Chapter 485: China's Response

That's right, the economic crisis in the history of the original plane came a month ahead of schedule.

As we all know, the causes of the economic crisis are complex and caused by many reasons. Among them are the pots of the capitalists, who blindly expand production, ignoring the relative poverty of the people, whose purchasing power is lower than the productive capacity, which leads to a large backlog. There is also the pot of the masses, and the excessive expansion of credit consumption has caused a false prosperity in the market and exacerbated the contradiction between production and sales. As well as the pot of the financial industry, stock speculation is rampant, and stocks do not reflect the actual situation of economic operation, causing a false boom in the economy and covering up production and sales. At that time, the European and American governments were deeply influenced by laissez-faire economic ideas and adopted laissez-faire economic policies for the country, believing that the "invisible hand" would perfectly solve all problems, so that the entire social production was in a state of anarchic chaos.

Anyway, as far as the economic crisis is concerned, basically many people are responsible, it is just a matter of how much responsibility.

After the First World War, the participating countries convened the Geneva Peace Conference and the Washington Conference, established the Geneva-Washington system, and temporarily adjusted the relationship between the old and new powers. In the 20s, the whole world was in a period of relative stability, although there were independent liberation movements in the colonies and all-out wars in South America, but on the whole it was still mainly peaceful, at least there was no direct conflict between the big hooligans, so the major powers entered a golden age of rapid development.

On the plane, due to the miraculous rise of China, there is another huge market and supplier in the world, so the economic development is more vigorous than the original time and space. In World War I, the United States was full of oil, with more large territories and many younger brothers, increased a lot of markets and raw material production areas, and its development was more prosperous than that of the original time and space, and all walks of life were in full swing, and the economy was extremely hot. Basically, no matter what industry you invest in, you can make money.

So in recent years, the stock market in the United States has been bullish, basically every day is a bull market, not a cow of a small cow, but a big bull, a giant bull, a bull demon king's cow, anyway, bull B does not explain. All major sectors are green, and the green curve is just rising (the green of the U.S. stock market represents the rise).

But that's how the economic crisis came, the crazy stock market made people all over the United States crazy, and who could bear it if they could just buy a stock and sit at home and collect money. Driven by human greed, the whole United States is immersed in the dream of making a windfall, every household is speculating in stocks, and speculation is extremely rampant. Moreover, the major consortia are also preparing to take the opportunity to shear sheep, so they are naturally fanning the flames, and there are some forces with ulterior motives that are also fueling the flames for some purposes.

The combination of these factors has made the U.S. stock market so hot that it's outrageous. Investing a dollar in the stock market usually doubles in a week, and when it is particularly hot, it can be multiplied several times a day (there was no limit system at that time). In such a fiery atmosphere, the American people are crazy. Not only did they take out all their savings, but they also mortgaged their factories, land, real estate and other real estate to the bank, and even mortgaged their ancestral jewelry, all in order to obtain more funds to speculate in stocks.

As we all know, the stock market itself cannot produce products, it is just a game of financial speculation, once it goes overboard, there will be financial bubbles, these bubbles also have their limits, once they reach the critical point, they will blow up with a bang.

In fact, it is not uncommon for the United States to see this, and many academics and financial practitioners, as well as government think tanks, have repeatedly raised concerns about the overheated stock market. However, this is of no avail. In the hot situation of national participation, these warnings are just the wind in the ears, no one takes it seriously at all, or some people take it seriously, but they always feel that they can go ashore in time, they say "get another vote, and we will stop after getting this vote".

Therefore, the economic crisis of the original plane is also inevitable, and it is only a matter of when. But the immediate trigger for the current economic crisis was the flight of a large number of American Jews.

The Jews were going to Asia to build their new homeland, and naturally they couldn't go empty-handed, whether it was Israel or Gujarat, they were all in ruins, and what could they do without money? So he pulled a lot of money out of the United States and sold stocks and real estate to cash out in exchange for enough cash to buy supplies.

If the Jews had poured these funds into the American market and bought things from the United States, this economic crisis might have come much later, and it would have even pushed the stock market to a more hot level. However, savvy Jews will obviously choose cheaper goods, and the United States is too far away from Israel and Gujarat, not to mention the price of the goods themselves, and the shipping costs alone are very high, so they give a large number of orders to Europe and China, which are much closer. In particular, cost-effective made in China has become their most preferred choice.

Stocks were sold off in large quantities, cash in banks was withdrawn in large quantities, and Jews also raised large amounts of gold reserves. Because of these factors, a large amount of Jewish money was withdrawn, which led to the early bursting of the stock market bubble. At the beginning of August, a well-known private statistical agency expressed concern to the media that there would be a Great Depression of unprecedented scale in the United States, and the Dow Jones index fell slightly. But then, President Hoover claimed that the U.S. economy was fundamentally sound, and the stock market climbed again massively, but an atmosphere of alarm was enveloped across Wall Street.

On Thursday, September 5, 1929, there was an unprecedented wave of sell-off, and the stock market began to fall. After that, it plummeted every day, and by September 11, the stock market had collapsed to its peak, with more than 30 million shares changing hands, and the Dow Jones index plummeting another 22 percent, breaking the record again, causing losses that were only several times greater than the foreign debt owed by the Entente to the United States. During this period, although some financial giants tried to save the stock market, such as the Morgan consortium, which once ate tens of thousands of shares of various companies in one fell swoop, to no avail, and the stock market plummeted.

The U.S. stock market collapsed, the glamorous financial bubble burst all at once, stock prices plummeted every day, high-priced stocks became waste paper overnight, and enterprises and individuals rushing to buy securities became destitute overnight. On the buildings of Wall Street, people perform freefall sports every day, and in the mansions dominated by the nouveau riche, there are crisp gunshots from time to time.

President Hoover, who had recalled, thumped his chest with regret. He said with great remorse: "Lao Tzu is really a dog, and he can be shot while lying down! **** opium cow, Lao Tzu is miserable by you now!"

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October 2, 2770 (1929), Hanjing.

"Do you think it's possible to salvage this crisis in the United States?" asked Mr. Wende-si, Mr. Liu, China's number one financial expert.

The stock market crash in New York caused not only an economic crisis in the United States, but also quickly spread throughout the world. Germany, France, Belgium, Austria, Sweden, Norway and the Netherlands, and even the United Kingdom, which was the trigger for this fuse, have also been affected, and are now triggering a massive stock market decline in old Europe. Given the close trade between China and Europe and the United States, it is natural that it will also be affected.

Liu Yang shook his head and said: "It's impossible, the securities bubble in the United States has been blown too big by them, and the internal support of the economic system has long been diluted. At this point, it is irretrievable by no one, whether it is the government or a consortium. They intervened too late......"

"So how much will this economic crisis cost?"

Liu Yang, chairman of the Finance Federation, thought for a moment and said: "The situation is too chaotic now, and I am not sure of the final extent of the damage caused by this disaster, but one thing is certain, the damage caused must be extremely large, and it is very likely to exceed the original history." ”

"Hmm......" Wen Deji nodded.

As a traverser, he naturally knew about this economic crisis. He knows better that with the current capitalist system, the outbreak of an economic crisis is also an inevitable event, and this is a real system problem that no one can do. It's just that history has changed beyond recognition, although he can't be sure of the exact timing and scale of the crisis.

But now that he knows, of course he will be prepared, his layout around the world over the years has not been in vain, there will be no shortage of intelligence contacts abroad, and there are still a large number of computers and experts in China who are analyzing such incidents. After the-stirring stick of the opium cow came up with the Jewish homeland plan, Liu Yang, who was extremely sensitive to finance, realized that something would go wrong.

With Liu Yang's ability, he will naturally not let go of the US stock market, which is a huge source of wealth. In the past few years, he has invested a lot of money in the US stock market to make money. Moreover, he not only mobilized the power of the state, but also organized a large amount of private capital to go to Wall Street to shop, and even the capital of the People's Revolutionary Federation and the member states of the Shanghai Cooperation Organization was also organized by him. It's good that the boss will take you to make a fortune together.

Subsequently, led by the China Federation of Finance and Finance, with the participation of various forces, hundreds of special vest companies for the U.S. securities market were established. In recent years, with the popularity of the U.S. stock market and the operation of experts such as Liu Yang, it can be said that it is a big fish.

The team of experts of the Federation of Finance and Finance also had a plan for the timing of the economic crisis, and they used the computing power of the quantum computer "Xiaomen" to carry out various calculations. To be honest, the tipping point they originally calculated should be the end of this year or the beginning of next year. So originally, according to Liu Yang's plan, he was going to lose weight until the end of the year. But because of the-stirring stick of the opium cow, the matter was advanced.

Liu Yang is a person who knows how to measure, so as soon as he sensed that something was wrong, he immediately ordered to stop it in advance. Anyway, now that I've made a lot of money, there's no need to risk it anymore. As a result, under his command, the funds of China and its junior brothers were gradually withdrawn from the US stock market starting in June. Before the "Black Thursday", the vast majority of their own funds had been withdrawn, and only a very small amount of private capital that did not heed the warning was still there, but they also hurriedly issued tickets and left after seeing that the momentum was not right on "Black Thursday".

After confirming that the U.S. economic crisis was irreversible, the China Finance Federation immediately began to introduce a series of relevant policies and new regulations for the securities market and banks, and tightened the monetary policy and reduced investment. At the same time, all younger brothers are required to implement the same policy.

"So how much will my country be affected by this?" said Wen Deji in a flat tone. He doesn't care what will happen to Europe and the United States, but he must care about the situation in his country.

Liu Yang smiled: "Mr. Wen, because we evacuated in time, our investment in the United States not only did not lose, but made a lot of money. At the same time, the monitoring mechanism we have established in the domestic financial sector can only ensure that China's securities market does not have a bubble and will not collapse with the US stock market. ”

Then, he changed his words: "...... But the negative impact of this economic crisis is still significant. Today's China has a deep connection with the European and American markets, the United States is our largest trading partner, while the United Kingdom is China's second largest trading partner, Germany and France are close behind, and the import and export trade with European and American countries accounts for more than 70% of China's total import and export. The bursting of the bubble in the US stock market will certainly have an unprecedented impact on the entire economic system in Europe and the United States. If there is a problem in the U.S. economy, our import-export related enterprises will also be seriously affected......"

"So what do we do next?"

"Mr. Wen, we should immediately activate the SCO's emergency plan, start building external tariff barriers, raise tariffs, and exclude European and American goods from the SCO market. At the same time, we should also increase the scale of construction of housing, bridges, railways, environmental renovation and other infrastructure in order to stimulate domestic demand, and the above measures should not be limited to the country, but should also be extended to the control of the People's Revolutionary Union and the SCO......"

"Today's China controls nearly 30 million square kilometers of land and more than 700 million people, plus the members of the People's Revolutionary Federation and the Shanghai Cooperation Organization, the total land area of the country is more than 40 million square kilometers and the population is more than 800 million. The abundance of infrastructure projects that can be used to stimulate domestic demand means that we can easily exploit the market potential of these lands and use them to revitalize our economy. The markets of each member state can also provide sufficient tension for China's economy to resist this financial shock from overseas. According to the calculations of our financial alliance expert team, as long as we follow our plan, we will be able to survive the crisis that has swept the world after a transition period of one year at most. ”

Liu Yang is very confident that China's domestic market is far from saturated, and the same is true for the various People's Revolutionary Federations and SCO member states, and that China and its younger brothers have a lot of infrastructure to build, and although imports and exports will certainly be affected, they can be transferred to the internal circulation of the SCO. After a transition period of one year at most, you can watch the fire from afar.

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