Chapter 169 throw out the national debt
Although countries in the Middle East have begun to enter the industrial field and have initially developed manufacturing under the leadership of Iraq, if they want to build a developed industrial system, there is still a long way to go. If they want to fight an economic war with the old capitalist country, the United States, it would be a death.
However, the Middle East still has one advantage, that is, its rich oil resources!
"Abdullah, do you mean, do we still use oil as a weapon? As long as we adopt A Yuan as the settlement currency, then Americans will inevitably not be able to stand it, and the US dollar will depreciate on a large scale." King Sultan said.
"No," Kusai said: "Our time is not yet here. If we really use A Yuan as the settlement currency, then we can only make Bush decide to launch a blow to us, and then the war will break out."
"Then we still cut oil production?" Jabir asked.
"This is not OK. If this happens, it will not only affect the United States, but also the entire Western Europe. Then Western Europe will not support us like this. If Western Europe and Americans become the same group, it will definitely not be good news for us." Kusai said.
What should I do?
"There are too many US Treasury bonds we hold now, and we need to reduce our holdings of US Treasury bonds," said Kusai.
In the process of exchange and compromise with the United States, Arab oil-producing countries had to increase their holdings of US Treasury bonds, especially Saudi Arabia, Kuwait and Iraq. From a long-term perspective, if the final plan of Kusai can be successful, the US dollar will definitely depreciate, and the US dollar and national debts in their hands will all need to be sold one after another. Therefore, from now on, sell US Treasury bonds to the international market!
Americans think that their dollar is an international currency, and they can collect the world's wealth in this way, which is equivalent to the whole world paying for Americans. Americans' consumption concept, if they have a dollar, they want to spend ten yuan. What should they do if they don't have enough money? Overdraft! Ordinary people can just overdraft their credit cards. And if the entire country wants to overdraft, they can only borrow money.
Printing some waste paper can bring other people's wealth and continue to provide them with consumption. This is the characteristic of Americans.
After borrowing so many national debts, they should also let them taste the consequences caused by this.
Speaking of US Treasury bonds, this is a very serious problem. In the field of economics, as long as the growth of money supply is in line with production growth, the national economy can operate healthily. Therefore, the main prescription for controlling "stagflation" is to control the growth of money supply. That is to say, printing more money will lead to inflation. In order to curb inflation, banknotes will not be printed casually, but there is not enough money, so there can only be one way: borrow money! Therefore, the fiscal deficit was transferred to debt finance.
The culprit of the huge US government debt is Reagan. When Reagan came to power, he vowed to cut government spending and fiscal deficits. However, he created a miracle for the United States and left a mess for Bush, who was also a prodigal son and only knew how to spend money.
When Reagan first came to power, the US deficit was only US$57.9 billion, and it broke through the 100 billion US dollar mark in 1982. During the eight years of Reagan's administration, the fiscal deficit reached a total of US$1.67 trillion.
However, during this period, the domestic inflation rate in the United States was not high, only staying at about 4%.
It seems that the United States is still thriving, but no one has seen that it was the result of Reagan borrowing a large amount of money. When Reagan first came to power, the US government's debt was about $1 trillion, but eight years later, the amount of US Treasury bonds has reached $3 trillion.
After Bush took over Reagan's position, he didn't care about his original promises at all. In later generations, when Bush failed to re-election campaign due to domestic economic issues, the US Treasury bonds reached an astronomical figure of US$4 trillion. Of which 1500 million were borrowed from abroad.
In the end, borrowing new debts but only paying back the interest on the old debts is already a vicious cycle.
The United States is already the world's largest debtor country. In later generations, the mess was left to Clinton and began to reduce debts.
Now, the person who owes debt is grandpa. When Americans borrowed money, they were justified. However, Kusai decided to change this rule.
Now, the US Treasury bonds held by countries in the Middle East are about 300 billion US dollars. Even if half of them are sold, it can still make Americans drink a pot.
"Abdullah, even if we do not change our oil strategy and just sell US Treasury bonds, it will make the United States hostile enough to us, and it is very likely that it will launch a war." King Sultan said.
Given the current behavior of the Americans, if they sell US Treasury bonds in large quantities, Bush will definitely not be willing. Bush was angry, and the consequences were very serious. King Sultan was not afraid of the United States. He hated the Americans to the core, but he knew that he had to stand on a global level and look at these issues.
"Yes, Americans are very arrogant, but we still have a solution." Kusai said: "While we sell US Treasury bonds, we can hold government bonds from other Western European countries, such as Britain, France, Germany and other countries. In this way, if the United States dares to launch a war against us, we will fight back firmly, because we stand on the right side!"
Americans certainly don’t want it, but Western Europe is certainly willing. The domestic economy of Western Europeans is not very good. Now, if countries in the Middle East increase their holdings of their national debt, Western Europeans will definitely welcome it. At that time, if Americans start a war because of this, the entire Western Europe will firmly oppose it.
If the Americans really dare to start a war, then a series of measures will be implemented to change the payment system, and Kusai's last moves will be many.
Moreover, Americans have just stepped on Israel's land and have not yet established a foothold. They are not adapting to the climate in the Middle East. If they want to be truly combative, they still have a long time to leave.
First, in the economic field, Americans were involved in a sudden situation. Kusai’s idea was to take advantage of the situation. In the past, Kusai mainly used the power of the Soviet Union to survive in the cracks between the two empires, but now, it was to rely on the power of Western Europe.
When will the industry in the Middle East develop greatly, when the goods made in Iraq fill the entire international market, and when Americans' families use things made in Iraq, they will truly have the ability to launch an economic war. This time, it is just a small action, but this action is definitely effective and can seriously disrupt the US economy.
Bush stepped down because of the deterioration of the domestic economy. As long as he survived Bush and when Clinton came to power, Iraq would have a chance to breathe again. The Bush family has always liked to use violence against the Middle East.
Only this move? Bashar was a little dissatisfied, and there was also a look of disappointment on King Hussein's face.
“In addition to this, we have another plan,” Kusai said: “We want to support the founding of Palestine.”
The founding of Palestine! When everyone heard this, they felt excited.
Because the pain in the hearts of all Arabs is a Palestinian problem. Even if there is some friction between Jordan and Palestine, this wish remains unchanged.
Until now, Palestine is still not a country.
This is a historical issue. On November 29, 1947, the United Nations General Assembly passed Resolution 181, which stipulated that the establishment of Arab and Jewish states were established in Palestine. Due to the United States' operations, Israel occupied most of the fertile land, and the majority of the Arabs allocated only two-thirds of Israel's land, and most of the land was very barren. Moreover, the problem of Jerusalem was internationalized.
The Jews immediately agreed to this resolution that was completely beneficial to Israel and announced the establishment of the "State of Israel" on May 14, 1948. The Arab states opposed and rejected the resolution and declared war on Israel on May 15 the day after the founding of Israel. As a result, they were defeated. Israel obtained not only the land stipulated by the United Nations, but also occupied most of the land in the Palestinian region stipulated by the resolution.
During the Middle East wars, Israel continued to expand its territory and established a powerful country. The people who once lived here were driven away by the settlements built by the Jews, lost their homes and became refugees from all countries.
Everyone knows the truth, but this world cannot make the world full of love by singing a few words from our beautiful women who love peace. If you want to regain your own, you must achieve it through war.
The Israelites accepted the 1947 United Nations resolution and were soon accepted as a member of the United Nations. The Arabs disagreed with the United Nations resolution and lost the best opportunity to establish and join the United Nations.
That is, until now, the Palestinian state in the hearts of displaced Arabs has not stood where they should have been.
Without the "state" entity recognized by the United Nations, Palestine could not seek relief under the framework of international law in the name of "state", nor could it raise allegations such as war crimes against Israel, nor could it participate in some organizations led by the United Nations. At that time, the Arabs were naively thinking that they could drive the Jews into the sea, but as a result, they fell into the current situation.
So, Kusai proposed that now, this issue cannot be delayed anymore, and the Palestine State will be established first!
This is a powerful challenge to the United States' support for Israel, and it is the beginning of a tough voice in the Arab world in the Middle East! (To be continued. If you like this work, you are welcome to Piaotian. Registered members of the Literature recommend this work. Your support is my greatest motivation.)
Chapter completed!