Chapter 274: Currency War (II)

Those Chinese people did not hesitate to throw money around, buying whatever they saw, with the face of an upstart. The things bought were pulled back to the warehouses of the shops of the Chung Hwa Group Company one by one, and such a scene made businessmen from all over the world think that the Chinese people were crazy and had hoarded so many goods, and if they were smashed in their hands, they were afraid that even the largest company would go bankrupt.

Lanfang coins are also very popular currencies of large countries, and it is very easy to buy things with them, not to mention that at that time, all countries were on the gold standard, and the exchange rate was very stable, and there was no problem of exchange rate fluctuations at all, so Lanfang coins were quickly spent.

Just when the merchants of various countries were congratulating themselves on making a fortune, a piece of news appeared in the countries of the world through cable telegrams all over the world. The Lanfang Empire was divided and a civil war broke out. The Royal Bank, which issued the Lanfang coins, was completely ransacked, all gold reserves were gone, and the Lanfang coins became a piece of waste paper.

At this time, businessmen from all over the world knew what Lang Dao was doing, and they knew that Lang Dao had raised the price, and those Chinese people also bought their goods in large quantities, and the first reaction of these merchants was to spend these Lanfang coins out of Lang, but now it is rumored outside that Lanfang coins have become waste paper, and who will want Lanfang coins.

The money was not spent, and the merchants thought of the bank again, as long as they exchanged the Lanfang coins in the bank for the local currency, they could maintain their value, but when they came to the bank, they were told that the bank would suspend all exchange operations for Lanfang coins.

With a large amount of Lanfang coins in their hands that they could not spend them, the merchants had to pray that the news was just a rumor, but a day later, the news was confirmed.

The major banks that got the news have announced that Lanfang currency will no longer enter the circulation field and become waste paper, a large number of businessmen in the hands of the liquidity into waste paper, their losses are huge, the rupture of the capital chain has caused many businessmen to collapse and declare bankruptcy, a large number of industrial and commercial industries have collapsed, so that the economies of various countries have begun to be violently turbulent.

Governments of various countries have sent notes to all parties in the Lanfang Empire, asking them to recall the Lanfang coins within the boundaries of the world and compensate for the losses of various countries.

Fang Xiaoyu's answer was very simple, the Chinese Collar only issues Chinese dollars, and the Lanfang currency is a matter of the central government, and the Chinese Collar is not responsible. As for Fang Xiaoyu's industrial employees' crazy consumption of Lanfang coins, it is a normal transaction, both parties are voluntary, and they will never be returned. The Wang family and the Xia family also gave similar answers.

The Xiahou family's status was rather embarrassing, and they simply chose to remain silent, but they also vaguely said that this kind of thing should be found by the new emperor who had just ascended the throne. As for Cheng Yuhuan, his lungs are about to explode, no one admits that the second prince has ascended the throne, and now everything has found his head.

The most annoying thing is Fang Xiaoyu, the wealth of the capital is what he took, and those Lanfang coins were also spent by him, but now they are all pushed to himself. He got a benefit but let himself lose money, how can this not make people angry, the angry Cheng Yuhuan simply didn't do anything, simply refused all compensation requests, and played a scoundrel.

The roots of the government's anger itched, but they could only protest verbally. That is the Lanfang Empire, who dares to send troops to fight.

If Fang Xiaoyu, who has a seat in the great powers, finds an excuse to fight back against the invasion, he will make a fuss if he can't eat mutton, and there are not a few countries that Fang Xiaoyu has played to death under this pretext, and the lessons from the past are not far away.

Cheng Yuhuan was not punished by force, but he offended the major powers, and Fang Xiaoyu found a gunman to write a critical article in newspapers in various countries, which directly caused the governments of various countries to not support the Cheng family, not even secretly, otherwise they would be known by the angry people of their own country, and it would be strange if they did not overthrow their own government.

According to later statistics, in this event, which was later called the 'currency war' of the Chinese leader, the Zhonghua Group spent as much as 7 billion Lanfang coins, causing heavy losses to all countries in the world. But that's not all, the currency war is just the beginning, and a bigger crisis is still brewing.

As soon as the news of the abolition of the Lanfang coin began to spread, young people in the commercial investment department of the China Group Company immediately began to go on a short spree in the futures market.

These young people are all elites taught by Xia Tingyun, and all their textbooks are the classic theories of later generations provided by Fang Xiaoyu, and their strength is definitely better than those in the whole world, and they can only be regarded as entry-level so-called economic experts and financial experts.

In the turmoil caused by the Lanfang coin, these young men were like fish in water, and with the large amount of funds mobilized by the Zhonghua Group Company, they turned the entire futures market upside down, and then they entered the stock market, and in these two markets, they scavenged a lot of valuable wealth accumulated by the countries of the world.

In Wangxiangxing, the history of the stock exchange is only a few decades, and it is impossible to develop many advanced financial theories in such a short period of time, and even the stock exchanges of various countries are crossing the river by feeling the stones, and can only passively repair the imperfect trading rules.

To such an extent, how to fight against Fang Xiaoyu's elite financial team, later generations believed that the stock market crash was due to the collapse of the Lanfang currency system caused by the lack of confidence and panic of investors in the world, but no one knows the way, in fact, these young people who have never left their names in history play a decisive role in it.

The disaster did not stop at the stock exchange, as the shops of the Chung Hwa Group bought most of the daily necessities on the market, causing prices to soar in various countries, while the shops of the Chung Hwa Group sold their inventory at high prices and made huge profits.

In this way, stock market crashes are frequent, prices are soaring, and a large number of merchants have closed, including banks with many loans to merchants.

The severance of the capital chain and the backlog of commodities have caused factories to close down one after another, and a large number of workers have lost their jobs.

Under such a vicious circle, the seemingly prosperous industrial civilizations of the countries in the world have collapsed one after another, and the economic crisis that should have appeared many years later has finally arrived in advance under Fang Xiaoyu's intentional operation.

Fang Xiaoyu has experienced such an economic crisis several times on Earth, and he has learned a lot in history books.

The 'Black Friday' crash of 1905 and the Great Depression of 1929 were two of the most famous, and they triggered two world wars.

As for the closer ones, there are the Japanese economic crisis in 1990, the Asian financial crisis in 1998, the subprime mortgage crisis in the United States in 2008, and the European debt crisis in 2009.

With so many cases in front of him, Fang Xiaoyu still has a certain understanding of the causes of the economic crisis and how to deal with it. When prices began to soar in various countries, Fang Xiaoyu immediately issued an initiative to the allies, proposing to convene a joint economic conference to deal with the current economic crisis within the world's borders.

Although most of the allies of the Chinese Collar did not have a stock market, and Fang Xiaoyu deliberately bypassed it and did not go to the Great Salan Fang Coin, they were also worried that their own economy would be affected, so after Fang Xiaoyu proposed to convene a meeting to discuss the strategy of dealing with the economic crisis, all the allies quickly sent representatives.

In that era when there were no airplanes, the only way to reach the Chinese Territory from their own country was by boat, and it was very slow to go to the Chinese Territory by boat, such as the St. Martin Empire, if you send people to take a boat to cross the entire Eastern Ocean, it will take at least three months.

The economic crisis is imminent, and it has already adversely affected their own economy in three months, so they invariably chose to contact their embassy in the Chinese consulate through the radio of the Chinese consulate and instructed the ambassador to participate in the meeting as a representative.

This is one of the strangest economic meetings in the world, and the only high-level economic meeting in which the Minister of Finance or the Minister of Finance is not attended, but is attended exclusively by ambassadors.

Since all the ambassadors came here, the Chinese consulate also sent Wu Qiong, who was in charge of foreign affairs, and Zhao Qingyun, governor of the Bank of China, to preside over the meeting. At the meeting, Zhao Qingyun put forward a proposal to establish an economic consortium to tide over the crisis together.

Under Zhao Qingyun's easy-to-understand explanation, the representatives of various countries generally understood the key to this, although they did not study economics. After the ambassadors radioed their Governments, they agreed to join such an economic association.

Five days later, the representatives of the countries attending the meeting in the Chinese territory jointly signed the "Treaty on Mutual Economic Protection of the Eastern Ocean Rim Countries," which stipulates that from now on, the Chinese Territory, the Empire of San Martin, the Kingdom of Latin America, the Kingdom of Hawa, the Kingdom of Oahu, and the Kingdom of Ezo will announce the cancellation of tariffs on each other, the unified use of the Chinese dollar as the settlement currency, the unified allocation of resources, and the need for passports for trade between countries.

The Bank of China has also begun to provide large amounts of low-interest loans to countries to help them build their domestic infrastructure networks, create jobs and stimulate surrounding industries to combat economic turmoil.

At the same time, the six countries jointly raised import tariffs by 300%, abolished export tariffs, and no longer carried out foreign exchange to keep foreign goods out of the country.

Just when the Eastern Covenant Organization was established, Xia Tingyun and Elena both gave birth to a beautiful child for Fang Xiaoyu. Xia Tingyun gave birth to a beautiful daughter named Fang Ruiying, and the son born to Elena was named Fang Ruihua.

Just when Fang Xiaoyu was happily celebrating that he had another son and a daughter, he didn't know what kind of turmoil his financial operation would cause to the entire world.

In October 900, the Saar Empire first announced the same policy as the Eastern Covenant, raising import tariffs by 300% for the country and all its colonies, and abolishing export duties to stimulate exports. As soon as this policy came out, the whole world was in an uproar.