And the year of the year, the old month of the world... An extraordinary meeting of summits of many countries opened in Kuala Lumpur, the capital of Ma Cen Siya.

What makes this conference unique is that its dominant role is not the republic that occupies a core position in the entire alliance system, but the dozens of small countries around the republic. In fact, this conference was also initiated by ASEAN countries such as Malaysia, Vietnam, Thailand, Shuqiangzhai, Laos, Myanmar, as well as many countries such as North Korea, Bangladesh, Sri Lanka, Nepal, Pakistan and Sudan that have signed bilateral or multilateral trade agreements with the republic, and jointly put pressure on the republic.

There is only one issue discussed at this conference. That is, what does the Republic use for RMB to do

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There is no doubt that this is definitely not a minor problem.

As early as a coincidence, some people estimated that because the Republic fought several major battles within about the year and issued a large number of national debts and war debts. And around the year of the blade, the Republic changed from a net trade surplus to a net trade deficit. Therefore, the various forms held by other countries, including RMB, Republic's national debt, corporate debt, etc., are as high as 10 billion yuan in RMB assets, and some even think that it has exceeded 10 billion yuan in merit. Although the Republic owed how much debts it was, I am afraid that even the Minister of Commerce and Finance of the Republic are not clear. After all, not all debts are related to the government, and many companies in the Republic also owe debts abroad, but no one can deny it. The Republic has long become a debtor country.

During the Litun year, the Republic's authorities mentioned in the Government Work Report that after years of hard work, the Republic's international debt level had dropped to a reasonable range. According to the average standards of the international community, the international debt of a country is within the irrigation of GDP or the old government's fiscal revenue, which is considered reasonable. From this, it can be seen that the Republic's international debt should be between one trillion yuan and one trillion yuan. The former is based on the government's fiscal revenue, and the latter is based on the GDP. You should know that this is the result after a continuous year of hard work. In other words, in the year of the Concave Blade, the Republic's international debt is likely to be more than one trillion yuan. Because in the year of Likou and year of the Republic, the Republic's fiscal expenditure once again showed a serious deficit, so when it was ten thousand years of hard work, the Republic's total international debt was likely to return to more than one trillion yuan.

All in all, the Republic does owed enough debts.

Of course, this is not a big deal.

At the beginning of the century, the debts owed by the United States exceeded the social wealth of the United States. To put it as a joke at that time, creditors from all over the world could buy the entire United States! From the perspective of finance, countries that occupy a leading position in the international trade system, especially those with financial dominance, all have serious imbalances in income and expenditure, that is, they owe huge external debts. Fundamentally, these debts are impossible to repay. Take the Republic as an example. By the time of the year, foreign debts are likely to be as high as 10,000 trillion yuan. The Republic's GDP was less than 10,000 trillion yuan. According to the end of the government's revenue accounting for the GDP and the annual surplus, the government can only have about 10,000 billion yuan in surplus per year, and this amount of money is only enough to repay interest.

In fact, no country will repay foreign debts. According to the means of the United States, the best way to deal with foreign debts is to issue more foreign debts. For example, those countries holding US Treasury bonds definitely do not want the US government to collapse. After all, the United States is over, and the huge debts in their hands become white strips. These countries do not even want problems in the US economy, because as long as there is a problem with the economy, the US authorities will start the printing machine to make the US dollar depreciate quickly, thus making the US Treasury bonds worthless in other countries. In this way, when there is a problem with the US economy, these countries will first help the United States, and spare no effort to help the United States, because only by helping the United States get out of difficulties can we ensure that the debts in our hands will not be effective and the economic development of our own country will return to normal.

Obviously, this rule is also particularly important for the Republic.

In a sense, countries like Pakistan and Malaysia can continue to purchase government bonds issued by the Republic for decades, which is to help the Republic overcome difficulties. Only when the Republic gets better can they gain benefits.

According to data released by various countries, by the end of the year, the top five creditor countries of the Republic, namely Pakistan, Malaysia, India, Iran and Argentina, held the Republic's national debts, respectively, "flying Yi Yuan", "flying Yi Yuan", "flying Yi Yuan", "flying Yi Yuan", "fighting Yi Yuan", "fighting Tian Yuan" and "false Yi Yuan". If the foreign exchange held, the Republic's corporate bonds are included, this country alone has assets of one trillion yuan. You should know that the total GDP of this country in the year is only less than one trillion yuan. It can be imagined that this

The state certainly does not want the Republic to be over, nor does it want the RMB assets to depreciate quickly. Although the leaders of these countries know that the RMB will definitely be organized. They purchase RMB assets not for the purpose of preserving the value, but for paying seigniorage tax, that is, returning part of the money earned from the Republic to the Republic in order to make more money from the Republic in the future. However, when it comes to the depreciation of the RMB, especially the sharp depreciation in the short term, the leaders of these countries will never be ambiguity. In any case, overnight because

With policies that have nothing to do with them, the assets of the year have been sluggished by one trillion yuan, and the Xianhe government cannot explain to the people. What's more serious is that governments in various countries have to submit work reports to the Congress during the New Year, so they have to publish foreign exchange investment returns to the public. Huge losses have become a foregone conclusion, and the key is whether there is a way to explain to voters.

In other words, the heads of state went to Kuala Lumpur just to hope that the "leader" would give a reasonable explanation.

In fact, this is also the main task of Yan Jingyu personally attending the Kuala Lumpur Summit.

Because the countries participating in the Kuala Lumpur Summit not only have close trade and economic relations with the Republic, but also allied countries of the Republic, Yan Jingyu did not make any promises. At the first plenary meeting, he stated that the Republic is facing unprecedented challenges and economic development has been seriously affected. The Republic's authorities cannot make any guarantees for the RMB. They hope to work together with all friendly countries and overcome difficulties together. The leaders of other countries are also prepared, so when Yan Jingyu mentioned the economic problems of the Republic, they all expressed support, but they hoped that the Republic's authorities could start from a higher perspective and take more into account the allies, especially the weak allies.

beneficial.

Yan Jingyu did not refuse the request from the allies.

In any case, after turning against the United States, the Republic cannot lose any ally. It can even be said that if you want to defeat the United States, the Republic must win the most allies.

After entering the substantive discussion stage, the problem becomes much more complicated.

At that time, the heads of state were most concerned about how quickly the RMB would depreciate and whether the RMB assets they held could be guaranteed.

In fact, Yan Jingyu could not answer this question at all.

You should know that before the war breaks out, the RMB will definitely continue to depreciate, and it is related to the arms race. That is to say, the more intense the arms race. The more funds the Republic needs to invest, the larger the gap in fiscal expenditure and the greater the organization of the RMB. Only in this way can the burden be transferred to other countries. Because it is impossible to predict how far the arms race will develop. Therefore, Yan Jingyu cannot make accurate predictions on the organization of the RMB, and it is even more impossible to make promises to dozens of allies without any confidence.

By this time, Malaysia and several ASEAN countries have taken the lead in proposing that the existing international financial order should be adjusted to deal with the upcoming crisis.

Although the Malaysian Prime Minister did not explain it directly, everyone knows that ASEAN means to link the RMB to the precious metals retained by the Republic and return to the gold standard era.

Obviously, this is definitely a very effective move.

According to the data released by the Republic's authorities in July 2019, by the end of June 2019, the Republic's gold reserves exceeded the old stew, expanding its leading advantage over the United States to Bang, that is, the United States' gold reserves were only about rotten stew, and it was still the world's largest gold reserve country. If precious metals such as silver were included, they were calculated based on the average currency value of the field year. The Republic's precious metal reserves were equivalent to 7 trillion yuan. Although hard currency reserves were nothing compared to the huge foreign debt, for any country, if the RMB could be directly linked to hard currency and was guaranteed by the Republic's authorities, the value of the RMB would not be suspected.

Of course, this is an unacceptable proposal for the Republic authorities.

You should know that if the RMB is directly linked to hard currency, the Republican authorities will not be able to manipulate the exchange rate, issue more currencies, and will not be able to use financial rights to make profits.

In fact, even if we return to the gold standard era, the interests of those countries holding huge RMB assets are not guaranteed.

For leaders of ASEAN countries, all they need is the reason to explain to the public, or the reason to allow Congress to approve continued to increase holdings of the RMB. From this perspective, if the RMB can be linked to hard currency, even if it is almost meaningless to do so, it can convince voters that the government has not betrayed the national interests.

The problem is that even so, the Republican authorities cannot make any commitments.

In fact, most countries do not support ASEAN's requirements.

The reason is very simple. If the RMB is equivalent to precious metals, it will lose its flexibility and is easily impacted by foreign capital, resulting in sharp fluctuations in exchange rates, thereby damaging the interests of RMB asset holders.

That's why Yan Jingyu did not make any concessions at the Kuala Lumpur Summit.

Because of the internal unification, Laos, Myanmar and Shupudia soon turned against each other, believing that they should not put pressure on the Republic at such a critical moment, and they should not use their holdings of the Republic's national debt to threaten the Republic's government. Therefore, the summit did not finally reach any substantial agreement.

Before the summit ends, Yan Jingyu only guarantees that the Republic will protect the interests of allies with practical actions.

Of course, not only the allies of the Republic but also the allies of the United States have the same interests.

Relatively speaking, the US federal government has much smaller financial power, and the US federal government bears much higher social welfare responsibilities than the central government of the Republic, so the US authorities have a worse ability to cut deficit spending.

As early as the year of the gun, Canada and Mexico jointly forced the palace to demand that the United States guarantee the dollar value.

At that time, the United States had just experienced the Middle East War and had to help Turkey carry out post-war reconstruction. It invested huge amounts of money in all aspects and had to lift Akazai high to drive, which led to the US dollar depreciation sharply within the year. Especially in the late month to mid-month of the Likou year, the depreciation of the US dollar reached the highest level, creating a record after the US dollar and gold were broken off.

Obviously, Canada and Mexico are the most severely injured.

Although neither Canada nor Mexico is the largest creditor of the United States. The largest creditor of the United States is Australia, Canada and Mexico are the countries that rely the most on the US market. The depreciation of the US dollar is actually equal to the appreciation of the Canadian dollar and the peso, which has a serious impact on the exports between Canada and Mexico. You must know that the United States is not only Mexico and Canada's largest trading partner, but also the largest exporter of the two countries. According to the data released by the Mexican authorities in the past year, affected by the rapid depreciation of the US dollar, at least

With 40,000 Mexico's career, Mexico's economic growth rate has dropped by a percentage point. Although Canada is a developed industrial country and its dependence on foreign countries is not as good as Mexico, Canada has a closer economic relationship with the United States, so it is affected even more than Mexico. In the words of the Canadian Prime Minister when he visited Washington at the end of the year, if the United States cannot take the interests of allies, Canada is likely to become the second Argentina, that is, from a developed country to a developing country.

Shortly after the Kuala Lumpur summit, the Canadian Prime Minister and the Mexican President went to Washington.

During the meeting with the US president, the two proposed two solutions. One was to promote trade exchanges by unifying currencies and eliminate trade frictions caused by exchange rates in the EU. Canada and Mexico were willing to accept the US dollar. The other was to apply the plan proposed by ASEAN countries at the Kuala Lumpur Summit, the US dollar was directly linked to hard currency to avoid rapid fluctuations in the short term.

Obviously, neither solution could be adopted by the White House.

Needless to say, the precious metals in the United States are less than one percent of their foreign debt. It is impossible to support the US dollar. In other words, if the US dollar is linked to precious metals, the United States is likely to be divided up by "credential countries" overnight.

The former is not much better, because it requires passing the Congress.

More importantly, after unifying the currency, it is to unify the economy, and then it is to unify politics. Because after eliminating the Latin countries in Central America, there are only three major countries in North America, Canada, the United States and Mexico, so it is not difficult for Canada and Mexico to incorporate into the United States. In this way, in a few decades, the United States will have the first and second states. Although expanding the land area will be of great help to enhance national strength, it also means that Americans who are used to living a wealthy life must share social interests with hundreds of millions of poor people from other countries, mainly referring to Mexico.

Obviously, most Americans do not believe that they should make progress with the Mexicans.

In other words, such a proposal will definitely not be held up in Congress.

Like Yan Jingyu's actions in Kuala Lumpur, in the face of a somewhat angry Canadian and Mexican leader, the only promise the US president could make was to try to consider the interests of allies. Because other allies, especially Australia, had not made similar requests at that time, the US president did not even dare to make more promises to the Canadian and Mexican leaders, so as not to allow Australia to gain capital to bargain with the United States.

Of course, the US president's assurances make no sense.

According to Al Jazeera's reports at the time, the US president's commitment was actually putting pressure on Canada and Mexico to take a good position in these two most important allies and not think that there is a chance to force the United States to make concessions on major issues because of changes in the international situation.

Obviously. This is not pressure, but threat.

Of course, the US news media have not forgotten to comment on the Kuala Lumpur Summit, and they all believe that the promises of the head of republic in Kuala Lumpur are not only meaningless, but also have a deceptive nature. That is, they hope to ensure the global interests of the republic by maintaining the situation.

Judging from the situation at that time, it is impossible for Canada and Mexico, Malaysia and Pakistan to force the United States and the Republic to make concessions on the currency exchange rate issues related to trade. The reason is simple. These second-rate countries do not have much authority, and even if the United States and the Republic do not make concessions, they will not do anything reckless. As the US Secretary of State said in an interview. Ensuring the interests of the United States is to ensure the interests of the West Trophy Group with the United States as the core. If there is a problem with the US economy, all countries close to the United States will not be spared; Canada and Mexico are not only neighbors of the United States, but also important partners of the United States, and have an obligation to help the United States get out of the predicament.

The problem is that the impact of the rapid compilation of the RMB and the US dollar is definitely not just second-rate

Home.

In the middle of the year, when the Western world was preparing for Christmas, the German Chancellor came forward as the rotating president of the EU, hoping that the United States and the Republic could take positive actions to maintain the currency exchange rate, thereby maintaining the benefits that trade brings to the international community.

In other words, the EU can no longer stand the sharp depreciation of the RMB and the US dollar.
Chapter completed!