"Today, let us learn about the day known as Black Tuesday in the last century. Please turn to page 97 of the textbook!" Professor Lin Hanlin's voice sounded on the podium of the lecture theater.
This is a big class, coupled with Professor Lin Hanlin's influence in the domestic financial community, so every time Professor Lin Hanlin gives an open class, and today's textbook is compiled by Professor Lin Hanlin, the lecture hall is packed with people.
Even the corridor outside the lecture theater was crowded with students
Sean had already taken precautions against this and arrived at the lecture theater nearly two hours early, so Sean's position was relatively high.
Listening to Professor Lin Hanlin's gentle but powerful explanation, Sean also turned to page 97 of the textbook amidst the professor's lecture!
What was imprinted into Sean's retina was a black and white photo, in which an American was standing next to a car. There was a sign on the front windshield of the car that read: You can buy this car for one hundred dollars!
Sean knew that Santana's two thousand dollars cost more than 200,000 yuan, which was nearly 20,000 yuan when converted into U.S. dollars! Sean was a little confused. This was in 1979 and it was in U.S. dollars. It should be the United States, but the United States would be like this
Is it a cheap car? (The US dollar exchange rate in the 1990s basically fluctuated around 12)
Just as Sean was thinking hard, Sean was suddenly startled. His hands and feet seemed to be trapped by something invisible. The car in the textbook with a price of one hundred dollars rushed out of the photo and faced Sean.
Coming up, still shouting, buy me, I only need a hundred dollars
But how could Sean, who was still a student in 1990, have so much money? Even the total of all his belongings was less than one hundred dollars, not to mention the foreign exchange that he had no place to exchange. Sean waved his hands and exclaimed: "I have no money."
, I really have no money, I really can’t afford it!”
But the car threatened relentlessly: "If you don't buy me, I will kill you!"
As soon as he finished speaking, the car didn't wait for Sean's answer, and accelerated directly towards Sean! It was getting closer and closer, almost hitting him, Sean's mind went blank, only what he kept shouting in his mouth——
Help!
Suddenly, Sean's eyes opened. It turned out that this was just a dream, a 'dream' hidden in Sean's heart that no one knew about.
Turning on the desk lamp and wiping his wet forehead, Sean sat down at the desk with lingering fear!
Several big words on the desk appeared in Sean's sight - October 16th!
The abdomen covered with six-pack abs was constantly rising and falling. Sean, who had just been shocked, had not yet adjusted his breath, but there were knocks at the door. Along with the knocks, Xiao Man's
The sound turned out to be caused by Sean's exclamation.
After finally persuading his parents to leave, Sean's breathing slowly calmed down, and he took a sudden look. On the desk! On the calendar! The big words "October 16th" appeared again.
In Sean's sight, Sean couldn't help but fell into deep thought.
Just like the public class taught by Professor Lin Hanlin, which Sean still remembers very well, today, two weeks later, the day known as Black Tuesday is coming.
Sean listened very carefully to the class that year. He even took notes on Professor Lin Hanlin's analysis of why Black Tuesday occurred. Therefore, this day can be said to be the class that Sean remembers most clearly, and it was also the day when he understood the lesson clearly.
The most profound lesson!
Not happy with karma!
It wasn't until after this lesson that Sean knew what karma meant!
After the Second World War, the United States relied on its economic and military advantages at the time to set the official price of the U.S. dollar equal to one ounce of gold through the International Monetary Fund. The gold content of the U.S. dollar maintained a fixed exchange rate for the U.S. dollar, thereby laying the foundation for the U.S. dollar in the field of international financial settlements.
During this period, some capitalist countries even regarded the U.S. dollar as the equivalent of gold and an important part of international reserves...
After entering the 1950s, with the outbreak of the Yalu River War, the relative decline of the U.S. economic status and the gradual deterioration of the international balance of payments situation. On the other hand, domestic inflation in the United States became increasingly serious, and the actual purchase of U.S. dollars continued to decline.
In the early 1960s, after more than ten years of post-war cultivation, European countries were continuously improving both economically and militarily. European countries were also constantly thinking about how to reverse the unfavorable situation in international settlements, and were not willing to give money to the United States in vain.
There are also many unknown things that have been done. As the credibility of the US dollar is declining day by day, Western European countries have begun to sell US dollars and snap up gold to avoid unnecessary losses caused by the depreciation of the US dollar.
In August 1971, at the beginning of this decade, the U.S. government was forced to announce that it would stop converting U.S. dollars into gold. On December 10 of the same year, the price of gold per ounce, which had been artificially suppressed for two months, rose to nearly 80 U.S. dollars, and currencies of various countries began to break away.
A fixed exchange rate with the U.S. dollar. Since then, the U.S. dollar exchange rate has fluctuated frequently.
In addition, in the six months since the International Monetary Fund announced its departure from the gold standard in April, disputes between various parties have continued, which has also had a great impact on the US dollar exchange rate.
Inflation in the United States is increasing day by day, cheap goods from Japan continue to squeeze the living space of domestic companies in the United States, and domestic business owners in the United States are increasingly dissatisfied. The combination of various reasons has resulted in the October 30, 1979
US dollar exchange rate fell
For the U.S. economy, the depreciation of the U.S. dollar is obviously conducive to growing exports and reducing the trade deficit, which is of great benefit to the U.S. financial community and business owners. Therefore, although the U.S. government had discovered the signs before, it remained indifferent, and some capitalists even
Adding fuel to the fire behind the scenes
The benefits of devaluation to the U.S. economy are self-evident, but depreciation that is too large or too fast may also cause imports to surge and inflation to rise.
Increasing inflation will force the Federal Reserve to raise interest rates. This will have consequences. Because bank interest rates are higher than investment returns and are safer, then everyone will save money in banks, and the economy will definitely cool down further.
Therefore, just as the lecture hosted by Professor Lin ended up talking about the next day, November 1st, the US government took measures to support the exchange rate, as well as the European Community, Africa, Canada, and Asia-Pacific that had been initially established in this era.
Forty-six developing countries including the region signed the Lomé Agreement to ensure that the U.S. dollar exchange rate, which fell far beyond expectations, rebounded! ps: Today’s update is late, sorry!