The U.S. currency war against the world has begun! How can we see clearly the current complex, severe and strange international situation?

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Author: Li guangman source: Li guangman freezing point review wechat official account id:ligm-479210127 has been reprinted with authorization

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Riots in Sri Lanka

At present, the world is in a state of rapid disorder. Under the situation that the COVID-19 has a profound impact on the global situation, financial crisis, food crisis, energy crisis and military conflict appear at the same time, which is a very rare situation in world history since the end of World War II. This situation is mainly based on the intensification of internal contradictions between the United States and western capitalism, and the intense game between the United States, China and Russia, The world order led by the United States has encountered major setbacks, and the United States’ unipolar hegemonic rule over the world is facing challenges. The core is the transformation of the world from unipolar to multipolar. The United States has become more crazy to maintain its hegemonic rule.

Let’s take a look at some major events that have occurred recently and the relationship between these major events.

First, a US dollar harvest war under the cover of inflation.

On July 12, the U.S. dollar index rose to 108.56, and the exchange rates of major global currencies, including the RMB, fell. The yen and the euro fell most significantly, and the euro fell to 1:1 against the U.S. dollar. This is a historic moment. The U.S. dollar has a ferocious face, and a bloody currency war is attacking the world.

We must remember that all current crises and conflicts are related to the cycle of interest rate cuts and increases in the United States, as well as the Federal Reserve’s interest rate increases and table contraction. This is the key to all problems. Without paying attention to this, we cannot see the current global situation. At present and in the future, we should focus on the US dollar index. 108.56 is obviously not the peak of the US dollar index. A strong US dollar Driving global dollars back to the United States is the key for the United States to resolve the high inflation crisis, loot and harvest global wealth.

With more and more countries on the brink of bankruptcy or falling into bankruptcy, and with the accelerated devaluation of the currencies of more and more countries, the dollars of more countries will flow back to the United States to continue the life of U.S. debt, U.S. stocks and the U.S. economy.

Here we must not be confused by a phenomenon, that is, the high inflation in the United States. The high inflation in the United States has its real side and is designed by the United States. The United States is using high inflation to cover the greater strategic intention of the United States, that is, a currency war to harvest global wealth.

2? Sri Lanka’s national bankruptcy is just the beginning.

On July 11, Sri Lanka’s food and energy crisis was triggered by high inflation, devaluation of the exchange rate, depletion of foreign exchange reserves, environmental protection and other reasons. Serious riots occurred in the country. The president and Prime Minister announced their resignations one after another, and the country went bankrupt. This is the first domino to fall after the global dollar contraction triggered by the US interest rate hike and table contraction.

Sri Lanka’s national bankruptcy seems to be an isolated event, but in fact it is a preview of the major crisis that many developing countries or some developed countries are currently facing or about to face. In the future, more countries will face bankruptcy or fall into deep recession.

This crisis is more dangerous than the Latin American financial crisis in the 1980s, the Asian financial crisis in the 1990s and the U.S. subprime mortgage crisis in 2008. This crisis is not a crisis in one aspect or in one field, but a comprehensive global crisis, a military war, currency war, biological war, energy crisis The food crisis will even have an overall crisis intertwined with the manufacturing crisis.

Third, a series of strange events occurred.

On July 5, the Secretary General of the organization of Petroleum Exporting Countries baljindo passed away strangely.

On July 8, British Prime Minister Johnson was forced to resign because of the scandal.

On July 9, former Japanese Prime Minister Shinzo Abe was shot dead.

The British Guardian recently revealed that macron, who was then the French Minister of economy, industry and digital in 2017, had reached a secret agreement for American technology giant Uber to enter France to help the company achieve its rapid expansion in the world. This news immediately plunged macron into a storm of public opinion of the ruling crisis.

On July 6, at the annual summer celebration of the ruling Social Democratic Party of Germany, many women were suspected of being attacked by adultery potion. On the same day, a number of Party officials and members of Parliament, including German Chancellor Schultz, attended the event, which put Schultz into a ruling crisis.

The war between Russia and Ukraine, the resignation of the British Prime Minister, the shooting death of Shinzo Abe, the abnormal death of the Secretary General of OPEC, and the scandals of macron and Schultz have been exposed one after another, involving Russia, Japan, Britain, Germany, France, Saudi Arabia and other major countries that can affect the world political arena. Now all these countries have wars, leaders’ resignation, assassination, accidental death, and scandals. What does this mean? When the world is dragged into a crisis and war, who is adding fuel to this crisis and war?

Fourth, the fate of Europe’s decline has been doomed.

The euro fell sharply against the US dollar and finally fell to the level of parity with the US dollar, which is a landmark event. Over the years, the fate of Europeans has never been in the hands of Europeans, but in the hands of Americans.

When the euro was just born and was ready to compete with the dollar for hegemony, NATO led by the United States suddenly launched a Kosovo war, which eventually disintegrated the Federal Republic of Yugoslavia. In fact, the more far-reaching significance was to cripple the euro. After that, the massive influx of refugees caused by the NATO war against Libya and the Afghani war, the Iraq war and the Syrian war plunged Europe into a long-term ethnic conflict and stagnation of economic development. Europe began to lose its own track in the global hegemony, which not only lost its strength compared with the dollar, but also lost its competitiveness in many industrial competitions.

In this Russia Ukraine war, Europe once again stood on the side of the United States and successfully acted as the murderer who mutilated itself. This is what the Chinese often say that when others sell you, you also help people pay.

As soon as Angela Merkel, the only German Chancellor with a strategic mind in Europe, left the political arena, the whole Europe was immediately dragged into a comprehensive confrontation and war with Russia by the United States. This war made Europe further lose its independence and become a vassal of the United States. Europe has once again become the front line of the United States against Russia. The decline of Europe may not be caused by this war, but this war will definitely lead Europe to a road of no return, After the parity of the euro against the US dollar, there may be setbacks, but its trend must be further decline. There is no strength to compete with the US dollar. The decline of the euro is also the decline of Europe.

Fifth, major industrial countries in the world have trade deficits, with the exception of China.

Recently, there has been a very surprising scene, that is, the traditional industrial manufacturing powers have trade deficits.

In May, 2022, Germany’s trade surplus of 30 years was broken, with a trade deficit of 1billion euros for the first time. Other industrial countries also had trade deficits, including France’s trade deficit of 6billion euros, Britain’s trade deficit of 15.5 billion dollars, Japan’s trade deficit of 17.8 billion dollars, South Korea’s trade deficit of 1.7 billion dollars, the United States’ trade deficit of 85.5 billion dollars, India’s trade deficit of 24.2 billion dollars, and Vietnam’s trade deficit of 1.7 billion dollars.

This is a very rare scene in history. It is understandable that the United States and Britain, which are hollow industries and dominated by financial services, have trade deficits. Now manufacturing powers, Japan, Germany and South Korea, which are dominated by trade surpluses, have trade deficits at the same time. What does this mean?

China is the only exception here. In May this year, China’s surplus reached US $78.76 billion. According to China’s trade data for the first half of this year released today, the total value of imports and exports was 19.8 trillion yuan, an increase of 9.4% year-on-year, of which exports were 11.14 trillion yuan, imports were 8.66 trillion yuan, and the surplus was 2.48 trillion yuan, about 370billion US dollars.

This comparison will make us feel a lot, but it also needs to arouse our deep thinking. First, one of the reasons for the overall deficit of traditional manufacturing countries this time is the sharp rise in the prices of global resources and raw materials. Resource countries such as Russia, Brazil, Australia and Saudi Arabia have made a lot of money, indicating that resources are still the key constraint to global development. Second, the decline of some traditional industrial countries in the field of manufacturing shows that these traditional industrial countries have generally encountered development bottlenecks. Their advantages in high-tech and high-end manufacturing are losing, and they are losing their monopoly advantage in the field of industrial manufacturing. Third, China’s rise against the trend in the field of industrial manufacturing shows that China’s development is relatively healthy, and that China’s industrial upgrading in the field of industrial manufacturing is making a breakthrough.

We must not underestimate the development trend shown in these data, which shows that in addition to resources being hard currency, industrial products made in China have also become hard currency in international trade.

Here we need to pay special attention. Due to the overall high-tech and high-end manufacturing embargo imposed by the western countries led by the United States on China, the large surplus we have obtained in international trade cannot buy the high-tech products we need in the international market, nor can we merge and acquire the high-tech enterprises we like. What is the use of these dollars? I believe that if we want our manufacturing advantages to bring greater benefits to the Chinese people, we must increase taxes on our manufacturing products, that is, to raise prices, because made in China has become a hard currency that all countries in the international market, especially the United States and Western countries, cannot do without. Therefore, we need to levy export tariffs, raise prices, and export our goods to these countries at higher prices, These additional export tariffs are used to subsidize export enterprises and social security funds, so as to improve people’s income and living standards, so as to further increase China’s domestic social consumption capacity.

China can no longer act as a sweatshop for cheap goods of the United States and Western countries, and can no longer act as a wage earner of the United States and the West. China should also let the United States and the West pay their due price for obtaining Chinese industrial manufactures.

Sixth, Japan and Germany accelerated militarization, and NATO became a global military bloc.

On July 11, after Abe was shot dead, the Japanese Senate held elections, and the constitutional amendment forces won two-thirds of the seats in the Senate, meeting the requirements for initiating constitutional amendment in the parliament. Earlier, on June 27, NATO Secretary General Stoltenberg said that in order to cope with the new “era of strategic competition”, NATO would expand the current 40000 strong rapid reaction force to 300000. Earlier, Germany announced that it would invest 100billion euros in military construction this year, and its military spending would increase to more than 2% every year in the future. At almost the same time, Germany and Japan began to rearm and embark on the dangerous path of militarism and fascism, which is a signal that requires special vigilance.

If these two countries are forming a strategic alliance with the United States, the world’s hegemon, what will the new trends of Japan and Germany bring to the world? We will only feel that some danger is approaching, making our backs cold.

On June 28, the leaders of four Asia Pacific countries, Japan, South Korea, Australia and New Zealand, attended the NATO summit for the first time, marking the official launch of NATO’s eastward expansion into the Asia Pacific region and its emergence as a global military bloc. In the “NATO 2022 strategic concept” document approved by the NATO summit, NATO regards Russia as the biggest and direct threat, and China as a “systemic challenge”. NATO’s globalization trend is bound to lay a curse for the outbreak of a new world war.

Now we must be highly vigilant against the emergence of a global military bloc in the world. All colonial countries, imperialist countries, fascist countries and robber countries that have enslaved, ravaged and plundered China in history are regrouping into a group around China. The eastward expansion of NATO into the Asia Pacific region around China is a historic event. Don’t think that history will not repeat itself, nor that robbers will cast swords into plowshares The eastward expansion of NATO to China must be a historical reappearance of the war between China and the west, but this time the China they face is completely different from the China they faced a hundred years ago.

Seventh, the United States is the general source of global contradictions, conflicts and wars.

The United States has experienced the most serious inflation in more than 40 years, heavy debt, social tearing, widening the gap between the rich and the poor, intensifying party strife, guns, drugs, gender and other social issues, making the United States an accelerated degenerate country.

The four recent decisions of the U.S. Supreme Court have highlighted the insurmountable social contradictions in the United States. First, more people are allowed to legally hold guns in public; The second is to cancel the constitutional protection of women’s right to abortion; Third, allow public funds to fund religious institutions, including church schools; The fourth is to limit the right of the federal government to reduce greenhouse gas emissions from power stations. After the Supreme Court of the United States removed the protection of women’s right to abortion, a 10-year-old underage girl who was pregnant due to rape could not have an abortion. This girl may only have a child from the man who raped her when she was under age. Another thing is that a group of police fired more than 100 bullets at an unarmed black youth in the performance of official duties, of which more than 70 bullets hit the black youth’s body.

After the outbreak of the war between Russia and Ukraine, the United States and the West illegally confiscated Russian property and declared the invalidity of the U.S. Treasury bonds purchased by Russia, which bankrupt the national credit of the United States and Western countries. The national credit is the foundation of dollar hegemony. Once this foundation is hollowed out by the United States itself, the United States must adopt a more barbaric and evil way to maintain its hegemony, otherwise it will be difficult to continue its life.

So biological war, currency war, high-tech war, public opinion war and military confrontation broke out one after another, which is the United States.

Eighth, what kind of war is the Russia Ukraine war?

Although the war between Russia and Ukraine was protracted, the Russian economy was not destroyed by the omni-directional and endless sanctions of the whole western countries. The Russian army also made steady progress on the battlefield and achieved certain battlefield results.

At present, the war is facing the risk of expansion. Finland and Sweden joined NATO, Lithuania blocked the Russian enclave Kaliningrad, there were contradictions between Russia and Kazakhstan, and recently Russia temporarily closed the beixi-1 natural gas pipeline to Europe and an oil pipeline from Kazakhstan to Europe through Russia, which made this war invisible and unpredictable.

Many people don’t understand why Russia should wager its national fortune to launch a war against Ukraine. In fact, as Putin later said, this war is to break the hegemonic rule of the United States in the world, because the military encirclement, economic encroachment, political erosion and financial looting of the United States against Russia have seriously threatened the survival and national capital of Russia. Russia can only break the cage strategy of the United States and fight a way out of the desperate situation.

The world has been suffering for a long time. This is something many developing countries want to do but dare not do that they are unable to do. Now we should be able to understand why so many countries refuse to follow the United States and the west to participate in the sanctions against Russia despite the threat of the United States when Russia raises the flag against the United States and sacrifices the “ruble settlement order”. Therefore, the world has drawn a clear-cut two camps.

The war between Russia and Ukraine is becoming a dividing line and marking a new era.

Ninth, the United States launched a “technological terrorism” war against China.

Besides the United States and Russia, China is now a powerful country sitting at the card table. Recently, the United States has further banned the sale of DUV lithography machines on the basis of requiring the Netherlands to ban the sale of EUV lithography machines to China, which is a “technological terrorism” war launched against China.

On July 9, when meeting with the Secretary of state of the United States, the Chinese Foreign Minister submitted to the United States four lists, including a list of requirements for the United States to correct its wrong policies and words and deeds towards China, a list of key cases of concern to China, a list of U.S. China related acts of major concern to China, and a list of cooperation in eight areas between China and the United States. These four lists are a positive response to the United States.

At present, Russia is confronting the whole NATO with force in Ukraine, while China is comprehensively confronting the United States with its overall strength. China and Russia are conducting strategic confrontation with the United States in different directions and fields.

Russia is attacking the hegemony of the US dollar with the “ruble settlement order”, and China is also promoting the internationalization of the RMB. How to attack the US dollar on the battlefield of the currency war and impact the hegemony of the US dollar will be an important strategic task faced by China and Russia. Only by defeating the hegemony of the US dollar can China not be looted and poisoned by the United States, and China must win this currency war.

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