Chapter 1759

In fact, it goes without saying that many people have realized this. Now, Eagle country and many countries have trade deficits.

The fundamental reason for the trade deficit is that Eagle currency is the currency circulating in the world. Any commodity settlement can be carried out through Eagle yuan. In fact, this is the essential reason for Eagle trade deficit.

In fact, the eagle people benefit from it.

This occurred after 1970. Before that, the eagle country had a surplus because of the collapse of the Bretton Woods system at that time. The eagle yuan was linked to gold, and other currencies were linked to the eagle yuan, which eventually led to a stable international trade. However, the eagle people continued to issue the eagle yuan, resulting in devaluation and unable to be linked to gold. In this way, the system collapsed.

Eagle yuan is still the world currency, but it has relied on the credit of the eagle government. At the same time, they gave up gold and found oil. They asked oil to settle with Eagle yuan and continue to maintain the hegemony of Eagle yuan.

In this way, Eagle countries can continue to print money and buy things all over the world. Of course, they take advantage. Since they continue to spend Eagle dollars, it is of course a deficit.

In order to trade, all countries need to reserve Eagle yuan, an international currency. Eagle people just need to print money. If all Eagle yuan in the world go back against the current, Eagle country will definitely inflation until Eagle yuan becomes waste paper.

In short, for example, this year, the trade deficit of Eagle country is 160 billion, which means that Eagle people printed 160 billion Eagle yuan, and then exchanged 160 billion real goods from countries all over the world. They are white wolves with empty hands. Aren't they happy?

Eagle people are really unhappy. In their eyes, this deficit is harmful to Eagle's economy. If the deficit continues to increase, it will lead to a large number of international funds entering eagle to buy eagle's treasury bonds and other financial assets. The influx of hot money is a threat to Eagle's economy. If Eagle's enterprises want to increase their competitiveness, they can only invest and build factories overseas, Then transport the products back, so that they can make money, but the domestic manufacturing industry of Eagle country will be "hollow".

You export less and you import more. This is a trade deficit. This situation must be changed. Just look at it. The country with the largest trade deficit is the island country!

After the defeat of the war, the island country began to engage in economy. Although Qin Guan was quite disgusted with the island people in terms of consciousness, he still admired them in terms of ability. When the war ended, the island country was also crippled. However, it didn't take many years for the island country's economy to develop, and now the island country has developed into a giant.

Look at Eagle country. The cars with the largest sales volume are not Ford, not GM, but Toyota, Honda and Mitsubishi. Then look at every household's video game consoles. They are all island countries. Copiers, televisions and washing machines are also island countries. Island products are the main sales products in Eagle country. Their industrial products occupy a large part of Eagle country's market!

"In the process of international trade, the value of YingYuan is overestimated. Therefore, only by devaluing YingYuan can we solve the current trade deficit and fiscal deficit," Qin Guan said.

When Qin Guan finished, a man immediately clapped his hand: "yes, that's right. This suggestion is the most correct way to solve the current problem!"

After clapping his hands, the man picked up his glass and walked over to Qin Guan: "I'm very happy to meet you. I'm James Baker, Minister of finance of the eagle country. Are you from the island country?"

Qin Guan immediately blackened his face: "I'm from the Han Dynasty."

In foreign countries, they are all the same yellow people, which is easy to be mistaken. In Qin Guan's view, this is a serious offense to himself. However, considering the huge application value of this person in front of him, Qin Guan can only bear it for the time being. After all, he still has his own task.

If you can't bear it, you will make a big plan.

"This is Mr. Qin, the general manager of North Industrial Company. At present, he is planning to buy our Douglas company." little MacDonald quickly introduced that this opportunity is too rare to seize.

"President Qin, I've heard of it for a long time, but I didn't expect you to be so young." Baker said, "your proposal is very good, but now we still have concerns, because we've done it before, resulting in an eagle yuan crisis."

Since the 1970s, the eagle country began to enter the deficit. Of course, the eagle country had to save it. Therefore, the Carter government began to produce moths at that time.

The then finance minister claimed that the island countries and Hans had too large trade surpluses. They decided to verbally intervene in the foreign exchange market, hoping to stimulate the eagle country's exports and reduce the trade deficit through the depreciation of the Eagle Dollar.

As a result, the market really came true. His speech led investors to sell Eagle yuan madly, which depreciated sharply against the currencies of major industrial countries.

For example, at the beginning of 1977, 1 Eagle yuan was exchanged for 290 Island yuan. In the autumn of 1978, the lowest fell to 170 Island yuan, a decline of more than 40%.

At this moment, it is not the problem of getting rid of the fiscal deficit, but the rhythm of the collapse of YingYuan's credit system. Who dares to store a depreciating currency? What if it turns into waste paper?

As a result, President Carter hurriedly saved the eagle yuan and launched a "rescue Eagle yuan package" to support the eagle yuan price. This is definitely lifting a stone and hitting yourself in the foot.

Now, as a layman like Qin Guan, what should he mention here to devalue the eagle yuan? What if he is upset and kind?

"Last time it was not controlled by the government, it was entirely the behavior of the market. This time, it can be carried out slowly under the control of the market. For example, you and the island countries and Hans countries can sit down with the finance ministers of these countries and have a meeting. How much devaluation can be made in one year, how much devaluation can be made in the second year, and how much devaluation can not be made up and down, as long as they follow this What will happen if there is a plan? Moreover, after the slow depreciation, they are willing. Their own money is valuable and can be bought all over the world. "

The west is too free. It feels that everything can be solved by the market itself. Won't you control it? Besides, at least the island countries and Hans are defeated countries. Do they dare not obey?

"Yes, well said, this is the best way for us to solve the problem now." just then, another voice came from behind. When they heard the voice, everyone turned their heads and shouted, "Mr. President, are you coming?"

The president of the eagle Kingdom finally appeared on the stage. Qin Guan took this opportunity quite accurately. That's for sure, because he had already planned. These words just said to the other party.