Doctor Doom warns that U.S. stocks plummet 40 percent! Why is the US still raising interest rates? Chinese experts say one word - Today's headlines


2022-09-23: [Chinese Article Link]  Last night, the Fed held another 75 basis points, with cumulative interest increases of up to 300 basis points during the year. Federal Reserve Chairman Powell maintained his “hawls” and called for a basic “recognizing” of the need for hard landings to control inflation. The Fed’s interest rate has increased frequently, and the United States shares have suffered a major setback. Since the Fed’s first interest increase this year, the P500 index has fallen by more than 15 per cent. Dr. Apocalypse Rubini, famous for his success in predicting the US subprime mortgage crisis, once again poured cold water on the market: even with a normal recession, the pamphlet 500 index would fall by 30 per cent, while in a “real hard landing” the equity finger could fall by nearly 40 per cent. And for those who still insist on a mild recession in the United States, Rubini argues that they should look at the high debt ratios of businesses and governments, and that as the cost of raising interest rates rises, many “zombie institutions” (zombies), “zombies” families, “zombies” businesses, shadow banks, and even “zombies” countries will show the reality of “naking”. In fact, it's not just Rubini who sings about beauty. Goldman Sachs warned that, as the Fed pushed up real interest rates further, the United States stock would face even greater turmoil; Jeffrey González, the “New Debtor”, expected that by mid-October, the index 500 would have fallen to 3,000 points, leaving 23.7 per cent of the potential for decline; and Greg Jensen, the Joint Chief Investment Officer of the Bridge Water Fund, warned that United States investors might be facing large-scale market crashes and a severe recession. The two-line capital founder, the “New Debt King” González, also argued that, as the US economy is on the verge of recession, the Fed should slow the rate hike. If the Fed continues to raise interest rates, the recession could be quite severe. On the one hand, inflation is high, on the other hand, the stock market is falling and falling, and the Fed is now in a state of disarray. In response to the US Federal Reserve’s dilemma, the former Vice-Minister of the Chinese Bank’s Superintendency of Silver Insurance stated at the Phoenix Bay Financial and Economic Forum 2022 that it was self-supporting. In the view of the Academy, inflation in Europe and America has been the result and consequence of many years of money. What is more difficult for the Fed is that keeping the Eagles on the increase does not seem to be effective in containing inflation, so one can only ask: can the Fed on the increase solve the problem? In response, the President of the National Financial and Development Laboratory and member of the Chinese Academy of Social Sciences, Li Yang, broke the phrase in “Foundation of Finance in the Phoenix Bay Region 2022” : The Fed’s interest hike is simply not going to solve the inflation problem. Li Yang talks about the Fed's interest hike: Austerity monetary policy will not solve inflation, and Europe and America will slide to "stagnation." According to Li Yang, inflation is now a major risk to the global economy. But this time inflation cannot be addressed through monetary policy tightening. According to Li Yang, the Chicago economics representative, Milton Friedman, has a famous phrase, “inflation, whenever and wherever it occurs, is a monetary phenomenon.” The policy language behind this judgement is that inflation is addressed by monetary policy at any time and anywhere. In response to Friedman’s comment, Li Yang believes that the situation is different, and that the current high inflation is due mainly to three factors. The first is the impact on the supply side of the epidemic, the Russian-Ukraine conflict, and so forth; the second is the push on the demand side of monetary excesses and loose fiscal policies; and the third is the miscalculation of European-American inflation expectations. On this basis, Li Yang believes that it is not easy to contain inflation. “This inflation is a complex factor that cannot be solved by a single monetary policy, which we must pay attention to.” Li Yang quoted Friedman's “alcoholic theory” as a vivid illustration of the anti-inflation process: “Inflation is like alcohol, it's good at first drinking, but it may take a few years to overcome the after-effects. What are the implications for the global economy if inflation persists? According to Li Yang, the performance and impact of inflation vary from country to country and can be broadly divided into developed and emerging economies. In the second half of the year, Li Yang expects that inflation in advanced economies, although improving, will remain above the target range, shifting from high inflation (“inflated”) to high inflation with low growth (“stagnated”). Economic growth in developing countries and emerging economies will decelerate across the board. This is Li Yang's presentation at the Phoenix Bay Financial and Economic Forum 2022. U.S.A. inflation is the cause and effect of the money, and its violent increase in interest rates puts global economic pressure on the economy. According to the École de l’École, inflation in the United States is long-term and difficult to reduce in the short term. For the underlying reason or source of inflation, the École de l’Économique believes that it lies in the years of the Federal Reserve’s continued massive investment in monetary credit, i.e., extremely liberal fiscal policies and unlimited monetary stimulus policies. According to the UCA, as long as the Fed continues to invest large amounts of money, the more it accumulates, and as time expands, these flows into the market will one day react appropriately, triggering asset bubbles, inflation, etc. According to the École de l’École, the US-European Central Bank’s miscalculation of the inflation situation has proved to be particularly wrong, and this has led to a violent increase in interest rates. Since March of this year, the Fed has been in a hurry to launch austerity policies, raising interest rates four times, and is expected to increase by another 0.75 percentage points soon, unprecedentedly, at a rate that has never been higher since 1982, to the surprise of many. “It seems that the Fed has changed a bit in the face of mistakes. But while the world’s major central banks, such as the US and Europe, are raising interest sharply, the global economy is under constant downward pressure. This is a statement by the Quakers at the 2022 Finance Forum for the Phoenix Bay Region. The Fed is a rash new driver. In fact, the Fed’s aggressive use of the money and its fast-paced brakes have caused a lot of resentment and slurring within Wall Street. The Chief Investment Officer of Central Asset Management, James Abate, commented: “They, like an arsonist, took on the job of firefighters, are putting an end to the fires that they caused. The Science and Technology Unit will continue to bleed out for the foreseeable future.” Even within the Federal Reserve, there are a lot of former colleagues who come forward and “throw” Powell. Randal Quarles, the former Federal Reserve Vice-President of the United States in October of last year, said: “The Fed was supposed to have contained inflation since last September, and, in the absence of a timely response, the Fed may now be faced with a situation in which prices are controlled at the expense of the recession. The former Chairman of the Fed, Charles Prosser, said, “This is their own problem”, and “I don't know what Powell was doing 12 or 18 months ago”. Former Federal Reserve Chairman Narayana Kocherlakota even compared the Fed directly to reckless car drivers. “It has voluntarily turned in the wrong direction, and many drivers have made such mistakes when they hit an ice field.” It is worth mentioning that even Musk can no longer sit, and on Twitter, he not only points out the tweets from the Wall Street "Cathie Wood" that the Fed should not be concerned with inflation but with deflation, but also makes a direct comment: “0.25% interest reduction”. If the Fed continues to raise interest rates, the recession could be quite serious. It is worth noting that, although this increase in interest rates has raised the federal fund interest rate to its highest level since the beginning of 2008, the Federal Reserve does not appear to have intended to slow the rate increase. Policymakers such as Powell suggest that interest rates are expected to increase further by up to 4.6 per cent in 2023, well above what was previously expected in June. For the Fed's forecast, the founder of the two-line capital, the “New Debtor” Gonzála, said, “I don't think they can do this, and if the Fed continues to raise interest rates, the recession could be quite serious.” According to González, monetary policy has a lag effect, and the Fed should have acted earlier. “After some time since we tightened our policies, the effects of these policies will gradually become economic recession, and I do believe that the Fed should slow down the rate of interest increase.” According to González, the yield curve inverted is warning that the economy is in trouble. After the Federal Reserve announced its interest rate decision, the US government’s two-year-to-ten-year yield curve increased, with a negative 50 basis point spread. According to González, the Fed's insistence on a 2 per cent inflation target could lead to an increase in unemployment and a recession in the economy. “I think the 2023 recession is very likely. I mean, I think there's a 75 per cent chance.” Some analyses also suggest that, while Powell has not said that the United States is going to fall into recession, the Federal Reserve expects unemployment to rise by 0.6 to 4.4 per cent next year. Historically, the United States has never avoided recession in the face of such an increase in unemployment. The Forum was supported by the leading strategic collaboration of the Orient flagship MPV HongqiHQ9 and by academic institutions such as the National Laboratory for Finance and Development, the Chinese University of Hong Kong (Hin Shenzhen), the Shanghai Higher Institute of Finance, the Drook Institute of Management, the Lyon School of Commerce and Industry of France, as well as by the International Forum's initiative to designate a wine ceremonial ceremonial ceremonial ceremonial acre. At the same time, media institutions such as the China Foundation, the Star Island News Group, the Hong Kong Grand Duchess Media Group, the Ming newspaper, the Hong Kong Business Journal, the Asia Weekly, and the Purple Magazine are invited to cooperate. The impact of the Fed's interest increase


Note: This is a machine translated version of the Chinese news media article. A mature and nuanced reading is suggested.




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Doctor Doom warns that U.S. stocks plummet 40 percent! Why is the US still raising interest rates? Chinese experts say one word - Today's headlines


2022-09-23: [Article Link]  Last night, the Fed held another 75 basis points, with cumulative interest increases of up to 300 basis points during the year. Federal Reserve Chairman Powell maintained his “hawls” and called for a basic “recognizing” of the need for hard landings to control inflation. The Fed’s interest rate has increased frequently, and the United States shares have suffered a major setback. Since the Fed’s first interest increase this year, the P500 index has fallen by more than 15 per cent. Dr. Apocalypse Rubini, famous for his success in predicting the US subprime mortgage crisis, once again poured cold water on the market: even with a normal recession, the pamphlet 500 index would fall by 30 per cent, while in a “real hard landing” the equity finger could fall by nearly 40 per cent. And for those who still insist on a mild recession in the United States, Rubini argues that they should look at the high debt ratios of businesses and governments, and that as the cost of raising interest rates rises, many “zombie institutions” (zombies), “zombies” families, “zombies” businesses, shadow banks, and even “zombies” countries will show the reality of “naking”. In fact, it's not just Rubini who sings about beauty. Goldman Sachs warned that, as the Fed pushed up real interest rates further, the United States stock would face even greater turmoil; Jeffrey González, the “New Debtor”, expected that by mid-October, the index 500 would have fallen to 3,000 points, leaving 23.7 per cent of the potential for decline; and Greg Jensen, the Joint Chief Investment Officer of the Bridge Water Fund, warned that United States investors might be facing large-scale market crashes and a severe recession. The two-line capital founder, the “New Debt King” González, also argued that, as the US economy is on the verge of recession, the Fed should slow the rate hike. If the Fed continues to raise interest rates, the recession could be quite severe. On the one hand, inflation is high, on the other hand, the stock market is falling and falling, and the Fed is now in a state of disarray. In response to the US Federal Reserve’s dilemma, the former Vice-Minister of the Chinese Bank’s Superintendency of Silver Insurance stated at the Phoenix Bay Financial and Economic Forum 2022 that it was self-supporting. In the view of the Academy, inflation in Europe and America has been the result and consequence of many years of money. What is more difficult for the Fed is that keeping the Eagles on the increase does not seem to be effective in containing inflation, so one can only ask: can the Fed on the increase solve the problem? In response, the President of the National Financial and Development Laboratory and member of the Chinese Academy of Social Sciences, Li Yang, broke the phrase in “Foundation of Finance in the Phoenix Bay Region 2022” : The Fed’s interest hike is simply not going to solve the inflation problem. Li Yang talks about the Fed's interest hike: Austerity monetary policy will not solve inflation, and Europe and America will slide to "stagnation." According to Li Yang, inflation is now a major risk to the global economy. But this time inflation cannot be addressed through monetary policy tightening. According to Li Yang, the Chicago economics representative, Milton Friedman, has a famous phrase, “inflation, whenever and wherever it occurs, is a monetary phenomenon.” The policy language behind this judgement is that inflation is addressed by monetary policy at any time and anywhere. In response to Friedman’s comment, Li Yang believes that the situation is different, and that the current high inflation is due mainly to three factors. The first is the impact on the supply side of the epidemic, the Russian-Ukraine conflict, and so forth; the second is the push on the demand side of monetary excesses and loose fiscal policies; and the third is the miscalculation of European-American inflation expectations. On this basis, Li Yang believes that it is not easy to contain inflation. “This inflation is a complex factor that cannot be solved by a single monetary policy, which we must pay attention to.” Li Yang quoted Friedman's “alcoholic theory” as a vivid illustration of the anti-inflation process: “Inflation is like alcohol, it's good at first drinking, but it may take a few years to overcome the after-effects. What are the implications for the global economy if inflation persists? According to Li Yang, the performance and impact of inflation vary from country to country and can be broadly divided into developed and emerging economies. In the second half of the year, Li Yang expects that inflation in advanced economies, although improving, will remain above the target range, shifting from high inflation (“inflated”) to high inflation with low growth (“stagnated”). Economic growth in developing countries and emerging economies will decelerate across the board. This is Li Yang's presentation at the Phoenix Bay Financial and Economic Forum 2022. U.S.A. inflation is the cause and effect of the money, and its violent increase in interest rates puts global economic pressure on the economy. According to the École de l’École, inflation in the United States is long-term and difficult to reduce in the short term. For the underlying reason or source of inflation, the École de l’Économique believes that it lies in the years of the Federal Reserve’s continued massive investment in monetary credit, i.e., extremely liberal fiscal policies and unlimited monetary stimulus policies. According to the UCA, as long as the Fed continues to invest large amounts of money, the more it accumulates, and as time expands, these flows into the market will one day react appropriately, triggering asset bubbles, inflation, etc. According to the École de l’École, the US-European Central Bank’s miscalculation of the inflation situation has proved to be particularly wrong, and this has led to a violent increase in interest rates. Since March of this year, the Fed has been in a hurry to launch austerity policies, raising interest rates four times, and is expected to increase by another 0.75 percentage points soon, unprecedentedly, at a rate that has never been higher since 1982, to the surprise of many. “It seems that the Fed has changed a bit in the face of mistakes. But while the world’s major central banks, such as the US and Europe, are raising interest sharply, the global economy is under constant downward pressure. This is a statement by the Quakers at the 2022 Finance Forum for the Phoenix Bay Region. The Fed is a rash new driver. In fact, the Fed’s aggressive use of the money and its fast-paced brakes have caused a lot of resentment and slurring within Wall Street. The Chief Investment Officer of Central Asset Management, James Abate, commented: “They, like an arsonist, took on the job of firefighters, are putting an end to the fires that they caused. The Science and Technology Unit will continue to bleed out for the foreseeable future.” Even within the Federal Reserve, there are a lot of former colleagues who come forward and “throw” Powell. Randal Quarles, the former Federal Reserve Vice-President of the United States in October of last year, said: “The Fed was supposed to have contained inflation since last September, and, in the absence of a timely response, the Fed may now be faced with a situation in which prices are controlled at the expense of the recession. The former Chairman of the Fed, Charles Prosser, said, “This is their own problem”, and “I don't know what Powell was doing 12 or 18 months ago”. Former Federal Reserve Chairman Narayana Kocherlakota even compared the Fed directly to reckless car drivers. “It has voluntarily turned in the wrong direction, and many drivers have made such mistakes when they hit an ice field.” It is worth mentioning that even Musk can no longer sit, and on Twitter, he not only points out the tweets from the Wall Street "Cathie Wood" that the Fed should not be concerned with inflation but with deflation, but also makes a direct comment: “0.25% interest reduction”. If the Fed continues to raise interest rates, the recession could be quite serious. It is worth noting that, although this increase in interest rates has raised the federal fund interest rate to its highest level since the beginning of 2008, the Federal Reserve does not appear to have intended to slow the rate increase. Policymakers such as Powell suggest that interest rates are expected to increase further by up to 4.6 per cent in 2023, well above what was previously expected in June. For the Fed's forecast, the founder of the two-line capital, the “New Debtor” Gonzála, said, “I don't think they can do this, and if the Fed continues to raise interest rates, the recession could be quite serious.” According to González, monetary policy has a lag effect, and the Fed should have acted earlier. “After some time since we tightened our policies, the effects of these policies will gradually become economic recession, and I do believe that the Fed should slow down the rate of interest increase.” According to González, the yield curve inverted is warning that the economy is in trouble. After the Federal Reserve announced its interest rate decision, the US government’s two-year-to-ten-year yield curve increased, with a negative 50 basis point spread. According to González, the Fed's insistence on a 2 per cent inflation target could lead to an increase in unemployment and a recession in the economy. “I think the 2023 recession is very likely. I mean, I think there's a 75 per cent chance.” Some analyses also suggest that, while Powell has not said that the United States is going to fall into recession, the Federal Reserve expects unemployment to rise by 0.6 to 4.4 per cent next year. Historically, the United States has never avoided recession in the face of such an increase in unemployment. The Forum was supported by the leading strategic collaboration of the Orient flagship MPV HongqiHQ9 and by academic institutions such as the National Laboratory for Finance and Development, the Chinese University of Hong Kong (Hin Shenzhen), the Shanghai Higher Institute of Finance, the Drook Institute of Management, the Lyon School of Commerce and Industry of France, as well as by the International Forum's initiative to designate a wine ceremonial ceremonial ceremonial ceremonial acre. At the same time, media institutions such as the China Foundation, the Star Island News Group, the Hong Kong Grand Duchess Media Group, the Ming newspaper, the Hong Kong Business Journal, the Asia Weekly, and the Purple Magazine are invited to cooperate. The impact of the Fed's interest increase

Note: This is a translated version of the Chinese news media article. A mature and nuanced reading is suggested.

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