Blackstone Code
Chapter 2514
Lynch had previously mentioned the idea of cross-holding shares with the Federal Reserve Bank, and he was even willing to make some additional money for this purpose.
But the Federal Reserve would rather spend more money than make a profit or give up its shares.
The issuing bank has a very high weight in the entire monetary system. It can be said to be the rule maker of the financial game, and when the issuing bank adjusts the rules of the game, it will not encounter any resistance!
For example, when the Federal Reserve thinks the market is overheated, they only need to raise interest rates to cool the market quickly!
Both financial markets and social and economic development are very sensitive to changes in interest rates.
But for many people, especially young people and those who have no saving habits, they are not so sensitive because they do not have an intuitive understanding.
Its impact is mainly in two aspects.
The first is the impact on financial businesses.
For example, the current annual interest rate (one-year term) on savings at the Federal Reserve Bank is 7.89%, which means that if one hundred yuan is deposited in the bank, by the end of the year, it will be one hundred and seventy-seven yuan with interest. Nine points.
Seems like very little?
This is indeed the case. This amount of money is really nothing to ordinary people's lives.
But for some large financial institutions, if their investment return rate is slightly higher than this number, but the risks they bear are greater than their returns, they are likely to deposit part of their funds in the bank as a guarantee.
As a result, they will have less cash invested in the financial market, and the investment activity in the financial market will be relatively less active.
At its highest point in federal history, the annualized interest rate was close to 20 percent!
This is much higher than the returns brought by investing in financial products, which also causes many financial companies to deposit all their money in banks.
What will happen when people start depositing money in banks, whether they are ordinary families, businesses, or investment companies?
There is no doubt that when the money earned from investing and doing business is not as good as saving money directly, the market will quickly cool to freezing point!
The reverse is also true. When the Federal Reserve Banks need to stimulate activity in financial markets, they only need to announce a reduction in interest rates.
When people find that depositing money in the bank cannot bring them any huge benefits, they will naturally withdraw their money and engage in various investment activities.
When interest rates rise significantly, ordinary people's desire to save will increase, especially during periods of small amounts of high interest rates. For example, during the recent war, federal savings interest rates increased a lot.
The purpose of this is to get the money back into the hands of the banks, and the banks are ready to transfer the money to the government through various methods at any time and at any time for war purposes.
When interest rates begin to drop significantly, people's desire to consume will gradually become stronger.
People will have the idea of "I put the money in the bank and it will depreciate, so I might as well spend it first", which makes people's desire to consume begin to increase.
The real industry will immediately be stimulated by the good news and achieve huge development, followed by the entertainment industry, tourism, etc.
The larger the economy, the more sensitive it is to interest rates, because in the eyes of ordinary people, it may be like 500 yuan in a bank account.
But for a large economy, it may be tens of millions, hundreds of millions, billions or even tens of billions!
The words of the Chairman of the Board of Directors of the Federal Reserve Bank revealed dissatisfaction with Connor, but it was not that strong.
After Lynch thought for a moment, he asked a very crucial question, "Is this Connor's attitude?"
The chairman of the board of directors was stunned for a moment, not knowing how to respond!
Is this Connor's attitude?
This is certainly not Connor’s attitude!
Connor just asked about the antitrust content of this report, and he didn't even show a clear position.
Now he complained to Lynch that the federal government's involvement in the issuance of currency was actually the result of "I think."
He felt that Connor was testing his reaction by contacting him on this issue!
It is impossible for Connor to have no idea about taking back the issuance rights, and when the new currency was issued, he also mentioned the issue of issuance rights intentionally or unintentionally.
Being overly sensitive on key issues puts him in an unplanned state of tension. He feels that the situation is getting worse, but in fact, it may not be that serious.
After a while, he realized, "You are right, I still need to talk to Connor in private first..."
Lynch nodded in agreement and said at the same time, "But the problem may have arisen. Even if Connor's attitude remains neutral or on your side, are you sure that in the end you can keep everything as usual?"
"If no one asked the tough question, no one would notice this."
"Now that someone has raised it, it means that the media and the public will soon find out something is going on here."
"You know, people hate monopolies..."
In fact, it is not ordinary people who hate monopoly the most. Does the capitalists’ monopoly have much to do with ordinary people?
For ordinary people, they will buy things they can afford, and they will not find ways to buy things they cannot afford. Therefore, if there is no monopoly, it will not affect the lives of ordinary people.
But those capitalists who hate monopoly, or hate that they do not have a monopoly, are the vanguard of anti-monopoly.
They use the so-called "public opinion" and "people's interests" to attack those monopolistic behaviors, and the purpose is to gain some benefits from the monopolized industry.
Representing the position of the people and humanity, this kind of thing is not complicated at all, Lynch comes right out of his mouth.
The chairman of the board of directors fell into deep thought again. After a while, he sighed in embarrassment, "What do you think will happen next?"
Lynch curled his lips and said, "A big storm!"
At the same time, in another room, several gentlemen who looked very elegant were discussing the same thing.
Two of them are the chairman of the board of directors and major shareholder representatives of two of the seven major banks in the federation. Among the others are well-known investors in the federation, and there are also two capitalists who can represent overseas capital forces.
The chapter of the "new era" began with the end of the war, and Blackstone became a highly profitable bank.
A large amount of cash, gold, and foreign exchange reserves are what all financial industry practitioners urgently need, and Lynch can provide them all.
Appropriate interest rates and strong security guarantees will naturally squeeze the living space of other banks.
In addition to its own investments, banks' main revenue comes from external lending, especially large-amount short-term loans.
But now these businesses have been snatched away by Blackstone Bank, and coupled with the rejection of foreign capital by established capital interest groups in the federation, these foreign capitals also urgently need the support of an economy that can support them to play in the federal financial market.
In the world of capital, there is no such thing as national boundaries. The only thing that is owned and eternal is interest!
"Next we will step up our efforts to address the Federal Reserve's problems, but your actions must also be accelerated."
"We can't delay it too long. The longer it takes, the more slowly it will be able to discover what we are doing, which is very dangerous for us."
The person who spoke was the chairman of the board of directors of a certain federal bank. Others nodded. The representative of the overseas capital group also said that he would immediately start the initiative once the federal side takes action.
They want to create a World Bank Alliance!
Every country has an issuing bank, and the status of the issuing bank is basically unshakable.
Maybe everyone was not so sensitive to this kind of thing in the past, but with the shrinking of the international scope and the internationalization of the Federal Sol, the rulers of some countries and regions also felt the danger.
When people in a country start to use federal Sol, it means that their country's value system is dying!
Because people will no longer use their value system to measure the value of a thing, thing or person, but will use the value system of the Federation people to measure it.
The disappearance of Galil (the currency of Nagaril) and the emergence of the New Federation Sol have made every country fear those colorful little pieces of paper!
In particular, the new currency design designed by Lynch has eliminated more federal content, which has increased public acceptance and holding more federal currencies is becoming a trend!
No one wants their country to become the next Nagaril, a country that relies entirely on the federal value system to exist!
Therefore, under the demands of many parties, a plan for a World Bank Alliance is being implemented.
It came into being due to the dissatisfaction of some people within the federation and the demands of some capital outside the federation.
Fight against the Federation, against the Federation Sol, is becoming an unspoken consensus around the world!
Even among these people, some forces belong to the World Development Council!
The political game between countries is never a simple one plus one. We can be brothers, but we must also keep each other safe, and even be on guard at all times!
In the process of forming the World Bank Alliance, one of the most troublesome obstacles is the Federal Reserve Bank.
If the Federal Reserve's strong opposition leads to federal intervention, the World Bank Alliance plan will inevitably die.
Therefore, the first step is to make the Federal Reserve Banks have no intention of fighting with them, and then quickly promote the adoption of the World Bank Alliance in the World Development Council.
In this way, each country will have the courage and confidence to fight against the Federation Sol in at least a certain sense!
At this time, a representative of a large overseas capitalist added, "I think we need to attract more supporters, and even let the Federal Reserve Bank become one of our members..."
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