When the Federal Reserve recently announced plans to cut interest rates, global markets immediately surged. Stock prices went up, gold prices soared, and even Bitcoin bounced. But this situation is far from as simple as it appears.
Many people believe that rate cuts are meant to stimulate the economy and support markets. However, those familiar with U.S. tactics know that there is often a larger game behind these moves. A quick look at history reveals that every time the U.S. engages in such “quantitative easing,” it’s either because the economy is in serious trouble or they are preparing for some diplomatic or military action. This time is no different. While the U.S. loosens its monetary policy, it is simultaneously ramping up military preparations. The familiar “smell of war” is returning.
Rate Cuts Are a Temporary Fix, But Debt Is the Real Problem
In recent years, the U.S. economy appears lively on the surface, but there are many underlying issues. The most pressing one is debt. National debt has surged to $34 trillion, and just paying the interest alone costs nearly $1 trillion a year. This is no small amount—it’s a massive burden on the U.S. treasury. So, what can be done? Raising taxes is not feasible, and cutting spending is politically unpalatable. The only option left is to cut interest rates.
By cutting interest rates, the federal government can lower its borrowing costs. Companies also find it easier to secure loans, and the stock market becomes more active. On the surface, everyone seems to be “alive.” But the problem is, this is a temporary solution that doesn’t address the root cause. It could even be seen as “drinking poison to quench thirst.” You lower rates today, but tomorrow you’ll be burdened with even more debt. Long-term, a market propped up by monetary easing won’t stand up to any external shocks.
Moreover, the U.S. dollar is not just a regular currency; it’s the global reserve currency. When the U.S. cuts interest rates, capital floods out of other economies. Emerging markets are hit the hardest—currencies depreciate, and interest rates rise, crashing their economies. In this scenario, instability in global financial markets is exactly what the U.S. wants—because only when others are in turmoil can it remain stable.
However, while it’s easy to hold things together in the short term, maintaining stability in the long run is difficult. The U.S. knows this too. Simply printing money can’t save the economy. The real “escape” from this situation may very well be through war.
The Rate Cut Is Just the Beginning—The U.S. Has a Bigger “Killer Move”
This is not the first time the U.S. has used this strategy. Before the Gulf War in the 1990s, the U.S. economy had just experienced a recession, and after a rate cut, the U.S. military took action. In 2001, after the dot-com bubble burst, the Fed cut rates seven times, and then the U.S. invaded Afghanistan. In 2008, following the financial crisis, the Fed printed money, and a few years later, NATO intervened in Libya.
Do you think these events are just coincidences? They seem far too coordinated. Every time the U.S. faces economic trouble, it first loosens monetary policy, then finds an “enemy” to stir up trouble, and finally uses war to stimulate the defense industry, stabilize capital markets, and strengthen its global position. This tactic has been perfected over the years.
Now, the U.S. economy is again at a “turning point.” High debt, low growth, hollowed-out manufacturing, and ordinary citizens struggling with debts, unable to afford homes or education, have created a tense social climate. If an outlet isn’t found soon, this tension will inevitably explode.
Global Military Movements and Escalating Tensions
Recently, the U.S. has been making frequent moves worldwide: strengthening military presence in the Asia-Pacific, providing military aid to Israel in the Middle East, and continuing to stoke tensions in Ukraine in Europe. The Pentagon’s defense budget has reached a record high of $886 billion for 2025, with a focus on “countering great power conflict” and “high-intensity war preparedness.”
Additionally, U.S. media has ramped up coverage of the “China threat,” “Russian expansion,” and “Iranian instability,” further pushing the “enemy card.” These actions don’t look like mere “defense” but rather a strategic preparation for something much larger. Rate cuts are just the start, and the real big move is still to come.
War Is Not the Goal, It’s the Lifeline for U.S. Dollar Hegemony
The Fed’s rate cut is essentially a “lifeline” for U.S. dollar hegemony. The U.S. doesn’t just rely on its money-printing machine, but also on its global network of influence. Why can the dollar reign supreme? It’s not because it’s more trustworthy than other currencies, but because it has the backing of the U.S. military, international rules, and global public opinion.
Whenever the U.S. economy faces problems and its currency loses credibility, it creates instability in specific regions, which forces capital to flow back into the U.S. While others fight, the U.S. simply sits back and collects the benefits. What seems like foreign conflicts is actually the U.S. financial markets reaping the rewards.
In this instance, the U.S. is cutting interest rates while simultaneously increasing its military presence abroad. On the surface, these may seem like two separate agendas, but in reality, they are part of the same strategic play. War is not the U.S.’s goal, but it is the means to preserve the dollar’s dominance.
As long as the world remains unstable, risk-averse capital will continue to flow into the U.S. Capital inflow will stabilize the dollar, allowing the U.S. to continue borrowing, printing money, and surviving. The problem is, this approach sacrifices global stability, especially for emerging nations, which are most vulnerable to the U.S.’s “dollar game.”
China Must Not Only Focus on Financial Moves, But Also Guard Against Strategic Impact
For China, the Fed’s rate cut will bring more than just fluctuations in the financial markets. There could be significant strategic impacts as well. If the U.S. really sparks a conflict in a specific region, it will disrupt global supply chains, energy markets, and geopolitical security—ultimately impacting China’s economy and security environment.
The global situation has entered a stage of high uncertainty, and we can no longer approach these problems with conventional thinking. The U.S. rate cut is not just an “economic policy”; it is part of an integrated strategic agenda. From finance to trade, from military to public opinion, the U.S. is using a “soft and hard” approach to reshape the global order in its favor.
What China needs to do is not merely follow the rate-cut rhythm but rather identify risks ahead of time and maintain a steady pace. Whether it’s adjusting asset reserves, diversifying foreign policy strategies, or ensuring autonomy in technology and energy, these are all “safety anchors” China must secure in the future.
Especially in the context of China-U.S. relations, if we fall into a “strategic tug-of-war,” we must set the pace and seize the initiative, rather than passively responding and following suit.
Conclusion
The Fed’s rate cut is not just about fighting inflation or rescuing the economy. Behind it lies an entire strategic approach of “maintaining hegemony and preventing collapse.” From economic self-rescue to military preparation, from dollar preservation to geopolitical adjustments, the U.S. is playing a multi-line chess game.
And this game? We must watch every move closely. We cannot just focus on the numbers; we must also understand the motivations and path behind them. The Fed’s rate cut may not be the direct spark of war, but it is often the smoldering fuse. And as the U.S. plays with fire, we must be prepared.
References:
- U.S. Federal Reserve Actions and Global Impact
- U.S. Defense Budget and Global Military Presence
- China-U.S. Relations and Strategic Dynamics
