In the financial market, the exchange rate of the US dollar will fall as fast as it rose in the beginning. Foreign funds that have poured into the US market for huge speculative profits will naturally flee in the face of the "fall" and quickly withdraw from the US financial market. The consequences of this are serious. The huge changes in the financial market will cause the US economy to quickly decline and the overall economy to shrink severely. This is the terrible thing about the "big cycle". Starting from revitalization, it returns to a state of non-revitalization or even recession due to excessive stimulation.
In Soros' words, in the current market, investors are worried that the increase in money supply in the financial market will cause the economy to overheat, and that higher interest rates will cause the economy to cool down rapidly. Therefore, stocks affected by low interest rate policies are ignored, and stocks stimulated by Reagan's economic policies are favored. This is a very dangerous market trend. In fact, the economic outlook driven by Reagan's policies is not optimistic. The US dollar has risen too much and will inevitably fall. The US Federal Reserve will raise interest rates at any time, and economic cooling is also foreseeable.
Not to mention Soros, even when talking with Cesar and the others just now, Cesar and the others clearly expressed that they were terrified by the current high level of the US dollar, not to mention those financial tycoons who specialize in financial speculation?
Everyone can see that in order to prevent the United States from falling into a terrible economic crisis due to the Reagan administration's economic stimulus plan, the Federal Reserve and the awakened US government will inevitably take action to cool down the US economy and the dollar. However, these speculative financial tycoons probably cannot guess when the Federal Reserve and the US government will take action.
But Yang Jing knew! In September 1985, which is about a month from now, the famous Plaza Accord will be officially signed...
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