Top of the big era

Although Zhou and Ma have often plotted against each other in the past, you cheated on me, I cheated on you, and they have been in love and killing each other for many years, but they are still of the same mind in overseas markets.

Both are on PayPal's board of directors.

It’s hard to say how much money can be earned through this project. Both of them hold very few shares. But once PayPal is really launched, it will not only realize business ambitions that cannot be realized domestically, but also use this platform to provide great assistance to the overseas industries of both parties.

When Boss Ma saw Boss Zhou asking for advice, he transformed into Teacher Ma and taught Xiao Zhou carefully.

Two people are eating noodles.

Chatting while eating.

This is common sense in finance, but the domestic situation is rather special.

Boss Ma said: "The level of bank deposit interest is not determined by the bank itself, but is adjusted by higher-level institutions using the central bank as a means, mainly to control inflation in the economy and society."

Zhou Buqi snored while eating the noodles. In fact, they didn’t taste very good. It was fine to fool foreigners, but it was a bit difficult to fool gourmets from China. “Raising deposit interest can curb inflation.”

Boss Ma smiled and said, "Isn't that quite understandable?"

Zhou Buqi said angrily: "Do you think I am the same as you? You have consulted so many experts in the financial industry, right? To me, this is all common sense!"

In an economy, inflation occurs mainly because there is too much money circulating in the economy and the number of goods is limited.

This will cause the price of goods to rise significantly, leading to inflation.

The most common way to curb inflation is to raise deposit interest rates.

When the interest rate is high, people will be very active in depositing money in the bank to earn interest. There will be less money flowing in the economy, the prices of goods will fall, and inflation will be controlled.

Boss Ma said: "Inflation in American society has been controlled at a very low level, which is also the credibility of the U.S. dollar. Only a strong U.S. dollar with low inflation will make wealthy people and institutions around the world more inclined to exchange their wealth for U.S. dollars to store . The U.S. dollar has been in use for two to three hundred years, and today society still uses steel pennies worth a few cents."

"Well, if the U.S. dollar depreciates significantly through inflation every year, it will indeed affect its status as an international currency." Zhou Buqi nodded and understood what the other party meant, "The U.S. has low inflation and a high retention rate of the U.S. dollar. So... U.S. banks have very low interest rates on deposits.”

Boss Ma nodded, "There are many reasons for the low deposit interest rate. For example, in order to promote consumption, the United States does not encourage people to deposit money in banks; for example, the United States has a relatively complete social security system, and people do not have to pay for future pensions, medical treatment, Save money to buy a house, educate your children, etc.; there is also the stock market. Low interest rates can encourage people to participate in stock market investment. However, in the final analysis, it is still related to inflation. If hyperinflation occurs in the United States one day, bank interest rates Guaranteed substantial improvement.”

Zhou Buqi asked: "What is the current bank deposit interest rate in the United States?"

"Less than 1%, right?" Boss Ma was a little funny, "You don't know?"

Zhou Buqi said angrily: "Who has money to save in the bank?"

Boss Ma deeply agreed, "That's indeed true. Your idea has some domestic peculiarities, and it has formed a dual-track deposit system."

By this time, the two of them had finished eating the noodles.

Not to mention that the noodle shop can be reserved, but that's pretty much it.

There were only about ten tables in total, and half of them were occupied by their assistants, secretaries, drivers, and bodyguards, occupying five or six tables. Everyone else is waiting patiently.

"Domestic interest rates don't seem too high, less than 2%, right?" Zhou Buqi frowned slightly and shook his head slightly, "But this inflation..."

Domestic inflation is visible to the naked eye.

The devaluation of the currency is even more exaggerated.

The U.S. dollar has been used for two to three hundred years, and cents are still used today. Domestic currency basically bids farewell to the units of cents, cents and jiaos. The lowest basic unit is "1 yuan."

However, bank deposit interest rates obviously do not match the inflation rate in the economy.

Boss Ma coughed and said, "This is more complicated, and some words are not easy to say."

Zhou Buqi said angrily: "There are no outsiders, what is there to say?"

"That's hard to say. If you say it, it's like what happened to me." Although it was a private occasion, Boss Ma didn't want to say anything that would be disrespectful to his identity. He smiled and said, "I'll just tell you the truth. You can think of the rest by yourself." go."

Zhou Buqi hummed: "The devil is so stunned!"

Boss Ma said: "To control inflation, the main thing is to reduce the flow of funds in the economy. The number of goods is limited, and the less liquidity in the economy, the lower the inflation. Although the country has over-issued so much currency, there are Major industries such as housing, medical care, and education prevent people from spending money even if they have money, which can effectively restrict the flow of funds in daily commodities."

Zhou Buqi sighed, "Actually, what is more important is the herdsmen's methods of external Confucianism and internal law dominated by the imperial power for thousands of years, creating generations of simple people."

Boss Ma said "Yeah", "The information here in the United States is relatively transparent, the economy and society are single-track, and ordinary people can do what the rich can do. It's just more money, less money, and the difference in investment ratio. The vast majority of domestic people Ordinary people lack knowledge about financial management, or they simply dare not. Putting money in the bank and earning low interest is the safest and simplest way to protect wealth."

Zhou Buqi shook his head.

Inflation is much higher than interest rates.

Putting money in the bank is actually waiting for the depreciation of wealth.

Therefore, rich people like him must invest when they have money. They buy houses, stocks, antiques, and gold... Some people even directly buy foreign currencies such as US dollars, Japanese yen, and British pounds, which have higher value retention rates, in order to protect their own interests. .

Ordinary people can't.

They have no such understanding and no such channels.

Nor can I afford the risks of “investment”.

Depositing money in the bank or depositing it for a long period of time to earn the meager interest on the deposit is almost their only choice.

Boss Ma said: "Actually, the interest rate is not necessarily low. If you go to deposit...deposit millions or tens of millions, the annual interest rate is 5% or 6%, and countless banks will come to grab the order."

"It really is."

Zhou Buqi had indeed seen this kind of thing a lot in China. Many banks came to him, trying to attract him to deposit money in the name of high interest rates. I have never encountered this in the United States. Salesmen from banks come to my door and say that they have better financial products and hope that he can buy them.

For commercial banks, the main way to make money is lending.

Give out the loan and earn the interest.

For ordinary commercial loans, the annual interest rate is 10%.

In other words, as long as these commercial banks attract deposits from depositors at an interest rate of less than 10%, and then lend at an interest rate of 10%... they can steadily eat the middle price difference.

Guaranteed harvest despite drought and flood.

The business model is very stable!

But in fact, these commercial banks are all large monopolistic state-owned enterprises, and they are all part of the same family. Competition among them is very weak...no one will raise prices viciously.

Boss Ma said: "When banks accept deposits from ordinary people, the lower the interest rate they give them, the greater the difference the bank can earn from deposits and loans. Domestic banks make the most money in the world. Bank. The most important factor is that the price difference between deposits and lending is large enough."

Zhou Buqi nodded, "The dual-track system you are talking about means that when banks face ordinary people at the bottom, they give them extremely low deposit interest rates. Because these people at the bottom have no more choices and can only deposit, and they can only Go and save it with them.”

Boss Ma said: "Yes, it's different for rich people like you. You have more options. You can buy stocks and antiques. You can convert your money into foreign currency and deposit it in foreign banks. In order to attract If wealthy people save money, they can only improve their competitiveness and attract savings at interest rates that are more in line with inflation.”

It's a standard for some people.

For others, it’s another standard.

It's a dual-track system.

Boss Ma is a person from that era, and his feelings are much deeper than those of Xiao Zhou, so he must do Alipay, no matter how great the risk is and how difficult the road ahead is.

Zhou Buqi took a deep breath and sighed: "The merits of Yu'e Bao are immeasurable!"

Boss Ma laughed and said without hesitation: "I have already said that the next development of Alipay is to allow every ordinary person to enjoy the same treatment as a bank president. A common person has very little deposits. , but by bringing together many ordinary people, we can form a huge deposit and get a higher deposit interest rate. The current interest rate of Yu'e Bao is 4.6%. As long as they don't restrict me, with Yu'e Bao There are more and more users, and the amount of funds is getting larger and larger. I can definitely offer them higher deposit interest, 5% or 6% is not impossible. This is what the market should have to match inflation. Real interest rates.”

Zhou Buqi sighed secretly.

It is impossible to be unrestricted.

As long as Yu'e Bao develops and the annual interest rate requirement for Yu'e Bao can be relaxed to 2%, it will be a blessing.

The business of banks is not to create wealth, but to distribute it.

As a private entrepreneur, Boss Ma works hard to create wealth, which is what he should do. But distributing wealth is not something you can participate in.

Zhou Buqi said slowly: "So the inflation in the United States is low, the U.S. dollar's value retention rate is high, and the interest rates of U.S. banks are low. These all lead to products like Yu'ebao not working in the United States."

Boss Ma said: "The environment is different. One place supports its own products. Not only the United States, but also the European Union, the United Kingdom, South Korea and Japan are not doing well. I have already said that I am not doing Yu'e Bao to target you."