Chapter 449: No free dinner

"This financial crisis has a great impact—" Yang Jier said to Chen Mingluo, "When I watched TV, I found that Thai people donated gold jewelry in groups. What's going on? Does that mean that when inflation occurs, the price of gold will rise?"

When watching the news last year, Yang Jier saw Thai people donating gold bars and gold jewelry to the country to support the treasury. This year, another monk donated nearly 700 kilograms of gold to the Central Bank of Thailand to support the treasury. The scene was really shocking.

In fact, it is not just Thailand, a country that donated gold. Affected by the Thai financial crisis, South Korea also broke out at the end of last year. For a time, the financial market was violently turbulent, the economy was hit hard, a large number of enterprises went bankrupt, the number of unemployed people soared, and the country was in danger.

At the beginning of this year, a gold donation campaign initiated by civil groups was held in Seoul, the capital of South Korea. It later evolved into a national action, and finally formed an unprecedented grand event of serving the country with gold.

At that time, many young people accompanied their parents to donate the gold they had in their homes to the country. Even some newlyweds who were about to get married also donated their love gold jewelry to help the government develop the economy. More than three million people donated a total of 225 tons of gold, worth about 2.17 billion US dollars in just two months, which performed the feat of the government and the people working together to resist the crisis.

"When it comes to this, I still admire their feats very much." Although Chen Mingluo hates certain behaviors of Bangziguo, he has to express his admiration when mentioning such things.

However, if the price of gold will rise during inflation, Chen Mingluo said that this may not be the case.

In fact, looking at the trend of gold in recent decades, it is basically that whenever the US dollar strengthens or the United States raises interest rates, international gold prices will fall.

Once some countries experience serious financial or economic crisis and foreign exchange payment difficulties, they will inevitably be forced to sell their reserves internationally, or even collect domestic private gold reserves, and then sell them internationally to embezzle foreign exchange.

In this way, the result is obvious, that is, when a certain country encounters a financial crisis or inflation, the international gold price will definitely not rise.

"Many people are now promoting that once the currency depreciation occurs, gold will replace part of the currency's trading and reserve function, which is absolutely impossible." Chen Mingluo explained to Yang Ji'er. "In fact, during the Great Depression, in order to prevent the large-scale loss of gold that threatens the complete currency of the US dollar, the United States once established that it was illegal for private individuals to hold gold, and gold must be handed over at the price stipulated by the US government. Therefore, those who promote gold to replace currency are too emotional about the currency, and in fact they don't know anything."

Seeing that Yang Jier was a little confused, Chen Mingluo spent some more words to explain the matter, "The Americans reduced their food exports, and these foods were used to process biofuels. This led to a decrease in exports, and the country's grain prices surged. Coupled with the United States' continuous wars in the Middle East, the world would be forced to raise interest rates. The economies of Europe, emerging countries, Japan, the Middle East, Arab countries and other countries would collapse, and foreign exchange was lost in large quantities, and they would eventually be forced to sell gold, and even forbid their citizens from collecting and trading gold, and collecting large amounts of their own private gold reserves to pay foreign debts.

After countries with severe asset bubbles raised interest rates, the bubble burst, the economy collapsed, and a large amount of capital fled. These countries continued to lose foreign exchange, and finally experienced foreign exchange shortages, facing national bankruptcy, and were forced to sell their gold reserves.

The Middle East and Arab countries are constantly in turmoil and war, and foreign exchange is quickly exhausted. In the end, they will be forced to sell the gold they purchased before, and even owe to the United States a large amount of debt because of purchasing American weapons.

The debt crisis in Europe will continue to deepen because Europe's debt problems are already very serious. When emerging countries and Japan and other countries experience serious capital loss, foreign exchange reserves will inevitably be sold in large quantities because the euro is the main foreign exchange reserves. Therefore, when other countries are forced to sell foreign exchange reserves in large quantities, they will inevitably sell in large quantities. At this time, the euro will completely collapse.

As funds flow back to the United States in large quantities, the US dollar will inevitably continue to strengthen in the end, and the large inflation caused by food and oil has led to a rise in US dollar interest rates.

With the US dollar index rising, the US dollar interest rate has risen sharply and gold has been sold in large quantities and only the United States has taken over, the price of gold will definitely plummet.

After the gold price plummeted, Wall Street and Americans could collect gold from all over the world at a large amount of low prices. The effect was similar to World War II in the United States, allowing gold from all over the world to flow to the United States.

After the crisis, the whole world will surely realize that the US dollar, as an unbinding international currency, will cause the world economy to become unbalanced and finally one of the important causes of disorder. Therefore, at this time, the United States will propose that the US dollar and gold will be linked again. Because the United States has obtained a large amount of gold in the economic crisis, the US dollar and gold peg actually makes the US dollar stronger.

Using the strong dollar to buy the bottom of the world financial crisis and improve American welfare, and the consumption and acquisitions of the United States will once again lay the groundwork for the United States to control the world's economy."

"So scary? What should we do?" After hearing Chen Mingluo's words, Yang Ji'er felt a chill in her heart.

She followed Chen Mingluo and finally made hundreds of millions of dollars, feeling that she felt good, but Chen Mingluo made such a shocking conclusion, which really made her feel a little overwhelmed.

In the face of absolutely strong national politics, any financial means and countermeasures seem to be futile. Americans can put all this in an open manner, but other countries need to muster up a considerable courage to face it, and it is not possible to guarantee whether this resistance will have some minor effects in the end.

"The US dollar is the source of chaos. As long as the US dollar exists, the world economy should not want to have a stable day." Chen Mingluo said to Yang Jier, "Just like what did Imf do in this financial crisis?"

"What?" Yang Ji'er really didn't know.

The so-called imf is the International Monetary Fund.

Last year, the crisis-ridden Thailand agreed to accept the IMF backup loan program and a package of measures with harsh conditions. In order to save the shortage of funds, the IMF was chaired by the IMF. The presidents of central banks in more than a dozen countries and regions around the world held a meeting in Tokyo, Japan. The IMF and some Asian countries and regions promised to share the financing plan for Thailand in a total of US$16.7 billion. The Bank for International Settlements Bis announced that it would grant temporary loans worth US$3.3 billion to help it overcome the difficulties.

These loans were not borrowed in vain, and the conditions were quite harsh, so the Thai people donated gold to the treasury, and the Koreans later donated gold to the treasury, all because the people could not accept such harsh exchange conditions, so they hoped to do their best to gain some bargaining chips for the country as much as possible.

At the end of last year, the International Monetary Fund and South Korea signed an aid agreement, which provided $21 billion in backup credit to South Korea. In addition, the World Bank provided $10 billion, the Asian Development Bank provided $4 billion, and other countries provided $20 billion, with a total aid of $55 billion.

The conditions for this kind of aid are extremely harsh, but at this time, Korea is no longer concerned about having milk.

Under pressure from the International Monetary Fund, the South Korean government was forced to agree to implement a strict economic plan to stabilize the economy and abolish the important economic system and practices that originally made South Korea an economic tiger, including rectifying finance, tightening loans to large consortiums, and reducing economic growth rates.

This financial aid plan not only breaks the world financial aid record, but also the amount of adjustments required by the recipient countries is also very rare.

In fact, the signing of this plan is almost equivalent to international recognition that the collapse of South Korea's entire economic system and the loss of autonomy also marks that the once-prominent miracle of South Korea's economic development has become history.

Under the violent blow of the financial crisis, the South Korean economy and market were almost paralyzed. The tenacity and united national spirit of the Koreans were fully demonstrated at this time. Everyone helped each other and worked together to save the country. The people launched a one-man-one-yuan campaign to save the country. The people took the initiative to deposit the US dollar in their hands into the bank to help the South Korean economy get rid of the predicament.

Travel agencies encourage people to travel domestically as much as possible, and municipal agencies urge people to sacrifice their personal interests for the interests of South Korea, such as reducing the opportunity to drive, saving one-tenth of their salary, reducing indoor temperatures, and reducing shopping and dining. Other Koreans living abroad have also deposited their money in overseas branches of the Bank of Korea in order to increase South Korea's foreign currency holdings. At the same time, they also actively raise funds to remit back to South Korea to help the country get out of the predicament.

Even South Korea's largest newspapers, Dongya Ilbo, and Chosun Ilbo, decided to reduce the page and work with the people to overcome economic difficulties and foreign exchange crisis.

During the South Korean financial crisis, companies suffered at least three trillion won loss of exchange difference, and the repayment of foreign debt principal and interest increased by four trillion won.

Some wealthy families can only watch their assets shrink to billions of dollars in a few months. At the same time, companies have gone bankrupt in large numbers and the number of unemployed people has increased significantly. The current real unemployment rate has reached more than one-tenth, and this trend continues. For Koreans, the prosperity of the past has been passed.
Chapter completed!