Since the beginning of this year, Trump has not cooperated with the Fed's work to his mouth, and frequently pressures his water to save interest and save the economy.Restoration is a normal monetary policy, which is used to temporarily increase market liquidity.However, the US stock market is still at a high level. Trump's pressure reduction is only providing ammunition for the trade war, and the economic miracle created by maintaining the stock market will be maintained until the 2020 election.
Governments of various countries are afraid of capital outflows, which leads to economic problems during the tenure, and they have also joined the tide of interest rate cuts.Beginning in February this year, 24 countries including India, Ukraine, Indonesia, and Brazil have announced interest rate cuts, of which India has cut interest rates four times in the year.The Fed, which has been listening to the stairs, finally announced on August 1st that 25 basis points were announced.If most of the current interest rate cuts are developing countries, the European Central Bank will maintain the current or lower interest rate horizontal text in the report at the end of July, but it indicates that the euro will also embark on the road of quantitative easing and interest rate cuts. Monetary warfare or formally spread the world.
The interest rate cut is to retain capital, but when countries around the world simultaneously cut interest rates, this effect does not exist.Instead, there are many bubbles in the global economy after ten years of uplinking cycle. This time, water release has made countries deeper deeper and a closer to the crisis.In fact, even if the United States raised interest rates at the beginning of the month, it was still difficult to avoid the plunge of the stock market on August 14, and it also gave birth to the common alarm number before the economic crisis of the economic crisis.
In addition to the currency war, when the atmosphere of the crisis approaches, countries have also strengthened investment and trade barriers in order to protect themselves.The European Parliament passed the bill in February this year to strengthen the review of foreign investment to protect European strategic technology and infrastructure.The Ministry of Economic and Industry of Japan also plans to include 20 industries including mobile phones, computers, and semiconductors in the scope of investment review.After Trump came to power, the European Union and Japan, which became a flag bearer for multilateralism and economic liberalization, chose to protectism, which is really regrettable.
Just ask for self -protection, whether it can avoid crisis. During the Great Depression, the trade war is the best lesson.In 1930 the following year, the U.S. Congress passed the Smt -Holy Tariff Act to significantly raise tariffs on countries.At first, this behavior only triggered 100%heavy taxes on American cars and clocks in Spain, Switzerland, France and other countries.However, in the mentality of everyone's self -protection, the United Kingdom and Germany also followed the United States to set up barriers, and finally reduced the international trade system by 66%, and the economic situation of various countries worsened.
The unemployment rate is rising, the rising crime rate, the door of the relief station is full of long dragons, and the silver in the government warehouse decreases a little.For governments in various countries, the outbreak of the economic crisis means the most difficult moment, and it is not understandable to set up barriers to self -protection; but this move at most delay the crisis into the backbone and it is impossible to resolve the crisis.At the moment of crisis, the true chapter can be seen, and now it is the test of whether the multilateral flag bearer is talking about it, or the critical moment when the value is reached.After the crisis passes, only the responsible economy that does not cut off the mats can harvest the soft power that is trusted by various countries.
