According to the usual experience, after the Fed raised interest rates on a large scale. Dollars will flow back to the United States. After all, the income in America is higher. On the other hand, because the interest rate has increased, the cost of holding funds has increased. Those who buy stocks with bank loans in the market think that the return on investment in the stock market and the capital market is not so high, and only those stocks are not cost-effective, so they will sell stocks and the stock market will fall.
After the stock market falls, the income of many rich people falls. Once the income falls, the consumption will decrease. Once the consumption of purchasing power in a big country like the rich is reduced, the money for buying things in the market is reduced, and the money for buying things is reduced, so is inflation. Then the dollar should have flowed back to American banks or bought dollar bonds on a large scale.
Usually, the way the United States harvests the world is when Bank of America and Treasury bonds have huge assets. Elsewhere, the recession caused by the outflow of dollars led to the economic crisis. Stock markets in other countries may collapse, and many enterprises in other countries may close down. At this time, the US dollar made a big attack and seized the opportunity to buy the assets of the closed enterprises and closed countries, thus making a big profit.
However, after the Fed raised interest rates this time, China, Japan, Europe and other countries did the opposite, selling American debt. After selling American debt, grab it before the dollar accumulates to a certain extent. Inject capital into places where the economy should be declining. In this case, the foreign dollars bought by the Federal Reserve after raising interest rates and received by American banks are almost equal to the US debt reduced by Japan and other countries, that is, the actual outflow of dollars.
Moreover, when Americans want to harvest the cheap assets of other countries, they have been preempted by other countries such as Japan and invested in the acquisition. Of course, in this process, the US stock market will still fall, so the logic of reducing inflation still exists.
There are other netizens' opinions: world scholars once said that as long as all the money printed by Biden is spent in the United States, or one-tenth of the world's dollars flow back to the United States, inflation in the old United States will kill him! Be the next Zimbabwe! Russia has become a global dollarization in the battlefield of Ukraine, accelerating the return of the dollar. America has now become a medical emergency!
First, the appreciation of the US dollar is essentially the depreciation of Ming Sheng. In the case of high inflation in the United States, equivalent materials can't be bought at all! Second, the dollar raised interest rates, but the inflation in the United States, the interest he increased simply could not make up for the loss of inflation. Therefore, the rich in the United States will not necessarily stop buying dollar assets to preserve their value. The more they buy assets to preserve their value, the more dollars they throw out. There is nothing America can do!
Look at the global dollarization and the return of the dollar, adding fuel to the inflation of the old America. The more money, the less materials. At the same time, the world began to trade in local currency, and it was easier for dollars to go back, but harder to come back! Look what will happen in America!