Rebirth of the Financial Overlord

"Capital is in pursuit of profit. Raising interest rates will attract global liquidity capital from countries with low interest rates to flow into the United States, pushing up the dollar and bringing about a rise in dollar assets. The influx of large amounts of capital will inevitably continue to push up real estate prices and stock markets. .”

"Right now, interest rates in the European market have been hovering at a very low position. The Fed raises interest rates. In order to avoid risks, the hot money in the European market will be attracted to the United States by the increase in interest rates."

"Not long ago, the Bank of Japan lowered interest rates by 0.8 percent. As the Japanese market continues to decline, a large amount of speculative capital and value-preserving capital are continuing to leave the Japanese market and flow into the United States"

"."

On the TV, Paul James seriously analyzed the impact of US interest rate hikes on the US economy. Whenever he encountered financial terms that ordinary people could not understand, he would explain in detail.

It can be roughly understood that the money and wealth of each household in the global village are like a stream filled with pools of water and ravines. Where the pit is deep, it will flow there. Capital pursues profit preservation and avoids risks and losses. The sluggish recession of the European economy and the Japanese market, as well as the decline in interest rates, will allow liquidity to flow into the United States, which in turn will push up the U.S. stock market and real estate.

To sum it up in one sentence, it can probably be understood as one word.

rise!

rise!

rise!

"One routine has been played for decades, can you change it to something new?"

Holding the towel, Shen Jiannan couldn't help vomiting. As a super hooker, this guy knows how disgusting the Fed's interest rate routine is. When raising interest rates, Wall Street will say that raising interest rates is because the economy is improving. When lowering interest rates, they will then analyze how much stimulus the Fed’s lowering of interest rates will bring, and what kind of expectations will the economy go out of.

Too lazy to listen to the TV show, Shen Jiannan turned off the TV and walked to the world map.

Hush!

A puff of smoke was blown out, and the thin smog seemed to cast a shadow on the map. Although it was shameful for Wall Street investment banks to analyze the Fed's interest rate hike, Shen Jiannan had to admit that what that guy said was absolutely correct.

Any story pays attention to the background, just like every protagonist should have a twisted and bizarre life experience. Behind every crisis, if you look carefully, you can find profound reasons.

Standing at the moment, Shen Jiannan can clearly grasp the pulse of the global economic flow, as well as the ebb and flow of the coming rain.

This is a chess game, a chess game that is guided by people and follows the trend, or in other words, this is a process of grazing and parasitism as well as the combination of politics, military and economy.

The way of heaven is to make up for what is lacking.

Later, when people talk about the European currency crisis, they always attribute the cause to Germany. For this, Germany can only swallow Huanglian in its stomach. By the way, villagers who don’t want to be village chiefs are not good village chiefs.

Because starting from the eternal proposition: Any country with ambitions has the same ambitions, and it will take the most beautiful crown of the global village-reserve currency-in its pocket.

As Kissinger said: Whoever controls oil controls all countries; whoever controls food controls mankind; whoever controls the issuance of currency sources controls the world.

Conversely, if you want to become a world power, you must control currency, and if you want to become a superpower, you must control food.

Money is a person's blood. Without money, a person will be weak as if he is sick. With money, his whole body will be full of energy and blood, and he will be in good spirits. He will always live better and longer than some people without money.

The same is true for countries.

If there is enough wealth and vitality, the country will be peaceful and stable, but without money, various problems will arise, political turmoil or even collapse.

Picking up the pen hanging on the map, Shen Jiannan thought about it and clicked on the huge map.

Eastern Europe, Western Europe, and Asia.

First there was the Soviet Union, then Japan, and now Western Europe.

Soon, the map became unrecognizable, except for the big rooster, only Southeast Asia was still in normal colors.

Holding the pen, Shen Jiannan's jet-black eyes became deep, like a deep pool, which seemed to reflect light, but also seemed to absorb all light.

As early as the early 1970s, a major event occurred in the international financial field: the collapse of the Bretton Woods system.

What is the Bretton Woods monetary system?

Summarize the Brettonson system in one sentence: the US dollar is the only core currency, all other national currencies are linked to the US dollar, and the US dollar is only linked to gold that God can issue, so it is also called the gold standard era.

But as the Bretton Woods system was announced to end by the Nixon administration, the dollar plunged into the abyss. This is the first time since World War II that the dollar's status has been hit.

A soldier who does not want to be a general is not a good soldier, a country that does not want to be strong is not a good country, and a villager who does not want to be a village chief is not a good village chief either.

The global village is so big, with the world's top industry and the most advanced manufacturing industry. Germany and Japan have risen again from the war. I can't help but think: The emperor takes turns to sit at my house tomorrow.

Now that the relative strength of the United States has declined and the old monetary system has completely collapsed, it is best for each of us to get a share of the new system.

However, the two companies have to rely on their own strengths. Considering that the U.S. dollar is still strong, they wisely chose two strategies: Internationally, Asia and Europe joined forces to push the international currency basket to replace the U.S. dollar. Each region puts forward the idea of ​​integration, and strengthens its own strength through regional currency and economic integration.

Ever since, SPDR came into being.

What is this stuff?

Uh. In fact, just one sentence, don't let the dollar dominate.

It is best to use a currency basket for international currencies. We are all so awesome, let's play together. Of course, considering that the relative strength of each country will change, the weight of the basket can be adjusted. Let's try to use the currency basket SPDR instead of a single currency in the future, okay?

As a result, SPDR lost terribly in the competition with petrodollars.

In the history of China, which era has the most glorious pattern?

Three Kingdoms.

In "The Romance of the Three Kingdoms", Pang Tong once said this when he met Cao Cao: "If large and small boats are matched, or thirty in a row, or fifty in a row, the head and tail are linked with iron rings, and the top is covered with broad boards. Don't say that people can cross, and horses can also go, take advantage of this, let him go up and down, why not be afraid?"

The hegemony of the U.S. dollar over the global market has burdened all countries, so the European Community and the European Monetary System were born. The essence of this thing can be summed up in one sentence. The small sampans are connected with iron cables to enhance the ability to resist wind and waves, resist risks and resist pressure.

Specifically, the currencies of major European countries are all pegged to the ECU.

What is ECU? a currency basket.

When it was born in 1979, it included 8 countries France, Germany, Italy, Belgium, Denmark, Ireland, Luxembourg and the Netherlands. Spain joined in 1989, and the United Kingdom announced its accession in 1990 to expand to 10 countries.

If the currency of a country is not strong enough to resist wind and waves, and the currency of a country is not strong enough, then the currencies of several countries are connected in series through the ECU. Due to the existence of ECU, any two ships have formed a relationship with a floating linked exchange rate system. The exchange rate between the currencies of each of the participating countries can only fluctuate within a narrow range of ±2.25% above and below the fixed exchange rate.

When the exchange rate between the two currencies exceeds this range, the central banks of the two countries must intervene in the foreign exchange market to bring the price back to the fluctuation range.

The global reserve currency is a huge cake, because the most intuitive manifestation of value is always currency, and the pricing of commodities and the pricing power of the international financial market are all measured by currency values, which is undoubtedly an absolute benefit.

The bookkeeping ruble of the Soviet Union, because it does not have a circulation value, does not qualify as a currency. But the ecu is different. If the European Community continues to develop and replace the European Currency Unit, then there will be a unified currency.

From the avenue to the simplicity.

Just like the truth of the world, after returning to the basics, it is very simple. In terms of Taoist theory, yin and yang are always relatively established, and if there are benefits, there must be risks.

After connecting the boat with the iron cable, the stability will naturally increase greatly, but the risk will also be reflected. So Cao Cao's 100,000 troops were burned to nothing.

But the big ship is burning, the boards are strong, and there are many crew members. The probability of igniting it once is too low. If you want to succeed in the first battle, the best way is to encircle the tactics, and light the small boats around the big ship first, forming a flaming city.

Today, Finland is subject to the Soviet market, which clearly shows the quagmire of the economy. Before Finland finds a new economic growth point, it is undoubtedly the weakest link.

Raising interest rates - good means.

Putting a big cross on Finland, Shen Jiannan put down his pen and picked up the phone.