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The Horror Drama Of Raising Interest Rates By The Federal Reserve Will Be Staged.

2014/3/25 8:29:00 14

FedRaise Interest RatesFinance

< p > < a href= > //www.sjfzxm.com > Federal Reserve /a > chairman Janet Yellen said at the news conference after the meeting of the Federal Open Market Committee that the Federal Reserve may start raising interest rates for about half a year after the end of the debt purchase.

The market is expected to be in the middle of next year, but Janet Yellen's speech raised interest rates ahead of a quarter - that is, the next spring.

Fed officials expect to raise interest rates by 2% in the next three years.

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< p > I stated in the August 23, 2012 article "horror show of American interest raising": "the US employment data have already peaked, so the Federal Reserve has entered the countdown to raise interest rates.

What is so great about the Fed's interest rate increase? The US dollar is an important source of global liquidity. Once the US dollar raises interest rates, it means that the cost of global a href= "//www.sjfzxm.com/news/index_s.asp" > financing < /a > will rise sharply. It will be very tragic for a country that is purely built on real estate and other economic bubbles.

So China is now racing against time.

Those who are making a windfall by the bubble economy, the people whose debt leverage is too high, the house is on fire and ready to escape.

As expected, Yellen has made a big deal. Eurasian stock market has immediately dropped, and the decline in emerging market stock markets has been the biggest in two weeks. The number of second-hand housing market in Hongkong has been increasing at a discount, and the mainland side is also like "the situation of China's property market crash" is further clearer. "The situation of China's property market crash is further clearer, and after Beijing has thrown off the market or substantially reduced its sales promotion, it is suspected that there is a real estate sale in Beijing."

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(P) the fed once claimed that in the future, when considering the sustainability of low interest policy, it will refer to more extensive information, including multiple job market data, inflation expectations and financial markets, and even if employment and inflation are close to targets, the authorities may also need to maintain lower interest rates for a period of time.

Therefore, Yellen's "raising interest rate 6 months after delisting" has surprised the market.

The rise in US interest rates will raise the cost of financing in China and Asia, and a large amount of arbitrage funds may be withdrawn to the US.

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< p > if the United States has stepped up the pace of reducing the debt buying rate, it will start raising interest rates as early as March next year. At that time, interest rates on interbank offered rate and bond will follow the interest rate of < a href= "//www.sjfzxm.com/news/index_p.asp" > US < /a >.

At this time, it is necessary to increase the weight of cash in the assets portfolio, otherwise, if the banks are tight enough to arrive at the cold winter, they will only live on the cheap assets.

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