Chapter 377: Currency Wars, From "Fiat Currency vs. Fiat Currency" to "Dollar vs. Dollar"
Su Su said: "In 1936, the Xi'an Incident, the Nationalist Government recognized the legitimacy of the CCP, the united front united to resist Japan, the Red Army was reorganized into the Eighth Route Army, the Red Army currency was stopped, and the legal tender of the Nationalist Government was uniformly used. Then in 1937, Japan invaded China in a full-scale manner, and the Japanese puppet traitor government in Nanjing was established, which controlled billions of fiat currency in the occupied area. β
By the way, the fiat currency at that time was pegged to the pound and the dollar, and the credit was still strong. Therefore, the Nationalist Government immediately implemented foreign exchange controls to prevent Japan from exchanging fiat currency for foreign exchange to purchase strategic materials from the whole world to attack China. β
Wang Qiang nodded again and again: "There's nothing wrong." β
Su Su said: "But the Japanese puppet is very vicious, since the fiat currency cannot be exchanged for foreign exchange, it will be used as a weapon to wage a currency war, and sweep the goods in the national control area and the CCP base area." The battlefield of the Turkish Communist Party's currency war was Shandong, a major grain and oil producing province. Let's just say that after the fall of Shandong, Tubalu advanced into Shandong and opened up a base behind enemy lines, by the way, does Brother Qiang know how big the power of Balu is in Shandong? β
Wang Qiang was happy: "Railway guerrillas! β
Su Su said with a smile: "So Lao Jiang panicked, dissatisfied with the expansion of the Eighth Road too quickly, he cut off the military salary of the Eighth Road, that is, he did not issue legal tender to the Eighth Road." But Balu is not afraid, back then, they all printed Red Army coins, and as soon as the money printing machine was turned on, it was enough to continue to issue Red Army coins 2.0 'Shandong coins', but the old problem came againββ"
Wang Qiang replied: "The common people still don't recognize it? Only fiat currency? β
Su Su smiled: "That's right! β
Wang Qiang frowned: "Then continue what I said before, salt Red Army coins or something......"
Su Su said: "Yes, it happened that the currency war came, and the Japanese puppet sent spies to Shandong to sweep the goods, and the annual output of grain and oil in Shandong at that time was only a few million tons, worth tens of millions of legal currency, but suddenly hundreds of millions of legal currency poured in to sweep the goods, which is equivalent to a tenfold increase in currency, but the grain output did not increase tenfold, and the result was to watch a large number of materials being swept away, and then inflation, prices skyrocketed tenfold, the fiat currency depreciated, and Shandong's economy collapsed ......."
Wang Qiang frowned: "Isn't that cheaper for me, directly abolishing fiat currency and circulating Shandong currency?" β
Su Su smiled: "Yes, although I didn't even see the enemy in the first battle of the currency war, I didn't have the strength to fight back at all, and the losses were huge. But it can be regarded as pushing the boat along the river and taking the opportunity to take the position. But the fact that the people don't trust fiat currency doesn't mean that they trust the more unreliable Shandong currency, so-"
Wang Qiang already knows: "The old routine, engage in grain Shandong currency!" β
Su Su smiled: "Yes, Brother Qiang has graduated from elementary school in economics. But what I want to say is that the Japanese pseudo-Japanese currency is a very vicious method of currency warfare using fiat currency to fight fiat currency, and it is difficult to solve it under normal circumstances. What did Japan do at that time? The issuance of Korean currency in the Korean occupation zone and the issuance of Manchurian currency in Manchukuo in the northeast, although the value is equal to the yen, can only be used locally, which is to prevent the enemy from using currency to sweep up goods and start a currency war once the territory is lost. β
Wang Qiang nodded.
Su Su smiled: "Oh what? Does Brother Qiang know that this trick is being used in China now? β
Wang Qiang was surprised: "Huh? β
Su Su smiled: "What is China's trillions of foreign exchange reserves for? Guarantee the monetary credit of RMB? That's! From the birth of the Red Army currency to the development and growth of the Shandong currency, the renminbi has never had anything to do with gold foreign exchange reserves, and these trillions of foreign exchange are financial nuclear bombs! Brother Qiang, think about it, if China takes trillions of dollars to sweep goods in the United States, it will be to use dollars to fight dollars, and the United States will not collapse? β
Wang Qiang was stunned: "Compared with the size of the United States, trillions can still collapse him?" β
Su Su shook his head and sighed: "Leverage, Brother Qiang!" Let's take the housing prices that ordinary people are most familiar with, international travel funds do nothing, only speculate on houses, and let housing prices soar, what will be the consequences? When housing prices rise, rents will rise, and traders who rent and buy and sell can only increase the price of goods, and then the price of raw materials will rise, and then the wages of workers must also rise - that is to say, speculators can drive the collective price increase of the whole industry through a little 'small money' to leverage the housing price, which is four or two thousand pounds! It is impossible for the government to issue more than 1,000 pounds of currency to meet the challenge, right? β
Wang Qiang suddenly realized: "I see! So what to do? β
Su Su smiled: "Administrative intervention! Don't look at the fierceness of the 'market economy' on China's mouth, in fact, it's just to play casually with everyone. Therefore, although the U.S. industry is gone, agriculture is still strong, and they are desperately engaged in genetically modified grains, soybeans, and increased grain production and reserves, and everything is used to deal with the sweep war of the dollar against the dollar, and many people emphasize that the dollar is a petrodollar, in fact, the dollar also has a pillar is the grain dollar, and Monsanto in the United States is equivalent to the Middle East. β
Wang Qiang said with emotion: "Su Su said just now that after China joined the TO, it was ridiculed for all kinds of stupidity, and the dollars that were finally earned went to buy US Treasury bonds again, which is also a routine?" β
Su Su said with a smile: "Yes, if the Turkish Communist Party is really stupid, then it will be directly fooled by the United States to buy those garbage bonds that Wall Street plays tricks, but the Turkish Communist Party only recognizes the US Treasury bonds, and no matter how foolish those big fools are, they will not be moved." β
Wang Qiang asked again: "But if you really go to the United States to sweep the goods, then you are going to war, right?" β
Su Su smiled: "So I usually use these dollars to harvest Japan and the like!" Every time the United States harvests Japan with dollars, China's dollars also rush to the top, so let's not talk about these complicated things. In short, the United States hates these dollars in China's hands. This is the same as the amount of fiat currency in the hands of the Japanese pseudo-at the beginning. Therefore, as long as the U.S. currency is heavily controlled by the 'enemy country', any monetary policy in the U.S. will become ineffective. β
Wang Qiang suddenly realized: "The most critical part of the dollar harvest that Su Su said just now is to let the dollar flow back, which means that the enemy country will spit out the dollar in his hand?" β
Su Su laughed: "Yes, Brother Qiang has come to his senses, in addition to going back to take over the dollar and returning the currency, it also has this meaning." The United States harvested Latin America and Southeast Asia, and its method was to make the other side's economy depressed and search for all the foreign exchange in the other side's hands. β
Su Su smiled again: "Also, China joins TO to buy anything expensive, it's stupid and wronged, isn't it?" β
Wang Qiang frowned: "Is it another routine?" β
Su Su said with a smile: "Yes, just use a local Vietnamese joke, since the Chinese workers came, the local prostitution market has been raised by the Chinese, and the locals have no prostitution." β
Wang Qiang exclaimed: "! β
Su Su smiled: "Therefore, China's injustice has directly raised the price of raw materials around the world, making it impossible for the United States to return to manufacturing even if it wants to return to manufacturing because of material price factors." All say, is the Turk stupid? All those who think the local government is stupid are really stupid, right? β