In the modern era before the rebirth of Emperor Chongzhen Zhu Youzhen, the structure of the world's foreign exchange reserves has undergone significant changes, and its main feature is that the proportion of the US dollar has increased, while the proportion of the yen has decreased significantly, and the euro has become the second largest reserve currency.

In view of the fact that the Bretton Woods system fixed exchange rate system is simplistic and difficult to adapt to the weakness of the differences in the level of economic development of various countries, the Jamaica Agreement clearly stipulates that the basic goal of international cooperation is economic stability, rather than exchange rate stability, so the more flexible floating exchange rate system has gradually replaced the fixed exchange rate system around the world.

The balance of payments adjustment methods are diversified, including the exchange rate mechanism, the interest rate mechanism, the financing mechanism and other balance of payments adjustment methods. Among them, the exchange rate mechanism, in simple terms, is to adjust the balance of payments through the appreciation or depreciation of the exchange rate. Usually, when the balance of payments is facing a deficit, the local currency is depreciated to promote exports, curb imports, improve the trade balance, and then achieve the purpose of improving the balance of payments. The so-called interest rate mechanism is to change the interest rate level, affect the change of money supply, and affect the relative price level to achieve the purpose of affecting the balance of payments. As far as the financing mechanism is concerned, it is a short-term countermeasure to alleviate the balance of payments, and when the balance of payments is in deficit, it can use international credit to stabilize the balance of payments.

The so-called hegemony of the dollar should be attributed to the fact that after the dollar broke away from the gold standard, after World War I and World War II, the international currency was established as the dollar, and when our goods are exported or imported, they need to be denominated in dollars, and the hegemony of the dollar is after the end of World War II, the United States relied on its political, economic and military strength accumulated in the two world wars. Become the number one economic power in the world among all currencies. As a result, the U.S. dollar became the dominant currency through which international exchange could be carried out freely.

Because the "dollar" is the world currency. As long as the Fed likes it, he can print US dollars like crazy, and as long as the earthlings still recognize the dollar, then Uncle Sam can exchange paper for global resources, which is the "dollar hegemony". The cornerstone of the hegemony of the dollar is the super-strong force of the United States, and whoever dares to disobey will repair whom!

As the world currency, the U.S. dollar can serve the economy, and becoming the largest debtor country can also issue bonds to serve the economy. This economic crisis is the issuance of bonds by the United States. Other countries pay!

Maintaining the dollar system plays a very important role in maintaining economic hegemony with the United States, and at present, it can alleviate the economic decline of the United States, and other countries will pay for the economic crisis in the United States!

The national currency is the world currency, and for the country, it has more say in the world, so as to serve the national economy!

The impact of the depreciation of the dollar on the world economy, the depreciation of the dollar will directly contribute to the rise of global energy and commodity prices, and bring inflationary pressure to the world. Historical experience has shown that both crude oil prices and gold prices move inversely against the US dollar. Since the US dollar is still the monopoly denominated currency in international oil transactions, the depreciation of the US dollar has led to a decline in the oil revenues of oil-producing countries. On the other hand, it is to promote investment diversification. The depreciation of the dollar was exacerbated by the sale of dollar assets in favor of others. Gold has historically been a powerful tool against inflation and the depreciation of international reserve currencies. A period of soaring gold prices. It is often a time of heightened inflationary pressures, or a sharp depreciation of the US dollar. Rising global energy and commodity prices will lead to higher prices for other products. For example, the rise in oil prices has led to a boom in the development of biofuels in various countries, and as crops such as corn are used to produce ethanol, the price of corn has risen, leading to higher prices for livestock that rely on corn as feed. Large amounts of arable land is being used to grow maize, reducing the amount of arable land available to grow other agricultural products, which in turn is driving up global food prices.

The depreciation of the US dollar and exchange rate fluctuations are not conducive to the stability of the international financial market. The U.S. dollar is in a monopoly position in many aspects of foreign exchange transactions, exchange rate formation, bond issuance, and financial asset pricing in the international financial market. The continuous depreciation and frequent fluctuations of the US dollar will directly lead to the increase in foreign exchange market transactions and the frequent adjustment of exchange rate relations between various currencies, which will exacerbate the turbulence of the foreign exchange market; Second, the depreciation of the US dollar will cause changes in the relative value of US dollar-denominated assets and other currency-denominated assets, and investors will therefore re-evaluate the value and yield of assets denominated in different currencies, and adjust their financial asset portfolios accordingly, thereby leading to an increase in financial speculative transactions and disorderly flow of funds, affecting the stability of the financial market. Third, in response to the subprime mortgage crisis, the Fed has adopted the practice of lowering interest rates and providing liquidity to the market, which has further increased the already flooded liquidity in the global market, and the scale of speculative capital has increased instead of decreasing, and the potential risks in the global financial market have continued to increase.

The depreciation of the US dollar has a negative impact on the export trade of advanced economies and may trigger the rise of trade protectionism. For example, the depreciation of the dollar means that the euro will continue to appreciate against the dollar, and the competitiveness of euro countries' commodity exports will be affected. Dassault Aviation and EADS, two major European aerospace manufacturing groups, have also announced that they will move some of their production lines to regions with the US dollar as the main currency due to the depreciation of the US dollar, which has increased their production costs in euros and decreased the prices of products sold in US dollars, so as to reduce labor expenses and alleviate the pressure of cost growth caused by the appreciation of the euro against the US dollar, thereby changing the unfavorable situation caused by the continuous depreciation of the US dollar. French President Nicolas? Sarkozy is also worried that if measures are not taken to solve the exchange rate problem caused by the depreciation of the dollar, it may trigger an "economic war". In particular, companies that rely heavily on the U.S. domestic market will be hit hard, with Toyota's share price falling to its lowest price in 14 months in anticipation of continued dollar depreciation.

The depreciation of the US dollar will pose even more serious challenges to emerging economies. First, the loss for emerging economies is the shrinking of foreign exchange reserves. As a result of their long-term trade surpluses with the United States, emerging economies have accumulated large foreign exchange reserves, mainly in US dollar assets. The depreciation of the dollar means the "evaporation" of their wealth. Second, the depreciation of the dollar also means that the long-term dependence of emerging economies on exports is no longer viable. With the advancement of economic globalization, the global economies are all interconnected and cannot be "decoupled". As one of the main engines of the world economy, the decline in consumer demand in the United States will reduce exports and slow growth in emerging economies. Third, the depreciation of the dollar will cause a large amount of capital to flow to emerging economies in search of investment depressions. The massive inflow of foreign capital will drive domestic asset prices soaring in emerging economies and breed economic bubbles. And when the U.S. economy recovers and the U.S. dollar continues to strengthen, a large amount of capital will be withdrawn from emerging economies and flowed into the United States; Due to the lack of a sound financial regulatory system in emerging economies, the mechanism to prevent financial risks is weak, and when a large amount of capital is withdrawn, it will lead to the bursting of economic bubbles and trigger a financial crisis.

No matter what Chongzhen Emperor Zhu Youzhen thinks, the hegemony of the US dollar in his later generations is an indisputable fact, and Chongzhen Emperor Zhu Youzhen is in the Ming Dynasty, and he does not need to care about any harmony and disharmony!

Hou Yu interjected, "Your Majesty, what kind of country is the United States?" ”

Chongzhen Emperor Zhu Youzhen smiled slightly, "It's a country I imagined!" What I mean is that as long as such an economic system is formed from scratch, all the problems of the Ming Dynasty will be solved! At present, as long as the situation does not deteriorate further, while stabilizing the Gyeonggi region of Daming, actively expanding overseas markets is the most important direction of Daming! ”

Everyone made a sudden spurt in their hearts at the same time, stabilizing the Gyeonggi region of the Ming Dynasty, that is easy, but how can we not let the shape shì deteriorate further? Is it up to you to decide? Will the construction of slaves stop? Will the anti-democracy people in the Central Plains stop? (To be continued......)