Big News! Trump Returns to the White House! Super Prophecy May Come True!!!
According to a report in the Global Times on the designated date, multiple American media outlets including The Hill and Fox News have released the latest projections, indicating that Trump has secured more than half of the electoral votes, expected to clinch victory in the current U.S. presidential election.
特朗普时隔四年终于赢得美国大选,在大选前很多读者私信问我对大选结果的预测。其实,在今年7月15日的文章"Trump Faces Assassination Attempt"中就已经说过“特朗普将在密尔沃基实现个人政治生涯的二次腾飞!入主白宫或将无可避免!”结果已经注定,那么,大家最关心的很多问题答案也就呼之欲出。
【Changing generals at the moment is a big taboo for military strategists】
After Biden's embarrassing performance in the presidential debate, which brought shame to the entire Democratic Party, Harris stepped in halfway to replace Biden in the presidential campaign. With only days left before the election, the Democratic Party made a last-minute change, clearly violating a major military taboo, let alone Harris herself being heavily tainted with scandals.
The consequences of last-minute efforts are not only reflected in the persistent suppression by Trump on the ballot, but also in the final choices of traditional Democratic strongholds, namely, the defection of the three "blue wall states" including Wisconsin in the Rust Belt of the Northeast.
To understand, in the presidential elections from year to year, the Blue Wall states have been long-standing and stable strongholds for the Democratic Party, serving as the backbone of the party and crucial in determining the outcomes of the two elections during that period. It is foreseeable that if Biden runs for election, he would not lose the votes of these three states. Therefore, overall, Harris's performance is still far inferior to that of the sleepy king Biden.
Trump won decisively in both quantity and quality. Even if the white-left Antifa armed forces are dissatisfied with the election results and have already started causing trouble, they cannot overturn Trump's victory.
From the perspectives of age, experience, and moral integrity, Harris falls far short of Trump's performance. Among them, the Democratic Party's promotion of policies that deeply alarm the predominantly white, religious population is one of the reasons Trump defeated Harris. Musk's drastic shift in support for Trump due to his son's gender transition is the most typical evidence. Given the Democratic Party's consistent double standards, their values have deviated from the religious foundation of the West, and this defeat also indicates that people prefer genuine scoundrels over hypocrites. Trump, representing the Left Lengchan, defeated Harris, the hypocrite.
【Trump's Absolute Power】****
The American political system operates on the principle of the separation of powers, and before the election, the conservative faction to which Trump belonged had already controlled the U.S. Supreme Court. In this election, the Republican Party regained control of both the Senate and the House of Representatives, making Congress once again a Republican stronghold.
Currently, Trump serves as both the head of the government and the Republican candidate controlling the judiciary, with almost all national power in the United States falling into the hands of the Trump team. This implies that once absolute power is consolidated, any proposal initiated by Trump will face no opposition.
After Trump took office, there would be no obstacles to closing the U.S.-Mexico border, deporting illegal immigrants, and imposing tariffs on China and Europe. This represents the resurgence of American neoconservatism in the political arena, and each such resurgence brings significant turmoil to the world.
Do not be deceived by the appearance that Trump did not initiate any wars during his first term; in reality, neoconservatism is highly belligerent. For instance, neoconservative figures like Wolfowitz orchestrated the unrest in Cloud City, and Rumsfeld planned the Iraq War, among others.
【India was shocked to hear the news】****
In the month of the year, Rishi Sunak, an Indian-origin politician, became the Prime Minister of the United Kingdom, symbolizing a comprehensive elevation of India to replace China in Western politics. This time, the Democratic Party candidate Kamala Harris also happens to be of Indian descent.
This is no accident. The West's elevation of Indian nationals is essentially an attempt to woo India, using India's population combined with Western technology to completely replace China in the industrial chain. Meanwhile, the UK and the US are actively courting India to join the India-Middle East-Europe Corridor, a project historically known by another famous name—the Spice Route. Clearly, the West's courting of India is aimed at replacing China's Silk Road with the Spice Route.
Since support is to be given, one way is to elevate the status of Indian-Americans in the Western political world. Kamala Harris, an Indian-American, was selected by the Democratic Party under such circumstances. This is merely an attempt to strengthen the Western alliance to dismantle China's dominance in the mid-to-low-end industrial chains, while also integrating the U.S. and European industries and Western markets with India's low-cost labor and logistics.
The United States believes that China's rise during its reform and opening-up was achieved by leveraging its cheap labor and logistics, combined with Western technology and capital markets. Now, they are supporting India, another developing country with a population no smaller than China's, to replace us, thinking that this will push China out of the global market.
In their eyes, losing globalization means China loses its source of strength, undoubtedly exposing its Achilles' heel to the American blade. Meanwhile, Indian-Americans, as a minority group, generally have a superstitious belief in the United States and accept the alliances between nations advocated by neoliberalism. These factors clear the path for the United States to support India, which is the political reason why the Democratic Party-led neoliberalism chose Harris as a presidential candidate.
But Harris lost! This not only signifies a setback for neoliberalism in its efforts to court India, but also a severe setback for its strategy to edge out China's Spice Route. It's important to note that Trump's neoconservatism is rooted in white supremacy, looking down on minorities including Indian-Americans. Externally, it prioritizes American interests, opposes large-scale investments in other countries, and advocates for using those funds to benefit native white Americans.
Now that Trump has won, his racist administration will inevitably exclude Indian-Americans from the political power centers of the US and Europe, and will oppose the transfer of large amounts of American money to India to support its full industrialization. In terms of foreign trade, the administration will continue to impose penalties on developing countries that maintain large trade surpluses with the US. India's efforts to integrate with the US market will inevitably result in a significant trade surplus with the US, placing it squarely in the crosshairs of Trump's policies.
Trump stated that, upon being elected, he would impose a % tariff on India's information technology services and textile imports, as Trump believes that India engages in unfair competition in trade, which would severely impact India's export industries to the United States.
Trump's rise to power has significantly undermined the neoliberal attempt to woo India as a replacement for China on the Spice Route, and will further exclude Indian-Americans from entering the core of American power, greatly hindering the US-EU and India's efforts to form a new international trade order and isolate China! This is a huge blow to India and the Democratic Party's long-term strategic planning.
Back then, India, in pursuit of America's promised Spice Route, not only abandoned Palestine and fully supported Israel but also continuously manufactured Sino-Indian frictions to ingratiate itself with Jewish capital. Now, the dream has shattered, all turning into mere illusions.
After Trump's victory, leaders from various countries sent their congratulations, primarily expressing their good wishes. However, Indian leader Modi did not forget to remind Trump, "On the basis of your successful inheritance of the previous term, I look forward to restoring our cooperation and further strengthening the comprehensive global strategic partnership between India and the United States." Modi was reminding Trump not to forget India, not to overlook the Spice Route, and not to leave himself behind the wall.
Just like Modi, the Democratic Party painstakingly prepared to use the Spice Route Alliance to undermine China's strategy, only to be met with a crushing blow from Trump! If the Democratic Party successfully supports India in replacing China, the Eastern civilization of China will inevitably face the risk of marginalization to some extent, and Trump's victory over Harris in the election does indeed carry a sense of fate sealing America's decline!
【Jews and Israel are overjoyed】****
Compared to India's worries, Israel is ecstatic.
Netanyahu will not forget that it was Trump, who was completely loyal to Jewish capital, who came to power and immediately overturned the Democratic Party's "two-state solution" for the establishment of separate states for Palestine and Israel. Subsequently, he publicly moved the U.S. Embassy from Tel Aviv to Jerusalem. Under Trump's pressure, the President of Serbia was forced to recognize Jerusalem as the capital of Israel. Later, Trump publicly acknowledged Israel's occupation of the Golan Heights in Syria, earning him the title of "King" among the Jewish people.
Among all the U.S. presidents, Trump is the first to have an entirely pro-Israeli foreign policy, which might be one of the reasons why Jewish capital has strongly supported Trump this time.
Trump is a core figure of American neoconservatism, and similarly, Netanyahu is a core figure of Jewish neoconservatism. Both share a high degree of ideological and supporter alignment, which is why Netanyahu congratulated Trump's victory as "the greatest comeback in history."
Trump's inauguration signifies that the United States will fully support Israel's annexation of southern Lebanon, restarting the roadmap for the Greater Israel's aggressive expansion in the Middle East.
In the year, George W. Bush, a core figure of neoconservatism, not only eliminated Saddam Hussein, who opposed Israel's hegemonic actions, but also supported Israel in attacking Syria, assassinating Hamas leader Yassin, and launching the 2006 invasion of Lebanon. This is in stark contrast to the Democratic Party, which opposed Israel's attacks on Gaza and frequent frictions.
Currently, Israel is facing missile strikes from Iran. Unlike the Democratic Party, which opposes Israel's escalation of the situation, the Republican Party has consistently supported Israel's strikes against Iran. In the year, it was the U.S. neoconservatives, in alliance with Israel, who sought to invade Iran, but the plan was ultimately thwarted by a Chinese military warning.
Now, with Trump in power, he has become a strong ally for Netanyahu to continue his hardline policies against Iran. As long as Netanyahu maintains the state of war, he can continue to suppress other opposition parties with a wartime cabinet, mimicking Trump to consolidate the dominance of neoconservatism within Israel.
On the evening of the date, when Trump was gaining momentum, Netanyahu's dismissal of Israeli Defense Minister Gallant, the most significant opponent, marked a major victory for Netanyahu in consolidating his power.
Once Netanyahu can free himself from domestic legal constraints, Israel's use of military force abroad will no longer require parliamentary approval, thereby elevating Netanyahu's power to the level of a head of state. Israel will possess command over the military, executive authority in the government, and the ability to act first and justify later, using a state of war as a pretext for any misconduct. This way, Israel's surprise attacks and assassinations of Shiite militias, including those in Iran, will face no restrictions.
In short, Israel, this mad dog, will break free from its chains and bite indiscriminately everywhere.
【Saudi Optimistic】****
Like Netanyahu, Crown Prince Salman is also the leading figure of neoconservatism in Saudi Arabia. In [month], due to the Democratic Party's introduction of legislation targeting Saudi Arabia within the GCC, tensions arose between Saudi Arabia and the Biden administration. This reflects the U.S. neoliberalism's deep-seated disdain for Saudi Arabia. The Democratic Party has consistently advocated for suppressing Saudi Arabia and maintaining engagement and cooperation with its rival, Iran.
Now that Trump's conservatism has defeated Biden's liberalism, relations between Saudi Arabia and the United States will suddenly warm up. During Trump's presidency, the US government suppressed the negative impact of the killing of Khashoggi by Crown Prince Salman, but the Democratic Party later seized on the incident, making Crown Prince Salman feel uneasy.
During the Trump era, Saudi Arabia's relationship with the United States advanced rapidly. In addition to signing billion-dollar arms deals, Saudi Arabia also transferred over a billion dollars in benefits to the United States due to the Khashoggi incident. Crown Prince Salman nearly exhausted half of Saudi Arabia's foreign exchange reserves to resolve the matter. Despite this, the fundamental reason the issue was ultimately resolved was the "friendship" forged between Trump and Crown Prince Salman, both of whom belong to the neoconservative camp.
Here, Xueyin emphasizes that due to Saudi Arabia's extensive financial gifts to many countries, the current interactions between Saudi Arabia and China do not necessarily indicate that the level of friendship between China and Saudi Arabia surpasses that with other countries. If one were to solely calculate based on money, Saudi Arabia's relationship with the United States and the United Kingdom is even closer. Moreover, in terms of financial gifts, the amount Saudi Arabia gives to Pakistan each year far exceeds that given to China.
Therefore, purely from a national perspective, Saudi Arabia's close relationship with Pakistan and the UK/US surpasses that with China, indicating significant room for improvement in Sino-Saudi relations.
Trump returns to the White House, becoming the biggest external ally for the new conservatism led by Crown Prince Salman. Saudi Arabia is pleased with this development. After securing support from the US and the UK for Salman's consolidation of power in exchange for billions, obstacles to a security agreement between the US, Saudi Arabia, and Israel may be cleared.
Prior to this, due to Hamas's Operation Al-Aqsa Flood in Gaza, the impending signing of the Abraham Accords between Saudi Arabia, the United States, and Israel was directly disrupted. Subsequently, Saudi Arabia explicitly stated that it would not establish diplomatic relations with Israel until the establishment of a Palestinian state. As a result, the trilateral military security agreement among the United States, Israel, and Saudi Arabia was thwarted.
Now that Trump, Salman, and Netanyahu are all new conservatives, there is a high likelihood that the Abraham Accords could be reactivated. What many do not know is that it was precisely in the year that Trump's son-in-law Kushner, along with Netanyahu and Prince Al-Mansour of Saudi Arabia, secretly planned the Abraham Accords. In this agreement, Saudi Arabia forced Palestinian leader Abbas to establish a state in the suburbs of Jerusalem, completely ceding Jerusalem to Israel. Subsequently, Egypt would deploy 100,000 troops to control the Gaza Strip, with Saudi Arabia providing substantial financial support for its construction. The United States and Israel would safeguard the plan, and the Egyptian regime of Sisi, which is hostile to Hamas, would enter Gaza to eliminate Hamas, the Qassam Brigades, and other anti-Israeli armed groups, thereby resolving the Palestinian issue once and for all.
The plan was initiated in a certain year, and its implementation proceeded smoothly. During this period, Israel established diplomatic relations with intermediary countries such as the GCC and Oman. The Middle East peace plan was part of this, all serving the Abraham Accords. However, in a certain month of the year, the agreement was directly disrupted by Hamas's preemptive launch of the Al-Aqsa Flood operation. The Democratic Party was already very concerned about the potential sacrifice of all of Palestine, and Hamas's actions directly rendered the agreement void. Due to Trump's absence from the agreement, support for Israel within the United States sharply declined. Subsequently, the Democratic Party and Israel experienced intense friction, opposing the annexation of Palestine, which stemmed from the Biden administration's obstruction.
Now that Trump is back in the White House, the agreement is highly likely to be brought back onto the agenda. As long as Trump and Netanyahu support Saudi Arabia's proposal to establish a puppet Palestinian regime outside the Palestinian territories, the process of Israel's annexation of Palestine under U.S. support will officially begin. Unlike Biden, Trump fully supports Israel's annexation of the entire Palestinian territory, which satisfies the political ambitions of both Saudi Arabia and Israel.
Therefore, after Trump took office, the alliance between the United States, Israel, and Saudi Arabia will be unprecedentedly strengthened, and the tense situation in the Middle East will only increase. This can also be seen from history.
The peak of Israel's large-scale external aggression and expansion in modern history was between the years and the years. During this period, the most significant expansionist wars, such as the annexation of Palestine, the overthrow of Saddam's Iraq, the invasion of Lebanon, the threat to invade Iran in and the subsequent invasion of Syria, all occurred within this timeframe. It was also during this time that the neoconservative support from across the ocean fueled Israel's ruthless war of slaughter. Therefore, with Trump's rise to power, the regional expansion of the US-Israel-Saudi alliance will resume, and the pressure on Iran and Russia within the China-Russia camp in the Middle East will surge.
【Russia's Mixed Fortunes】****
Regarding Trump's election, Russia has mixed feelings.
The positive aspect is that to drive a wedge between China and Russia and focus support on Israel, Trump will encourage Zelensky to engage in peace talks with Russia. Immediately after Trump's election, Putin publicly expressed readiness to negotiate peace with Ukraine. The outcome of these talks is bound to be unfavorable for Ukraine, with the inevitable loss of the five eastern regions. At that time, the new peace agreement will most likely be signed in Minsk or Beijing. Even if Ukraine is unwilling, the Russia-Ukraine conflict will enter a new period of low intensity.
However, the reason for the negotiations is not that the West no longer supports Ukraine, but that NATO has suffered a major military defeat in Ukraine. Regardless of how unwilling Western politics may be, Ukraine's defeat is a fact. Since it has failed, it is necessary to let Trump come out to clean up the mess. This is also carrying out the will of capital, rather than becoming the motive for assassinating Trump, as some people claim.
This is a boon for Russia and a concern for the United States. Because, most importantly, after the ceasefire between Russia and Ukraine, the Russian Wagner mercenaries and Aerospace Forces will return to the Syrian battlefield. The Russian military in Syria is primarily composed of the air force and navy, which will greatly constrain the various air raids launched by the United States and Israel against the Shiite factions. Previously, the United States and Israel's unrestrained air raids will be intercepted by Russian Su, Pantsir, and anti-aircraft missiles. This is unfavorable for Israel's strikes against Lebanon and Iran.
Russia-Ukraine ceasefire would be like letting the tiger return to the mountain for the West, as Russia's strategic spearhead would once again press against Israel's chest.
Similarly, this has a negative side for Russia, primarily stemming from the economic aspect. Previously, due to the operation of the oil elders, under the planning of Biden's son, the Biden family sold Russian crude oil, which was subject to US sanctions, to the international market, reaping substantial profits. The key factor was that major US oil companies had extensive oil interests in Russia, which was the ace card that allowed Russia to break through Western economic sanctions.
As the executor of the Oil Elders, Biden has actually sabotaged the Democratic Party's strategic plan to contain Russia. It is precisely for this reason that Putin has expressed his preference for Biden. The Republican Party's ability to reverse the Democratic Party and force a last-minute change in leadership was largely due to their possession of solid evidence that Biden's son was involved in the illegal sale of Russian crude oil in Ukraine. The reason they did not use this to convict him but instead arrested him on domestic charges such as illegal possession of weapons was to avoid offending the interests of the Oil Elders.
Since the Republican Party has seized on the Biden family's vulnerabilities to rise to power, Trump will at least on the surface block the Biden family's path to selling crude oil, which will significantly impact Russia's economic exports of energy. Currently, international crude oil prices have been hovering around the critical level of $70 per barrel, which is the lifeline for Russia's energy fiscal revenue. If Trump blocks Russia's crude oil exports through the Biden family, Russia's economy will fall into an even more difficult situation.
In the long run, Trump's suppression of oil prices will be more fatal for Russia. During his campaign, Trump repeatedly stated that the rise of commodities led by crude oil has hurt the U.S. economy, boasting that oil prices were cheap during his tenure and that he would suppress oil prices if he took office. The facts indeed proved this. After taking office, Trump, in collaboration with Saudi Crown Prince Salman, increased production, resulting in crude oil prices falling from $76 to $20-$25 in April 2020.
It is anticipated that if Trump once again collaborates with Crown Prince Salman to increase production and suppress oil prices, the international crude oil prices will repeat the sharp decline of the past months. Should oil prices drop into single digits and persist for several years, Russia's economy will collapse as it did in the year due to the oil price crash. Back then, due to Western sanctions and the ensuing oil price crash, Russia's fiscal revenue plummeted, and public sector wages, starting from the president, were all halved. If future oil prices are even lower than in the year, it foretells unprecedented risks for the Russian economy.
What is bad for Russia is good for the United States. Trump's continued pressure on oil prices makes Russia's economy increasingly difficult. At the same time, low oil prices will lead to strong deflation, causing other countries' currencies to inevitably plummet. This brings about the strong U.S. dollar that America has long desired.
Under a strong dollar, capital from other countries will flee to follow, which in turn further weakens their local currencies. This situation inevitably leads to interest rate cuts in other manufacturing countries, which in turn widens the interest rate gap with the United States, further stimulating capital flight. This creates a vicious cycle. The strong dollar continuously undermines the economies of other countries, inevitably causing their stances to waver. This makes the United States more adept at playing both sides politically.
So, Trump's victory for Russia cannot be simply categorized as good or bad.
【Iran Under Increasing Pressure】****
The core of American neoconservatism is Zionism, and the core of Zionism is the Greater Israel expansion plan. The content of this plan is to annex the Tigris and Euphrates river basins, eliminate Iran, divide China and Russia, and defeat them one by one. Among the countries involved in this plan, Iran is currently the foremost target.
Shiite armed forces in the Middle East, under the integration of Iran, demonstrate formidable strategic deterrence. To annex the Middle East, Iran must be eliminated. Only by destroying Iran can one advance into Central Asia, encircle and divide China and Russia, and defeat them one by one.
In the year, along with Trump, figures like Bolton from the neoconservative camp planned to invade Iran with Israel's cooperation. However, China's threat to send troops to Iran followed by the U.S. financial crisis, which made the U.S. more reliant on China, eventually led to the abandonment of the plan.
During Trump's tenure, he will be more aligned with the will of Jewish capital, extremely hostile to Iran and its cooperation with China. This is in stark contrast to the Biden administration's willingness to engage with Iran and its opposition to Israel's expansion of friction with Iran. A typical event during Trump's term was the arrest of executives from a company that was far ahead in its field, with the pretext being that the company had extensive trade relations with Iran, violating U.S. sanctions against Iran.
From the so-called evidence provided by HSBC, a bank controlled by Jewish capital, to Trump directly ordering the arrest, the fact that Jewish capital views China's cooperation with Iran as a thorn in their side is clear.
Additionally, Trump took the lead in tearing up the Iran nuclear agreement, restarting sanctions against Iran, which aimed to thwart the internationalization of the RMB by linking it to Iranian oil.
In January 2020, Trump personally ordered the elimination of Iranian Quds Force commander Qasem Soleimani, let alone the frequent support for terrorist attacks on Iranian targets from 2011 to 2020.
Therefore, whenever neoconservatism comes to power, they will undoubtedly spare no effort to target Iran and obstruct Sino-Iranian cooperation.
Currently, the billions of dollars China intends to invest in Iran have gradually been secured. In this context, Trump is even more likely to impose sanctions on Iran. On one hand, he aims to prevent these billions from flowing from China to Iran, and on the other, to block China from acquiring all energy projects in Iran.
To understand the significance of the year, it is crucial to recognize that the United States achieved the status of the petrodollar primarily through the oil exports of Iran and Saudi Arabia, with Iran's role being far greater than that of Saudi Arabia. The United States is well aware of this critical relationship, and therefore, it will undoubtedly exert maximum pressure on Iran. In the event of an Israeli invasion of Iran, the United States will undoubtedly provide full support.
Misfortune, where good fortune lies; the wisdom of China knows how to turn the tide. Thus, America's suppression is not entirely detrimental. It was precisely because Trump tore up the Iran nuclear agreement that he directly facilitated the rise of Iran's hardliners, leading to Iran's approval of the China-Iran 25-Year Comprehensive Cooperation Agreement in 2021. This opportunity allowed China not only to secure a military presence in Iran but also to gain priority rights to almost all of Iran's mineral resources. If Trump could continue to exert pressure, Iran would open up more areas to China, just as there are no limits to China-Russia cooperation. In the future, Iran's military command system could be fully integrated into the PLA's global system, thereby completely binding Iran to China's chariot.
【US East Asia tactics slow down】****
Trump's new conservatism, which advocates unilateralism in foreign policy, independently pursues American interests, and only values the gains and losses of the United States within alliances, will further weaken NATO's alliance relationships in Europe and East Asia.
During Trump's presidency, relations with Europe, led by Germany's Merkel, deteriorated, and the Atlantic alliance was torn apart. In the East Asian direction, Trump treated Japan and South Korea as ATMs, publicly stating in a certain month that South Korea should pay $5 billion annually for U.S. protection, and during his previous term, the U.S. increased Japan's share of the cost of stationing U.S. troops in Japan.
It has been proven that neoconservatism favors a cowboy-style individual heroism of going it alone. Under Trump's administration, both the transatlantic alliance with Europe and the transpacific alliance with Japan, South Korea, and Australia will be weakened, leaving Japan and South Korea more at a loss. Consequently, Japan and South Korea will become closer to China.
At the same time, neoconservatism will also ease relations with North Korea to avoid continued losses in military spending in Japan and South Korea. This way, the resources freed up can be more inclined towards Israel, and more options can be chosen to achieve breakthroughs in the Middle East. On the date of the meeting between Trump and Kim Jong-un, their summit to ease relations occurred under this context.
Regarding the issue of reclaiming the opposite shore, Trump's response was merely to impose tariffs on China, rather than the Democratic Party's tough military support for Taiwan. This also means that compared to the Democratic Party, China's pressure in the eastern region will be alleviated after Trump takes office.
It is important to emphasize that even if Trump were to ease relations in East Asia, it would not be solely determined by his personal will. At its core, this is due to the failure of various U.S. measures to suppress China during the Biden administration. Militarily, in order to further exploit a crushing advantage over China, a tactical easing in East Asia was chosen, which does not signify that the U.S. would abandon its efforts to suppress China.
In terms of suppressing China, there is no essential difference between the two parties.
【Blood drinking predictions will gradually become a reality】****
Why do we say that past predictions will gradually become a reality? This can be traced back to the impact of Trump's policies on the global financial market.
Trump's victory in the election can be considered this year's black swan event in the global financial world. Why is that? Because once Trump's economic policies are implemented, they will introduce significant uncertainty into the financial policies of various countries.
First, the Federal Reserve is likely to halt its rate cuts.
早在9月17日号美联储降息之前,血饮就在文章Big News丨What Impact Will the Fed's Interest Rate Cut Have on China?里说过美联储降息将让中国原地复活。事实证明,美联储降息之后国际资本疯狂涌入中国,中国股市一路长虹上涨超过1000点。
First, international capital withdrew hundreds of billions of dollars from India while buying Chinese stocks worth over a billion dollars, directly dragging down the Indian stock market. Japan was also impacted by China, with Japanese media reporting that a large number of Chinese residents in Japan began returning to their homeland, taking with them the funds that had been transferred to Japan. Similar situations occurred in the United States and Europe. This indicates that after the Federal Reserve's interest rate cuts, China not only revived but also accelerated the suction of international capital.
However, Trump's campaign clearly stated that he would impose tariffs on countries like China, which would lead to an increase in the price of imported goods. At the same time, restrictions on immigration in the United States would lead to higher labor costs. Additionally, Trump's expansionary fiscal policy further exacerbates the deficit, raises U.S. Treasury yields, and increases fiscal stimulus through tax cuts for the wealthy. All of these factors combined will push up inflation.
The Federal Reserve's initial decision to cut interest rates was made against the backdrop of declining inflation. Now, with Trump's policies significantly driving up inflation, the Fed is forced to halt further rate cuts. Should inflation rebound sharply, the Fed would adopt more aggressive monetary policies. Although the Fed's decisions are independent, Trump is attempting to indirectly influence its policies through personnel appointments. Additionally, Trump's policies, which have pushed inflation upwards from the grassroots level, are compelling the Fed to hit the brakes on its monetary policy.
In fact, changing the perspective, Trump's election might be exactly what the Federal Reserve needed to see. Because the reduction in interest rates led to a surge of international capital flowing into China, Powell immediately began to urgently reduce expectations for further rate cuts on the very day of the initial cut. Now that Trump has been elected, the Federal Reserve can justifiably stop cutting rates, thus preventing international capital from Japan, the United States, Singapore, and India from entering China.
Trump's victory in the election can be seen as the Federal Reserve's timely correction of its erroneous monetary policy. U.S. inflation and high interest rates will attract capital to withdraw from emerging markets like China and return to the U.S. and other offshore dollar centers.
For the world, Trump's election result means that under the rise of inflation, the Federal Reserve suddenly turns around and makes a comeback! Trump's financial policies confirm the previous judgments of Xueyin, and now the policy reversal also echoes the author's consistent claim that the United States will continue to maintain a low oil price and a strong dollar monetary policy.
【Targeting China's Economy】****
Currently, even if the Federal Reserve cuts interest rates, it has not stopped reducing its balance sheet. After future rate cuts cease, it will continue to maintain high interest rates of around 1.5% to 1.75%. In contrast, China's long-term interest rates have dropped to around 1.5%. The interest rate gap between China and the United States remains significant. These factors will encourage domestic capital to chase the dollar and flee abroad. This will reverse the process of international capital flowing from the United States to China.
More dangerous is that Trump's imposition of % tariffs on China will greatly hit exports and reduce China's trade surplus. When the real estate sector faces difficulties and local government debt financing is not smooth, if the last of the three major engines of the economy, foreign trade, falters, the impact on our economy will be significant. Internally, the trade surplus has always been the most effective tool for repairing debt leverage, and a reduction in the trade surplus will affect the process of China's debt resolution.
After Trump took office, the US financial market continued to push up the US dollar index following the low oil prices. This is the reason behind the overnight breakthrough of the US dollar index. After the interest rate cut, the US dollar index surged sharply instead, which is a direct response from the market to Trump's policies. Meanwhile, after the announcement of Trump's victory in the afternoon, the stock market saw a late-day plunge, the RMB exchange rate dropped by more than points, and the yield on the US 10-year Treasury bonds surged. These are all direct reactions to Trump's victory.
It is anticipated that if Trump collaborates with Crown Prince Salman to suppress oil prices, U.S. Treasury yields will also be gradually lowered. At that time, while maintaining the reduction of the balance sheet to recover liquidity, the U.S. will push the dollar index to continue rising, likely breaking through, and continue to maintain a high interest rate differential with China after lowering Treasury yields. In this way, the dollar will achieve a perfect form of reaping China and the rest of the world. The combination of balance sheet reduction, low oil prices, a strong dollar, and a high interest rate differential, not to mention the potential release of biological and chemical weapons during Trump's tenure, makes it difficult for other countries to resist under these five sharp blades. The U.S. will mimic the high-interest rate harvesting strategy of the past, fully recovering after the harvest.
【China's Response】****
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01*
geopolitical
Trump supports Israel's strategic gamble while easing tensions in Northeast Asia. Russia, having extricated itself from the Russia-Ukraine conflict, returns to the Middle East battlefield, providing China with a strategic opportunity to coordinate with Russia on both the eastern and western fronts for a surprise attack from Jiuyuan. Specifically, North Korea conducts another missile and nuclear test to pressure the United States, leading to the collapse of pro-American regimes in Japan and South Korea. Meanwhile, China accelerates island-building in the South China Sea to deeply control the main shipping lanes of the South China Sea. After controlling the shipping lanes from the South China Sea to the East China Sea, it can choke Japan and South Korea. In the Middle East, Russia coordinates to contain Israeli air raids to the south and, to the north, jointly with Turkey and Iran, besieges the Kurdish forces in the core region of the Middle East, driving the U.S. military out of the Mesopotamian Plain. While Russia, Syria, Turkey, and Iran launch attacks, China seizes the opportunity to resolve the issue across the strait. China and Russia act in the Middle East and East Asia respectively, leaving the United States unable to manage both ends. Breaking either end signifies the collapse of American hegemony.
02*
Comprehensive bottom-hunting westward
Quantitative Tightening + Low Oil Prices + Strong Dollar + High Interest Rate Differentials, under these four sharp blades, other countries' economies are bound to fall into difficulties. At this time, China can release US dollar liquidity, taking investment and purchasing raw materials as entry points, to replace the US dollars on the balance sheet of the People's Bank of China with the currencies and precious metals of other countries. In this regard, the countries that China can invest in are mainly concentrated in Central Asia, Africa, and the Middle East in the west. Once these markets are cultivated, they can become the main sources of China's exports and profits. Considering the long-term deindustrialization of these regions, the early profits are extremely considerable. At the same time, the early-entering enterprises can also obtain the maximum profits, and it is not difficult to take advantage of the high industrial chain disparity between China and other countries to reap huge profits. Moreover, Chinese enterprises entering these regions can also provide a large number of jobs, which is a huge benefit for these economically struggling countries.
Meanwhile, the BRICS payment system and BRICS currency, decided upon at the BRICS summit, will be strategically deployed amidst the Fed's harvesting tide, partially blunting the sharp edge of the strong dollar.
Overall, while Trump's presidency may exert extreme short-term pressure on China's economy and finance, in the long run, his administration is more beneficial than harmful, significantly advancing the international mass line.
【Market prediction and operational suggestions】**** **
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01*
bulk products
Trump's alliance with Saudi Arabia to suppress oil prices will lead to a collapse in commodity prices. The plunge in gold and silver prices immediately after Trump's election victory was a direct reflection of this.
02*
personal finance
Continue to adopt a defensive stance in this area, avoiding investment in startups and instead opting to purchase large-value certificates of deposit and government bonds when funds are available.
03*
stock market
Xueyin mentioned three exit points in previous articles. The latest article suggests that beginners should exit the stock market on the date of the month, with the following judgment criteria:
First, the peak of a stock market rally is not the peak of individual stocks. For example, in that year, the peak of the rally was at point, but the peak of individual stocks was around point. This phase was a general rise, where ordinary investors, including novices, could make money. Therefore, the article in the month of the year advised investors to retreat while the going was good. In hindsight, the peak in the month of the year turned out to be the highest point for individual stocks over the next three years.
Why are the highest points of the index and individual stocks different? Because after a general rise, large capital will enter the market to compete. New investors get caught up in the institutional sector rotation after a general rise, but they cannot grasp the rhythm, chasing rises and killing declines, thus losing their early profits. The current external situation is the same, with the point likely being the last time for individual stocks to escape during this round of rise. Therefore, Xueyin suggests gradually withdrawing by the latest time point of the day. If there are new opportunities in the future, Xueyin will remind everyone again, it is advisable to temporarily avoid short-term risks.
Secondly, in the long run, for beginners, the most devastating losses often do not come from bear markets, but from the so-called bull markets that keep rising. The continuous rise of bull markets amplifies greed, prompting leveraged funds to enter the market. When all one's assets are invested, a sharp decline inevitably follows, wiping out savings and incurring debts in the midst of greed. One must avoid greed in stock trading and always remember the risks, taking profits when they are good!
Third, some believe that the Chinese stock market will surge once Trump takes office. In reality, during Trump's previous term, the Chinese stock market fluctuated roughly between points and points. During the Democratic administration of Biden, it also fluctuated within this range. Technically, the Chinese stock market has been oscillating within a box range from to, even with the influx of international capital.
From a historical perspective, the current point is in a general uptrend phase, also the top of a stage-wise rise, which is why Xueyin advises new investors and readers to exit the stock market at this point. The country has released significant positive news, and new investors can cash out after a big rise, as taking profits is the key! Exceptions are stocks with long-term investment value.
Due to the large number of readers, with varying levels of expertise, the exit time provided by Xueyin is the safest time for the majority of beginners, but not necessarily the most profitable. For those who are well-versed in the rhythm of individual stock movements, they can continue to ride until the final time point.
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