campus magician

Chapter 1604 The Mountain Rain Is Coming (26)
In this financial tsunami, China is the only powerful country that has not been widely affected. If China loses its purchasing power, the world economy will collapse.

Fortunately, China is still rich. In recent years, whether it is luxury goods or antiques or the purchasing power of products from all over the world, it has attracted worldwide attention.

And not just purchasing power, in the trade between countries, a lot of money has been made.

International business is naturally done in U.S. dollars, so the money China earns is also in U.S. dollars.

And so many dollars, what to do?
Convert to RMB?That was a joke.

what is moneyMoney is nothing more than paper, which is like what some cynics (I don’t despise cynics, because I am a real cynic, so I say “some” cynics) say that they don’t buy Japanese goods, only buy Japanese goods. Japan exports, and then earns a lot of Japanese money.

But if you don’t buy Japanese goods, but only export to Japan, you get a bunch of banknotes and then exchange them into RMB. What is the consequence?
Resources flow abroad, domestic inflation.

If the leader is not a fool, he would never do this.

The same is true for the U.S. dollar. China has made a lot of U.S. dollars, which is a good thing, but so many U.S. dollars cannot be converted into renminbi. What should I do?
let it go?will depreciate.

If you want to increase or preserve value, you need to invest. What kind of investment can you invest in?

The best way is to buy U.S. treasury bonds, buy U.S. treasury bonds with US dollars, and don't have to worry about the exchange rate.You can't buy the national debt of Albania and Czechoslovakia, right?

Therefore, this is also the problem that China faces while its national strength is growing at a high speed, and it is one of the best solutions among many methods.

As for the collapse of the US economy this time, I am afraid it was something that no one could have predicted before.

"Then what will China do?" Su Jin asked again.

"I think, on the one hand, China will find a way to reduce its holdings of US treasury debt. I believe that the country's leaders must have foreseen this." Because of the rapid economic development, there are many problems. But frankly speaking, these generations of Chinese leaders are great leaders.”

"But didn't you say that there are many problems, and why do you say it is great?"

"Which country in the world does not have problems?" Gao Yuan asked.

Su Jin was speechless, indeed, is there any country without problems?How is America?But it doesn't look so good now, and the hidden dangers are so great.

Gao Yuan said again: "The reason why I say greatness is that it can be seen from one point of greatness. That is, the speed of China's rise is so fast."

The rise of China is indeed very fast, and it is approaching a situation that makes the whole world unbelievable. It is like a small change every year, and a big change every five years.

Before the reform and opening up, China was still poor and empty. How many people did not have enough to eat, and how many people had enough to eat well?How many times a year can you eat sugar?Eating pork once is considered a holiday.

Upstairs and downstairs, electric lights and telephones, it was a happy life in that era.

(End of this chapter)