Chapter 2 Economic Foundation

In this speech, Li Mingyang first mentioned the actual purchasing power of currencies between China and the United States, that is, the value of the currency.

Of course, this must mention the basis of the RMB and the US dollar, that is, the strategic reserves of gold between China and the United States.

Although after World War II, the US dollar replaced the pound and gained the dominant position of global finance through the Bretton Woods system, and New York replaced London and became a global financial center. However, after the collapse of the Bretton Woods system, that is, the US dollar was no longer indirectly pegged to gold, the value of the US dollar fell again and again, becoming a tool for Western groups, especially Western consortiums to exploit the world. After 2015, as the United States changed from strategic expansion to strategic defense and strategic contraction in the global scope, the dominant position of the US dollar in the global financial system was the most severe challenge and gained the dominant position after 2035.

Of course, the US dollar's retreat is not just a financial problem.

Fundamentally speaking, regional economies replace the global economic and trade system is the main reason for the US dollar's retreat. To put it simply, in exclusive regional economies, the currency of the dominant country has extensive liquidity, while the regional economies dominated by the United States are limited to the Americas. Among other regional economies, each dominant country is pushing its own currency and enhancing its control within the economy.

By this time, the RMB has become one of the global currencies on par with the US dollar.

By 2050, the number of countries that used the RMB as the main reserve currency and the main trade settlement currency had reached 67, while the US dollar was only fifty-six, the euro was thirty-five, and the ruble was thirteen. If the GDP of the dominant region was based on the GDP and the influence of the RMB was 100, then the US dollar was 92 cents, the euro was 64 cents, and the ruble was 28 cents.

In fact, by this time the status of large regional economies has been fully established.

The problem is that the evolution of the global economic pattern is still underway, and dozens of countries have not joined any regional economy. Among the already formed regional economies, many countries are still in a state of sway, and may change their camps at any time.

Against this background, no matter how powerful China, the United States, Europe and Russia are, they have to make concessions in finance.

The biggest concession is to make the country's currency peg with gold again, or use gold as a guarantee to win over more countries.

It is China who plays this card first.

This also makes it understandable that the RMB is a challenger. If you want to replace the US dollar in international trade, you must have better preservation ability than the US dollar, and you must use gold as a guarantee. You must know that any legal currency cannot be comparable to gold in preservation function. In the era of great changes in the world pattern, any country will try its best to protect its own interests when formulating trade and economic policies. In this way, only by linking the RMB to gold or using gold as a guarantee can it replace the US dollar and gain recognition from more countries.

Of course, this policy is also to combat Western groups based on consortiums.

You should know that after the collapse of the Bretton Woods system, the main means of plunder and exploitation of Western consortiums is to depreciate unlimitedly by major currencies such as the US dollar. In order to increase the recognition of the US dollar and to improve the US dollar's position in the financial field, it is necessary to vigorously suppress gold. To put it indirectly, only if the depreciation of gold can highlight the importance of the US dollar and cover up the impact of the depreciation of the US dollar.

The result is that before the RMB threatens the US dollar, the value of gold is constantly being severely underestimated.

Another result that arises is that after the RMB challenged the US dollar, the market value of gold has increased dozens of times in several years.

After the value of gold was correctly understood, the financial policies of major countries had to be tilted towards gold.

To put it indirectly, now measuring a country's financial strength is no longer a legal currency, but how much gold is reserved by the country.

By the end of 2051, China's gold reserves had reached more than 18,000 tons, of which more than 12,000 tons were used as value-preserving products for RMB foreign trade, that is, any country holding RMB can exchange gold with the People's Bank of China at a certain exchange rate.

However, in 2027, China introduced a law that prohibited gold exports.

In this regard, China's approach is the same as the United States, that is, the gold exchanged by other countries must be reserved in China and can only be used for trade settlement.

By the end of 2051, the United States' gold reserves were more than 16,000 tons, of which more than 13,000 tons were guaranteed by the US dollar.

The problem is that by this time, gold cannot meet the demand for international trade guarantees, that is, the gold reserved by China and the United States is far lower than the RMB and the US dollar circulating in the international market. By the end of 2051, the retention rate of RMB in the trade field was only 8.6%, and the US dollar was 6.2%. That is to say, the gold reserved by China is only 8.6% equivalent to the RMB exported, while the gold reserved by the United States is only 6.2% equivalent to the US dollar exported. If there is a run, both China and the United States will go bankrupt.

Affected by this, in addition to gold, China and the United States have also increased their reserves of silver.

By the end of 2051, China's silver reserves had reached 1.778 billion tons, while the United States had reached 2.14 billion tons. Although neither China nor the United States recognized the status of silver in international trade, that is, it did not use silver as a guarantee, silver reserves still played a key role in increasing the currency value.

Fundamentally speaking, both China and the United States regard regional economies as the main means in the financial field.

To put it simply, it is to limit the scope of currency circulation, avoid currency speculation, and strengthen control over currency.

In fact, this is also the main feature of regional economies.

It is precisely because regional economies have become the economic pillars of the rank-level powers and the basis for the arms race of the rank-level powers.

To put it simply, without regional economies, the arms race between China and the United States cannot be so fierce.

In this way, regional economies indirectly determine the strength of major powers.

Relatively speaking, regional economies with China are better than regional economies with the United States in terms of overall scale, development potential, and development.

In terms of overall scale, the GDP of Asian economies with China was 368 trillion yuan in 2051, of which manufacturing accounted for 23%, trade accounted for 68%, and active index was 134%. In the same year, the GDP of American economies with the United States was 82 trillion US dollars, about 330 trillion RMB, of which manufacturing accounted for 21%, trade accounted for 54%, and active index was 122%.

In terms of development potential, the total population of Asian economies is 2.8 billion (including India), and the per capita national output value is 131,400 yuan. The total population of American economies is 186 billion, and the per capita national output value is 440,000 US dollars, about 177,400 yuan. In terms of purchasing power, it is only equivalent to 14 trillion yuan, which is only 6.4% higher than that of Asian economies. When measuring the development potential, there is another extremely important standard, namely the population structure of the economy. In this regard, the advantages of Asian economies are extremely obvious. In terms of average population age, Asian economies are only 37 years old, while American economies are 42 years old. In terms of birth rate, Asian economies

The body is 4% and the American economies are 2.5%. This means that if the fertility rate of American economies does not increase significantly, or the fertility rate of Asian economies does not decrease significantly, the ratio of available labor in Asian economies will reach more than twice that of American economies in the next ten to fifteen years. From the perspective of potential development, this means that in the next ten to fifteen years, the number of available labor in Asian economies will reach about three times that of American economies. In fact, in 2051, the available labor force in Asian economies will be 1.8 times that of American economies, and the ratio of available labor is much higher than that of American economies, which means that more people will deal with labor.

Of course, this also shows that Asian economies have more potential to tap in improving labor efficiency.

In peacetime, this means that Asian economies are becoming more and more backward, and indirectly, the living conditions of people in Asian economies are not as good as those in the American economies. However, in wartime, this means that Asian economies only need to improve labor efficiency to significantly improve the potential for war.

Of course, the dominance of improving the productivity of Asian economies is in China's hands.

To put it simply, as long as China relaxes its supervision of cutting-edge technologies, it can quickly promote the rapid growth of other countries in its economy. To give a very simple example, as long as China no longer prohibits the export of controlled fusion nuclear technology, it can increase the production efficiency of other countries by several percentage points.

This latter advantage also determines that Asian economies are expanding faster than American economies.

Judging from the situation at that time, China's policy of restricting cutting-edge technology was largely caused by financial shortcomings. To put it simply, the gold and silver in China's reserves could not keep up with the demand for trade expansion, and blindly expanding the scale of the economy would pose huge risks. For example, when a country in the economy is strong enough to exchange all the gold reserves in China overnight, China may suffer financial attacks. For the Chinese government, it will definitely prevent such things. When the amount of gold reserves has not increased substantially, what the Chinese government can do is to control the expansion of the economy, and the only way is to restrict the expansion of other countries through technical controls, so that the economic growth is comparable to the growth of the gold reserves.

Of course, this is just a policy in peacetime.

During the war period, the Chinese government will definitely relax regulations, make full use of the labor force of the economy, and push the potential of war to its limits.

Chapter 2 Economic Foundation

Chapter 2 Economic Foundation
Chapter completed!