2023.4.24.
http://www.mfa.gov.kp/view/article/16877
In March, the Silicon Valley Bank and the Signature Bank in the United States went belly up one after another in a mere 2 days.
This led to a slump in the price of stocks and bonds on a worldwide scale and caused panic in the international community and financial world, reminding them of the global financial crisis in 2008.
Experts commented that its cause lies in the measures of the U.S. financial authority to rapidly increase the official interest rate as well as in the unsophisticated treasury management by the banks.
Then what is the root cause of such radical measure and the unsophisticated treasury management?
To recover from economic stagnation caused by financial crisis, the U.S. has adopted a financial policy of appeasement on an extensive scale since 2008, while lowering the official interest rate in a sustained manner.
With the exacerbation of economic situation in the wake of the global health crisis in 2020, the U.S. government began to pursue an extreme financial policy of appeasement, over-issuing trillions of U.S. dollar banknotes by concocting various kinds of laws once again, and lowering the official interest rate to 0~0.5%.
As a result, the whole socio-economic sector was faced with a more serious crisis in the vortex of uncontrollable inflation.
And they found its solution in hasty measures of raising the official interest rate, but it only generated a grave situation where banks that put their entire assets into financial venture, went bankrupt due to financial difficulties.
Such financial crises are regularly created in the U.S.
It is all attributable to the U.S. financial system which promotes the pursuit of maximum profits, unlimited liberalism and the violent law of the jungle by representing only the interests of few monopolistic capitalists.
This has inevitably made all the resources and funds be channeled into the wild financial speculation instead of creating social wealth. Unrestricted financial entities are incapable of balanced management of treasury as they are tempted to make easy money.
The root cause of this incident also lies in here.
It is crystal clear that the chaotic and contradictory financial system of the U.S. will only fuel economic crisis and social inequality with an eventual result of bringing an end to its own existence.
It is not coincidental that many countries in the world are more geared to reduce their dependence on dollar.
Nevertheless, the U.S. is given to all sorts of arbitrariness and high-handedness, wielding its stick of financial sanctions in every part of the world. But it only causes the acceleration of movement for rejecting the U.S. dollar. The U.S. is indeed digging its own grave.
Taking this opportunity, the international community saw once again the true colors of the U.S. financial system and the US dollar and got a clear understanding that the dependence on the U.S. dollar means its own self-destruction.
