Chapter 335: The World Interest Rate Reduction Trend

readx; Due to the uncertainty of the future development path, Xia Jun does not look too much at the oil in the Middle East, but to a certain extent, he still intends to control the oil resources of the Middle East. Pen @ fun @ pavilion wWw. biqUgE怂 ļ½‰ļ½Žļ½†ļ½

Under such circumstances, uniting Turkey is an important foreign policy.

Turkey is still a little confused about the Asian economic community that China has built, or what specific benefits it will have.

However, as China helped Rashid Arabia and Russia to develop their economies, the monopoly of Chinese capital in both countries also created a superficial prosperity.

Indeed, it is beginning to prosper, and a resource-poor country like the Arab Kingdom of Rashid, which lacks almost everything but what it has, is beginning to industrialize.

The fastest growing industry in the Arab Kingdom of Rashid is the oil refining industry, which has led many citizens of the Arab Kingdom of Rashid to leave their traditional livestock farming and become workers.

At the same time, the Chinese Empire also helped the Rashid Arab Kingdom to build the first desalination plant, because the main need for desalination is a large amount of energy, and the oil of Rashid Arabia provides cheap energy, so the desalination cost of this desalination plant is quite acceptable.

With water, deserts can be turned into oases.

With the help of China, the Arab Kingdom of Rashid began to develop drip irrigation agriculture to make full use of every drop of water.

But as a result, China owes a large amount of loans, which cannot be repaid in the short term.

On the surface, the quality of life of the people of the Arab Kingdom of Rashid has indeed improved, and the livelihood of the people has indeed developed.

In Russia, a large number of industrial and mining industries began to work in the Russian Far East, Siberia, Kazakhstan, the Urals and other regions.

A large number of Russians have become miners, and at the same time, a large number of roads, railways, and airports are being built, so that many Russians have become construction site workers.

This has largely solved the employment problem for the Russian people.

By increasing China's investment in Russia, the Russian economy has also begun to embark on an upward trajectory.

The East China Group of the Chinese Empire has mined large copper mines in Russia, and the oil fields in the Far East have also been included in the development projects of the East China Group.

Large-scale copper mines in Mongolia and Kazakhstan were also included in the mining scope, and China, which was short of copper, became extremely abundant after recovering Mongolia and supporting Russia.

And Russia's economy seems to be improving with the exploitation of these resources.

The economy has developed, and the quality of life of the people of the two countries has also improved, because with the support of China's agricultural technology, their people are getting better and better.

At the same time, the military of the Arab kingdoms of Rashid was also supported by the Chinese Empire, and the Russian military was also built up with the help of the Chinese Empire.

Militarily, China will lend to them, and at the same time, as a member of the Asian Economic Community, it will give them certain preferential treatment in arms procurement.

Not only can you buy the most advanced arms in the world, but at the same time, the squadron will also provide military guidance to various countries.

It can be said that the Chinese Empire, with the resources in its hands, has given great benefits to its member states.

On the surface, there is nothing wrong with that.

But the reality is that the economy is controlled by Chinese capital, but the livelihood of their citizens has really improved, and China just gives them its own domestic productive forces, and then raises them as cows.

Since its issuance, the Asian dollar has been included in the reserve by some countries in the world very quickly.

Previously, China's Fuxing Coin was already one of the currencies in reserve in some countries, and at this time, the reissued Asian dollar has a stronger stable surname by integrating resources.

For such a highly stable banknote, countries that lack gold reserves are very fond of reserves.

Even countries with gold reserves will reserve some foreign exchange from other countries, mainly to cope with turnover, but not too much.

China, for example, has some dollars in stockpiles, and the United States has some revival coins in stockpiles.

At present, the world's relatively stable currencies, that is, the Asian dollar issued by the Federal Reserve and the US dollar issued by the Federal Reserve, the pound has not yet stabilized.

The problems faced by the British after the war were daunting, as they had to postpone their plans to restore the pound's international standing in order to contain Chinese expansion.

The strength of the Asian dollar has given China the ability to exploit the world.

In such a situation, the competition between China and the United States is very fierce.

The Asian Federal Reserve and the Federal Reserve have successively announced the gold exchange rate of the Asian dollar and the US dollar, and now it depends on who can't play first.

In May, the Imperial Cabinet of China announced a policy of nationalizing gold, that is, gold would no longer be exchanged internally for the people, and gold would only be exchanged externally.

The main function of gold is to allow the Asian dollar to obtain a common status in the world, and internally it is an area that official power can extend to, so there is no need to use gold to maintain the Asian dollar, so it is not exchanged for gold to the people, and gold can be used intensively.

As for the foreign exchange of gold, because of the existence of the trade deficit, so these gold can never be outflowed, others take the Asian dollar to exchange gold, China can take the dollar to the Federal Reserve to exchange gold, in order to replenish the loss of this part of the gold.

The main way other countries get the Asian dollar is to borrow money from Chinese banks.

Because gold is no longer exchanged internally, gold will not flow into the private sector, and externally it is supported by a trade deficit, so China's gold will basically not be lost.

Under this model, the Asian Federal Reserve can print more Asian dollars, and even if the purchasing power of the Asian dollar has decreased internally, the Asian dollar is still strong internationally.

Of course, the result of this is a blow to exports.

Because the purchasing power of the Asian dollar has declined internally, this has also led to an increase in the price of China's commodity exports, and foreign exports have naturally been hit.

Therefore, the Federal Reserve of Asia will not easily issue too many Asian dollars, although this is also a way to make profits, but when the Asian dollar has international liquidity, the Bank of China can enter the international credit, insurance and other financial fields, so as to exploit other countries through interest rates.

At this time, the Asian dollar can have a stable exchange rate with gold, which has made the Asian dollar have international circulation.

None of the major countries said that they did not accept the Asian dollar, and even the original accepted the Asian dollar, and the reason for this was that the Asian dollar could be exchanged for gold.

As long as the Asian dollar is not a waste paper that cannot be exchanged for anything, countries can accept it.

Like the paper money of some small countries, other countries are very reluctant to ask for it, because the paper money of those small countries cannot be exchanged for gold, nor can they buy any goods, which is equivalent to a piece of waste paper.

Even if the Asian dollar does not have a stable exchange rate with gold, the Asian dollar can still be accepted by other countries, because China's foreign exports are developed, and the Asian dollar can always buy things. After receiving the Asian dollar, even if you can't use it in your own country, you can get it to other countries that can be used to exchange it for other currencies.

After the Asian dollar has a stable exchange rate with gold, everyone is willing to accept the banknote.

This is something that cannot be blocked by policy, because gold is a universal currency.

In other words, the Asian dollar is the embodiment of gold, so the Bank of China can provide loans to any country in the world, and at the same time involve the insurance business of any country.

The current situation in the world is that the Asian dollar and the dollar are rising, and the pound is beginning to retreat into the corner. Between the Asian Federal Reserve and the Federal Reserve, whoever can't play first loses.

In response to China's export trade deficit, the Federal Reserve has formulated a corresponding strategy, that is, to reduce the interest rate on the dollar.

When interest rates on the dollar are lowered, the dollar can depreciate.

Because the rate of decline in the interest rate of the dollar slows down, and the dollar is pegged to gold, so the dollar can buy more goods.

In this way, the United States' foreign export industry can also develop better, and the United States can create a trade deficit, so that precious metals will not be lost.

As for the policy of nationalizing gold, the Fed obviously cannot carry it out.

Because once the United States nationalizes gold, American capital may be withdrawn from abroad.

In China, the risk is minimal, because China is already a country with a high degree of nationalist awakening, and it is impossible for most businessmen to siphon capital abroad.

And there is no need for Chinese businessmen to transfer assets for gold, even if they have the Asian dollar in their hands.

In the face of the US dollar's interest rate cut, the Asian Federal Reserve also announced a reduction in the Asian dollar interest rate, which was reduced to the same extent as the US dollar interest rate.

The first round of rate cuts began.

What can be seen is that there will be many more interest rate cuts in the future.

And this interest rate cut has also prompted the transfer of money from banks to industrial investment to a certain extent.

After the interest rate cut, the money in the bank can indeed be transferred to the stock market and industry to a certain extent to stimulate economic development, but after many interest rate cuts, the effect is very small, which is called a 'trap' in finance, that is, when the interest rate is reduced to a low level, the people no longer care, anyway, it is very low, no matter how you reduce it, it doesn't matter, as long as the interest rate is not lowered to a negative number.

The interest rate cut between China and the United States has also triggered interest rate cuts in the world.

There are also some countries that have not cut interest rates.

In both China and the United States, the stock market has shown a trend of rising after the interest rate cut, and many depositors feel that the return of money in the bank may not be as high as the stock market, so they put some money into the stock market.

China's stock market pays dividends every year, unlike the Chinese stock market in later generations, which are all iron roosters, and do not pay dividends every year, which is completely the money of the people.

At this time, there was a 'national version' in China's stock market, and the national version of the enterprises accounted for 95% of the listed companies, and these companies have a rule that they must be national holdings.

Only the Chinese can own the shares of these ethnic businesses.

This is tantamount to blocking the capital of other countries, and these national versions of the enterprises are 100% controlled by the Chinese, and the shares cannot be controlled by international capital.

This obstacle makes it basically impossible for international capital to penetrate China's national capital.

The largest East China Group is not listed at all, and the East China Group is not listed because it is not too short of money, so it is not listed, and it is still the largest profit of the sole stock.

The East China Group also controls the shares of a large number of enterprises, and basically the mainstream enterprises, and some of the shares belong to the East China Group. Some enterprises are even controlled by the East China Group, but the East China Group rarely interferes in the operation and management of these enterprises.

(To be continued)