Chapter 202 Currency and Value (First Update! Please Subscribe! Please Ask for a Monthly Pass!)
It is now December, the end of the year.
For Xiangjiang, 1978 was a very ordinary year, but for the mainland, it was an earth-shaking year.
This year, too many things have happened in the mainland that can affect the overall situation. In the final analysis, there are actually many connections with Xiangjiang.
For example, the connection between Xiangjiang and the mainland is getting closer at a rapid speed.
The launch of shipping between Guangdong and Xiangjiang in November is just the beginning.
From next year, Xiangjiang will realize what it means to lean against a big tree to enjoy the shade.
Tens of billions and hundreds of billions of materials are continuously imported into the mainland through Xiangjiang, an international trade port.
Relying on this, Xiangjiang will make a lot of money. Until the Asian financial crisis in 1997, they enjoyed extremely powerful dividends.
Basically, the urban construction, environmental construction and welfare construction of Xiangjiang were also established and perfected during this period.
Therefore, we all see that Xiangjiang is doing well in all aspects in the future, and that is all due to their business with the mainland.
As for what some Xiangjiang people boasted at that time, their success was based on the position of an international financial center... Soros and the others could only laugh when they heard it.
In addition to the transfer of various materials into the mainland through Xiangjiang, Xiangjiang's own industry has also quickly entered the inland market with huge demand, and has made a lot of money in the past ten years.
And the real estate businessmen in Xiangjiang are even more lucky. They just caught up with the comprehensive commercial housing construction in Huaguo. Until 2020, they can be found everywhere in Huaguo, and they have earned countless money.
Xiangjiang belongs to the country of Hua, but due to historical reasons, the currency of Xiangjiang is different from that of the mainland.
But many people don't know that until 1935, Xiangjiang's currency system and exchange rate system were linked to the domestic silver standard system in Huaguo.
It's just that the United States began to purchase a large amount of silver in 1935, which made the silver standard fall into a collapsible situation, and then the Hong Kong currency was switched to a more stable pound.
But in the early 1970s, as the Americans played the rogue to the extreme, the Bretton Woods monetary system collapsed, and the Hong Kong dollar was forced to implement a floating exchange rate system, and even today's independent floating exchange rate system, and then in 1983 , The Hong Kong dollar has established a fixed exchange rate of 7.8:1 with the US dollar, and it has been used since then until 2020 when Yin Jun came back.
Currency itself is actually worthless.
In the words of some people who like to pretend, money is his mother's paper.
This statement is correct to a certain extent.
Currency, or money, is valuable because it represents a country's credit behind it.
Take the British pound, which has been in the world for more than 100 years, for example. When Great Britain was an empire on which the sun never sets, the pound represented gold and was used all over the world.
But the British are also stupid, or at that time they did not encounter a good environment and a good time, they did not use the money printing machine to print money crazily like Uncle Sam in the future, so as to plunder countries through a piece of paper resources and wealth.
After World War II, when the United States established the Bretton Woods monetary system, the U.S. dollar has actually begun to dominate. ——Gold is directly linked to the U.S. dollar, which means that the whole world recognizes that U.S. dollars are equivalent to gold.
In fact, there is no way for everyone not to admit it. Most of the gold has been cheated into the New York vault!
Here is also an explanation of what is called the Bretton Woods monetary system.
To put it simply, the Secretary of the Treasury of the United States deceived the heads of Western countries into Bretton Woods in New Hampshire, USA, saying that everyone has worked hard on weekdays, and I ask everyone to relax and be happy.
Then in the middle of the banquet, tell them, "Now, there are wars everywhere, you see, it is not safe for you to put gold at home, we built a super strong vault in New York, how about you put gold here ?We do not charge a penny management fee.
What's more, we are going to create a currency system linked to the US dollar and gold, and 35 US dollars can be exchanged for an ounce of gold. This promise is always valid, and you can exchange it at any time. How great is this, you don’t need to carry gold when you go out to trade, and you can directly take US dollars, which is convenient and safe, right? "
Then the foolish people believed it, and felt that the American brother was so caring.
And then, when the economy was in shock, the United States caused troubles everywhere, and the credit of the US dollar was greatly reduced. All countries sold the US dollar one after another, and went to exchange for gold in accordance with the agreement of the Bretton Woods monetary system. use.
The United States took a look, yo, what do you mean, dare not use our dollars?
Well, I just don't admit it! You bring US dollars, I will not exchange gold with you!
If the United States refuses to accept its account, the whole world will be stupid.
But they have nothing to do with this number one hooligan. You can't beat them. You can only suffer this big loss and be cheated of so much gold by the United States for nothing.
Of course, even if the United States is so shameless, compared with other currencies, the dollar is still relatively secure.
In addition, at that time, the U.S. economy continued to take off, and U.S. products and U.S. companies appeared all over the world. Therefore, under such circumstances, the U.S. dollar gradually became the world’s settlement currency.
What is settlement currency?
It is the currency used to estimate the value of business between countries and between companies in other countries and companies in their own country. Simply put, it is the money used to buy things.
Starting from the Bretton Woods monetary system, the world has actually established a system in which the U.S. dollar is used as the settlement currency. The currencies of other countries are not recognized by everyone, that is, they cannot believe in your preservation value.
In fact, this settlement currency, that is, the US dollar, is still equivalent to gold.
The United States relies on the advantage that the US dollar is the only settlement currency in the world. As long as there is no money or an economic crisis, it will desperately print US dollars and exchange them for things, so as to avoid losses to its own country and pass on all losses to Other countries.
This is also the most important reason why the American people can live such a good life.
This is why, when the Japanese Yen was ambitious to become the second settlement currency, it was beaten by American fathers so that even their mothers could not recognize it. The economy has not made any progress in 30 years from the 1990s to 2020. .
This is why, after Japan, when the euro also wanted to become the second settlement currency, the American brother would brazenly lay out the European debt crisis, plunge Europe into the abyss in one breath, and successfully let the United Kingdom leave the European Union.
This is also an important reason why, when Huaguo wants to try to implement the RMB settlement system in Asia, especially Southeast Asia, the United States will repeatedly target Huaguo and suppress Huaguo!
If you can also become the world's settlement currency, how can I play in the United States?
So it doesn't work, let me die!
This is what Americans really think.
Only when the interests are related, can we see their ferocious, merciless and cruel side.
Alright, let's not mention anything after this.
Let's just talk about the current Hong Kong dollar in Hong Kong and the current mainland renminbi.
Over the years, the Hong Kong dollar has adopted a free exchange rate, that is, the government does not care about the fluctuation of the exchange rate, allowing it to rise and fall freely under the influence of the market.
But generally speaking, the exchange rate of the Hong Kong dollar to the US dollar in the past two years is 4.6:1, which has not changed much.
The RMB is now 1.58:1 to the US dollar, which is also a fixed exchange rate.
However, this exchange rate is not of much reference value.
This year, the mainland has also started to reform, open up, and open up. But at this time, the country's US dollar reserves are not tens of millions, and a machine tool can cost millions or millions, and the equipment of aviation and military technology is even more It was frighteningly expensive, and this little dollar was gone in the blink of an eye.
Therefore, the country has implemented a dual-track exchange rate system, and this dual-track exchange rate system has not changed until 2020.
What is the dual-track exchange rate system?
If you are doing business with a foreign company and have generated income, the US dollar is not allowed to be used directly when you bring it back to Huaguo. Let you use it domestically.
This part of the exchange is called the internal settlement price of trade foreign exchange.
On the other hand, such as labor export, overseas Chinese remittances, donation remittances, etc., is another exchange rate, called non-trade foreign exchange rate.
The combination of these two foreign exchange conversion methods is called the dual-track exchange rate system.
The current 1.58:1. refers to the foreign exchange rate for free trade, which is basically just for people to see. In fact, this exchange rate is not used at all when the country settles with enterprises.
If foreigners come to China, they must also exchange for foreign exchange certificates. At this time, the exchange rate of 1.58:1 is implemented on the external sign. However, not many foreigners come to China now, and usually there are not many that can be exchanged.
Huaguo's dual-track exchange rate system actually seriously underestimated the exchange rate of the renminbi, and of course it was artificially maintained at a low level.
The direct consequence of this is that the actual currency exchange situation is completely different from the official exchange rate.
For example, the exchange rate between Hong Kong dollars and RMB should be 2.9:1 according to the middle price of the US dollar, that is, 2.9 Hong Kong dollars can be exchanged for 1 yuan of RMB.
But in fact, in the black markets of Guangdong, Shanghai, and Huajing, 2 Hong Kong dollars can be exchanged for 1 yuan. Even if you have a very large amount of Hong Kong dollars, this price can still be quite a lot The discount, but also give you more RMB.
Why is there such a difference in exchange rate?
It's very simple!
Because Hong Kong dollars can buy things in Hong Kong, but RMB cannot!
Those brokers who exchanged RMB for Hong Kong dollars bought gold jewelry, watches, TV sets, refrigerators, clothes, etc. in Hong Kong with Hong Kong dollars, and then bought them in the Mainland. Many prices can be doubled, tripled or even seven times. Eightfold!
If you invest 10,000 yuan, you can get a profit of 30,000 to 50,000 yuan. Even after deducting all expenses, you can still have a profit of more than 100%.
With such a large profit, how could they not like exchanging RMB for Hong Kong dollars?
Why do these people make so much money?
Because many of Xiangjiang's products cannot be sold to the mainland at all. There are many reasons for this, but it is precisely because of this restriction that these brokers and product resellers can make a fortune.
There is still no such large-scale trend of exchanging Hong Kong dollars, but as Hong Kong's economy becomes more and more developed, the demand in the mainland is getting stronger and stronger, and sooner or later, those speculators in the mainland will set their sights on On this currency exchange.
This is different from the purchase of milk powder, diapers and other products after 2008. At that time, because the quality of products in the mainland lost credibility, everyone was willing to go to Xiangjiang to buy quality products for the sake of their children.
Now, everyone is purely for the price, for the extremely lucrative profits!
Not to mention it is now, in 2020, isn’t there a lot of people who specialize in sweeping goods from Xiangjiang to sell in the mainland, and earn this exchange rate difference?
Apple mobile phones are a good example. How many scalpers in Xiangjiang have been fed in the mainland market?
So Yin Jun can imagine that around this price difference and product scarcity, many people soon began to think about this business.
In fact, many Xiangjiang people have become millionaires and multi-millionaires by reselling various products to the mainland. They are still thinking about this golden age until 40 years later.
From 1979 to 1997, mainland China had a strong demand for various popular products of Xiangjiang, which was beyond anyone's imagination. It felt that if goods from all over the world were brought here, mainlanders would be able to buy them all.
In Xiangjiang during this time period, people only worry about not having a source of goods to sell, but not about not being able to sell them.
Of course, it is impossible for Yin Jun to get involved in this kind of business.
To put it simply, these people are scammers, but to put it more complicated, they are speculators who take advantage of loopholes.
If you want to do business with the mainland, the more clean the better, the simpler the better.
Otherwise, if you want to do business with millions or tens of millions, the mainland may not care much about your behavior of taking advantage of loopholes, but if you want to do big business, such as undertaking the construction of a port in the mainland, such as building a CBD center in the mainland. Commercial areas, such as building highways in the interior, etc., in addition to strong strength, really need strong character.
In fact, this is the same everywhere in the world.
People like to do business with people who are honest, serious and trustworthy.
Therefore, Yin Jun never thought about it from the very beginning.
It's just that Yin Jun has considered the idea of using Hong Kong dollars to buy talents from the Mainland.
Those who are capable, who doesn't want to have enough food and clothing to bring better living conditions to their families?
As long as they have such an idea, it is time for the Hong Kong dollar, which has a strong purchasing power, to play a role!