The darkness before dawn is always the most perilous. The bottom line is always meant to be broken, and expectations are meant to be shattered. While everyone's attention was focused on the tariffs on electric vehicles between China and Europe, the Federal Reserve suddenly made a U-turn, not only indicating that expectations for future interest rate cuts should be lowered, but also with some economists stating that the United States will not cut interest rates this year.

As the Federal Reserve changed its expectations, the yen plummeted, breaking through 160 to reach its lowest point since 1987, and the offshore renminbi also once fell below 7.3. Has the second round of American harvesting begun? Is the Asian currency defense war about to be fought again?

The sharp drop in the yen and the renminbi's fall

Technology wars, trade wars, and military games are actually all paving the way for America's financial war. In order to harvest in this way, the United States has prepared for three to four years, and today the United States finally shows its fangs and is about to start.

It was thought that the United States would choose the latter, that is, gradually start the interest rate reduction cycle, gradually dilute the dollar in the game, and thus dilute its own debt. Because everyone knows that the United States is now at the end of its strength, although it is still strong, it has gambled everything. If it fails, what the United States faces is not as simple as retreating to America.

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However, unexpectedly, the United States has broken the routine this time and is no longer playing by the rules. First, the interest rate hike cycle in the United States is longer than before, and this time the speed of the interest rate hike is faster than before. The result is that the United States is drawing water more vigorously, and the global liquidity crisis is more severe.

Moreover, in order to fight against this crisis, in fact, countries have already been prepared, but what was unexpected was that the Federal Reserve, which was still shouting about interest rate cuts in June and three to four interest rate cuts in the future, has now become more hawkish than ever before.

Moreover, in recent days, there have been Federal Reserve governors who have stood up and stated that the possibility of interest rate cuts this year has directly changed from one or two times to no interest rate cuts, which also means that the United States will continue to maintain a high interest rate status.At the same time as the Federal Reserve's statement, Asian currencies have ushered in a storm, that is, the yen has once again depreciated, and this depreciation has broken through the previous bottom line of 160, directly reaching around 160.5, and the yen has also set a new low since 1985.

While the yen is setting a new low, the offshore renminbi market has also experienced fluctuations, with the offshore renminbi directly breaking through the 7.3 mark. Although it eventually recovered its losses, this also foreshadows that the financial storm is coming.

At the same time as the yen sets a new low, the won is not idle either, but joins many Asian currencies in the depreciation channel, reaching around 1395. It is important to know that the previous position of the won was around 1400, and now it has fallen to a low point, all of which indicates that the United States still focuses on Asia for harvesting.

It is important to know that while the United States maintains high interest rates, Canada and Europe are preparing to lower interest rates. We all know that the purpose of lowering interest rates is self-rescue. Although there will be capital outflows, it will not lead to debt defaults and ultimately a hard landing.

However, the United States has performed a reverse operation on Japan. Japan has insisted on not raising interest rates and maintaining negative interest rates at the beginning of the U.S. interest rate hike, even with domestic inflation, Japan has not changed its policy. However, since last year, the Bank of Japan has suddenly changed its policy and acted in the opposite direction to the global trend.

It is important to know that today's Japanese economy is not good, especially in the past two years. Although the Japanese exchange rate has been depreciating, the yen has fallen from around 105 to the current 160, but Japan's trade often shows a deficit. That is to say, Japan is now facing imported inflation while also facing export difficulties.

In this situation, shouldn't Japan hold onto its domestic manufacturing enterprises more? However, Japan has chosen to raise interest rates while bearing a debt ratio of 250% of GDP. Raising interest rates has not only failed to save Japan's exchange rate but has also led to a continuous decline in the exchange rate. It can be said that Japan's current operations are tantamount to suicide.

But are Japan's current operations what Japan itself wants? In fact, it is not, but arranged by the United States. Because last year, the United States used its special investigation department in Japan to carry out a major blood transfusion among Japanese high-level officials. After that, the Bank of Japan quickly turned around and started raising interest rates. It can be said without any politeness that Japan is just the cost of the United States' harvest this time, and all the crises have just begun.

Financial warfare has started again.Japan's predicament is not the end of everything, but rather the beginning of this harvest. Everyone believes that the United States will not be able to withstand the pressure and will eventually choose to lower interest rates. However, more information is now changing this expectation, indicating that the United States wants to trigger this crisis through Japan.

In the past, Japan was the United States' proxy in Asia, serving as a bridgehead for the U.S. in the region. Today, Japan has become a minefield for the United States in Asia. As long as Japan is detonated, its status as the world's fourth-largest economy is powerful enough to blast open the doors of Asian countries, or at least put neighboring nations in danger.

This is exactly what the United States wants. The U.S. has always wanted to replicate the Russia-Ukraine conflict in our vicinity, but so far, no country has dared to get involved, which is very frustrating for the United States. After all, time is not on America's side.

The soaring debt and fiscal deficits in the United States are signaling that the country must engage in a quick decisive battle; the longer it drags on, the more disadvantageous it is for the U.S. After a series of futile efforts, the United States might choose to detonate Japan, this financial nuclear bomb. After all, Japan's trade and economic ties have penetrated many Asian countries for a long time.

Moreover, Japan plays a pivotal role in both finance and trade. Detonating Japan could trigger a Southeast Asian crisis, potentially replicating the financial turmoil of 1997. The United States is well aware that the stability of Asian countries today is due to their reliance on China, a formidable power.

To impact us, a heavyweight catalyst is needed. Other smaller countries do not pose a threat to us; only nations like Japan can inflict severe damage. Therefore, this might be the reason why the United States continues to maintain high interest rates and allows Japan to raise rates as well.

The recent plummet of the yen might just be the United States recouping the interest on its past investments. Once the U.S. has squeezed all the profits out of Japan, it is not impossible for America to abandon Japan. After all, the United States has not hesitated to forsake allies in the past, and if not today, there may not be an opportunity tomorrow, as everyone is waiting for the decline of the United States.

For us, it is even more crucial not to let our guard down now. Although elections can influence U.S. policy, there does not seem to be any change on the horizon. We cannot predict the United States based on positive expectations, as the U.S. has reached a point of desperation where it is willing to fight to the bitter end.