Su Su said again: "Anyway, this is how the first article of the Plaza Agreement forces the Japanese yen to appreciate. Then, the second article of the Plaza Agreement, Japan, Germany, France and Britain, jointly sold the US dollar in an orderly manner... Well, Brother Qiang will tell you the principle."

Wang Qiang patted his head: "Su Su means that my current second-grade elementary school degree can answer this question?"

Su Su smiled and said, "Of course, it's not complicated."

Wang Qiang said oh: "These four countries should be the richest countries in the world at that time and had the most US dollars, right?"

Su Su smiled and said, "Yes! Five countries in the G7 G7. Let me remind you that Japan is still the largest creditor country of the United States!"

Wang Qiang immediately understood: "If these four countries sell US dollars together, the US dollar will depreciate internationally. I just said that the depreciation of the US dollar will help the US exports and the US pay the debt to the whole world!"

Su Su smiled and said, "What else? I didn't say the most important and essential ones."

Wang Qiang said in surprise: "There are still benefits? All the depreciation takes over?"

Su Su smiled and said, "The US dollar is back! The money placed in other people's houses is not your money. You must let other people's houses run to your house to be considered - it will become your money. This is the most important part."

Wang Qiang patted his head: "Hey, it's just making money. These broken economics have all the bad words."

Su Su shook her head and smiled: "There is also the effect of currency recovery, allowing the Federal Reserve to recover the indiscriminately issued US dollar stabilized currency."

Wang Qiang sighed: "I understand! After learning, I will forget the front."

Su Su smiled and said, "Then continue to review the previous one. As I said before, appreciation or depreciation can attract foreign funds, but they have side effects, it depends on who is the real master. For example, in the 1990s, China used a big move to depreciate the RMB, which directly reduced the exchange rate against the US dollar from 1:2 to 1:8. This is the rhythm of 'there are many stupid people and 4 times cheaper, come and invest quickly and buy'. Therefore, the depreciation of the US dollar this time is the same principle, which is to attract funds from all over the world to replenish blood for the United States."

Wang Qiang remembered something: "The US dollar is depreciating, and even if the yen does not move, it is still appreciation relatively. Then it is forced to appreciate by 5% every year. Then the appreciation of the yen relative to the US dollar is even greater. Can the US dollar rely on more debts?"

Su Su smiled and said, "That's right! This is obviously a group to kill Japan's largest pig. Who said that Japan is the largest creditor of the United States!"

Wang Qiang sighed: "As it turns out that the most convenient way to kill the creditor is to kill the creditor?"

Su Su said: "Brother Qiang is really right. Do you know who the largest creditor country was before World War I? France! Then France was beaten the worst during World War I. During World War II, it was said that in order to lose 9 tons of gold from France, Hitler directly destroyed France, so the largest creditor country was not so easy to be."

Wang Qiang browed: "It seems that China is the largest creditor in the United States now!"

Su Su smiled and said, "Yes, China is not France as big as a province, nor Japan, which is stationed in the army. The consequence of the dare to turn against each other and kill creditors is that China will polish all the US debts in hand, and the US dollar will instantly depreciate into waste paper. By the way, let's add that although the depreciation of the US dollar has various benefits for the United States, don't depreciate it too ruthlessly. If it is too ruthless, it means that it will be too much to pay off the debt. Instead, it will damage the status of the US dollar as a mainstream reserve currency, which will cause countries around the world to sell the US dollar, and the US dollar will further depreciate."

"In 1985, the US dollar dominated the world. The United States was not afraid of it. If it wanted to depreciate, it could also join forces with the G7 to sell the US dollar and depreciate the debt. Anyway, countries around the world have no choice but to use the US dollar. But now the RMB is rising strongly and the US dollar has to be careful when it depreciates. So these days, the US dollar is raising interest rates while depreciating, which is enough."

Wang Qiang said in surprise: "Risk a rate?"

Su Su smiled and said, "That is, Bank of America raises interest rates, this is a big move for the return of US dollars! For international hot money that is often hundreds of billions of yuan, 1% interest rate hike will add 100 million yuan in deposit profits. But this is not the point. The point is that many international hot money borrows money, and hikes interest means that the interest rate to be repaid also increases by 1%.

Wang Qiang immediately understood: "That is to say, the hot money has returned and paid back the money. He can also enjoy deposit interest in the bank, which can both stop loss and make money. If he does not go back, he will have to bear the increase in the interest on borrowing money, which is a 2% loss."

Su Su smiled and said, "Yes. So as long as the Federal Reserve raises interest rates, under normal circumstances, China's US dollar funds will go back even if they jump off the building and sell their assets. Then when they escape, they can also kill RMB on the exchange rate. This is a critical strike against China, which is a big move to suck blood, so the United States has played the US dollar depreciation many times in the interest rate hike cycle."

Wang Qiang browed: "I have brought back China's money and went back to replenish blood for the United States. Is this blood-sucking trick so cruel? How can I break it?"

Su Su nodded: "Brother Qiang asked well, then it's time to answer a wave of confusion that the Chinese people have always been confused about, why housing prices have risen in various ways."

Wang Qiang said in surprise: "Su Su previously said that China's housing prices have risen because there are too many international hot money coming in, and something must be carried by it, so housing prices have risen. Will interest rates also rise?"

Su Su nodded: "Don't Brother Qiang think it's a bit wrong?"

Wang Qiang frowned: "Discontent logic? The United States raises interest rates, and hot money in China will sell the house and run away. This house should be sold at a price cut! Why does it not fall but rise instead?"

Su Su smiled and said, "Brother Qiang is worthy of being the second grade of elementary school. The correct answer is - this kind of thing that does not conform to market behavior is that China's administration takes action. When the United States raises interest rates by 2%, China's housing prices will increase by 5%! Brother Qiang talks about the tricks here."

Wang Qiang browed: "The United States raises interest rates by 2%. If the lurking hot money does not return, it will have to bear a 4% loss. However, China's housing prices have risen by 5%, which means that hot money will make an extra 1%, and then hot money will not leave!"

Su Su clapped her hands and laughed: "Not only will she not leave, but some international hot money who are preparing to return to the United States will also come to China!"

Wang Qiang suddenly realized: "That is to say, the U.S.'s big move to raise interest rates is to be cheaper in China?"

Su Su smiled and said, "Yes! The United States creates crises and turmoil globally, hoping that international funds will return to the United States. But China has built better, and the result is that these funds have gone to China. The same is true for interest rate hikes. As long as China offers a higher price than the United States' interest rate hikes and the United States is cheaper, China will not say that its interest rate hikes will only increase debts further, making it worse. So in recent years, the United States has been shouting about hikes, but it really dares, so it can only continue to print money privately."

Wang Qiang asked again: "But China's housing prices have also risen, and the people are at a disadvantage!"
Chapter completed!