Automotive Black Technology Chapter 1549: : We need to talk
www.lnmao.org, the fastest update to the latest chapter of automotive black technology!
The decline in oil prices has a multifaceted impact on the economy. Especially the trading currency for oil.
While international oil prices have continued to fall, the US dollar has begun to appreciate. The appreciation of a currency usually means that the currency is strong and the economic situation is good. So for most countries, this is a good thing.
But for Eagle Country, this is something that requires ten thousand words to make a difference.
Why?
No reason, because Eagle Country is the richest and poorest country in the world; it is rich because of its strong economic strength and the largest and most sophisticated economic system on the Blue Star. It has a GDP of several trillions and a per capita GDP that ranks among the top ten in the world. But it is said to be poor because this country is the country with the largest debt in the world.
However, poverty is not objectively derogatory.
It is true that Eagle Country is the most powerful country, but powerful countries are not omnipotent, especially in this era of taking other people's money.
For example, if a real estate developer has 100 million in cash and wants to build a building with an estimated total price of 500 million, he will need to borrow 400 million from the bank. The bank has already collected savings from ordinary people at an annual interest rate of 5%, and then loans them to real estate developers at an interest rate of 12%.
The real estate developer only needs to borrow for 3 years, and if the entire building is sold, he can earn 400 million, excluding the capital of 500 million.
This account can be calculated like this - 4-4*36% = the real estate developer's net profit is 256 million.
It is very clear that real estate developers use 100 million as capital and through financial operations, they can earn 256 million in three years, an average of double the profit per year.
So don’t think that being in debt is a shameful thing. In this era of crazy pursuit of money, the one who owes the debt is the uncle, and the one who wants the debt is the grandson.
So the Eagle Country government is willing to borrow money, especially from some competitors.
This money can be used to boost the country's economy, or it can be used to artificially control the devaluation of the country's currency, or it can be used to force the creditor country's currency to appreciate.
For another example, if Eagle Country owed you $10,000 last year, the $10,000 could buy 10,000 kilograms of rice. This year, they have devalued the currency by 10%, so now the US$10,000 can only buy 9,000 kilograms of rice. With interest, the most it can buy is 9,500 kilograms of rice.
In fact, almost all countries that have the ability to exercise regulation are the same. Currency devaluation, ordinary people depositing money in banks, and adding interest will not keep your money at its original value, but will only depreciate.
Rich people are accustomed to borrowing money from poor people, because the longer the borrowing time is, the less valuable the money is. However, the houses and real estate owned by the rich are increasing every year.
This is the principle of financial operation.
So, according to the current international situation, the two things Eagle Country hopes for most are the depreciation of the US dollar or the appreciation of the RMB.
Unfortunately, the situation faced by Trumbo is completely reversed now.
The decline in international crude oil prices is extremely beneficial to developing countries like China that require large amounts of crude oil as raw materials for production. The cost of oil production in China is high. The oil fields in the west are generally very deep and difficult to exploit. The oil fields in the mainland are shallow but have little oil. The only place that can be considered a good place is the Northeast, but after many years of production, the stock has been stretched. Therefore, China still needs to import a large amount of crude oil.
Now that prices have dropped, domestic production costs have naturally dropped. Originally, under this situation, the currency should appreciate, but under the central bank's internal control, it was maintained.
The Eagle Country is a bit miserable,
Although Eagle Country's crude oil is also imported, these businesses are operated by private companies. Moreover, most of these private companies are similar to Crockery Industries, which own oil fields and wells overseas due to the influence of the Eagle Country government.
In this case of direct control of resources, it is a loss overall,
But losing money is not the most depressing thing. What is depressing is that, like China, in the face of lower prices of production materials, the US dollar... has appreciated.
What is even more tragic is that China holds nearly three trillion U.S. dollars of Eagle Country’s treasury bonds... The appreciation of each of them has directly caused Eagle Country to have hundreds of billions of dollars more debt.
But the impact does not stop here.
This fluctuation in currency value has had a huge impact on all aspects of trade between the two countries.
Private speculation and trading are even more unavoidable. After the depreciation of the U.S. dollar, many people began to buy U.S. dollars crazily. This group of people saw the direction of international oil prices. Based on this, they began to actively operate to make a fuss about the difference in value between the U.S. dollar and the RMB.
On the other hand, although we are currently in a period of trade friction, interoperability between the two major countries cannot be prohibited.
As the U.S. dollar appreciates, the RMB is actually depreciating. And devaluation is beneficial to export companies!
What do export companies earn? It's US dollars! The US dollar is appreciating, so actual profits are also rising. In this form, the impact of the punitive tariffs previously issued by Eagle Country has been invisibly... reduced!
And with the continuous appreciation of the US dollar, it is getting lighter and lighter!
It is foreseeable that if crude oil prices cannot stabilize and the US dollar continues to appreciate, several punitive tariffs including the 526 list will have no effect.
The special office of Trumbo is already overcrowded.
The National Economic Council, several important members of Congress, the International Policy Task Force, and economists from several universities or organizations gathered together to engage in heated debates, making the entire office as noisy as a vegetable market.
Trumbo sat in his seat with a gloomy face, watching the red-faced and thick-necked people arguing in front of him, feeling tormented in his heart.
He never thought that things would happen like this. I never imagined that a Zhengxin Group, as small as an ant compared to Eagle Country, would cause such a big trouble and have such a far-reaching influence!
While he was distracted, his personal phone rang at an inappropriate time. Seeing the name on the caller ID gave Trumbo another headache.
"Ke He."
"In the past week, Crohn's Industries has lost more than three billion U.S. dollars, and the losses are still growing. Trumbo, I have nothing to say to you now. My friend, I gave You called and clearly informed you of the seriousness of the matter and the solution, but unfortunately, you turned a deaf ear to my words. Now, my friend, you are no longer my comrade."
Trumbo understood that the deepest anger was hidden under the other party's calm voice, and he also understood the impact and consequences this anger would have on himself.
In such troubled times, he can no longer lose any power to win over.
His face slowly turned red and he clenched his fists tightly.
Obviously, considerable determination is being made.
After a long while, he finally lowered his head and said, "Kaga, I will take care of this matter."
Putting down the phone, he looked at everyone in the room again.
"Stop!" He shouted, "Stop those useless nonsense! Organize a visit immediately. We... need to talk to the Chinese side..."