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The Wolf of Wall Street

Wall Street breathes with an anticipated cut... and the world holds its breath.

Saturday 23/Aug/2025 - Time: 1:42 PM

Arab Sea Newspaper - Special

Wall Street breathes with an anticipated cut... and the world holds its breath. 1. The Economy as a Geopolitical Weapon: What the US Federal Reserve offers in signals about interest rate cuts is not purely a response to economic slowdown, but rather the management of a global conflict through the dollar. At the moment when Washington loses some of its cards in the Middle East and Ukraine, it seeks to re-establish its position through financial control. 2. Flooding Emerging Markets: Any interest rate cut will attract liquidity to the US markets, but it leaves fragile economies in Africa and Asia – including Arab countries – vulnerable to currency collapses and commodity price inflation. Here, the pattern of hegemony is reproduced: Washington thrives, while other parties bear the cost. 3. Unspoken Messages to Beijing and Moscow: China is trying to stabilize its yuan in international trade, and Russia is circumventing sanctions by pushing the ruble and gold. The Fed's move is like cutting off any attempt to undermine the dominance of the dollar, by keeping Washington the largest provider of safe liquidity. 4. Intersections with Middle East Files: This policy cannot be separated from the inflamed field: • In Gaza: The humanitarian collapse requires urgent relief funding, but interest rate cuts could be used as a tool of financial blackmail for those who finance reconstruction. • In Yemen and the Red Sea: Every disruption in trade routes raises transportation costs, and the United States needs a strong economy to finance its military presence there. • In the Gulf: Oil states benefit temporarily from increased demand, but in the long run they lose their financial sovereignty as a result of their dependence on the dollar. 5. The Hidden Message to the American Interior: The hinting at an interest rate cut also came at a sensitive domestic political moment, with the electoral deadline approaching. The message says: "The economy is fine, and investors are safe." It is an electoral card disguised as an economic decision.

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