Dominate South Asia
Chapter 778: The Weapon of Foreign Exchange Reserves
Fight back! Since the United States is going to take up the weapon of economic sanctions, China should also fight back!
Hearing Muhammad's words, Premier Zhu's body was shocked. Fight back! The Chinese high-level officials had also imagined a counterattack, but...
"We are brewing a set of plans to increase the punitive tariffs by 2,000% on all goods exported from the United States to our country." Premier Zhu said: "But it has not been released yet, and it is being negotiated."
China not only exports, but also imports! China's huge population can also become a huge consumer market! The United States also sells a lot of industrial products to China, focusing on electronics, automobiles and other aspects, especially electronics. The US CPU almost monopolizes China's computer hosts. If it weren't for the electronic products produced in Pakistan, these things would almost be the world of the United States.
And now, with Taiwan, China also has a first-class electronic product production base. Electronic products produced in Taiwan can be exported to the mainland. Imposing high tariffs on these American products is enough to cause great losses to these American industries!
But will this further stimulate the United States? The top leaders solved the Taiwan issue, and originally intended to ease the conflict with the United States. But now it seems that the United States is angry and has introduced so many policies. If we respond tit-for-tat, it will further stimulate the United States.
It can be said that the United States in a unipolar world has forced the Chinese top leaders to be cautious and make policies more conservative.
"How can we only impose punitive tariffs!" Hearing this, Muhammad shook his head: "This kind of trade barrier has an impact on both sides. Since the United States has made it first, you must also formulate targeted measures in the same way. However, not only to target, but also to fight back! Your country's huge foreign exchange reserves are the most powerful weapon to attack the US economy!"
China has 2 trillion foreign exchange reserves. Such a large foreign exchange reserve is a backing for economic struggles! Now that the Americans have made this decision, they must be aware of accepting punishment!
Muhammad said this not to interfere with China's policy making, he just gave a suggestion.
"Now, the United States has so much national debt that it cannot pay back. Your country is a creditor country with so much foreign exchange reserves. Even if the relationship with the United States improves in the future, the United States will force your country's RMB to appreciate as it did to the island countries. In this way, your country's dollar reserves will depreciate significantly. Let your country's economy overheat and then never recover. The island country's economy was ruined by the United States in this way." Muhammad said: "So, you should exchange all the dollars in your country. You can't put all your eggs in one basket."
According to the nature of Americans, they will definitely do this. Muhammad now needs to remind China that holding so many dollars in their hands is useless.
When the currency depreciates, all these wealth will shrink.
"Then what should we hold? Rubles?" Premier Zhu asked.
Rubles? At this time, the ruble is just a piece of waste paper! God knows how much the ruble can depreciate! Muhammad said: "The ruble cannot be considered, but now Europeans are working on the euro."
Euro! As Europeans, although they have been under the halo of the United States since World War II, the pride of being old Europeans makes them want to get rid of the American shadow all the time.
Even if the Soviet Union did not disintegrate, even shortly after the end of World War II, Europeans began to try. The Treaty of Rome was proposed in 1957, and the European Economic and Monetary Union Plan was formally proposed in 1969.
The Hague Conference of the European Community proposed the idea of establishing a European Monetary Union. And commissioned Pierre Werner, then Prime Minister of Luxembourg, to make specific suggestions on this.
In March 1971, the "Werner Plan" was passed. The first step was taken in the construction of a single European currency. The "Plan" advocates the establishment of a European Economic and Monetary Union in three stages within 10 years. Unfortunately, the subsequent oil crisis and financial storm caused the "Werner Plan" to be stranded.
In 1986, the European Community signed the "Single European Document", proposing to establish a unified market by early 1993 at the latest.
In 1989, the Delors Report was passed, which advocated the creation of the European Economic and Monetary Union in three stages: the first step is to fully realize the free flow of capital; the second step is to establish the European Monetary Institute (the predecessor of the European Central Bank); the third step is to establish and implement the economic and monetary union and replace the currencies of member countries with a single currency.
Unfortunately, given the Europeans' habit of talking nonsense with each other, the euro is still in the planning stage until now, and it will take at least another three or four years for it to be officially issued.
Europeans are still holding endless meetings and discussions, and the focus is on the issue of start-up funds. The launch of the euro will require at least 160 billion US dollars. Such a huge number, how to allocate it to each country, and how to promote the euro to replace the currencies of various countries after the launch, are all very cumbersome processes.
"The euro has not been launched yet, how can we use the euro?" Premier Zhu couldn't help asking.
"Make a statement." Muhammad said: "As long as the euro is launched, you will convert half of your foreign exchange reserves into euros. This will definitely speed up the process of the euro and accelerate the conflict between Europeans and Americans. Moreover, the Americans can't do anything about it."
EUR! Although the history of later generations has proved that the euro is a symbol of European integration and can be mutually beneficial when it is prosperous, but once problems arise, everyone still looks after themselves. At least now, Europeans are more confident. The collapse of the Soviet Union has given Europeans hope of revival.
This revival must be achieved economically, and first of all, monetary unification!
Why is the United States strong? Because the U.S. dollar is the world currency, any trade in the world needs to be paid with U.S. dollars. The U.S. only needs to print money to buy things. If all the U.S. dollars in the world go to the U.S. for consumption, the U.S. economy will collapse in an instant. It collapsed.
China holds two trillion U.S. dollars. If half of these U.S. dollars are converted into euros, the euro will immediately strengthen. At the same time, these U.S. dollars put into the international financial market will also put the U.S. dollar under tremendous pressure. One trillion , enough to subvert the economy of a small country!
Using this trillion as bait is enough to cause some bad blood between the United States and old Europe. In fact, for this trillion, old Europe will stop China's punitive tariff measures. When the time comes, old Europe will look at the euro eagerly. As soon as it started, there were outside investments and holdings. For old Europe, the support was too great!
The cornerstone of the relationship between countries is interests!
Now, after hearing what Mhamad said, Premier Zhu's eyes flashed. He knew that this method was feasible!
"Now, the United States is still fighting in Iran with its NATO brethren, but the high military expenditure will soon make other NATO countries stop. Although those countries covet Iran's oil, they will not take their own country's economy as a bet. , and this euro conflict will be enough to widen the differences between old Europe and the United States," Mhamad said: "In the end, no matter how much US dollar reserves you use to replace the euro, they will be at odds with each other."
The United States is already very disgusted with the euro. The euro will impact the status of the US dollar. Through this incident, the friction between the United States and European countries will be even greater. This is a more serious threat to the United States!
Once the United States gets into trouble with Europe, the United States will really be isolated from the world. Moreover, once the old Europeans come up with the euro, they will definitely promote the euro to become the world currency. Watching these old capitalist countries fight each other, That's what's pleasing to the eye.
In later generations, no matter how tempted old Europe was, China has always firmly held the U.S. dollar and has become the world's largest foreign exchange reserve country with U.S. dollars. In fact, it is equivalent to constantly paying for the Americans, and the United States is still forcing China to appreciate the RMB. Let China's foreign exchange reserves depreciate.
Now is different from history. Now that the United States has restarted economic sanctions on China, it might as well break out of the encirclement and open a gap in Europe! Adding trouble to Americans!
"We must seriously consider this plan." Premier Zhu said.
"As long as the United States is unwilling to stop in Iran, the economic crisis in the United States will definitely come." Mhammad said: "Now, after the collapse of the Soviet Union, the United States attempts to dominate the world alone, which will bring a lot of pressure to us. Only by completely letting the United States decline through this opportunity can we usher in our strength. Premier Zhu, I don’t know if you have planned for the future.”
"What's the plan?" Premier Zhu asked.
"Our strategic issue." Mhamad said: "You will control the Pacific Ocean, and we will control the Indian Ocean. In this way, our two countries working together can usher in the brightest future for us."
"Perhaps, this process will be difficult, but we have no choice. In the current international situation, if we do not seize this opportunity of the decline of the United States to rise, we will have no chance in the future, even if it leads to a war. We will not hesitate to fight a local war with the United States, "Mhamad said: "This is all for our future."
Mhamad's words are very solemn. He is not an arrogant person. Now, India has almost been annexed, and Afghanistan is on the other side. Pakistan is already very powerful. Pakistan will control the vast area of the Indian Ocean, and China, Once it breaks through the first island chain and can realize its own existence in the Pacific, then Pakistan and China will join hands and usher in the brightest era.
USA? It's better to go back to your own country, the United States. The days of the world's police are over. (To be continued ~^~)
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