is estimated that the United States receives 7 trillion to 9 trillion US dollars in additional income from Europe, which will help the United States plug the huge "debt black hole" and weaken the position of European companies as competitors of the United States in the global market.