On the 11th, the fifteenth day of the New Year.

The Henan delegation participating in the plenary congress will be the first to arrive in Beijing. In the next 24 hours, representatives from provinces, municipalities, autonomous regions and special administrative regions across the country will arrive in Beijing one after another.

On this day, something big happened across the ocean.

At 8:30 a.m. ET on the 11th, Citibank Executive President Michael Gus announced that the merger negotiations with Bank of America failed, and then filed for bankruptcy protection on behalf of the board of directors in the New York District Court.

Citibank, which has a history of 205 years, is bankrupt!

The news came out that the three major New York stock indexes plummeted across the board. Daws announced a suspension of trading 15 minutes after opening, and Standard & Poor's and Nasdaq also announced a suspension of trading before 130.

Citibank's bankruptcy was not only expected by investors, but also shocked investors because they subconsciously refused to accept this fact.

During the global financial crisis in 2018, Citibank almost followed the footsteps of "Lehman Brothers" and became the first major bank to fall in the United States. Unlike before 8, the global financial crisis that broke out in 2016 not only came more rapidly, but also had a greater impact, and the "time" to come was very bad.

At that time, Bush Jr. had not yet stepped down, and the international situation was relatively eased, and countries were able to introduce market rescue policies in a timely manner.

After the "Lehman Brothers" went bankrupt, the US government immediately introduced the "7,500 yuan rescue plan" to save major American investment banks on the verge of bankruptcy. Citibank received more than 100 million yuan in rescue funds, resurrected the dead and luckily survived the financial crisis.

Before the end of the financial crisis, Japeer gave a big gift to major American banks by "eliminating toxic assets".

By 2012, when the United States survived the financial crisis, Citibank made adjustments to its business and separated most of its venture capital. The asset structure had undergone great changes. With the help of the US government, Citibank underwent a major "revolutionary" operation.

The good times didn't last long. Citibank, which had just recovered, went downhill again with the US economy.

In early 20133, the first new concept car using composite batteries and superconducting motors was born in China. Chinese auto manufacturers are expected to launch practical electric cars to the market from the end of 2013 to the beginning of 2011. It is expected to produce and sell 1.5 million units by 2015.

Subsequently, the Chinese government decided to build a network of electric vehicle charging stations covering the whole country and promote and popularize electric vehicles.

In this year, China's automobile production reached 25.5 million vehicles, sales reached 24.3 million vehicles, and total sales of 557c yuan. All three data exceeded the United States' 17.4 million vehicles, 18.5 million vehicles and 5,260 yuan. It has become the number one automobile production and consumer country.

Faced with China's challenges, the US government was in a dilemma.

After the global financial crisis ended, China took the lead in implementing a relatively tight monetary policy, reclaiming excessive money from the market to prevent asset bubbles. European countries also changed their policies one after another, from stimulating the economy to stabilizing the economy. At that time, the only major economies were still continuing to stimulate the economy.

Japan is "explained". After all, Japan is an outward-oriented economy, and the moderate depreciation of the yen is beneficial to exports.

The United States does not tighten monetary policy, but continues to expand its currency issuance, which seems a bit "unforgivable".

However, continuing to issue more currencies is also a very helpless choice for the United States.

With the domestic employment environment not significantly improved and domestic consumption is relatively weak, the United States must rely on exports to stimulate economic recovery. Increasing the issuance of currency and moderate depreciation of the US dollar will be of great help to stimulate exports. This is especially true for the US automobile industry. If you want to compete with all electric vehicles in the international market, you can only lower the sales price. In order to ensure profits on the books and make investors still confident in the United States, you can only reduce the export price of American automobiles through the depreciation of the US dollar.

In addition to stimulating exports, the United States also needs to invest more money in scientific research projects.

In order for domestic consumers to purchase "domestic products", the US government must introduce a "consumption subsidy" policy.

It can be said that every policy requires huge investment. Under this circumstance, the United States can only continue to implement loose monetary policies and invest more currency into the market.

It was at this time that the root cause of the collapse of Citibank was planted.

Stimulated by government policies, Citibank provided huge loans to the three major American auto companies. According to data released by Citibank, by the end of 20166, loans provided to Ford Motor Company were RMB 318, General Motors Company was US$27.7 billion, and Chrysler Automobile Company was US$1.9 billion.

There is no doubt that this is a "big bet".

In 20166, Ford Motor Company's total sales were only 544 yuan, gross profit was 24 yuan, and net profit was less than 13 yuan, General Motors Company was 521.1 billion, 2.7 billion and 1 US dollar, respectively, and Chrysler Auto Company was 388.21.1 billion and 8 yuan, respectively.

It can be seen that the three major American automobile companies are simply unable to repay the huge amount of debts.

The root cause of Citibank's "strategic mistakes" was the policy of the US government. In 2 years, the US government provided US$2.7 billion, 24 and 1.8 billion in "special project research funding funds" to Ford, GM and Chrysler respectively, encouraging the three automobile companies to develop new batteries and electric vehicles. Subsequently, major American news media widely reported the news, claiming that the United States can overcome scientific research difficulties before 2015 and produce advanced batteries no less than "composite batteries".

At that time, not only Citibank provided huge loans to the three major automobile companies, but other American banks were no exception.

The difference is, Morgan

Bank of America is much more cautious in its policies and provides much less loans to automakers.

I have to say more about what happened later.

The United States has not been able to develop a second-level composite battery so far. The three major automobile companies, Chinatown Chrysler, have gone bankrupt and reorganized at the end of 2015. Ford has suffered losses for three consecutive years, and GM can only rely on the high-end market to barely maintain it.

Without the financial crisis that broke out in 20166, Citibank would not have ended in a bleak situation so soon.

It was completely different from the C8th year. At that time, Bush could have introduced some measures to rescue the market to help the miserable American financial companies overcome difficulties and lay a better foundation for the next president. When the financial crisis broke out in 2016, Roddick faced the threat of impeachment due to the "house arrest" scandal. The Republicans controlled the House of Representatives, and the Democrats controlled the Senate. Serious differences between the two houses weakened the government's ability to rescue the market. When Frederick came to power, Citibank was already insolvent and just applied for bankruptcy protection from the court.

At that time, Frederick also tried to save Citibank.

With the assistance of the federal government, Citibank and Bank of America negotiated a merger. Although Bank of America's situation is not much better, Frederick privately guaranteed that as long as the two banks merge, the federal government will provide them with the Federal Reserve Bank to provide them with huge bailout funds, and follow the 2009 method to divest the "toxic assets" of the two banks.

However, the negotiations eventually broke down due to differences between the two banks.

Citibank requires a 55% stake in the merger "US-Citibank", while Bank of America requires a 50% stake in the gap of 50%, which eventually breaks the merger negotiations.

The merger failed and Citibank could only apply for bankruptcy protection from the court.

On the afternoon of the 11th, the U.S. Federal Government's Treasury Secretary announced that the federal government will provide Citibank depositors with a $25 trillion withdrawal security right in accordance with the early agreement signed with Citibank.

The effect of this news is not obvious.

When it went bankrupt, Citibank had a total of 128 trillion US dollars in savings deposits and investment products, of which 9 trillion RMB were higher. The federal government only provided half of the savings deposit guarantee, which means that the other half of the savings deposits and all investment products were not guaranteed.

Subsequently, Federal Reserve President Bourne announced that the Federal Reserve provides withdrawal guarantees for all Citibank customers.

It was not until this news was released that panic was effectively controlled.

When Citibank declared bankruptcy, its total assets were only US dollars, of which fixed assets accounted for yuan, and the stock market value was less than 500 yuan; while Citibank's debt reached 6,783 yuan, and even if all fixed assets were sold, the loss exceeded 2,000 yuan.

The Federal Reserve Bank provides guarantees for Citibank customers, which means a loss of at least 2,000 yuan.

This is not a general loss. In order to stabilize the market, the Federal Reserve needs to inject at least gold into the market. In addition to the losses caused by the stock price plummeting, the Federal Reserve must inject 7,000 yuan into the market to calm the bankruptcy of Citibank.

Citibank is just the first major US bank to fall, with JPMorgan and Bank of America behind it.

In the afternoon of the same day, the three major New York stock indexes hit the daily limit again, and announced a suspension before 130.

The collapse of Citibank not only caused a magnitude 12 earthquake in the US financial market, but also quickly affected the financial markets of major economies in the world, such as Europe and the Republic.

The next day, the stock market indexes in multiple financial markets such as Australia, Seoul, Shanghai, Hong Kong, Singapore, Mumbai, Frankfurt, Paris, and London fell across the board. Shanghai, which had the least decline, reached 57%, and London, the largest place, exceeded 17%.

Citibank's declaration of bankruptcy not only declares that the US financial crisis has entered a "***" but also a sign of the spread of the financial crisis to the world.

From the end of the Sino-Japanese East China Sea War to the collapse of Citibank, less than half a year, the prediction of the global financial crisis became a reality.

Although countries around the world have introduced rescue policies and relief measures as soon as possible, everyone believes that this financial crisis will completely change the world.

According to some "pessimistic" experts, the 20177 financial crisis marked by the bankruptcy of Citibank is a continuation of the financial crisis marked by the bankruptcy of Lehman Brothers. Because major economies such as the United States and Japan did not take correct measures after the end of the financial crisis in 2008, laying the root of the disaster for the next financial crisis, the 20177 financial crisis was not an accident, but an inevitable event.

In the eyes of these experts, the global financial crisis is just the beginning, far from the end.

Influenced by pessimism, investors around the world saw the future extremely bleak overnight.

If the West does not light up, the East will brighten, and the Republic becomes the only highlight in the dark world.

damn it**

Continue to ask for monthly tickets.

Many brothers reported that the fourth volume is very "formatted", and Shinshu also acknowledged this because the fourth volume is the most important turning point in the book, which can be said to be the beginning of a new era in the book. The global financial crisis and the global economic crisis are important backgrounds for the subsequent plot. This volume also involves the transfer of regimes in the Republic. While the absolute protagonist of Ji Yuguo faded out in the first three volumes, it is necessary to shape a new national leader. Therefore, Shinshu used multiple chapters to introduce the background in the fourth volume to lay the foundation for the future. Perhaps this caused inconvenience and even disgust for many brothers who like this book. Shinshu expressed his apology. After all, this is a strategic article. Without the overall strategic background, it is difficult to write the flavor later.

(To be continued,)

First release
Chapter completed!