Huaxia accumulated a surplus, thinking that it had earned dollars. As everyone knows, the purchasing power of the US dollar is in the hands of the magnesium people. Although many countries in the world accept dollars, they hardly reserve dollars, they take dollars and immediately go to magnesium countries to cash out.

The magnesium country is the ultimate realization of the purchasing power of the dollar. From a monetary point of view, the dollar is an IOU issued by the central bank of the magnesium country, and it is its debt. Of course, the bearer of this debt can only be magnesium country.

That being the case, as long as the magnesium people close their exports, the dollar will not be able to buy anything. No matter how much surplus China accumulates, as long as the magnesium people say a word and close the exports, Huaxia's dollar will immediately become waste paper, and the surplus will immediately become waste... The people of the magnesium country have already calculated this trick, and the core mystery of the depreciation of the dollar is here...

The depreciation of the dollar, to be more specific, is actually aimed at China. Because only Huaxia reserves dollars. Other countries do not reserve dollars, so they are not afraid of a depreciation of the dollar. Other countries want to go to the magnesium country to buy things, and the people of the magnesium country will take out the good things, because the things are not good, people will not buy them. But if Huaxia wants to go to the United States to buy something, they will bring out some stale sesame seeds and rotten grains for you.

80 million shirts for a Boeing plane, 4,000 yuan a ton of Coca-Cola bubble water, do you like it? You don't want to be better, then your dollars are waste paper.

In 2004, the price of oil soared from $25 a barrel to $70 a barrel, which was aimed at China. This is because the price of oil, expressed in euros, has not changed much over the same period.

When the magnesium people have used up China's foreign exchange reserves, and there will be no more dollars, the dollar will immediately stand up again. In this way, it can continue to deceive people, and it can allow Huaxia to accumulate a surplus for another twenty years...

Magnesium people hold dollars, and the dollar is strong and can buy things. The Chinese hold the dollar, and the weak dollar is equivalent to waste paper. That's buying and selling. Buying and selling is brutal.

The people of the magnesium country know very well and send and receive freely. They have only one purpose...... Stuff. Unlike Huaxia, only money, not things, and even gold, a precious metal that retains its relative value, can be ignored, which is why today's gold reserves are pitiful compared to the country's status.

The magnesium country allowed China to accumulate a surplus, and the magnesium people got something. Let the dollar depreciate and make Huaxia unable to buy things, but the magnesium people still get things.

The cost of the first Gulf War was $60 billion. China's foreign exchange reserves in 2004 were US$500 billion, because the rise in oil prices caused China to lose half of its purchasing power, which is equivalent to suffering four Gulf Wars...

At present, China's foreign exchange reserves have reached 1.5 trillion yuan, and they will continue to rise. The closure of exports and the depreciation of the dollar will allow China to suffer 40 or even 100 Gulf Wars.

The Manchu government was corrupt and incompetent, lost the First Sino-Japanese Naval Battle, and paid 230 million taels of silver. What is the concept of 15 trillion US dollars in reserves? The wealth of exchanging 700 tons of paper for 150 billion taels of silver is equivalent to the loss of 600 Sino-Japanese naval battles... It is equivalent to the collapse of the Manchu Qing government, China has lost a Sino-Japanese naval battle every two months...

Li Hongzhang ceded the land and paid compensation, everyone said that he was a traitor, and his old man could not afford to be sick from then on. But Huaxia now loses a Sino-Japanese naval battle every two months, and has been losing for a hundred years in a row, as if nothing happened...

What's the crux of the problem? Why does China accumulate a surplus and reserve foreign exchange? The crux is that China's exchange rate system is flawed...

What do you do when you earn dollars? Answer this question.

Shopping. China Southern Airlines said, give me the dollars, and I'll buy the plane. PetroChina said, give me the dollar, I'll buy oil. So to whom?

Whoever offers the highest price will naturally give it to whomever it wants. China Southern Airlines offered eight yuan a dollar, first to China Southern Airlines, and PetroChina to bid seven yuan a dollar, and then to PetroChina. After these two goods are taken in US dollars, they will lose or earn, and they will be responsible for themselves.

However, if China Southern Airlines and PetroChina can't afford to pay the price - eight yuan a dollar, no one wants it. Seven dollars a dollar, still no one wants it. Six dollars a dollar, or no one wants it, what should I do?

Then you'll pay $5 a dollar, $4 a dollar, and $3 a dollar...... Let the renminbi appreciate... Until someone asks for dollars...

What if no one wants one dollar or one dollar, and no matter how the renminbi appreciates, they can't buy anything from the United States?

Then the exporter will automatically close the door and stop producing things for the magnesium country. Because the dollars earned cannot bring benefits to Huaxia, no one wants the dollars earned by Huaxia.

This is the exchange rate mechanism, every penny of foreign exchange earned by the exporter should be confirmed by the private sector, and the private importer should decide at what price to buy the foreign exchange in the hands of the exporter according to the import purchasing power of the foreign exchange. If this transaction is successful, the exporter's reproduction can be realized smoothly.

Under this exchange rate mechanism, a large surplus is simply not possible. Because of the surplus, that is, exports are greater than imports, it will lead to exporters earning foreign exchange that cannot buy things, like waste paper. Exporters will soon be suffocated and unable to produce anymore.

If the renminbi's exchange rate mechanism can automatically prevent the loss of resources and the emergence of huge surpluses, why does this mechanism fail?

It was because of the intervention of the central bank, which started the money printing machine to forcibly purchase US dollars for reserves, and introduced the exchange rate mechanism that automatically prevents the loss of resources, and it is no longer effective.

Central banks reserve dollars, and people can't instantly verify and realize the purchasing power of every foreign currency. Even if the dollar has become waste paper, without the slightest purchasing power, people will not be able to find out.

The central bank's reserve of foreign exchange is an encroachment on the right of importers to certify and realize the purchasing power of foreign exchange. When the importer does not want dollars, you start the money printing machine and forcibly reserve it, you go against the interests of the country and form a black hole that devours the country's resources.

If the central bank does not intervene, the exchange rate is the real "private exchange rate". Once the central bank intervenes, the exchange rate is actually shouted by the central bank casually, let's call this exchange rate the "central bank exchange rate". Because the central bank has the money printing machine, he shouted that there is an oversupply of foreign exchange, and when printed money is accepted, it becomes a reserve. If it is shouted, foreign exchange will be in short supply, and if you collect banknotes to buy it, it will become a foreign debt.

In China, the central bank and the state-owned commercial banks are actually one. The huge reserves directly prove that the central bank is involved in foreign exchange transactions, and dominates and determines the exchange rate, depriving importers of the right to certify and realize the purchasing power of these foreign exchange reserves. There is no argument for this, because the reserves themselves are evidence of mistakes.

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