Rebirth of the Financial Overlord

On June 20, Fed Vice Chairman Jimmy Richard made a public speech after the interest rate meeting.

The federal comprehensive data showed that the states' economies grew significantly in the second quarter, and the labor market conditions further improved. Household spending and business fixed investment have grown moderately in recent months, and net exports have continued to rise for three consecutive months, driven by lower oil prices and lower transportation production and costs.

Taking into account the current economic outlook and inflation expectations, the Committee decided to temporarily maintain the target range of the federal funds rate unchanged. The current monetary policy is still appropriate and can support further improvement in the labor market.

However, Richard said that monetary policy will still be adjusted gradually. The statement said that with the gradual adjustment of monetary policy, economic activities will expand moderately, and the job market will continue to strengthen. The United States is expected to rise to the target level in the medium term and will closely monitor the global Economic and financial developments, assessing their impact on the job market and inflation.

If the situation is good, the Fed expects to raise interest rates four times this year, taking into account inflation and the employment situation in the labor market.

This year, four rate hikes are expected.

After the news was reported, the Dow Jones industrial index and the Nasdaq index fell sharply, but then rose violently, falling first and then rising by 0.58%.

Some analysts believe that, judging from the comprehensive data released by the Federal Reserve, at the next interest rate meeting, the probability of the Fed raising interest rates by 2.5 basis points is almost 100%, and the probability of raising interest rates by 5 basis points is 50%. .

However, although raising interest rates will have a certain impact on the total circulation of US dollars, it also proves that the US economy is already in a recovery cycle, which has a positive impact on the market. I believe that high-quality assets will bring rich profits to investors. return. Moreover, with the increase of the federal interest rate, the U.S. dollar has also gone through the down cycle and has risen for two consecutive months. The strength of the U.S. dollar will attract global capital to flow into the U.S. to buy more U.S. dollar assets to achieve appreciation, which will provide the U.S. The market brings new opportunities.

The clear explanation of the regulations seems to explain why the market will fall first and then rise.

Some analysts said that the lowering of the federal interest rate is positive, releasing the liquidity of the dollar and stimulating inflation; the raising of the federal interest rate is due to the strengthening of the economy and the positive data, which is also positive.

All in all, good news.

But what's interesting is that no one has noticed this. Good news, everyone needs it, right? Of course, it's not that everyone doesn't know these things, but who would explain anything boringly. The supply and demand relationship of currency is because the supply and demand relationship determines the price, but the price is what people care about. As for supply and demand, it has never been as important as imagined.

It's just that the Fed's interest rate hike is good for the U.S. economy. High interest rates and increased bank earnings will attract capital to flow into the U.S. market, but for many countries, this is not good news.

Because, since the early 1960s, most of the world's investment in the financial industry is through news, earning interest spreads from different countries around the world to remit. Because there is a serious information asymmetry among people, institutions, and individuals in various countries, investment institutions have made a lot of profits from it.

As early as the early 1960s, the reason why Soros was able to become a well-known figure on Wall Street in the United States was that he let Americans see how to use financial means to earn profits from Europe.

But with the advancement and development of science and technology, Azure Star has completely turned into a global village. A change in a country's policy is likely to be like a butterfly, which will soon trigger a series of unpredictable reactions in other countries.

Frankfurt, Office of the Governor of the Central Bank.

Standing on the spotless glass curtain wall, Schlesinger held a cigarette pot made of corn stalks in his pocket with one hand in his pocket, looking at the Rhine not far away.

The weather was clear and cloudless.

The sparkling Rhine River reflects the blue sky and white clouds, and there are many small boats with sails floating there. Smoking a puff of tobacco in a pipe pot and looking at the beautiful scenery on the river makes people feel very comfortable.

Maybe he didn’t see it with his own eyes, and no one believed it. As the governor of the central bank, Schlesinger actually smoked crude tobacco and used the most common corn cob pipe pot, but he himself didn’t mind it. After taking a puff, under the erosion of the bitter and strong nicotine, the eyes of the whole person are bright, as if they have endless strength.

Because the country is united.

When he was young, Schlesinger witnessed the poverty and chaos of this country, and then he witnessed the strength of this country, and then the country was divided into two by enemies all over the world.

Suffering from wars and childhood experiences, he has always had the most lofty ideal in his heart.

Restoring the glory of the country so that it can grow stronger peacefully.

Schlesinger was lucky. He worked in the Ministry of Finance for six years and the banking system for another sixteen years. He witnessed the reunification of the country with his own eyes, and got his wish to be on the central bank.

With the reunification of the country, the economy and population have achieved a qualitative leap, and the purchasing power of the mark has become stronger. Japan's internationalization has failed because the Japanese dollar has complete sovereignty, but Germany has complete sovereignty. , is also the core of the European Community, as long as the power of Mark is strengthened again, it is not impossible to compete with the US dollar again with Germany's economic strength and industrial foundation.

From the data point of view, the proportion of marks held by various countries has been continuously increasing. When the influence of the ecu is getting bigger and bigger, radiating to the entire European and even Asian markets, the community can realize that the settlement unit is the ecu, and the mark in The status of the crown will bring innumerable wealth to the country.

In life, there are a few people whose ideals and ambitions can be realized.

Thinking about the future development of the country, and thinking that the country will become stronger again with the efforts of himself and Cole, Schlesinger suddenly discovered that the Rhine River, which can be seen every day in the distance, is so beautiful and splendid.

bang bang bang—

A knock on the door suddenly came from behind, and with a greeting, Schlesinger turned around and looked at his young assistant, somewhat dissatisfied with the nervous and disordered look on his face.

What's the rush?

I just received news from the United States. Richard revealed the current economic data in his public speech. We believe that the possibility of the Fed raising interest rates by 0.25% at the interest rate meeting next month is 100%, 50% The probability is fifty percent.

Calling all departments, we need meetings now.

.

Germany was able to receive news from the United States, and Britain, Italy, Finland, and almost all countries in the world also received news.

But compared to Schlesinger's calmness, the central bank governors or finance ministers of other countries have a lot of headaches.

London, England.

Norman Lamont and Robin Lippenbottom held a small meeting.

Since the British economy relied heavily on the North American market and financial market under Margaret Thatcher’s reforms, it is very sensitive to interest rate policies. Germany’s already high interest rates have caused British capital to continue to flow out. Now that the Federal Reserve has raised interest rates again, it can be expected If so, domestic capital may leave the UK and return to the US.

This is a very bad thing. The British economy has been sluggish in recent years, and there is a serious need for more capital belts to promote economic development. However, if all the money runs away, it will only make the current economy worse.

Robin. I have a terrible headache. Do you have any good ideas?

I think we must unite Italy and Spain, France, Belgium and Luxembourg to put pressure on Germany. Italy and the Netherlands also need to stimulate inflation to lower interest rates. France, they certainly do not want Germany to become the absolute leader of the community. It's very bad for the French.

I'm afraid there is only one way. We must delay Germany's interest rate hike, otherwise, it will be a disaster. Now, you go to communicate with the French, and I will contact Solchaga.

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A butterfly flapped its wings on the other side of the Pacific Ocean, and a heavy rain fell deep in the Amazon jungle.

No one knew that the change that was supposed to happen a month later had been brought forward by a whole month. Of course, it can't be said that no one knows. As the guy who stirs his wings, although he doesn't know what happened, he can still guess what will happen.

As for what the result will be, that is really no one will know.

Is it important?

None of that matters.

Anyway, it will only get worse, not better.

When the Ecu wants to replace the US dollar, everything is already doomed, because the political alliance is not a whole after all, and selfishness exists in people and in countries.

Shen Jiannan is also selfish, and very selfish.

Huaxia, Shencheng.

The scorching sun was scorching the earth. Standing on the street, one could faintly see the heat wave rising from the asphalt road.

At the beginning of midsummer, for some reason, the temperature has reached 32 degrees. After walking for a while, people who can be hot are sweating profusely.

Xuanwu Road, a crossroads.

After walking around with Aso Zhiyue for a long time, Lu Xinyue felt a little thirsty, so she looked at the store not far away, and walked over there.

In the tall refrigerator, there are a variety of dazzling soft drinks, and a light yellow orange juice in a transparent glass bottle has attracted her attention.

Holding the orange juice in her hand, Lu Xinyue asked Aso Zhiyue.

Zhiyue. What do you want to drink?

When she was in Japan and Hong Kong, Orizuki Aso used to drink Pepsi. She wiped the sweat from her forehead and replied with a smile.

Pepsi!

When Shen Jiannan heard this, he quit immediately, grabbed the orange juice in Lu Xinyue's hand and put it back in the refrigerator, looked at the drinks in the refrigerator, took out two bottles of drinks from it, and stuffed them into their hands without any explanation.

These two are good, let's drink this.

Lu Xinyue rolled her eyes involuntarily, without him, the drinks in Shen Jiannan's hands were all bearing Jiuding's trademark.

What a profiteer, even exploiting himself.

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