The executive meeting of the Korn Ferry Group has not yet officially opened, and it has stirred up a lot of turmoil in the Celestial Empire economic circle.

In the past year, the subprime mortgage crisis has intensified, and slowly, the enterprises of the Celestial Empire have also been affected.

In fact, since the Celestial Empire joined the TO in 2002, the troika of economic development has been investment, export, and consumption.

In the first decade of the 21st century, exports were definitely the main engine of China's economic growth. And these export-oriented foreign trade enterprises, the most important is the developed country market led by the United States.

At present, the United States and other developed countries are deeply affected by the subprime mortgage crisis, especially the Americans. Don't look at the United States as the world's largest power, in fact, ordinary people in the United States are not as rich as the Celestial Empire people imagined.

Especially when it comes to savings, the common people in the United States are even less wealthy.

When you have a stable job, nothing is a problem, and no matter how much you use your credit card, you can repay it on time next month. But when the economic crisis comes, the first thing companies in Europe and the United States do is lay off employees, often on a large scale.

These employees who have lost their jobs have basically fallen from heaven to hell in terms of spending power. And those who have not lost their jobs often have their incomes affected. Even if income is not affected, seeing so many people around them unemployed, these people's desire to consume will be greatly suppressed.

When there are fewer people in the market, the number of products that are naturally needed will be less, and correspondingly, the companies that produce these products will have a harder time.

In this environment, as the largest private enterprise in the Celestial Empire, as the most concerned high-tech enterprise in the Celestial Empire, and as the most successful Celestial Empire enterprise in the pace of internationalization, it is natural that the mid-year executive meeting of the Korn Ferry Group has attracted attention from all parties.

"Calling you together today, I think you all have some thoughts in your mind, especially the executives of the group's major overseas companies, who must have a deeper understanding of the strange situation of the global economy in the past year. ”

Although the mid-year meeting of Guanghui Group attracted a lot of media attention, the meeting itself was not very low-key, but was held in the hotel conference room in Guanghui Film and Television Ningxi Film and Television City without any special ceremony.

In addition to the ministers of the headquarters of Guanghui Group, the rest of the meeting are basically the first and second leaders of various branches and overseas companies.

On May 5, former IMF Chair Rato pointed out that the most difficult period of the credit crisis has passed, and that the ISM non-manufacturing index in the United States was 52.0 in April, compared with a median expectation of 49.1, also at the highest level since December 2007. It seems that this round of crisis has come to an end. But former Fed Chairman Alan Greenspan said it was too early to conclude in May 2008 that the credit crisis triggered by the collapse of the subprime mortgage market was over, and Fed Chairman Ben Bernanke expected the U.S. housing market to deteriorate further and harm the broader economy. ”

When Jiang Hui began to speak, he did not mention the specific situation of the Guanghui Group, but talked about the international situation with the executives below him.

With the development of Korn Ferry Group to the current scale, it is impossible not to be affected by the international situation, and it is impossible not to care about the changes in the policies and regulations of major countries.

As the world leader, the United States will continue to be the world leader in the foreseeable next 20 years, and the think tank of the Korn Ferry Group headquarters has also paid the most attention.

As the "central bank" of the United States, the Fed is definitely the most economically savvy group of people in the world, and any public statements they make are worth pondering.

But it's funny to say, even unbelievable.

Such an influential organization is actually a private enterprise!!

That's right, you read that right. The Federal Reserve is a private company and is not an agency of the U.S. government. This situation is quite special in the major countries of the world.

The Federal Reserve is the central bank of the United States, and compared with the central banks of other countries, the Federal Reserve was born relatively late as the central bank of the United States.

Historically, the United States has tried to create a central bank like the Federal Reserve, but it has not been successful because lawmakers and presidents fear that the central bank will be too powerful or that the central bank will be hijacked by a few interest groups.

This concern is largely determined by the state shape of the United States. At the beginning of the United States, the United States was a loose organization of independent states in the form of a federation, and most of the executive power was concentrated in the state government, not the federal government.

Thus, the idea of such a federal institution as a central bank would alarm the states, which feared that the federal government would want to expand its powers in the name of it.

Alexander Hamilton, the first Secretary of the Treasury of the United States, proposed to Congress the creation of a national bank after the end of the American Revolution. He was primarily responsible for helping U.S. states issue bonds to gradually repay debts accumulated during the Revolutionary War.

In addition, the bank helps to maintain the Treasury Department's deposits and other federal government financial receipts and expenditures. Hamilton's proposal was met with strong opposition at the time.

Opponents are concerned about three main concerns: first, that such a national bank would have more competitive advantages over other banks, which would create a monopoly on private banking;

Although Hamilton succeeded in establishing such a bank in Philadelphia in 1791, the First Bank of the United States, Congress only approved the First Bank to operate for 20 years. After 20 years, Congress must approve it for First Bank to continue to exist.

First Bank of America is not a central bank in the modern sense of the word, it is still a private commercial bank. First Bank, like other banks, takes deposits from depositors and issues commercial loans.

In addition to being a private commercial bank, First Bank also had a big flaw, that is, about 70% of its equity belonged to foreigners, mainly Europeans at that time. This has left many Americans worried that First Bank is an instrument for European financial families to control the United States. So in 1811, after the 20-year period of operation of the First Bank had expired, Congress did not approve its continued existence, and the First Bank was forced to close.

In 1812, Britain and the United States resumed war and conflict. In the absence of an effective central banking system and a unified financial market across the country, U.S. state banks are in disarray. In order to restore banking order and deal with war debts, the United States once again considered the establishment of a central bank similar to the First Bank. In 1816, it was voted by the U.S. Congress, and President Madison signed an act to establish the Second Bank of the United States.

Similar to the First Bank, the Second Bank is closer to a national commercial bank than a central bank in the modern sense. Similarly, Congress has granted a license to the Second Bank for only 20 years. Once the license expires, it must be approved by Congress to continue to exist.

In 1836, the Second Bank of the United States repeated the mistake of the First Bank and was forced to close.

For more than 70 years after the closure of the Second Bank of the United States, the U.S. government no longer attempted to establish a central bank-like institution. During this period, the financial markets of the United States experienced a great development of laissez-faire.

But as financial markets continue to expand, the shortcomings of the laissez-faire banking system are increasingly exposed, and market collapses due to bank runs are frequent.

In 1873, 1884, 1890, 1893, and 1907, there were financial crises in the United States that caused large-scale bank failures due to runs. In particular, during the crisis of 1893, more than 500 banks in the United States collapsed one after another, and many people's life savings were wasted overnight.

The frequent financial crises have made the public gradually realize that there are big problems with laissez-faire financial markets. Calls for the establishment of an institution for the proper regulation of financial markets are growing.

In 1913, the U.S. Congress finally reached a consensus and passed the Federal Reserve Act. President Wilson signed the bill, officially proclaiming the Federal Reserve.

For many years, the question of who owns the Fed has been a matter of secrecy, and the Fed itself has always been vague. Like the Bank of England, the Fed keeps its shareholders secret.

However, it is conceivable that the major shareholders behind the Federal Reserve must be major American families and consortia.

These are the real ruling class in the United States.

The Federal Reserve is so special, so Jiang Hui's speech also borrowed the words of the two chairmen of the Federal Reserve before and after to endorse himself and increase the credibility of what he said below.

Chapter 906: Big Hand

(End of chapter)