Wood Sister’s Long Push Raising interest rates by the central bank is a more important goal than controlling inflation – bursting the Chinese bubbleWood Sister's Long Push Raising interest rates by the central bank is a priority over controlling inflation - bursting the Chinese bubble
Original author: @CathieDWood
Original source: twitter
Translation: rick awsb
Note: This article is from @rickawsb’s Twitter. MarsBit compiled it as follows:
- Full text of the speech by Hong Kong Chief Executive Carrie Lam at the 2023 Summit on Innovative Technology and Art Development
- The evolution of the order flow lifecycle What changes does intent-centric bring?
- Exploring the future of Web3 social Building social graphs to solve customer acquisition problem.
Cathie Wood’s long tweet almost bluntly reveals that the Fed’s rate hike is more important than suppressing inflation, and it punctures the Chinese bubble.
Conspiracy theories have been put under the spotlight by mainstream institutional investors for the first time.
The full translation is as follows, with the emphasis on the last paragraph:
“China is exporting deflation in a more profound way than many economists and strategists anticipated. Under unchanged conditions, the renminbi has depreciated by 15% against the US dollar in the past year, which should have caused its Producer Price Index (PPI) inflation rate to rise by 15%. However, in reality, this ratio has decreased by 4%.
In other words, the deflation vortex originating from China is approaching 20% (15% + 4%), and the default problems of China’s real estate and trust companies highlight this.
Since joining the World Trade Organization in 2001, China’s real Gross Domestic Product (GDP) has grown at a double-digit rate for nearly 20 years. Rapid growth can mask many economic problems, often including excessive debt and related leverage effects. These problems are now emerging in China.
China may want to limit, or even stop, the depreciation of the renminbi. To do this, it may sell US dollars and buy renminbi, effectively tightening its monetary policy and exacerbating the fragility of the economy, even under “loose” policies.
In our view, the Federal Reserve has triggered and exacerbated global deflation risks. Its record-breaking 22 rate hikes may first impact China and then spread to other regions of the world.
- Delphi Digital Researcher UniswapX is Changing the Landscape of DEX
- CME Group will launch BTC and ETH reference rates for Asian investors.
- Trump has nearly $5 million in Ethereum NFT licensing fees, with revenue of nearly $4.9 million.
- Cryptocurrency mining companies establish a Digital Energy Committee to strengthen lobbying power in Washington
- Exploring the current ecosystem and future development trends of Intents in Web3
- Interpreting the latest proposal on achieving x-rollup interoperability using a shared ordering layer
- Must-read in the evening | Upgrading the layout of Cancun OP or ARB, who is the better choice?