Chapter 1619 [How to deal with too much money is also a big headache]
Around 15:20 in the afternoon.
Fang Hong was conducting an internal video conference within Qunxing Group. He did not go to the company. The people present at the meeting were all core decision-makers of Qunxing Group, namely Hua Yu, Cao Chenghui, Qiu Guangcheng, Zhao Sheng, Wu Cheng, Shi Yao and Tian Jiayi
.
At this time, Zhao Sheng, the current rotating head of the Qunxing Group, said: "The media in Europe and America are exaggerating the so-called imported inflation crisis. Although it is a war of public opinion, it is undeniable that what they say is not entirely wrong. We, the Qunxing Group, are crazy
If the wealth of US$3.13 trillion flows back into the country, it will definitely have to bear the pressure of imported inflation. This is an objective problem that cannot be ignored."
So many U.S. dollars have been earned outside, but U.S. dollars cannot be circulated domestically and need to be converted into RMB according to the exchange rate. The wealth of 3.13 trillion U.S. dollars has returned, and the corresponding additional RMB issuance is a terrifying scale of more than 21 trillion.
If an economy wants to operate healthily, the amount of currency issuance and the supply of materials should correspond. As much currency is issued as there are materials, otherwise problems will arise.
If there is more money and less supplies, it will cause inflation and currency depreciation; otherwise, deflation and insufficient liquidity will occur.
If the domestic currency and materials are now balanced, there are 100 trillion yuan and 100 trillion materials in the market, so they can correspond one to one. Now Qunxing has made a huge profit of 3.13 trillion US dollars from overseas, and he is looking for the central government with so much money.
To convert it into RMB for domestic circulation and investment, the central government would have to print 21.72 trillion new RMB and hand it over to Qunxing Group, instead of exchanging the original RMB for Qunxing Group.
This is because the newly printed RMB can theoretically achieve a balance between currency and materials, because the 3.13 trillion U.S. dollars brought back by the stars cannot be understood as currency, but are equivalent to equivalent commodities and materials worth so much money, which is equivalent to converting 3.13 trillion U.S. dollars worth of
Trillions of dollars of commodities and materials were brought back from abroad and placed in the domestic market. In order to correspond to the 3.13 trillion U.S. dollars of commodities and materials, a corresponding amount of RMB must be issued according to the exchange rate. Only in theory can a balance between currency and materials be achieved.
.
Because the central government can use the 3.13 trillion U.S. dollars to purchase food, resources, and gold in the international market to achieve balance. This is the operating logic dominated by the current U.S. dollar system. Before the U.S. dollar collapses, it can only play like this.
In short, just think of the dollars earned from outside as goods. With so many more goods, the corresponding renminbi must be printed to achieve a theoretical monetary and material balance.
The so-called imported inflation refers to the sudden increase of such a huge amount of money supply in the short term, coupled with the currency derivatives of banks and other financial institutions, it may eventually reach the terrifying level of hundreds of billions.
With so much money, no matter which market or field it pours into, the prices of products in this market and field will skyrocket.
If it floods into the field of people's livelihood, the prices of various commodities, fruits and vegetables will skyrocket. A bottle of mineral water may cost more than 10 yuan in the future, which is definitely unaffordable for ordinary families with a monthly income of several thousand yuan.
.
If this money pours into the real estate market, then the real estate market prices will skyrocket. If it pours into the stock market, then the stock market will also skyrocket.
Today's A-share market trend is extremely intuitive. The SGX 50 Index soared by 4 percentage points, easily breaking through the pressure level and directly reaching a record high of over 7,600 points. The transaction size of the SGX market also hit 1.57 trillion.
scale.
Obviously, it is because the Star Group has harvested a huge wealth of 3.13 trillion U.S. dollars, which has generated strong expectations. This money has not yet officially flowed back into the Greater China market, but the capital market has begun to react in advance.
But at this moment, Hua Yu, who was attending the meeting, said in a deep voice: "There are only two options, either to suggest that Yangyang Bank raise interest rates, or to let the three trillion US dollars of wealth go offshore without returning."
Zhao Sheng couldn't help but say: "The whole world is cutting interest rates. In the era of zero interest rates, are we here to push for an interest rate increase?"
After a while, Wu Cheng also spoke: "To be honest, the current domestic economy is a bit overheated, so raising interest rates may not be an option."
It is worth mentioning that the situation in this world is far different from Fang Hong’s previous life. In his previous life, the economic environment in 2020 was not so good, but this year’s domestic economy could not be better.
The purpose of raising interest rates is that when the economy overheats, demand exceeds supply, causing the prices of goods and services to rise. Raising interest rates can curb credit demand by increasing financing costs, reduce the money supply in the market, and thereby curb inflation.
Raising interest rates will also push up corporate investment costs, thereby reducing corporate investment activities and reducing the money supply in the market to prevent overheated investment behavior from causing unnecessary waste of social resources.
At this time, Qiu Guangcheng, who was present at the meeting, put forward a different view and said: "I agree that our country's economy is very hot now. Traditionally, economic overheating is due to economic growth exceeding the potential growth rate, but the current economic overheating does not mean
There is no potential growth rate."
Qiu Guangcheng added: "To build a space photovoltaic power station, as well as our entire space engineering strategic plan, the potential economic growth rate ceiling is beyond our imagination. The entire space engineering strategic layout, let alone more than 20 trillion
, even if it is more than 200 trillion, I can still fill it in without any pressure."
What he means is very simple. This money does not go into the real estate market, nor does it go into the stock market, nor does it flow into the field of people's livelihood, causing a surge in the cost of living for all people. Instead, it flows into the field of space engineering for incremental accumulation. Looking up at the stars and profoundly expanding the boundaries of the universe is also the stars.
The group’s largest long-term strategic plan.
Qiu Guangcheng added: "Raising interest rates is not without its drawbacks. Although it will help stabilize the economy in the short term, excessively high interest rates will also cause the financing costs of enterprises and individuals to rise, affect the normal growth of the economy, and cause huge temperature differences, leading to
At the same time, there is inflation on one side and deflation on the other.”
Cao Chenghui said succinctly and concisely at this time: "Then we can't just go to space. After all, we are already pioneer explorers on this path. No one is further ahead than us. There is no historical experience to learn from. We will definitely be able to learn from it in the future."
There are inevitable mistakes and detours, which are all potential tuition fees, and the costs have to be considered."
As soon as he finished speaking, everyone in the meeting fell silent and became frowning. This was indeed quite troublesome. It was difficult to find a way to get the best of both worlds, which also illustrated the complexity of the problem.
So everyone looked at the real big boss Fang Hong, who didn't say much at the moment.
At the end, Fang Hong pondered for a while and then said with a smile: "It is true that it is troublesome to have too much money and not know what to do with it, but it is much better than having no money and troublesome. There is no need to go to extremes and find a compromise.
A relative balance point."
Speaking of this, Fang Hong paused and thought for a moment before adding methodically: "These more than 3 trillion U.S. dollars are equivalent to more than 21 trillion yuan. Let's divide one into three, and one third will be separated."
We use cash reserves on the mainland, one-third of which is spent on buying resources around the world, and one-third of which is returned to the mainland.”
When everyone was hesitating about how to deal with this huge amount of wealth, Fang Hong made a decisive decision and determined the general direction. He set the general direction and left the specific matters to the people below him to handle it.
