The recent uncovering of misleading information surrounding the employment data in the United States has led to a pivotal moment concerning the policies of the Federal ReserveThe attempts to delay interest rate cuts have proven unsuccessful, particularly under the mounting pressure presented by various domestic factorsMarket forecasts are now locking in on September as the window for a potential rate reduction, and statements made by Federal Reserve Chairman Jerome Powell seem to support this mounting consensus.

But what compels the Federal Reserve to prioritize this delay, even to the extent of indulging in data manipulation? There are two primary motivations driving this thought processFirst, maintaining the steady issuance of U.STreasury bonds is vital, and high interest rates lend these bonds attractivenessIn such a scenario, the Fed must be prepared to offer a higher "risk premium" to ensure that the market remains receptive to government debtSecondly, it’s essential for the Fed to sustain continuous international capital flow into the U.S., safeguarding the strength of the dollar on the global stageAny decline in the dollar index could inadvertently escalate global commodity prices, notably affecting oil, which Americans are increasingly unable to tolerate amid rising consumer prices.

The crucial question then surfaces: is the decision to uphold high interest rates more advantageous or disadvantageous overall? The apparent disadvantages become clearly visible upon closer examinationFirstly, the government faces escalating costs as high interest rates drive up the expense of borrowing, consequently leading to an increased volume of debt issuanceSecondly, elevated interest rates can stifle economic growth, which recent economic data from July suggestsThese statistics may reflect a more realistic evaluation of the current economic environment, and their connection to high interest rates is indisputable.

However, how we weigh these noticeable positives against the negatives may not be of utmost importance

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Rather, the focal point is the ambition of the Federal Reserve, which may be to reconstruct the dominance of the dollar as a global currencyIn this regard, there appears to be a willingness to sacrifice some fiscal benefits and domestic economic performance for the greater aim of restoring U.S. financial supremacyIs such ambition lurking beneath the surface? Certainly, there exists a compelling drive behind this intent, one that the U.S. fiercely strives to uphold at all costsBut can it succeed? This ultimately hinges on whether the U.S. can transform the guise of "reindustrialization" into a genuine reclaiming of control over global monetary assets.

This strategic appraisal places China, recognized for its comprehensive manufacturing supply chain, as a principal economic adversary targeted by the U.SIf infractions lead us to believe that the only path for the dollar to recover is to "devour" China's high-quality industrial assets, filling the void left by inflated market conditions, we must be adequately preparedA robust preemptive strategy to safeguard against unrest in the financial markets is necessary.

This brings us to a crucial point—China cannot allow the devaluation of the yuan to become a rationale for declines in the A-share marketFailure to prevent such an association could result in serious repercussionsAs it stands, a powerful narrative within the market tightly intertwines the weakening yuan with falling stock prices, yet the underlying motives of this trend remain remarkably unexamined.

If there is no avoidance of "financial warfare," then the battlefield will likely centralize around two main arenas: the foreign exchange market and the stock market.

In the foreign exchange market, you can expect malicious forces to energetically employ various tactics to depress the yuan's exchange rate against the dollarAs the local currency weakens in relation to the dollar, yuan-denominated assets suddenly become attractive at a bargain price for dollar holders, reducing their acquisition costs significantly

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Concurrently, in the stock market, these same ill-intentioned entities will make every effort to drive down Chinese equity markets, with the aim of undermining investor confidence and triggering a sell-off among shareholdersThe synchronization of yuan depreciation and stock market declines can compound the effectiveness of these attacks exponentially.

Historically, the assault from financial capital on sovereign nations is a prolonged endeavor, characterized by a gradual progression from quantitative changes to qualitative transformationsThis process is often shrouded in confusion and misdirection, spanning years or even decadesThe visible manifestations of financial crises represent only a fraction of the intricate arrangements laid years prior, evident in well-placed market disturbances, strategic timing, and public opinion manipulation.

In addressing the question of what a Federal Reserve interest rate cut might signify for China, we must grasp the motivations behind such protracted delaysIs it solely a strategy to allow time for the potential targeting of China to gain momentum? By maintaining elevated interest rates, the U.S. imposes pressure on other currencies like the euro to lower their rates firstThis, in turn, serves to keep the dollar index robust, placing additional pressure on the yuanA depreciated currency means cheaper acquisitions of Chinese prime assets for dollar investorsFurthermore, a downtrend in the yuan might mislead the A-share market into further declines, inevitably rendering Chinese industrial assets even more affordableWould the Federal Reserve truly allow such tempting scenarios to slip from their grasp? Can they realistically afford to overlook the situation? The answer unfolds in due course, as a significant rate cut may open the floodgates for dollar liquidity to engage in extensive acquisitions of Chinese assets when the time is appropriate.

To assert that the yuan has no valid reason to depreciate simply due to a rising dollar index is crucial

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