Rebirth of the Financial Overlord

Vol 3 Chapter 97: Heroes by coin

"Capital is for profit. Raising interest rates will attract global liquidity capital from countries with low interest rates to the United States, pushing up the U.S. dollar and bringing about a rise in U.S. dollar assets. The influx of large amounts of capital will inevitably continue to push up real estate prices and the stock market. ."

"Right now, interest rates in the European market have been hovering at a very low level. The Federal Reserve has raised interest rates. In order to avoid risks, hot money in the European market will be attracted to the United States by the increase in interest rates."

"Not long ago, the Bank of Japan lowered interest rates by 0.8%. As the Japanese market continues to decline, a large amount of speculative capital and value-preserving capital are continuing to leave the Japanese market and flow into the United States... "

"..."

On the TV, Paul James seriously analyzed the impact of US interest rate hikes on the US economy. Whenever he encountered financial terms that ordinary people could not understand, he would explain in detail.

It can probably be understood that the money and wealth of the villagers in the global village are like a stream filled with pools and gullies, flowing wherever the pit is deep. Capital is pursuing profit preservation, and avoiding risks and losses. The downturn and recession in the European economy and the Japanese market, as well as the decline in interest rates, will allow liquid capital to flow into the United States, thereby pushing up the U.S. stock market and real estate.

Summarized in one sentence, it can probably be understood as one word.

rise!

rise!

rise!

"After playing a routine for decades, can Nima get something fresh?"

Holding the towel, Shen Jiannan couldn't help but vomit. As a super peg, this guy knows how disgusting the Fed's interest rate routine is. When raising interest rates, Wall Street will say that the interest rate hike is because the economy is improving. When the interest rate is cut, it will analyze how much stimulus the Fed cuts in interest rates will bring and what kind of expectations will the economy go out of.

Too lazy to listen to the compulsion on the TV, turn off the TV, Shen Jiannan walked to the world map.

Hush!

A puff of smoke erupted, and the thin smoke swirled around, seeming to cast a shadow over the map. Although he is not ashamed of the Wall Street investment bank's analysis of the Fed's interest rate hike, Shen Jiannan also has to admit that what the guy said is right.

Every story pays attention to the background, just like every protagonist should have a bizarre life experience, behind every crisis, if you go through it carefully, you can find the profound reason.

Standing at the moment, Shen Jiannan can clearly grasp the pulse of the global economic flow and the ebb and flow of the rain.

This is a chess game, a chess that is guided by people and follows the trend. In other words, this is a process of grazing and parasitism, as well as political, military, and economic integration.

The way of heaven is more than damage but not enough.

Later, when people talked about the European currency crisis, they always attributed the cause to Germany. For this, Germany could only swallow Huanglian and lick it. By the way, villagers who did not want to be village heads were not good village heads.

Because it starts from the eternal proposition: any aspiring country has the same ambitions and includes the most beautiful crown of the global village-the reserve currency-into the bag.

As Kissinger said: Whoever controls oil controls all the countries that come; whoever controls food controls mankind; whoever controls the right to issue currency controls the world.

On the other hand, if you want to become a world power, you must master currency, and if you want to become a superpower, you must control food.

Money is a person's blood, and a person without money will feel as weak as a sick person. With money, he will be full of energy and blood, and be in good spirits, and he will always live more nourished and longer life than those without money.

For the country, it is the same.

With enough wealth and blood, the country will be peaceful and stable, but without money, various problems will arise, political turbulence and even the basic collapse.

Picking up the pen hanging on the map, Shen Jiannan thought about it and clicked on the huge map.

Eastern Europe, Western Europe, and then to Asia.

First there was the Soviet plate, then Japan, and then Western Europe.

Soon, the map became unrecognizable, except for the big cock, only Southeast Asia was still the normal color.

Holding the pen, Shen Jiannan's black eyes became deep, like a deep pool, which seemed to reflect light and seemed to absorb all light.

As early as the early 1970s, a major event occurred in the field of international finance: the collapse of the Bretton Woods system.

What is the Bretton Woods monetary system?

Summarizing the Brettonson system in one sentence: the US dollar is the only core currency, and all other national currencies are linked to the US dollar. The US dollar is only linked to gold that can only be issued by God. Therefore, it is also called the gold standard era.

But as the Bretton Woods system was declared over by the Nixon administration, the U.S. dollar plunged headlong into the abyss. This was the first time that the U.S. dollar's status had suffered an impact since World War II.

A soldier who does not want to be a general is not a good soldier, and a country that does not want to be strong is not a good country, and a villager who does not want to be a village head is not a good village head either.

The global village is just this big, with the world's top industry and the most advanced manufacturing. Germany and Japan have risen again from the war, and they can't help thinking: the emperor will take turns to sit at my home tomorrow.

Now that the relative strength of the United States is declining and the old monetary system has completely collapsed, it is best that we each have a share in the new system.

However, the two companies have to force their numbers. Considering that the U.S. dollar is still strong, they wisely chose two strategies: internationally, Asia and Europe will join forces and push the international currency basket to replace the U.S. dollar. Each region proposes integration plans to strengthen its own strength through regional currency and economic integration.

Ever since, sPDR came into being.

What is this stuff?

Uh... In fact, just one sentence, don't make the dollar dominate.

It is best to use currency baskets for international currencies. We are all so awesome, and we all play together. Of course, considering that the relative strength of countries will change, the weight of the basket can be adjusted. Let's try to use the currency basket sPDR instead of a single currency in the future.

The result... sPDR lost terribly in the competition with petrodollars.

In the history of China, which era has the most glorious pattern?

Three Kingdoms.

"The Romance of the Three Kingdoms" Pang Tong once said when he saw Cao Cao: "If the big boats and small boats are matched with each other, or thirty in a row, or fifty in a row, the head and tail are chained with iron rings, and the top and bottom are covered. I'm not saying that people can cross, horses can also walk, take this ride, let him go under the water, why are you afraid?"

The U.S. dollar's hegemony over the global market has burdened all countries, so the European Community, the European Monetary System, was born. The essence of this thing can be summed up in one sentence, connecting the small sampans with iron cables to enhance the ability to resist wind and waves, resist risks, and resist pressure.

Specifically, the currencies of major European countries are pegged to ecu.

What is ecu? A currency basket.

When it was born in 1979, it included 8 countries: France, Germany, Italy, Belgium, Denmark, Ireland, Luxembourg and the Netherlands. Spain joined in 1989 and the United Kingdom announced its accession in 1990 to expand to 10 countries.

If a country’s currency has insufficient resistance to wind and waves, and a country’s currency has insufficient combat power, then the currencies of several countries should be connected through ecu. Due to the existence of ecu between any two ships, a floating linked exchange rate system is formed. The exchange rate between the currencies of every two participating countries can only fluctuate 2.25% within a narrow range of the fixed exchange rate.

When the exchange rate between the two currencies exceeds this range, the central banks of the two countries must intervene in the foreign exchange market to push the price back into the fluctuation range.

The global reserve currency is a super big cake, because the most intuitive embodiment of value is always currency, and the pricing of bulk commodities and the pricing power in the international financial market are measured by monetary values, which is undoubtedly an absolute benefit.

The Soviet rouble does not have the currency-by-currency qualification because it has no circulation value. But Egypt is different. If the European Community continues to develop and replace the European currency unit, then a unified currency will emerge.

From Dao to Jane~www.novelmtl.com~ Just as the truth of the world returns to its original nature, it is very simple. In Taoist theory, yin and yang are always relatively established, and if there are benefits, there are bound to be risks.

After the iron rope is connected to the ship, the stability will naturally increase, but the risk will also be reflected. Therefore, Cao Cao's one hundred thousand army was burned completely.

But the big ship burns endlessly, the wooden planks are strong, and the crew is large. The probability of wanting to be ignited at one time is too low. If you want to succeed in a battle, the best way is to encircle the tactics.

Nowadays, Finland is subject to the Soviet market, and it is clearly in the quagmire of the economy. It is undoubtedly the weakest link before Finland finds a new economic growth point.

Raising interest rates-a good way.

After making a big cross at the Finnish position, Shen Jiannan dropped the pen and picked up the phone.

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