When most market participants analyzed the Fed’s decision, they generally believed that the U.S. monetary policy was only a signal of a turnaround, but no real change occurred, because the federal benchmark interest rate and QE policy remained unchanged, while the excess reserve interest rate and overnight reversal The 5 basis point increase in the repurchase rate is nothing but a technical adjustment.

“However, judging from the actual effect, this technical adjustment has actually played a role in raising interest rates.” In the “Interpretation of How the Fed’s Interest Rate Meeting Understands the Tightening Signals” in the 172nd issue of the Hong Academy Micro Class on June 19, Song Hongbing said After the Fed raised the “ceiling” and “floor” interest rates, it was tantamount to raising the monetary policy interest rate by 4 basis points. This is a tangible increase in interest rates and simultaneously raised interest rates in all money markets.

The excess reserve interest rate is the ceiling interest rate, and the overnight reverse repurchase is the floor interest rate. As the core interest rate of monetary policy-the federal benchmark interest rate, it is suspended between the ceiling and the floor. For example, the current benchmark interest rate range is 0-0.25%, and the Fed’s expected target value is 0.1% between the two.

When the floor rate (overnight reverse repo rate) was increased from 0 to 0.05%, the repo market rate was immediately increased to 0.05%. why?

Because all those who have money and want to lend can lend money to the Federal Reserve and get Treasury bonds as collateral. There is no risk at all and a steady profit of 5 basis points. In the repo market, any transaction below 5 basis points cannot be done. This is the role of the overnight reverse repo rate as the “floor” rate. At the same time, the yield of short-term treasury bonds also rose immediately. For example, the yield of 3-month treasury bonds is often as low as 0.01% to 0.025%. After the local board interest rate rises by 5 basis points, the yield of 3-month treasury bonds immediately rises to 0.038%, which is 3 The highest value since the month.

At present, interest rates in several money markets have gone up across the board, and eventually the federal funds rate, the most important monetary policy rate, immediately jumped from 0.06% to 0.1%.

“For this reason, the Fed is currently turning itself into a’super pump’.” Song Hongbing said that while the Fed was forced to “release water,” it was also being forced to “pump water.” This self-contradictory approach will cause a huge financial idling and will greatly push up inflation.

According to current data calculations, the Fed will continue to inject about US$120 billion in liquidity into the financial market every month before reducing debt purchases. In addition, the U.S. Treasury Department has $765 billion in cash in the Fed’s checking account. According to the plan of Secretary of the Treasury Yellen, it should be reduced to the level of 500 billion US dollars by the end of June, which means that another 265 billion US dollars of “flood” will flood the financial markets. Although this plan may be slowed down to the second half of the year to be implemented, but in the next six months, there will be about a trillion dollars of currency floods that need to be discharged.

Considering that part of the funds may flow into the overseas US dollar market and the other part into the real economy, Song Hongbing predicts that there may be a flood of US$500 billion in the currency market before the end of the year. In addition, there are also the funding variables of “Two Housing” (Fannie Mae and Freddie Mac, two federal mortgage financing companies with government properties). Therefore, the scale of overnight reverse repurchase may continue to rise, and it may be a high probability event to exceed 1 trillion US dollars in the second half of the year, and it is estimated to be close to 1.3 trillion or even higher by the end of the year.

However, we know that all positive feedback systems are difficult to sustain, because it will require more and more external energy injection, and the scale will become larger and the speed will become more and more fierce. When the outside world cannot meet this energy demand, it will eventually become Self implosion is the end.

When short-term interest rates continue to approach and impact the red line of negative interest rates, the phenomenon that the extremes of things must be reversed will naturally occur. This is the sudden increase in the scale of the overnight reverse repurchase. The time is at the end of March this year. After April, the volume began to rise, and in May it entered a state of soaring. After June, it began to soar.

If QE money printing is to release water, then overnight reverse repurchase is a super pump. While the Fed is working hard to release water, the other side is desperately pumping water. The U.S. dollar flows out of the Fed and stays on the accounts of primary dealers and major banks for a while. The balance sheet has reached its limit, and these currency floods immediately overflowed onto the balance sheet of money market funds. However, due to the asset famine, these currency floods have nowhere to go. In the end, they can only flow back to the Federal Reserve through reverse repurchase overnight. This kind of idling of economically worthless funds has no meaning other than leaving Wall Street empty. . The point is, can this water-pumping currency game last forever? Can this positive feedback system work indefinitely? If it can operate indefinitely, this will be a state where Wall Street’s incomparably wonderful dreams come true. Stocks will always rise, financial assets will appreciate infinitely, and money will be made soft. This hearing violates the law of conservation of energy. The “blind spot” of this game mechanism is inflation. Logically speaking, if “water-pumping” continues to operate, and becomes faster and larger in scale, all money will be made by Wall Street, and the world’s wealth cake will eventually go to Wall Street. Theoretically speaking, it is impossible for currency to seal idling in the financial market. Whether it is stocks or national debt, the person who gets the money will spend it. If there is too much money and things cannot be bought, prices will naturally rise. Severe inflation will force the central bank to raise interest rates, thereby disrupting the operation of the positive feedback system. While being forced to constantly “release water”, while being forced to “pump water” continuously. This self-contradictory approach is brewing a bigger crisis

The average height of the Truong Son is 2,000 m, with many heights of over 2,500 m like a wall of citadel in the western border of the S-shaped strip of land. Throughout its length the Truong Son meanders and at times it seems that it wants to come close to the East Sea leaving only a thin strip of plain like rice leaves and the thinnest place is Quang Binh. Sticking to that thin strip of plain, the roads through Vietnam were easily blocked by the US air force. Therefore, in order to bring soldiers and goods to the South of the transport roads of the 559 line, it was compulsory to go round to Laos. But in order to get to Laos, people had to cross the top of Truong Son. Heaven Gate is one of those streets. Heaven Gate – surely it must be very tall to have that name “arrogant”. Standing at the bottom of the slope, looking up could not see the top, only seeing the mountain pass. Its ascending dimension alone was nearly 30 km. Heaven Gate is also known by another name – that is Monkey Pass – probably because it is too craggy and dangerous, only descendants of Emperor Sun Wukong live and pass here (?). Heard that there were many wheelchairs down the cliff from a height of thousands of meters. Heaven Gate is also known as “Bag Bom” because tens of kilometers of passes are the focus of the attack of the US Air Force, the road is unique and dangerous, when being beaten, it is impossible to avoid where to go. It is said that there are dozens of air raids of all types of aircraft, including the B-52s. I don’t know how bad the reality is, but looking up, I only see the sores like the stone age … I just heard it, I’ve seen it creepy. […] 17 o’clock. Mountain mist has spread to the table. In the sky the marker had flown south and disappeared. Company leader Than gave the order to set off. The sky darkened, the more difficult the way to go: The towering cliffs seemed to just collapse on the road, below is the abyss. The road is narrow, just two tank chains, there is a place where the borrowed land has been raked up and rushed down the cliff, the bends of the sleeves also appear more and more. The driver’s back of the shirt was wet with sweat, eyes strained to look at the road, both hands tugged the steering wheel continuously, then shifted gear, downshift. Binh muttered: – The road with nothing but only cows number 1, number 2 like this. Unexpectedly, company leader Than heard him, he reminded: – Just keep up the speed. Remember to stick close to me on narrow roads. About an hour away an almost upside-down slope appeared, again tied up like a bottleneck and folding crabs. Carefully ordered to stop the car for everyone to get off, he used a flashlight to signal behind to let the cars know, then got off the bus and asked Binh: – What is the temperature of the cooling water and oil? Binh looked down at the dashboard and said: – It’s all up a hundred degrees, but I guess I can still walk. – Then keep going. I’ll walk in the middle of the road, just look at my white shirt. Carefully take off the jacket and throw it in the driver’s door for Binh. Answer: – Yes! In front of Hien with Tinh, Dat, Trang is walking. Page carried a stone, his mouth said: – See if this is deep! Saying that he rolled the stone down, one stone dragged the other rock and hurled endlessly. Page stick out tongue: – Must be a few hundred meters, not a few. Show: – According to my estimate, this place is only about three hundred meters high. Haven’t eaten yet, this peak should at least be over a thousand meters. They both shook their heads and stuck out their tongues. Behind, according to the shadow of the company captain, Binh tried to keep the car right in the middle of the road, he was always sticking with him, so the mud shield sometimes bumped into the cliff and hit “uỳnh” once. Binh estimated that the slope should be approximately 30 degrees, it is impossible to go number one but the engine temperature roars (!). When the walking wing reached the top of that narrow slope, the tank just crawled to the middle, the teachers and students sat and rested for the car to arrive. It took three times to get off the bus to walk to the top of the slope. Strangely enough, thinking that the top of the slope had to be very choppy, it turned out to be a fairly flat and spacious road. The line-up of cars snuggled up on the edge of the road for a break and checked the technique to prepare to go downhill. Trang and Dat pulled each other to the edge of the road to look down, but saw nothing but a cloud, they rolled on a stone but only saw the same as last time, did not know where the bottom was. It turns out that the previous images of the downward direction of Heaven Gate were completely wrong. Everyone thinks that the slope is so steep, so dangerous, its downward direction must be “relative”. But not! The Heaven Gate slope in the West Truong Son is quite pleasant compared to the eastern half, it is gentle and short, probably at the foot of the slope is a plateau with an altitude of several hundred meters above sea level. Over the top of the slope a few kilometers, the front station was already on the way to enter the army camp. To enter the army camp today, we had to follow a stream. It is the dry season, so the stream has little water, the stream bed has different large and small shiny black rocks lying around. It was almost morning, everyone wanted to quickly hide the car. […] All about the vehicles quickly dissipated. The sound of an engine let out for a moment, then the silence returned the stillness of the forest. It was just morning too.

Road 20 Quyet Victory begins at milestone 0 in the South of Xuan Son ferry, Son Trach commune, Bo Trach district, Quang Binh, crosses the top of Truong Son at parallel 17020 at km65 of the Vietnam-Laos border. When passing Lung Bang, the road 128 meets the shortened section connecting to Road 9, which is a focal point in the legendary HCM highway system. At exactly 17:00 on the 30th of the Lunar New Year of the Horse, 1966 the first explosion that opened the way was exploded. With more than 8,000 TNXP soldiers with a fleet of vehicles, engines and mines, breaking the completed road at a record speed, clearing the traffic on April 27, 1966. The road was named Duong 20 Quyet Victory because most of the officers and soldiers who opened the way were in their 20s. Milestone number 0 of the legendary 20 road. Photo: Xuan Nha Realizing the importance of this route, the American enemy raided them frantically. Right from Xuan Son ferry, the first point entering the road became a coordinates of fire, a bomb bag of the United States. Ferry A is Xuan Son ferry and ferry B is Nguyen Van Troi ferry located near Phong Nha cave and 4km apart, becoming two key points of fierce attack. During the day, L19 aircraft will scout and observe along the river bank. At night, C130 aircraft release parachute lights and flares all night to find targets to attack. The most severe was in May 1967, losing pain in the battlefield of the South, so the American enemy attacked more and more to cut the way for our aid. At Xuan Son ferry, they allowed aircraft to carpet bombs, drill bombs, time bombs, cluster bombs, and magnetic bombs day and night to plow to paralyze the banks. At other points on the road there was no moment of peace. The old Xuan Son ferry, now a residential ferry. Photo: Xuan Nha After a series of fierce bombs on the road, there were TNXP soldiers who rushed to patch the road for traffic for the South. Hundreds of soldiers fell in places such as: Km 0, Dong Tien slope, Tra Ang underground, Ba Thang slope, Khe Diem. In such fierce points as in the A-corner, the enemy destroyed 3,020 games (with 270 B52 matches). Following the A-line is the Ta Le underground and the Phu La Nhich pass with the length of 8km (ie the ATP key point) the enemy hit more than 10,000 times (2,450 times B52). One day, they mobilized 93 airplanes (8 B52 turns) to drop bombs on ATP. Nearly 200 officers and soldiers fell for this route to be clear. Death to clear the road In May 1967, the US imperialists sprayed bombs, making Xuan Son ferry blocked. Faced with the urgent situation of destroying the traffic bomb for the ferry terminal, Corporal Vo The Chon voluntarily opened a blood road. At 10:00 a.m. on May 16 (lunar calendar), everyone bowed their heads, wiped tears for peace for Corporal Chon during the live chorus ceremony before he stepped onto a canoe in the middle of the Son River to destroy the magnetic bomb. . The man in his 20s drove a canoe and plunged into the bombing field from the school. The canoe circled around, then two times after that there were loud explosions, ripping Son’s line with sky-high columns of water. After those loud explosions there was a silence and then all burst into the cheering applause of his comrades welcoming Corporal Chon. That brave man from Ly Hoa village has successfully completed the task. Even that night, 300 cars hurriedly passed the ferry in time to reach the South. Trang Ang intersection, street 20. Photo: Xuan Nha At Km 16 + 200 on Road 20 there was not a single day to stop the roar of enemy aircraft and the sound of bombs. Nearby, km 16.5 there is a rocky cave that when the plane crashes or raids 8 girls TNXP often runs into shelter. Since then, the warrior brothers often called this cave the eight-female cave. And that same stone cave has become the cave of fate of 8 people. In the afternoon of November 14, 1972, when it was discovered that B52 was spreading carpets, 8 TNXPs from Team 163, Ban 67 were on duty on the road (including 4 boys and 4 girls) ran back to the cave to shelter. An anti-aircraft artillery platoon consisting of 5 soldiers also maneuvered the battlefield near the cave entrance to organize a counter-force. A series of crazy bombs of the American enemy crushed the road, killing the gun squad on the spot and knocking down the cave where 8 TNXPs took refuge, trapping the soldiers in the cave. Or believe that, immediately combat forces in the area all came to the rescue. knowing that the soldiers in the cave were still alive, but because the cave’s boulders were too heavy, all vehicles and tractors did not budge. The blasting plan was not accepted because the pressure of the mines would immediately kill the soldiers in the cave, revealing the target for the enemy aircraft to return to attack. Finally, the teammates had to prolong the life in the cave by bringing the milk porridge into the cave through the tunnel through the rocks. Eight harsh days, the soldiers struggled with life deprived of oxygen in the cave. On the ninth day, the people standing outside the cave entrance choked when they came out of the cave with a girl’s faint “bruise” call. Then 8 TNXPs in the cave sent greetings to life at the age of 20. They are: Tran Thi To 18 years old, Le Thi Mai 20 years old, Do Thi Loan 20 years old, Le Thi Luong 19 years old and Nguyen Van Hue 20 years old, Nguyen Van Phuong is 20 years old, Nguyen Mau Ky is 20 years old, Hoang Van Vu is 20 years old. All are from Hoang Hoa, Thanh Hoa. Historical relic of Eight-year-old cave. Photo: Xuan Nha Road 20 now runs in the heart of Phong Nha – Ke Bang world natural heritage. This road has been upgraded to become the transportation lifeline of the people of Thuong Trach and Tan Trach communes of Bo Trach district, Quang Binh. These are two communes inhabited by 5 ethnic groups including Ma koong, Sach, Muong, Ca Rai and A Rem. On this road there are two ranger stations stationed at km27 and km39 to protect the national forest of Phong Nha – Ke Bang. Currently, the road plays a very important role in the lives of ethnic minorities living on the road, but it also has enormous historical significance in a legendary road.

Ham Rong Bridge has become a symbol of brave, mighty and heroic courage of the people of Thanh. Ham Rong won the victory forever More than 56 years ago, on April 3, 1965, the US Air Force mobilized a powerful force to destroy the Ham Rong Bridge in order to cut off the arterial path of aid from the North to the Southern battlefield. Under the leadership of the Party, Thanh Hoa militia in general, Ham Rong militia in particular has steadfastly fought back the eternal attacks on the US imperialism. The first 16 US planes bombed Thanh Hoa, but less than an hour later, the fire brigade north of Ham Rong Bridge shot down the reconnaissance plane when it was about 3km from the Cao Xuyen bridge. This was the first aircraft of the American enemy that was shot down by the Ham Rong militia, opening the victory history page of Ham Rong. According to recorded documents, around 13:00 on April 3, the US imperialist attack on the Ham Rong area began. Modern jets of all kinds: F105, F8, RF101 … beat Ham Rong bridge continuously for 2 hours and 36 minutes. On the first day, the US mobilized 102 planes and 360 aircraft and launched 14 attacks, but still failed to carry out its intention to destroy Ham Rong Bridge. Ngoc Mountain is located independently south of Ham Rong Bridge. Statistics show that, in just 2 days, April 3, 1965, the US Air Force used 174 aircraft, 454 times the plane was dropped in Thanh Hoa province with 627 bombs, 58 bombs. slow explosion (bombs from 500kg – 1 ton) with hundreds of missiles, rockets in key areas of Thanh Hoa. Particularly in the Rong – Nam Ngan area, the US Air Force jumped 85 times, bombarded 80 times, threw 350 bombs, shot 149 bullets. After 2 days of fierce fighting, Thanh Hoa army and people shot down 47 American aircraft, captured many American pilots, protected Ham Rong global safety, made American public opinion tumultuous, friends loved justice. and worldwide peace admiration. Despite great failure, but the US imperialism still stubbornly defeats Ham Rong Bridge. During the 2nd American sabotage war (December 26, 1971 to January 15, 1973), the American empire used modern means of warfare from B52 strategic aircraft, to name tornado fire, bomb penetration … massively scattered on Ham Rong. Ngoc Mountain is located independently south of Ham Rong Bridge. Through two destructive wars of the US imperialism, Ham Rong’s army and people alone shot down 117 aircraft, destroyed and captured many American enemies, protected the bridge, ensured smooth traffic, brought the resistance to war. against America to save the country to complete victory. Historical events at that time have put Ham Rong on the golden pages of the war against the US to save the nation. Ham Rong – an attractive place for tourists Ham Rong is developing strongly today, becoming an attractive tourist destination for millions of tourists from all over the world. Because Ham Rong not only went to the gleaming golden pages but this famous place also embraced both the Nui Do and Dong Son cultures. Today, tourist destinations in Ham Rong ward such as Ham Rong eco-tourism area, Ham Rong Square, Truc Lam Zen monastery, temple of Vietnamese Heroic Mother and martyrs, tours “Up and down the Ma River” … is becoming an attractive tourist destination for tourists from all over the world. Ham Rong has a majestic landscape, surrounded by immense pine hills and poetic valley. On the Ham Rong mountain, there are Long Quang caves and Tien Son caves with a unique and interesting beauty. Long Quang cave is also known as Dragon Eye cave, standing from the entrance of the cave, visitors can see the panoramic view of Thanh Hoa city hidden between the identical mountains and the winding Ma river. Dragon Mountain Hamlet. Temple of Vietnamese Heroic Mother and heroic martyrs of Thanh Hoa province also becomes a tourist attraction. Going around the foot of Ham Rong mountain, going up the steep rocky steps of about 30 meters, visitors will come to Tien Son cave. Caves include 3 caves 1, 2 and 3, connected by small up and down paths. The cave is endowed with pristine stalactites such as emperor emperor, fairy fairy, fairy fairy, flying dragon, dancing phoenix, unique shapes such as peach garden, aquarium, heaven gate, fairy well … make visitors feel lost in fairy space. Opposite Ham Rong mountain, on the north bank of Ma river is Ngoc mountain. From a distance, Ham Rong mountain and Jade mountain are like a dragon playing pearl seeds. Located on Canh Tien mountain is the shrine of Vietnamese Heroic Mother and martyrs of Thanh Hoa province, a spiritual destination not to be missed by visitors when coming to Ham Rong place. Ham Rong is also famous for the ancient village of Dong Son, located on the south bank of the Ma River, leaning against the Ham Rong mountain range. Dong Son village is structured in the style of a pure agricultural village, in front is a large field, with a busy river wharf. Three sides of Dong Son ancient village are surrounded by earth hills, rocky mountains interspersed with village gate architecture, traditional communal houses and dozens of old houses with mossy walls lying along the paved and stone roads. zigzag along the mountainside. The tour “up and down the Ma River” is becoming an attractive tourist destination for tourists from all over the world every time they come to Thanh. In order to develop a tourist destination associated with Ham Rong landmark, in March 2020, Thanh Hoa Provincial People’s Committee approved the zoning plan of 1/2000 scale in Ham Rong – Nui Do area in the northwestern green belt of the city. Thanh Hoa. In which, the Ham Rong – Nui Do planning area will be an urban area of ​​a Heritage Park, with the national and international scale and stature aiming to become a UNESCO World Heritage Site. As a historical, archaeological cultural and tourist site of Thanh Hoa city, Thanh Hoa province and the North Central region, including: Complex of scenic heritage, national-level archaeological cultural and historical relics; Thanh Hoa’s eco-historical, cultural and archeological tourist site associates with a tourist route along the Ma River (Sam Son – Ham Rong – Ho Dynasty Citadel). Mr. Le Xuan Lien, Head of Management Board of Ham Rong Relic said: “In recent years, Ham Rong relic has become a red address attracting a lot of tourists from all over the world. The epic song of immortality, has entered the golden history of the nation, which is also known as an amazing natural landscape with a population of rivers, mountains and caves that attract visitors every time you have a chance to visit. visit”.