My Fintech Empire

In fact, the Fed is not blind. The current super black swan is sweeping the world, and the United States is not made of steel. The impact of this black swan on the tourism and vacation industries is unimaginable, especially the impact on the global industrial chain. It is impossible for the United States to remain unaffected.

Fortunately, Dongda is now almost the only country in the world that is unaffected. To be precise, it is the only country with strong industrial capacity that is unaffected. After all, there are many countries in Africa that are out of the matter. Because they have no contact with the outside world, they naturally escaped this disaster.

Except for Dongda, all industrial production capacity in the world is almost in a state of sudden death. Fortunately, Dongda is not only the largest industrial country in the history of human civilization, but also accounts for more than 40% of the world's industrial production capacity. It is also unaffected and can support global supply.

Dongda has now fully utilized its industrial production capacity in all aspects. If you want something, place an order. As long as the money is in place and the goods are sufficient, the production capacity can be fully utilized immediately.

This year's export trade is bound to explode. Before the first quarter is over, various orders from abroad can be queued up until the end of the year, and they are still increasing. It is simply in a state of supply exceeding demand. There are so many orders that the sellers are overwhelmed.

It has even reached the stage where sellers can choose buyers comfortably. Those with accounts receivable are placed at the back, and those who can settle in cash or even pay in advance are placed at the front. Priority is given to supply, and those with higher bids are given priority.

The impact on Amei is huge. For example, more than 90% of masks need to be imported from the East, including the recent announcement of the suspension of production of some factories by Tesla, Apple and other companies, etc. These industries familiar to mass consumers have experienced a crisis of supply chain disruption.

In this super black swan, Amei missed too many golden windows in the past, and now has to quickly upgrade prevention and control measures and declare a state of emergency. The peak of the outbreak may be delayed as a result, but everyone firmly believes that it will definitely come.

The operations of the Mg Fed are mostly ahead of the Mg economy, so the big move released this time is regarded by investors in the market as the Mg Fed's expectation management of future market trends.

To put it bluntly, it is because we are very likely to be finished next, and we are doing expectation management for the finished product.

Are you panicking?

How can this be a rescue move to stabilize and boost market confidence? It is clearly the Mg Fed that is leading the panic!

Against this backdrop, the Mg Fed hopes to reduce the borrowing costs of households and businesses by lowering interest rates, so that everyone can get through the difficulties together. There is nothing wrong with this.

But no one expected that the Mg Fed would just shoot all the bullets in its hand at once, not only lowering the interest rate directly to zero, but also restarting quantitative easing (QE).

Purely all in, just all in! All in! All in! All in! All in! All in!

The news of the operation of the Federal Reserve of Magnesium spread across the ocean to China. In major stockholder communication groups, stock forums, etc., the "one-shot" emoticon package of Yang Zhenghai, the head of Tongtai Automobile Group, once again appeared frequently.

Some stockholders even directly used the formula, and slightly changed a few words from Yang's classic interview template:

"This time, we at the Federal Reserve of Magnesium have put the fate of Amagallika on this rescue. This is a one-shot, and it's a one-shot. Isn't it bold? The entire Federal Reserve, the entire Amagallika, is a one-shot. At the weekend meeting, I told all the participants that this time we are going to go all the way. Oh! Everyone, if you ask them, everyone is very excited to hear it, and the managers are very excited. One-shot, the entire Federal Reserve is preparing for a one-shot."

The joke is a joke, the panic is real panic, but the concern is also real concern.

As the Federal Reserve of Magnesium has released its big move, while the whole world is in shock and panic, investors are now most concerned about whether the Federal Reserve of Magnesium is going all-in to save the stock market or the bond market.

Everyone is saying that the Federal Reserve of Magnesium is going to save the market by cutting interest rates to zero, but which market is it going to save?

Especially to save the magnesium stock market, which was hit by two consecutive circuit breakers last week, but the signal released in the interest rate resolution of the Federal Reserve of Magnesium this time shows that their main purpose is to save the bond market.

In the financial market, the national debt of Magnesium is currently the world's largest and most liquid safe-haven asset, and is also the pricing indicator of global risk-free assets.

Most countries and regions will use foreign exchange funds to purchase a large number of magnesium national debts for value preservation and appreciation. Even the Star Group now holds astronomical magnesium debts.

Under normal circumstances, when the market is panicking, it will sell high-risk assets such as stocks and turn to buy low-risk assets for risk hedging, such as US bonds and gold.

If there are more buyers of US bonds, the price will rise, and in turn, the yield will fall. So the news often says that "US Treasury yields are falling" which actually means that too many people are increasing their holdings of US Treasury bonds for risk aversion.

But since the black swan swept the world, magnesium bond yields have been on a roller coaster ride last week, sometimes high and sometimes low. When magnesium stocks plummeted last week, US Treasury yields rebounded from historical lows.

This means that the pricing benchmark of global financial assets has begun to malfunction and has even lost its pricing power. No one is sure how to determine this price.

For players from all walks of life in the financial market, how can this be fun? Even if the anchor is gone, it’s still a fool’s errand.

While the Fed cut interest rates over the weekend, it also launched a $700 billion quantitative easing program, of which $500 billion was used to purchase Treasury bonds and $200 billion was used to purchase agency-backed mortgage-backed securities, just to rely on the Fed's intervention. , put dollars into the market, "intervene" in the government bond market, bring prices back to a stable level, and restore the pricing power of global financial asset pricing benchmarks.

It's just that the idea is very good, but whether global investors buy it or not is another matter.

…

At this time, it was late at night, and Fang Hong was having a remote video connection with Yangma and other management personnel, and was also holding an emergency meeting to discuss response strategies.

"The chain reaction is coming. The Federal Reserve quickly lowered interest rates to zero ahead of schedule. Other countries are more confident to follow suit. Comrade Fang Hong, what do you think? Do you have any suggestions?"

This kind of thing must be brought into the meeting to discuss together. As a giant in the global financial world, Qunxing Group is the largest non-bank financial giant group in China. Today's Qunxing Group is both in the real economy and The virtual economy field has a terrifying influence.

Such a big event cannot be missed.

After hearing this, Fang Hong thought for a while and then looked at the video and said slowly: "The Fed has thrown out such a king. Judging from the current market sentiment feedback results, it will not be of any substantial help to the financial market. Instead, the unexpected interest rate cut triggered unprecedented panic in the market.”

After pausing for a moment, he added in a deep voice: "Other countries have followed the Federal Reserve's interest rate cut, but I don't think we need to follow suit. We can continue to choose to stay put. This will lead to the expansion of the interest rate gap between the two sides, but domestic assets will also further attract international investors." funds, thereby promoting the external appreciation of the RMB.”

Speaking of this, Fang Hong couldn't help but smile: "Now our country's overseas export orders are full. Except for our family, production capacity is broken globally. Even if the RMB appreciates externally, it will not affect the current export trade situation at all. Why not do it?" ?”

…