Chapter Ninety-Seven: The Heroes Chase the Coins
"Capital is profit-seeking, and raising interest rates will attract global liquid capital from countries with low interest rates to the United States, pushing up the dollar and bringing about a rise in dollar assets, and the influx of large amounts of capital will inevitably continue to push up real estate prices and stock market gains. ”
"Right now, interest rates in the European market have been hovering very low, and the Federal Reserve has raised interest rates, and hot money in the European market will be attracted to the United States by the increase in interest rates in order to avoid risks. ”
"Not long ago, the central bank cut interest rates by 0.8 basis points. As the Japanese market continues to decline, a large amount of speculative capital and value-preserving capital is continuing to leave the market and flow into the United States......"
“......”
On the TV, Paul James seriously analyzes the impact of U.S. interest rate hikes on the U.S. economy, and when he encounters financial terms that ordinary people can't understand, he will explain them in detail.
It can probably be understood that the money and wealth of the villagers in the global village are like a stream full of ponds and ravines, where the pit is deep, it flows. The downturn in the European economy and the local market and the decline in interest rates will bring working capital into the United States, which in turn will push up the U.S. stock market and real estate.
Summed up in one sentence, it can probably be understood as one word.
Rose!
Rose!
Rose!
"A routine has been played for decades, can Nima change something fresh. ”
Holding the towel, Shen Jiannan couldn't help but vomit. As a super hanger, 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, and when interest rates are cut, then they will analyze how much stimulus the Fed will bring to lower interest rates, and what kind of expectations will the economy get out.
Too lazy to listen to the pressure on the TV anymore, turning off the TV, Shen Jiannan walked to the world map.
Hush!
A puff of smoke erupted, and a thin cloud of smoke seemed to cast a shadow over the map. Although it is very shameful for Wall Street investment banks' analysis of the Fed's interest rate hike, Shen Jiannan also has to admit that what that guy said is not wrong at all.
Any story pays attention to the background, just as every protagonist should have a twists and turns and bizarre life experience, behind every crisis, if you go through it carefully, you can find a deep reason.
Standing in the present, Shen Jiannan can clearly grasp the pulse of global economic flows, as well as the ebb and flow of mountains and rains.
This is a chess game, a chess game that leads the situation according to the situation and follows the trend, or ratherd, it is a process of grazing and parasitism and the combination of politics, military and economy.
The way of heaven is to make up for the deficiency when there is more than is lost.
Later, when people talked about the European currency crisis, they would always attribute the reason to Germany, and in this regard, Germany could only swallow the yellow lotus and put it in the stomach, and by the way, the villagers who did not want to be the village chief were not good village heads.
Because starting with the eternal proposition: any aspiring country, with the same ambition, has the same ambition to include the most beautiful crown --- reserve currency --- of the global village.
Just as Kissinger said: Whoever controls oil controls all the countries that come to it, whoever controls grain controls mankind, and whoever controls the power to issue money controls the world.
On the other hand, if you want to become a world power, you must master the currency, and if you want to become a superpower, you must control food.
Money is a person's blood, without money a person will be as weak as if he is sick, with money, the whole body is full of qi and blood, good spirits, will always live more nourishing and longer than some guys who have no money.
For the country, it is also the same.
If there is enough wealth, the country will be peaceful and stable, but without money, there will be all kinds of problems, political turmoil and even basic disintegration.
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 Asia.
First there was the Soviet plate, then the Soviet plate, and then to the current Western Europe.
Soon, the map became unrecognizable, and only Southeast Asia was still a normal color, except for the big rooster.
Holding the pen, Shen Jiannan's dark eyes became deep, like a deep pool, which seemed to reflect the light and seemed to absorb all the light.
Back in the early 70s of the last century, a major event occurred in the field of international finance: the collapse of the Bretton Woods system.
What is the Bretton Woods monetary system?
One sentence sums up the Bretonson system: the dollar is the only core currency, all other national currencies are pegged to the dollar, and the dollar is only pegged to God-issued gold, so it is also called the era of the gold standard.
But with the end of the Bretton Woods system announced by the Nixon administration, the dollar plunged headlong into the abyss, the first time since World War II that the dollar's status was hit.
A soldier who doesn't want to be a general is not a good soldier, a country that doesn't want to be strong is not a good country, and a villager who doesn't want to be a village chief is not a good village chief either.
The global village is so 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 but think: the emperor will take turns to sit and come to my house tomorrow.
Now that the relative power of the United States has declined and the old monetary system has completely collapsed, it is better for each of us to get a piece of the pie in the new system.
Considering that the dollar is still strong, they wisely chose two major strategies: Asia and Europe joined forces internationally to push the international currency basket to replace the dollar. Each region has put forward the idea of integration and strengthened itself through regional monetary and economic integration.
Thus, SPDR came into being.
What is this thing?
Belch....... In fact, in a word, don't let the dollar dominate.
International currencies are best used in currency baskets, we are all so awesome, everyone plays together. Of course, considering that the relative strength of countries will change, the weight of the basket can be adjusted, let's strive not to use a single currency in the future, and try to use the currency basket SPDR, okay?
Outcome...... The SPDR has lost miserably in the competition with petrodollars.
In the history of China, which era has the most glorious pattern?
Three Kingdoms.
In "Romance of the Three Kingdoms", Pang Tong once said such a passage when he saw Cao Cao: "If you take a big boat and a small boat to match, or thirty as a row, or fifty as a row, the beginning and end are chained with iron rings, and the top is covered with a wide board, so that the rest of the people can cross, and the horses can also walk, take advantage of this, let him go up and down, why be afraid?"
The hegemony of the US dollar over the global market burdened all countries, and as a result, the European Community, the European Monetary System, was born. The essence of this thing can be summed up in one sentence, the small sampans are linked with iron cables to enhance the ability to resist wind and waves, risks and pressure.
Specifically, the currencies of major European countries are pegged to the ECU.
What is an ECU? A basket of currencies.
It was born in 1979 with eight countries: France, Germany, Italy, Belgium, Denmark, Ireland, Luxembourg and the Netherlands, Spain joined in 1989 and the United Kingdom announced its accession in 1990, expanding to 10 countries.
The currency of a country is not strong enough to resist wind and waves, and the currency combat effectiveness of a country is not enough, so the currencies of several countries are connected in series through ECU. Between any two ships, due to the presence of ECUs, a floating linked exchange rate system is formed. The exchange rate between the currencies of every two participating countries can only fluctuate within a narrow range of ± 2.25 per cent above or below 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 and smash the price back into the range.
The global reserve currency is a super big cake, because the most intuitive embodiment of value is always currency, and the pricing power of commodities and international financial markets is measured by monetary values, which is undoubtedly an absolute benefit.
The accounting ruble in the Soviet Union, since it did not have a circulating value, was not eligible for currency hunting. But if the EC continues to develop and replace the European monetary unit, then a unified currency will emerge.
The road to simplicity.
Just as the truth of the world is returned to the basics, it is very simple. In Taoist terms, yin and yang are always relatively true, and if there are benefits, there will inevitably be risks.
The stability of the ship is naturally greatly increased after the iron cable is connected, but the risk is also reflected. So Cao Cao's 100,000 army was burned to the ground.
But the big ship is burning, the planks are strong, the crew is numerous, the probability of wanting to ignite it at one time is too low, if you want to succeed in a battle, the best way is to encircle the tactics, and the small boats around the big ship will be lit first, forming a beacon of fire.
Today, Finland is subject to the Soviet market, and it is clear that the quagmire of the economy is undoubtedly the weakest link until Finland finds a new point of economic growth.
Raising interest rates – good means.
With a big cross in the Finnish position, Shen Jiannan dropped his pen and picked up the phone.