Chapter 62: The Liquidity Trap
Positive events, no matter what, can be put on the surface for the first time.
Negative events will always be suppressed by all means, and when they are forced to put their helplessness on the bright side, it means that this matter is out of control.
The Wall Street stock trading floor in New York is a signal, a signal that the Washington Yankee administration can no longer control the currency market.
It was precisely because of the "comparison" printing of the "Yankee Federal Bank" that it eventually led to the economic crisis in the United States.
The Yankee government could no longer hold it down, and the "Yankee dollar" was widely abandoned throughout the United States.
The market is like this, when you go up, when the price rises, everyone will believe that you can continue to rise, and there is no bottom line to blindly increase your position.
Once there is a collapse, it will be a thousand miles, and even if a gun is pointed at the people, the people will no longer use the "Yankee dollar".
The economy collapsed, the money market collapsed, and workers no longer recognized the "Yankee dollar", even if the monthly salary was "high" to thousands of "Yankee dollars", no one wanted to continue working, they only recognized the "hero dollar".
Not only workers, but also farmers, civil servants, and even the Yankees' own government workers don't trust the Yankee dollar anymore.
Everyone tried their best to sell everything valuable around them, just to get a "hero dollar" of one or two dollars.
The exchange ratio of "Hero Dollars" to "Yankee Dollars" on the black market has even reached more than 1:10,000, and in this way, no one has exchanged "Hero Dollars" for "Yankee Dollars".
The consortium behind the mafia also ordered the cessation of this exchange, and the ratio of "hero dollars" to "Yankee dollars" on the black market was completely ended.
Not just exchanging "Yankee dollars" for "hero dollars", the market for "Yankee dollars" for all other currencies was closed.
Before "Scarlet Monday", the "Yankee dollar" could also be exchanged for pounds, francs, rubles or something, and the exchange rate was not much to say, everyone who knew it understood.
But at that time, it could still be changed, but now it can't be changed at all.
Even the "Yankee Union Bank" no longer opened the currency exchange and foreign exchange offices that were already "in vain".
The "Yankee dollars" in the hands of the people are meaningless except for tying children into squares and stacking blocks to play.
You can even see homeless people sleeping on "Yankee dollars" on the road.
The factory owners, who had experienced several economic crises, knew that no matter how many goods they produced, they could not sell them normally.
Even if the factory owner puts the "hero dollar" in his hand into production, the profit is infinitely close to zero, not to mention that there is a high probability of losing money.
This phenomenon is known as the "liquidity trap" in the financial industry.
At the same time, these factory owners encountered workers who did not recognize the "Yankee dollar".
In this case, it is better for the factory owner to directly declare a shutdown.
In just a few days, Yankee's factory was shut down on a large scale.
The owners and shareholders of most enterprises and factories have hoarded the "hero dollars" they have accumulated in their hands to prepare for the next payment, hoping that after the financial crisis has passed, they will use the money to restart the factories and "make a comeback".
Workers are unemployed, so that these workers can no longer find the slightest "sense of fulfillment" in reality.
The Great Smoke House, Marijuana Hall, and Heroine Hall were overcrowded, and there were many large-scale "riots", the largest of which was a "Heroine" drug store in Chicago, where thousands of people looted.
It's a pity that the Chicago gangsters and Chicago consortiums standing behind this "specialty store" are not joking.
Tom had the foresight to only produce, to do total production and total sales in a non-Dixie market.
As for retail, never participated, especially in the "painkiller" market, which Tom hated the most.
Looting, riots, and demonstrations were suppressed by local gangs.
The sales of the "Heroine" series of medicines have increased instead of decreasing, and even in some Yankey areas, they have become a new "hard currency", which is "harder" than gold.
The crime rate has soared, and if it were simply unemployment, if it was just "simple" opium and marijuana, it would not have forced the people to riot like this.
This is the "Heroine" series of medicines!
The dependence and addiction of this thing are not comparable to marijuana and opium.
The Yankees' crime rate has soared to 70 percent, and there are signs of continuing to soar.
The Yankee plan is that Tom over-issued because of the war, and the hero currency in the market increases, but unfortunately there are more "Yankee dollars", and the market is still the Yankee market.
It's a pity that I met Tom Smith, who didn't understand finance at all, and over-issued with no bottom line, and the Yankee was forced to "fight back" and print money together without a limit.
Some people can't help but ask, what if the Yankees stop at this time and don't follow Tom to "unlimited" over-issue currency?
Will there be another economic crisis?
Quite objectively, no.
If Yankey does not have an "unlimited limit" and "follow the trend and print", the "hero dollar" printed by Tom will use the power of his own first productivity company, Hero Company, after a few months, to smoothly replace other dollars, and eventually become the "standard dollar" of the first generation of the United States.
But in this case, for the Yankees, it is better to let the consortium and investors commit suicide by jumping off the building.
They don't want to allow the currency in their "sphere of influence" to be controlled by other "forces".
The Yankees will have to print more "Yankee dollars" to delay the day when "hero dollars" take over the U.S. market.
It is a day to be able to drag it out.
As for the financial crisis caused by over-issuance, how many financial tycoons are in the Yankee consortium and how many actuaries are under their hands, will the Yankee consortium not know?
The Yankee Consortium is the group that hoards the most foreign exchange and "hero dollars".
This over-issuance period is the "buffer period" in the form of joint asset transfer by the Yankee consortium.
The consortium is unwilling to accept the "imperceptible" capture of its own market by the "hero dollar".
Would they rather drag on for a few days to transfer their assets to foreign exchange or the "hero dollar" of their opponents, as for the economic crisis?
Let those people who are "news lagging" die, and become the "ghosts for the dead" in the transformation of the Yankee Foundation.
——————
October 2, 1867
Texas, Houston, Smith Building, Tom Smith Office.
"Good!"
"Corpses are everywhere, people are struggling to make a living, children are eaten, and riots are constantly ......"
"Tut-tut, I don't know, I thought it was in the Qing Dynasty."
"No, there is no "first-class foreign adult" here who is blessed by Weizuo, how can it not be compared to the Qing Dynasty. ”
"Wait, if there is a person now, with foreign currency, isn't he a "first-class person" on the Yankey's side? ”
"No, I should be "eaten" by the Yankee, who is not as talkative as my "fellow". ”
Tom sat in his chair and looked at the "Yankee Territory Experience" reported by the hero salesperson, and couldn't help but applaud, and even thought about what it would be like if this phenomenon appeared in the Qing Dynasty.
In fact, there is no need for Tom to associate it, even if there is no economic crisis in the Qing Dynasty now, ordinary people are still like this.
"Boom! Boom! Boom! ”
"Enter."
Looking at Milia who came in at the call, walking a little unsteadily, and even some pain on his face that was difficult to hide, Tom couldn't help but feel a little "uncomfortable".
"How many times have I said that if you give birth to a child, you will obediently lie in bed and rest, and it will not be too late to wait for a few months to go to work."
"It's okay, Tom, I just like to be around you."
"Well, I don't know if people still think I'm an unscrupulous black-hearted boss who doesn't give maternity leave to female employees."
In order to stabilize his "position", a week after the production, Milia began to serve as Tom's personal secretary again.
may have been influenced by Tom, and Millia now feels that for Tom, only "body" is a plus, and he must give birth to Tom while he is still young to stabilize his position.
It's really close to Zhu and red and black to ink.
It's a pity that Milia still doesn't have Tom Black.
Because now Tom thinks to himself:
"Really, you can't touch it and still dangle in front of my eyes, when you're almost well, don't, the wound will heal, and before you fully recover, I'll let you see the power of my "Little Tom" knight. ”