Chapter 778: Man-Made Economic Crisis!
Although Britain is a constitutional monarchy, and the whole world considers this country to be democratic, legally speaking, this country actually belongs to the British Crown.
That's right, that's it, it belongs to the British king, and the House of Lords is full of nobles, to put it bluntly, the so-called constitutional monarchy is just a constitution to determine the dominance of the British king.
Of course, it is true that many rights are not in the hands of the king, and the constitution does bind the king, but this matter is actually the other way around......
So, since this is the case, the unexpected death of Edward VII will inevitably produce a series of consequences, and this consequence is the most serious and the earliest, which broke out in the financial market!
Fall! Instant plunge!
Although there are certain funds to come out to buy the bottom or protect the disk, commodity futures and the stock market are now killing down!
Originally, Edward VII was an old SE ghost, and the death of this guy was not particularly important, it should be said that if it was in the past, even if Queen Victoria died, it did not cause such a big panic, but now, because before, commodity futures and the stock market have already gone through a round of shocks.
Everyone's hearts are relatively empty, and now there is such a play, which is always good to be conservative, but once conservative, then the investment will not be done, and of course the funds will be less.
But though, it's still good, after all, there is no big thing on the British side, except for being fooled enough by the emperor of the Pacific Empire in the moon landing before, there is nothing else, and besides, this Edward VII is still very well prepared, and George V has ascended the throne!
This George V is almost the same as the original Tsar Nicholas II, and Li Mengyang also knows it. This man was the grandfather of Queen Elizabeth later.
It should be said that just such a turmoil was quickly calmed down, and there was a fluctuation in the financial market, although it was very intense, but it was like that. But it's ......
"Father! The opportunity is so great! ”
"This ......"
In the White House in Washington, after Keynes learned the news of the death of Edward VII, he immediately came to find his father, anyway, he was in a hurry, he wanted to do it.
So what is the hand to do about this?
Why did Li Mengyang hesitate?
Actually, it's a very simple thing, very, very simple, but this consequence. Li Mengyang knew that this was likely to lead to a ......
Never mind!
"Okay, just do it." Li Mengyang finally made up his mind.
So what exactly does this do?
Soon, the Central Bank of the Pacific Empire announced that they were going to increase the interest rate of the new Tang Yuan in the market by 1%!
If you increase it by one percentage point, then this thing ......
The specific approach is actually clear now. Didn't Li Mengyang understand how to control this interest rate before, he really didn't know. And others don't know, but after that additional currency issuance, everyone understands more or less, especially after this Keynes has entered a series of studies, he has a way.
In fact, it is a very simple process, that is, our central bank throws gold into the market. Then, these gold will have to be bought with the New Tang Yuan, so naturally, the New Tang Yuan will flock to the central bank, like this. There are fewer new Tang Yuan in the market, so the price will naturally be higher.
If the interest rate is the price of money, then of course the interest rate is also high...... It looks very simple, but the specific operation is quite reasonable, such as this object, that is, the bank, gold is not allowed to circulate, so other banks will hold these gold.
Anyway, now it's the right way, so when Keynes comes to do this now, of course he understands what to do, and after this action, then this thing is ......
"What? Raise the interest? ”
"This ...... What will be the impact? ”
"So what should we do?"
At this time, the world is no longer an era when the decisions of your Pacific Empire only affect your country, well, in the final analysis, this is mainly because the Pacific Empire is exporting the New Tang Yuan overseas, so the policies related to the New Tang Yuan, of course, the whole world is concerned.
So now this rate hike ......
The financial market, which had just stabilized somewhat, fell sharply again!
Before, because George V came up, the situation was somewhat calm, but now, it has fallen again!
So why is that?
Could it be that the interest rate hike of this Pacific empire has such a powerful effect?
Actually, Li Mengyang has seen this a long time ago!
Why did Li Mengyang hesitate?
It's because this method is too damaging, to put it simply, Li Mengyang can definitely see and understand, or any traverser can basically understand what this interest rate hike brings, because this matter is the same as what the United States will do in the future!
In Li Mengyang's world, the United States was the strongest country at that time, so she sent dollars, and then the worse the economy, the more they sent it, so when it was about the same, or after she could see the possibility of her country's economic recovery, they would live in the United States.
The simple explanation of this means is that the United States uses dollars in exchange for goods from all over the world, and then prints a large number of dollars, so that a large number of bubbles appear, and then when it is almost over, and sees that the benefits are great, then it starts to raise interest rates.
As soon as interest rates are raised, because there are benefits, then of course, the dollar will run back to the United States, so that the bubbles of other countries will begin to burst in large quantities, and this is ......
Sheep shearing!
On this matter, many people know, but how to operate in it, there is still a lot of knowledge, and at that time, a benchmark point in the United States was actually the petrodollar, but it was only ...... Before the petrodollar, it was the Bretton Woods system, and the meaning of this system is that the dollar is directly pegged to gold, so that's how the dollar came about.
So now...... It is true that Li Mengyang does not have the Bretton Woods system in his hands, but the new Tang Yuan is now also linked to gold!
Therefore, Li Mengyang has seen through everything, but he is a traverser, he knows, but Keynes is not, he made this matter through his own research and thinking.
It must be said that a genius is a genius, this guy is indeed very powerful, so now that he has done this, then this thing ......
Li Mengyang knows very well that the situation at this time is almost the same as the American hegemony in later generations, because before, the New Tang Dynasty was also exported in large quantities, and it also blew out all kinds of fancy bubbles from many things in the world.
And...... At this time, no one has seen it!
By the way, no one knows what the consequences of this series of actions made by Li Mengyang and Keynes will be, and no one knows how to deal with it, because there was no one before!
In the past, although there was an economic crisis, although there were all kinds of big falls, all kinds of falls that even my mother didn't know...... At the end of the day, people didn't mean to do that!
No one would want such a bleak economy, and who would want that? But this kind of activity of people has led to such a result, which is nothing, and at this time......
This is the first time that mankind has deliberately created an economic crisis!
This time the big fall, this is simply too terrifying, the London exchange has even been suspended many times, that is, everyone should stop trading, take a break, brew, and then ...... It's time to go to the rooftop, and line up to jump off the building.
As for whether it is such an exaggeration, I don't know yet, but I heard that in Europe and even in the United Kingdom, their funeral industry is now quite prosperous.
But not ...... Our Pacific empire is also falling!
The futures market, the stock market, that is also a large collapse!
So what about it...... Inevitably, Li Mengyang's hesitation at the beginning was also related to this matter, of course he knew that as long as the interest rate was raised, the internal financial market of the Pacific Empire would also be greatly impacted.
But...... Li Mengyang thinks that it is better to do it, because this matter is a currency war!
So, for the losses within the Pacific Empire, this matter......
Well, there are also a lot of people who jump off the building, and the most special is the world's largest stock with the highest market capitalization, DuPont, which is not a small decline, but relatively speaking, it is not big, that is, compared with other stocks, DuPont's share price is still very strong.
So why is that?
Could it be that it is because DuPont is the company of His Majesty's Emperor's wife?
Or is it just because the company is super blue chip?
Not really, but because ......
"The reality of DuPont's earnings report is that there will be more than 20% growth in the second quarter of this year!"
"That's right! There is now a pessimism in the whole market, which is very undeserved. ”
"DuPont's earnings are very strong, and we see hope in the crash."
Not only DuPont's public statement, but also a lot of media to endorse it, so ...... Is it because of this that it doesn't fall much?
Of course not, the real reason for this is ......
Someone is buying a lot of money!
What are you buying?
What did DuPont do in the beginning?
Gunpowder!
So who bought this product?
Needless to say, who has such a big hand?
Li Mengyang, the emperor!
So, here's ......
Very simply, Li Mengyang is preparing for the future, because he knows very well that when this economic crisis appears, this time it will be very similar to the one in 1929 that he knows, so is the future of this world, a big war still far away?
Li Mengyang was preparing, but he didn't expect that something happened in advance!
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Hey, happy 51 to everyone......