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Fed Continues Rate Cuts Amid Growing Dollar Abandonment by Nations

Three "financial dramas" are currently unfolding, with the Federal Reserve caught in a dilemma and the global de-dollarization accelerating!

Have you ever wondered why the Federal Reserve sometimes talks about raising interest rates and at other times lowering them? Why does the US Dollar Index rise, yet gold and silver prices do not fall but instead rise? What financial secrets are hidden behind these seemingly contradictory phenomena?

Today, let's unveil the mysteries and examine the three "big plays" happening in the global financial market.

Act One: The Federal Reserve's "Interest Rate Cut" Dilemma

Recently, Federal Reserve Vice Chairman Jefferson dropped a bombshell: the Federal Reserve may cut interest rates again in November and December. This has surprised many people - isn't the US economy doing well? Why suddenly cut interest rates?

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In fact, there are unspeakable difficulties involved. The Federal Reserve is now like a tightrope walker - caught between a rock and a hard place, facing a dilemma.

On one hand, the US economic data indeed looks good. The job market remains strong, and inflation is gradually falling. Under normal circumstances, high interest rates should be maintained, or even interest rate hikes should be considered.

On the other hand, the Federal Reserve has to consider lowering interest rates. Why? Because the US is facing a big problem - capital outflow. High interest rates can attract capital, but they also put tremendous pressure on the economy. Many investors have started moving their funds to other countries in search of better investment opportunities.

This has put the Federal Reserve in a dilemma: to control inflation and prevent large-scale capital outflow. Under these circumstances, interest rate cuts seem to be the only option.Some friends might ask: Why not continue to raise interest rates to attract capital backflow?

Well, it's like drilling new holes in a leaking boat. Although raising interest rates can attract capital in the short term, it will further increase the economic burden and may even accelerate capital outflow. The Federal Reserve is now like a tightrope walker, who must be very cautious with every step.

Act II: The Dollar's "Masquerade Ball"

The next scene is even more interesting. We see that the US dollar index is rising, but the prices of gold and silver are not falling but rising. What's going on here?

It's like a "masquerade ball". The dollar seems strong, but in reality, it's weak. Many countries and investors have already started to quietly turn to gold, silver and other safe-haven assets. They are worried that the dollar may suddenly devalue, so they have prepared in advance.

Think about it, if you have a piece of paper money in your hand, but you think it may become waste paper at any time, what would you do? It must be to quickly exchange it for gold or other stable assets! Now in the global market, such a "quietly changing chips" game is being played.

Act III: Acceleration of Global "De-dollarization"

The last act, and the most eye-catching one - the global "de-dollarization" is accelerating.An increasing number of countries are beginning to seek independence from the influence of the US dollar. They are settling international trade in their own currencies, increasing their gold reserves, and even developing new payment systems.

Why is this happening? Simply put, no one wants to put all their eggs in one basket. The US dollar, as the global currency, grants the United States too many privileges. They can transfer inflation by printing money, which is unfair to other countries.

As we often say, "When the nest is overturned, how can the eggs remain unbroken?" If the US dollar really encounters problems, the entire world economy will be affected. Therefore, many countries are now preparing in advance, seeking a more diversified monetary system.

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