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Volume One: The Screenwriter Is Crazy Chapter 688: The Root

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    For now, the United States is a typical example of a country whose national strategy far exceeds its national strength.  The strength and decline of countries in industrial societies come from the inflow and loss of wealth. The flow of world wealth determines whether a country's national power rises or falls. Because the United States is far away from the conflict-frequent Eurasian continent, it has always been the country during the two world wars.  An important destination for capital inflows.  After World War II, the United States stood out and became the world's most powerful country and the world's largest creditor nation.  Then, the United States also led the Bretton Woods system to establish the U.S. dollar standard with the U.S. dollar as the base currency, that is, a system in which the U.S. dollar is pegged to gold and the currencies of various countries are pegged to the U.S. dollar.  This is equivalent to the value of the U.S. dollar to gold in the world, so it is euphemistically called: U.S. dollar.  On the surface, this system has few problems, but there is a fatal flaw in it, that is, the production of gold cannot keep up with the increase in trade volume.  When this system was established, the world was in a desperate situation after World War II. World trade volume was not high, and the United States was still the world's major supplier of industrial products.  But the world cannot always be at war.  When World War II ended and the world economy entered a period of prosperity, the system of converting gold into U.S. dollars ran into trouble.  The basic operational feature of the Bretton Woods system is that world trade is settled in U.S. dollars.  You dare not use U.S. dollars for settlement. The United States has nuclear weapons. Who dares not to use it?  But nuclear weapons cannot control the increase in world trade volume.  After the end of World War II, most of the Eurasian continent and other regions entered a period of stability and stability. Productivity began to develop and trade began to prosper. The prosperity of trade led to an increase in trade volume.  The US dollar is the world currency.  Then the U.S. dollar must meet the increase in world trade volume.  That means the dollar is going to increase.  However, because the U.S. dollar is tied to gold, the increase in gold is limited, and the increase in production cannot keep up with the increase in trade volume. If the United States cannot provide enough U.S. dollars for global trade, it will either agree to settle trade in other currencies, or the United States will print more  The dollar is provided to the world for trade.  There are two ways for the United States to resolve this contradiction. One is to divide the world into two halves, one is the Warsaw Pact (the former Soviet Union alliance) and the other is NATO.  The Warsaw Pact does not use U.S. dollars, so the U.S. provides much fewer U.S. dollars. Especially the trade sanctions imposed on China, which has a large population and unlimited production potential, effectively control the volume of trade.  Therefore, although the Cold War was a small calculation of the United Kingdom, the United States was also happy to see its outcome.  Another method is that the United States desperately produces industrial products, then sells them to the world to recycle the dollars that flow out, and then uses the recycled dollars to flow back to the world for recycling.  Essentially, the second method is the better method, as long as the United States exports enough.  Recycle enough dollars and world trade can run smoothly.  The first method used by the United States is quite successful.  However, because the Soviet Union's industrial categories were not complete, the Soviet Union actually had to use U.S. dollars from time to time.  But the second method used by the United States is not very good.  Although the United States is a big country, its productivity is limited after all.  Moreover, after World War II, the United States used the Marshall Plan to support Europe and help Japan rebuild its economy. After these countries recovered, they began to export to the United States, but their demand for American industrial products was not urgent.  In essence, the contradiction between the limited supply of the dollar and the unlimited demand for world trade was irreconcilable from the beginning.  Although the U.S. dollar was in crisis, it was still able to survive until the Vietnam War.  The Vietnam War was a terrible idea, but it had to be fought because it provoked ideological confrontation. The free Western world needed the United States to go to Vietnam to show its prestige. How could free South Vietnam lose to the corrupt North Vietnam?  Young and middle-aged Americans continued to enter Vietnam to fight, and these people were the main force in the production of industrial products. The production of industrial products in the United States naturally decreased, and Europe and Japan began to provide the world with industrial product demand.  The Vietnam War required the United States to print money to support the cost of the war, but the reduction in the supply of industrial products from the United States led to a reduction in the return of U.S. dollars, and even a deficit. When the gold stock is certain, if more U.S. dollars are printed, world inflation will be inevitable.  The depreciation of the U.S. dollar is inevitable, it just depends on who takes the first shot.  At that time, China and France hit it off immediately, because China provided the United States with some military supplies such as snake medicine when the United States launched the Vietnam War, and it also had some US dollars in its hands.  If you have dollars, you want to make a fortune.  France took the lead in establishing diplomatic relations with China despite the opposition of the Western world. It also felt that it had something to gain this time, so a vigorous financial war broke out at an inadvertent moment. The inherent flaws of the US dollar were undoubtedly exposed in this financial war. France began to  Submarines transported a large amount of gold back from the United States, and the moment the gold reserves were reduced, the Bretton Woods system naturally collapsed.  There is no other way. The United States was forced to decouple the U.S. dollar from gold. The extra U.S. dollars printed temporarily stabilized the trade settlement system, but it also determined that the U.S. dollar was no longer "US dollar". Everyone still?What reason to save US dollars?  The credit of the U.S. dollar has been put to the test. In order to strengthen the credit of the U.S. dollar, taking the oil crisis as a symbol and using force and other means, the United States forced OPEC member countries such as Saudi Arabia to start the petrodollar era in which oil transactions were settled in U.S. dollars.  Oil is the basic raw material for various industrial products, and the trade volume is very large. As long as oil is used as the anchor for settlement in US dollars, the world must deposit US dollars in order to buy and sell oil, and the US dollar will continue to have credibility.  If any Arab country in the Middle East does not use US dollars to settle oil, the United States will get rid of it.  From the end of the Vietnam War in the 1970s to the establishment of the petrodollar, the United States used U.S. debt to absorb the excess world dollar stock. Then, if a country had too much U.S. debt, it would use big scissors to cut off its wool and reduce the U.S. debt.  The scale has been reduced, and the American people are working desperately to pay interest to countries with large U.S. debts.  But this is based on marketing half the world in dollars.  In 1991, a major event occurred that overturned the existing world structure-the Soviet bloc collapsed and the entire world became a common market. The world was divided into two halves during the Cold War. China was also lifted from trade sanctions and began to  Integrate into the world trading system.  At this time, the U.S. dollar became the trade settlement currency used throughout the world.  This is a big deal. World trade has begun a new stage of development. Especially when China entered the World Trade Organization in 2001, global trade volume grew at a rate that far exceeded the U.S. currency.  In order to provide the dollars needed for world trade, the United States can no longer recycle dollars by providing world industrial products.  The United States began to produce high-tech products with high prices and low quantities. There was no other way. The United States only had a few people and could only use this method to amplify the multiplier of US dollar circulation. Although through the Plaza Accord, the Southeast Asian financial crisis and other issues were successfully reduced.  Many countries: Japan, the Soviet Union, Southeast Asia, and South America have reduced a certain amount of U.S. debt.  ¡°However, in the face of China becoming the world¡¯s factory and exceeding its expected import and export capacity, the world¡¯s demand for US dollars is still growing.  China¡¯s trade volume is increasing by four to five trillion dollars per year, but the United States can only provide an incremental currency supply of one trillion U.S. dollars per year under normal circumstances.  Therefore, in order to ensure the supply of US dollars and to ensure that the trade settlement currency is not replaced by other currencies, Americans with a population of only 300 million fought hard.  In order to provide enough dollars, 300 million Americans spent desperately, buying houses, cars, and everything, from sunrise to sunset.  But despite spending all its energy, the United States still cannot provide such a huge demand for US dollars.  There is no other way but to blow up the capital market bubble, so all the financial commodities in the world are rising. The higher the price of the commodity, the more dollars are needed for transactions. When the commodity can no longer rise,  World trade has not decreased at all, and both the euro and the renminbi hope to use their own currencies to settle trade. Because the supply of U.S. dollars is insufficient, the United States has only one last resort, and financial derivatives have appeared!  This type of financial derivatives is the biggest reason for the outbreak of subprime mortgage crises such as Lehman Brothers, Freddie Mac, and Fannie Mae in the future.  What to do when a crisis occurs? According to what Lee Chung-hee, a Ph.D. in economics, saw when he was bored before his rebirth, the United States still thought of many ways. In order to continue to maintain the use of US dollars in world trade, it simply implemented quantitative easing.  What is quantitative easing?  This means that the Treasury does not need to take out U.S. debt to the Federal Reserve as collateral. The Fed prints dollars in vain for the Treasury to purchase junk bonds for circulation, which is to directly print money.  As a result, U.S. debt has been diluted, and countries holding U.S. debt are naturally dissatisfied. However, the United States no longer cares about this. As long as the world is still willing to use dollars, it can continue quantitative easing until the world cannot bear this kind of money printing.  until.  Unbearable, that is the day the dollar standard ends.  "However, before the end of the day, all countries in the world will pay for this to the United States, unless a quick decision is made to no longer use U.S. dollars for settlement.  Of course, that is a matter for the Euro and the Chinese RMB. For a country like South Korea, which cannot even have its own national defense or politics, there is no need to think about it for the time being. Therefore, the impact will naturally be great.  Li Zhengxi knew this very well, but he said to Jin Zhenzhong: "No matter what the impact is, as long as the real estate industry shows a little restraint today and does not need to compete with others at super high prices, then after one or two years, the future will  There is still a lot of room for development " This is the most basic fact. It is very simple. Seoul is so big, and the entire Korean people yearn for it. Even a small house of a few square meters.  I am willing to stay here and hope for miracles.  This undoubtedly gave Jin Zhenzhong a reassurance. Lee Chung-hee had told him before that the U.S. subprime mortgage crisis would come soon. He was still quite worried about whether his company, which was developing well, wouldJust like the Southeast Asian financial crisis in 1997, people were tortured to the point of death or survival.  It is unlikely that it will go bankrupt because there is support from the Imperial Li family behind it.  (To be continued, please search Piaotian Literature. The novels will be better and updated faster!
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