Vol 4 Chapter 26: I even let myself be treacherous

On June 20th, Fed Vice Chairman Jimmy Richard gave a public speech after the interest rate meeting.
Comprehensive federal data show that the state's economy grew significantly in the second quarter, and labor market conditions were further improved. In recent months, household expenditures and corporate fixed investment have increased moderately. In addition, due to the decline in oil prices, transportation production and costs have decreased, and net exports have continued to rise for three consecutive months.
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 improvements 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. In the medium term, the United States is expected to rise to the target level and will closely monitor the world. Economic and financial trends, assess their impact on the job market and inflation.
If the situation is good, considering inflation and the employment situation in the labor market, the Fed expects to raise interest rates four times this year.
This year, four interest rate hikes are expected.
After the news was reported, the Dow Jones Industrial Average and the Nasdaq Index fell sharply, but then they fluctuated and rose sharply, first falling and then rising 0.58%.
Some analysts believe that according to the comprehensive data released by the Federal Reserve, at the next meeting of the interest rate meeting, the probability of the Federal Reserve raising interest rates by 2.5 basis points is almost 100%, and the probability of raising interest rates by five basis points is 50%. .
However, although interest rate hikes 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 and has a positive impact on the market. It is believed that high-quality assets will bring richness to investors. Return. Moreover, with the increase in the federal rate, the U.S. dollar has passed the downward cycle and continued to rise for two months. With the strength of the U.S. dollar, it will attract global capital to flow into the United States to purchase more U.S. dollar assets to achieve appreciation, which will help the United States. The market brings new opportunities.
The clear explanation of the regulations seems to explain why the market will first fall and then rise.
Some analysts said that the federal interest rate cut was positive, it released the liquidity of the US dollar and brought stimulus to inflation; the federal interest rate hike was due to the strengthening of the economy, because of the positive data, and it was also positive.
All in all, it is good news.
But the interesting thing is that no one has noticed this. Good, everyone needs it, right? Of course, it's not that no one doesn't know this, but who would explain it boringly. The relationship between supply and demand of currency is because the relationship between supply and demand determines the price, but the price is what people care about. As for supply and demand... it has never been as important as imagined.
However, the Fed's interest rate hike is good for the US economy. High interest rates and increased bank returns will attract funds to the US market, but for many countries, this is not good news.
Because, since the early 1960s, the world's most investment in the financial industry has been through news to earn interest rates from different countries around the world to reverse foreign exchange. This is because there are serious information asymmetries among people, institutions, and individuals in various countries, allowing investment institutions to make large profits.
As early as the early 1960s, Soros was able to accumulate in the United States and become a well-known figure on Wall Street because he showed Americans how to use financial means to make profits from Europe.
However, with the advancement and development of science and technology, Azure Star has completely become a global village. The policy change of a country is likely to be like a butterfly, and it will soon trigger a series of unexpected reactions in other countries.
Frankfurt, Office of the Governor of the Central Bank.
Schlesinger was standing on a stainless glass curtain wall, holding a pipe pot made of corn stalks in his hand, putting one hand in his pocket, and looking at the Rhine not far away.
The weather is clear and cloudless.
The sparkling Rhine River is reflected in the blue sky and white clouds, and there are many boats with sails floating, smoking a cigarette from the tobacco in a pot, and looking at the beautiful scenery on the river, it makes people feel comfortable.
It may not have been seen with his own eyes. No one believes that, as the governor of the central bank, Schlesinger actually smokes crude tobacco and uses the most common corn cob pipe pot, but he himself does not mind this. After taking a sip, under the erosion of the bitter and rich cigarette nicotine, the whole person's eyes are radiant, and it seems that he has endless strength.
Because the country is unified.
When he was young, Schlesinger witnessed the poverty and chaos of this country, then witnessed the strength of this country, and then the country was divided into two enemies.
He suffered from wars and childhood experiences, so that he has always had a lofty ideal in his heart.
Restore the glory of the country so that the country can be stronger in a peaceful way.
Schlesinger is lucky. He has worked in the Ministry of Finance for six years and the banking system for sixteen years. He witnessed the reunification of the country with his own eyes, and he got his wish as a 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. The internationalization of Japan has failed because of the complete sovereignty of the Japanese dollar, but Germany has complete sovereignty. , Is also the core of the European Community. As long as the power of the Mark is strengthened again, with Germany's economic strength and industrial foundation, it is not impossible to compete with the US dollar again.
From the data point of view, the proportion of countries holding Marks has been continuously increasing. When Egypt’s influence becomes larger and larger, and it spreads to the entire European and even Asian markets, the community can realize the settlement unit with Egypt’s currency. Egypt's status will bring countless wealth to the country.
In life, several people's ideals and ambitions can be realized.
Thinking of the future development of the country, thinking that this country will become strong again under the efforts of himself and Cole, Schlesinger suddenly discovered that the Rhine, which can be seen every day in the distance, is so beautiful and brilliant.
Bang bang bang--
The knock on the door suddenly came from behind, and with a hello, Schlesinger turned and looked at his young assistant, somewhat dissatisfied with the tension and disorder on his face.
"What's so anxious."
"Just now I received news from the United States. Richard gave a public speech and revealed the current economic data. We believe that the probability that the Fed will raise interest rates by 0.25 at the interest rate meeting next month is 100%, 50% The probability is 50%."
"Assemble all departments, we need a meeting now."
"..."
Germany was able to receive news from the United States, Britain, Italy, Finland, and almost all countries in the world also received news.
But compared to Schlesinger's calmness, central bank governors or finance ministers in other countries have more headaches.
London, England.
Chen Norman Lamont and Robin Li Pemberton had a small meeting.
As the British economy relies heavily on the North American market and financial markets under Margaret Thatcher’s reforms, it is very sensitive to interest rate policies. Germany’s high interest rates have kept British capital flowing out. Now the Fed is raising interest rates again, which can be expected At that time, domestic capital may leave Britain and return to the United States.
This is a very bad thing. The British economy has been in a downturn in recent years, and it seriously needs more capital to promote economic development, but 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 reduce interest rates. France, they certainly do not want Germany to become the absolute leader of the community. This is very detrimental to the French."
"I am afraid there is only one way. We must hold back the pace of interest rate hikes in Germany, otherwise, it will be a disaster. Now, you go to communicate with the French, and I will contact Solchaga."
"..."
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 knows that the changes that were supposed to occur only a month later are a full month ahead of schedule. Of course, it cannot be said that no one knows. As the guy who stirred the wings, although he did not know what happened, he still guessed what would happen.
As for what kind of result it will cause, no one really knows that.
Is it important?
Everything is not that important.
Anyway, it will only get worse, not better.
When Egypt wants to replace the dollar status, everything is already doomed, because after all, the political alliance is not a whole, and selfishness is owned by people and countries.
Shen Jiannan is also selfish and especially selfish.
China, Shanghai.
The scorching sun is like a fire, scorching the earth, standing on the street, you can faintly see the heat waves rising from the asphalt road.
At the beginning of the summer, the temperature was already as high as 32 degrees for some reason. After walking for a period of time, people who can be hot sweat profusely.
Xuanwu Road, a crossroad.
After dragging Aso Oriyue around for a long time, Lu Xinyue was a little thirsty, looked at a store not far away, and walked over.
A dazzling variety of sodas were placed in the tall refrigerator, and a light yellow orange juice in a glass transparent bottle attracted her attention.
Holding the orange juice in her hand~EbookFREE.me~ Lu Xinyue asked Aso Orizuki.
"Zhiyue. What do you want to drink."
When in Japan and Hong Kong, Aso Orizuki habitually drank Pepsi. She wiped the sweat from her forehead and responded with a smile.
"Pepsi!"
When Shen Jiannan heard it, he stopped doing it, grabbed the orange juice in Lu Xinyue's hand and put it back into the refrigerator. After looking at the drinks in the refrigerator, he took out two bottles of drinks and stuffed them into their hands.
"These two are good, let's drink this."
Lu Xinyue couldn't help rolling her eyes. Without him, the drinks in Shen Jiannan's hand were all branded as Jiuding.
"Really profiteer, even exploiting himself."