Introduction

As the third quarter sweeps across the globe, various countries are conducting their own assessments, and the United States is also revealing its current situation. A few days ago, the Federal Reserve created another pitfall, and for a while, news about the Federal Reserve's financial losses became viral on Weibo, with many people surprised that the losses reached 200 billion US dollars.

So, who exactly is the Federal Reserve, and why did it experience a loss of 200 billion US dollars?

Reasons for the Federal Reserve's Money Counter Losses.

In 2018, the Federal Reserve held long-term government bonds totaling 4178 billion US dollars, including a large amount of US debt. The so-called US debt refers to government bonds, which are essentially a type of loan bonds issued by the United States during its currency issuance.

When the United States raises funds, countries around the world will invest, and funds, governments, or enterprises will also make purchases. The most common method is to buy government bonds, and US government bonds are a nominal type of bond.

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They are not really bonds in the true sense; rather, they are more of an investment form. This is due to the United States' consistent strength, with its inflation rate remaining very low over time. This means that when the principal is returned after several years, there will be no loss.

Among these, the American people will also purchase US debt, and people from other countries and regions will also buy US debt.

So, how much exactly was the loss?This may have to go back to the root of the current phenomenon, which is the issue of the United States raising interest rates.

In February, the unemployment rate in the United States performed very well, and many people would see this as an improvement in the U.S. economy, but is this really the case?

Let's first look at the unemployment rate.

During the period of the "sharp decline" in the unemployment rate, the reasons behind it are very complex. One part is that the United States is forcing companies to raise wages, allowing companies' funds to circulate domestically in the United States, and bringing back funds into foreign production enterprises.

It can also allow some people with financial capabilities to flow into the United States, driving the U.S. economy.

Therefore, the United States regards the unemployment rate as the first element to promote its country's economic advantages.

But in fact, since the last economic crisis, the global economic situation has not returned to the pre-crisis state, so now it seems that the United States says its economy is improving, which is not only not a fact, but also a boast.

The Federal Reserve will also blow out a "low inflation rate" out of thin air, and the unemployment rate can also be relatively stable in terms of regulatory policies.

In this case, the Federal Reserve only reduces the unemployment rate through policies, while China will reduce the unemployment rate on one hand and regulate the production of enterprises on the other.

This is also to prevent the occurrence of economic crises and comprehensively improve the country's economic development capabilities.However, the United States is different; it has been reducing unemployment rates while continuously printing money and issuing Treasury bonds.

Although such methods can enhance the competitiveness of domestic American manufacturing enterprises and encourage more people to work in the United States, thereby increasing economic contributions, they leave significant hidden dangers in terms of policy.

To enable people in society to consume more, the United States has even held "tempting" events.

Under various stimuli, the standard of living for the American people has not improved; instead, it has become increasingly impoverished.

The American economy is facing a crisis.

The United States' debt and expenditure ratios have been continuously expanding, which has also led to a gradual loss of control over its fiscal policies.

Therefore, while the Federal Reserve is curbing China's economic development, it is also reducing its own debt, which is a double-edged sword.

This has also revealed the White House's intentions, and under these intentions, the Federal Reserve has sold off Treasury bonds.

The reason for the Federal Reserve's losses this time is the continuous interest rate hikes that have led to a constant decrease in the value of long-term Treasury bonds, ultimately resulting in such a huge loss.

After the losses, the Federal Reserve faces a dilemma: on one hand, it has to increase debt, and on the other hand, it must reduce expenditures.Regardless of which of these two strategies is chosen, it will have a negative impact on the U.S. economy. For a variety of reasons, the United States' behavior of feigning death has reached a state of perpetuity. Those deceived by the American Empire's feigned death are not only China but also Americans themselves, including the American people. Moreover, the recent pandemic has proven some directions: that while the American Empire deals with the economic conditions of other countries, its own economic problems will erupt. Facing the pandemic, the U.S. even had to resort to borrowing, undermining its reputation that has been built over nearly two hundred years since its inception. In a state of complete chaos, the U.S. strategy of deception and lies can no longer cope with the pandemic. In the days to come, the U.S. economic problems will gradually emerge. The Federal Reserve has lost 20 billion U.S. dollars this time, which may require a reduction in interest rates. While lowering interest rates, the U.S. or the Federal Reserve will face new problems: the U.S. dollar faces the risk of devaluation, and it will also have a huge impact on the world. The U.S. government or the Federal Reserve will have to take measures to deal with the increase in U.S. debt, which in turn could lead to a financial collapse in the United States.Faced with a new crisis, the Federal Reserve may intervene, and as a result, money will be spent.

The financial and economic systems of the United States will become fragile, with capital outflows and uncertainty in the domestic financial market.

In the face of such a crisis, the U.S. economy will become more vulnerable, and once the economic bubble in the United States bursts, it will have an impact on the global economy.

The Federal Reserve's losses could trigger a global crisis.

The United States can stand at the top of the world, based on financial hegemony.

The financial market exposes its vulnerability, and once a crisis strikes, the financial market will undergo tremendous changes.

In the previous financial crisis, the stock market became the "sacrificial lamb" without any suspense, but in the global internet industry, the stock market is also a place where heroes have no place to use their skills.

When the U.S. economy tends to stabilize, there is still a certain bubble in the capital market within the U.S. financial system.

After the U.S. economy reaches its peak, the financial market will move to the edge of the bubble, and most people are chasing the bubble, but not everyone can compete for the bubble.

In this situation, many dangerous factors emerge, leading to an economic crisis.Conclusion

Following the losses incurred by the Federal Reserve, global investors may contemplate that the United States' economy and financial markets pose significant risks.

Under this global mindset, substantial fluctuations will arise in the global market, which could serve as the catalyst for an American economic crisis.

The turmoil within the global economic system will continue to escalate.

As the pandemic unfolds, countries worldwide are adjusting, with economic development relying on tangible progress rather than bubbles. China's economic resilience is further strengthened, making its market the most attractive, drawing more capital into the Chinese market.

In the global financial market, the status of the US dollar is being challenged, and the trend of global de-dollarization will accelerate. Our country and others must work together to create a more diversified international monetary system to reduce reliance on the US dollar.

In the face of the ever-changing global economic system, international cooperation will increase in the future. Countries should be more adaptable to future situations and work together to maintain global economic stability.