Chapter 611

The U.S. dollar's interest rate cuts and interest rate increases are actually the launch of the U.S. dollar tide.

When the U.S. dollar starts to cut interest rates, because the yield is not high enough, U.S. dollars will flow from the United States to abroad. At this time, the U.S. dollar is depreciating.

A large amount of hot money will flow from Wall Street to the world, which is reflected in the international economic situation. Many underdeveloped third countries and regions suddenly receive a large amount of foreign capital investment, and it is easier to obtain hot money in international loans.

For those small countries, typically the dozen or so countries in Southeast Asia, their periods of rapid economic development almost always occurred during periods of large-scale, long-term interest rate cuts on the U.S. dollar.

So this is easy to understand, because during this period, a large amount of US dollars flowed into their country, which brought them economic growth and increased employment opportunities, and workers' incomes will also increase.

When the overall economy is improving, naturally the entire country will look prosperous.

However... helping third world countries develop their economies and improve their people's livelihood has never been the real idea of ​​Wall Street and international hot money.

In addition to cutting interest rates, the U.S. dollar will also raise interest rates.

When the interest rate cutting cycle ends and the U.S. economy is not doing well.

Then the interest rate hike is coming.

As U.S. benchmark interest rates increase, the U.S.'s domestic attraction to U.S. dollars and hot money will continue to rise.

At this time, the dollar is appreciating.

When it rises to a certain level, a large number of dollars will choose to return to the United States to multiply. Because the interest rate is high, it is easier to make money. The whole world is a pool, dollars are the water in it, and the amount of water is fixed.

When all the water in the big pool returns to the spring, what is left for those small countries is the tragic situation after the water in the pool dries up.

Foreign investment withdrew, capital was lost, factories suffered losses and went bankrupt, and workers lost their jobs and relatively high wages. For these reasons, the real estate, service industries, and tourism industries attached to the industrial base will also become depressed.

Then at this time, the Americans who control the switch of interest rate cuts and interest rate hikes will wave their money to buy factories and other high-quality industries that have lost money and are about to go bankrupt due to the flow of dollars.

At this time, there are only two choices before these countries and business owners.

One is that factories and enterprises have completely gone bankrupt, workers have become completely unemployed, the country's people's livelihood and situation have become even more turbulent, and the economy has completely collapsed.

The business owners themselves are burdened with loans and liabilities that they cannot afford to repay, and they will never be able to turn around after going bankrupt.

Another option is to hold your nose and sell these high-quality assets at very low prices to Americans who come to buy them.

To a minimum extent, the vitality of the country's economic development can be preserved, and the original business owners can get some capital to some extent without losing all their money.

The Southeast Asian economic crisis in the mid-1990s, the Korean economic crisis in the later period, and even the Russian debt crisis on the eve of the new century all followed this routine.

This whole process is the so-called dollar tide harvesting the world.

The source of power that started the tide came from the Federal Reserve's interest rate cuts and interest rate hikes.

The United States' numerous aircraft carrier fleets and military bases all over the world are the basis for ensuring that small countries that have borrowed U.S. dollars to develop their economies dare not default on their debts and not repay the money.

This pattern of cutting leeks by Americans began to appear after the Bretton Woods monetary system collapsed and the U.S. dollar changed from gold dollars to petrodollars.

It has been tried and tested for decades and has almost never failed.

Even the Red Bear at its peak could not resist. At most, it could only ensure that high-quality domestic assets would not be snatched away by Americans.

But their exchange rates and economies are also heavily manipulated and influenced by Americans.

The secret of American hegemony lies in this.

In parallel time and space, this situation lasts until about 10 years later. When the United States once again became anemic due to its self-trained magic skills, and almost went crazy and needed to suck blood from around the world to replenish itself.

During the process of drawing blood, they suddenly discovered that there was a shady guy in the East. In the past ten years, he had taken the US dollars that he had earned so hard from their hands and inserted one root after another in their leek field. A piece of steel.

When the Americans' scythes cut up, the leeks were not cut down, but the steel bars were cut, and their scythes were almost broken.

Only then did the Americans become anxious, because they discovered that the tried and tested blood-sucking model could no longer suck blood!

How does this work?

So from that moment on, the collapsing empire began to crazily suppress the sinister guy.

This is something for later, let's not mention it for now.

Now is the stage when the dollar tide is pouring out.

It's already 1%, and it can't be lowered any further.

Tomorrow's regular meeting of the Federal Reserve will obviously not continue to discuss this issue.

The oligarchs who started the tide will not continue to make a fuss about it.

Now is the sowing stage, and when the U.S. dollar returns with interest rates, it will be time for everyone to go out to harvest again.

Therefore, tomorrow's regular meeting will most likely discuss internal issues.

Of course, it is also possible not to talk about anything, just treat it as a publicly funded trip four times a year, where everyone can chat and have fun, and then do whatever they have to do.

It's just that since someone joined in. This kind of harmonious and happy regular meeting has not happened for more than a year.

Obviously, if Abel had nothing to do, he would not let Dupont and Wilson wait for him here.

He looked at Abel who had just sat down after exchanging pleasantries with John.

Dupont thought to himself, are you trying to make some big news this time?

The first big news is to seize voting rights from the old consortium, which means more say in the Federal Reserve.

The second time something happened, the people from DuPont and Cleveland had to choose a camp to join.

Just over a year has brought so many changes to the Federal Reserve.

To be honest, Pierre Eugene Dupont is now looking forward to what Abel wants to do tomorrow.

They are all partners in the same camp.

Of course he hopes Abel will have a stronger voice in the Fed.

In this way, DuPont and them can also get some benefits.

Thinking like this, he didn't expect Abel's words to be surprising.

A proposal was made that made Pierre-Eugene Dupont somewhat unbelievable and thought it was a fantasy.

"How is it possible...how can the Europeans agree? They have just succeeded in getting the euro into circulation."

John Wilson, who had just returned from Europe, had the same reaction as Pierre-Eugene Dupont after understanding Abel's general thoughts.

He spoke directly.

Old Dupont nodded, "I don't think it's possible either. It's impossible for Europeans to agree to such a thing."

"What if you don't try? And..."

Abel looked at the two of them and couldn't help but laugh: "And now everyone may be a little afraid of me speaking in meetings. So I have to do something that will make everyone happy. Although there is a possibility of success. It's not big, but I think someone might be interested in this tomorrow."

Abel said this, John and Pierre thought about it and found that it seemed to be true.

If Abel's proposal can be truly realized, the benefits to everyone will be real.

It is just unlikely to succeed, or the probability of success is very low.

"Well, that's true. I support you." Pierre-Eugene Dupont said simply.

He felt that even if Morgan and Rockefeller heard Abel's idea here, they probably wouldn't object.

Maybe even strong support.

"I don't have a problem either." John didn't care even more. He was just one of the important representatives of the California consortium.

In the absence of Slade coming to Washington, John's words didn't count.

But if it was this kind of thing, John felt that those old guys would most likely agree.

There may be some disputes when it is implemented.

Seeing that the two agreed, Abel smiled and continued to state his request.

His request is also very simple. He hopes that Pierre and John will help him walk more tonight and talk to others first, so that everyone can be mentally prepared when he brings it up at tomorrow's regular meeting.

"I'll go talk to John Chris and Old David personally. As for the others, I'll leave it to you two."

This was not a difficult task, and Pierre and John agreed without much hesitation.

A little later, when Dupont and Wilson left, it was already after 6 o'clock in the evening.

When leaving, John looked back curiously. He saw the white house and the Secret Service car just driving into the Smith House.

Thinking of the relationship between Smith and Shrub, John was not surprised.

He was even a little lucky that Abel married Shrub first.

What if Abel had not married Shrub, but had married Wilson.

Then my current situation is different.

The inheritance rights of children born out of wedlock and those born in wedlock are very different!

But he was also curious about which bush man came to visit the Smith house tonight.

With the White House's car and Secret Service personnel available for protection, John guessed that either George himself or Herbert was here.

Because they are the only ones who move the white house under their command.

John Wilson subconsciously forgot that the commander's family could also command and move these people to a certain extent, or enjoy the services provided by these people.

So when he and Dupont left, it was not Herbert and George who came to Smith's house as guests at all.

It was George's twin daughters who told their parents that they would be visiting little Laura's new home in Washington tonight.

This is a very serious requirement. Relatives must also be able to interact with each other.

The first lady agreed immediately without much thought.

George, who knew certain things well, knew much more than his wife.

But today he had been "enlightened" by his father, and now he was eager for them to take the initiative, so he readily agreed and even sent a car and someone to take them there himself.

so...

Washington, Kalorama District.

It was around 8 o'clock after dinner in Smith's new house.

Tread——

"The water has been released..."

She had already changed into a purple silk nightgown. After giving birth, her figure became more and more curvy, and she began to appear the charming little Laura that a mature woman should possess. Her hair was pulled back casually, and she walked towards the stairs with a smile. As soon as she said two words, she was caught by the scene that was playing out in the bedroom, which made her pretty face turn red, and she felt a little helpless and angry.

"Hey, you guys are really...it's still so early! I haven't slept yet, and I'm still here!"

She couldn't help but said.

The one who responded to her was one of the cousins, who sounded a little short of breath.

"Ah, you can't blame me... Dear Laura, it's him, it's him... He said he would go out later and might come back later... ah... so... ah..."

Little Laura helplessly raised her forehead, remembering that Abel had indeed said during the meal that he would visit Morgan and Rockefeller later.

In addition, tonight, in order not to make the cousin's parents suspicious, they cannot stay here overnight.

So... spring is short, so hurry up?

She lost her sight.

She turned around and left out of sight. Who said she was still in her menstrual period?

Who called them two? It was actually she who called them here!