Financial Storm
Large-scale social unrest in any country or region would affect the economic and financial aspects of the region and even the world.
With the current disaster in the mainland, economic and financial turmoil was inevitable, and it might even lead to another global crisis. Fortunately, the Chinese government and people still had the Global Golden Link.
Global Gold Link was the largest online financial service platform in China (and also in the world) integrated by the Chinese government. From shopping to financial management, from finance to lending, from stock market to foreign exchange market, from futures to cash, and even for security reasons, some governments put their money in Global Gold Link.
Not long after the beginning of the 21st century, after decades of rapid penetration of the Internet, the global economic integration became more and more rapid, and the efficiency of the old world economic system became lower and lower. At this time, due to the rise and expansion of the Internet finance industry in the world, China had squeezed out most of the business of traditional banks in just a decade.
In China, the interest rate of the banks was too low, causing no one to deposit money in the banks, and the banks did not have large amounts of spare money to lend out. He could only wait for the five loans and one supplement (Wuhuo: Home loans, car loans, enterprise loans, national infrastructure loans, and local government public infrastructure loans. First, the company was required to provide salary and welfare subsidies through the bank. The bank relied on this to barely make a living, and their days were getting worse.
Several internal reforms proposed by the country could not change the fundamental result. Every year, they relied on financial subsidies to make up for their expenses, and the deficit was getting more and more serious.
In the end, after all the hard work, the country finally couldn't take it anymore. Apart from the national bank that was in charge of printing money, almost all the state-owned banks were packaged into Global Golden Communication for the privatization reform. The government department could only account for 20% of Global Golden Communication's shares, and they didn't have any management decision-making power.
Of course, in addition to the 20% shares owned by the government, 46% of the shares were scattered in the hands of more than 300 million people or companies across the country. The remaining 30% shares were in the hands of governments, individuals, companies or organizations in other countries.
Of course, these were shares that did not have any decision-making power. They only had the right to dividends. In addition, about 4% of the shares belonged to the company of Global Golden Communication. At the same time, the company was also a global privatised company with full decision-making power.
Before the Big Bang, Global Gold had 60% of the world's online shopping financial services business.
It had the largest pool of liquid and fixed funds in the world.
The service population exceeded 4 billion. There were more than ten times the total amount of gold in the world available for circulation, and the annual circulation amount exceeded 10 trillion US dollars. Moreover, because money could automatically increase in value, it formed the world's largest pool of funds. The naturally stored current interest was one-half of the average annual growth rate of the global economy. It exceeded the natural economic growth rate of many countries, so many governments were willing to put some of their surplus money into increasing value.
If 10,000 yuan was left untouched for a year, the global economy would grow by 3.65%, and the interest rate would be 1.825%. 10,000 yuan became 10,182.5 yuan at the end of the year, and the daily interest was about 0.5 yuan.
This was higher than the small annual interest rate of almost all major currencies.
The fixed interest provided by the Global Golden Company was basically fixed or agreed upon by itself. The three-month interest could reach an annual rate of return of 3.5%, the half-year interest could reach an annual rate of return of 4%, and the one-year interest could reach an annual rate of return of about 5%. It was even more incomparable to the banks.
As long as the credit rating was high, any person or company, even the country, could borrow a loan. Moreover, it was convenient and fast to apply for approval, which greatly facilitated the connection between finance and economic trade. It was more efficient than any government department. Of course, it also surpassed most banks in the world.
As soon as Global Gold Access was introduced to the world, it accounted for one-tenth of the world's financial market's deposit and loan share in just three years. It had become a large global bank. It far exceeded the total business volume of hundreds of banks around the world.
If it wasn't for the fact that many countries and people didn't trust this half-public and half-private financial company platform of China and were openly and covertly boycotting it…It had probably occupied all the financial markets in the world.
In order to make it easier for people in various countries to manage their wealth and control risks, and then get rid of the malicious control between countries on the exchange rate, it implemented a virtual currency conversion with zero exchange rate in the platform (only one thousandth of the service fee was charged for the confirmation of exchange and withdrawal). Realizing the currency in one's hands, one could exchange for the currency of almost any country in the world without going out.
People from countries that were allowed to use the Global Gold Link would no longer need to exchange for foreign currency when traveling abroad. He could directly support the transaction with his phone.
In order to make the currency safer and avoid the pricing behavior based on USD, Global Gold Communication adopted a currency optimization plan.
That was, 1/5 USD, 1/5 Euros, 1/5 RMB, 1/5 of the 22 countries 'currency (the 22 countries with the largest circulation in the world, excluding China, the United States, and the Eurozone countries), 1/10 of precious metals, and 1/10 of the remaining countries' currency.
That was, everyone who put money into the Global Gold Link would automatically be divided into these diverse currencies regardless of the currency.
Some small countries no longer had to worry about their foreign exchange being strangled by the United States or because of insufficient reserves. As long as their currency was stable, it would be fine.
As for those countries that relied on supercurrency, their currency depreciated very quickly, so they quickly lost the hearts of the people around the world. Finally, their currency lost its credibility. It had become worthless waste paper.
In just a year, the currencies of more than 20 small countries had gone bankrupt. It scared a few smaller and less stable countries into not issuing a single currency for the sake of currency stability.
In such a short period of time, the world had formed three major currencies: the US dollar, the European dollar, and the Chinese yuan. The dominance of the US dollar was suddenly pulled down, while the RMB and the Euros rose.
At that time, the trade between countries in the world was a lot more chaotic. The United States and its group of underlings shouted that they had to settle in US dollars. The Eurozone countries had their own small calculations and supported the free settlement of regional currencies. If necessary, they could also settle the bill in US dollars and RMB, which could be considered as a boost to their morale.
China said that currency settlement should be chosen according to needs, and any country had the right to choose.
The US clamored for a period of time, but it was useless. As a result, they picked on the problem behind the scenes. Several major consortiums supporting Wall Street launched several regional financial storms. However, the financial storms came and went faster. They were vulnerable in front of the powerful funds of Global Gold Communication.
The global financial system could be said to be calm as a whole. They had also lost tens of billions of dollars in vain, and many countries had seen the ugly face of the dollar hegemony. Instead, more countries affected by the US financial system had joined and opened up the freedom of the Global Gold Link in their own countries. The corresponding drag on the weak dollar was another one-fifth of its value. At the same time, the value of the Euros and the Chinese Yuan rose by one-fifth each.
During this period, in order to facilitate international financial transactions, universal gold certificates were introduced. In the future, in addition to USD, Euros, and RMB, more commodities would be priced using gold certificates. For example, a barrel of oil worth 90.39 USD was equivalent to 0.0650 gold certificates.
One ounce of gold was worth 1,589.56 dollars. Golden certificates were linked to gold and had the same value as gold. People also called the Global Golden Certificate the Virtual Golden Certificate, or the Golden Certificate for short.
Of course, in order to exchange the gold for physical gold, they had to pay logistics fees, storage fees, and so on, which were about 5% of the value of physical gold.
The value of a universal gold certificate of the Global Gold Link was one ounce of gold (31.01 grams), which was equivalent to 295 euros plus 258 US dollars plus 1005 RMB (accounting for 3/5 of the total value) plus (accounting for 2/5 of the total value) other countries 'currencies and precious metals.
Because the gold coins were linked to gold, the price of gold rose from $1,386.78 per ounce to $1,589.56 per ounce in a short period of time. It was reported that there might be room for improvement in the later stages.
All of a sudden, the price of gold stabilized and increased, and the currency value of various countries was once again linked to gold. As a result, the stability of the currency began to depend on each other. The role of the country's adjustment became smaller and smaller. In the end, in order to make their currency more stable, more and more countries began to use gold and gold certificates as foreign exchange reserves. The golden scroll thus had a new name: Gold. At the same time, it was also an online financial coin that could be exchanged for physical gold in real life.
Everything started on January 1st last year. The CEO of Global Gold Communication,"Marshal Ma", suddenly announced that he would issue the first set of 100 million memorial gold coins. One gold coin was equivalent to one yuan universal gold certificate. Pre-order purchases will be charged a service fee of 5% of the value of gold coins. A total of 3100 tons of gold would be consumed.
Once the news was announced, it immediately caused the world to be puzzled. When he saw the real-life version of the gold coin sample, he was truly relieved and relieved.
In just a week, the first set was purchased with 100 million gold coins (70% of them were purchased by the Chinese). There were still nearly 90% of people who did not buy a reserved spot. Then, the Internet began to request for hundreds of millions of gold coins to be produced.
Global Gold Communication had indicated that they had used up all the serial numbers and production capacity for this year and could not produce any more. Ten production lines were in full production, ten were in real-time production, and two were in supplementary production (they needed to record real-time events on Earth on the gold coins and eliminate the serial numbers of the gold coins that were produced).
As a production line could only produce one gold coin per second, it worked eight hours a day for 350 days. The production of supplements was slower (machine number 0). Therefore, they could only produce about 100 million gold coins a year.
After receiving this news, the value of the Commemorative Gold Coins doubled rapidly without any signs of stopping. The value of the Special Meaning Gold Coins rose by nearly a hundred times. The gold coins, gold coins, and gold certificates had deviated greatly from each other. It caused huge fluctuations in the gold scrolls and the currencies of various countries, and international trade was greatly affected.
In the end, Global Gold Communication had no choice but to announce that it would continue to produce 100 million gold coins next year, and the year after that, it would continue to produce no more than 100 million gold coins, meaning that the maximum annual circulation would be 100 million gold coins. After that, the average price of the first set of gold coins fell to 1.5 times the price of gold (the price of gold remained at 2000 US dollars per ounce during the same period). The international currency took a few months to adapt before it slowly stabilized.
The first gold coin of the Global Gold Link was a round coin. Each coin weighed one ounce (30 grams of gold plus 1.01 grams of other precious colored alloys). It could basically be considered a real gold coin. One side of the coin was a panoramic map of the Earth from 0 to 180 degrees East Longitude, and the other side was a panoramic map of the Earth from 0 to 180 degrees West Longitude.
The picture of the gold coin was clear. The land and sea were distinct, and the colors were realistic. The mountains and rivers were uneven, and the deserts and plains were clear at a glance. There were no latitudes and no borders. It was like looking at the Earth from space. It was an exquisite panoramic image of the Earth. It was extremely beautiful.
Moreover, the gold coin was displayed according to the relationship between the Earth, the Sun, and the Moon. It allowed people to know the astronomical meaning of time and space at a glance. It was unanimously recognized by everyone as the most representative of the human currency on Earth.
In addition to the two sides of the gold coin, the outer torus was composed of two sets of 21 different Arabic numbers. One set of numbers could be verified on the Internet, and the other half was also a 21-digit number. Including the corresponding number of the year, month, day, and time of production. It could also be verified with the numbers on both sides.
For example, the number 20XX **89758 on the side meant the ** th gold coin produced by Line 9 at 12:31 on December 8, 20XX AD.
Half of the east and west meridians were brighter, and the other half was darker. At the same time, the northern hemisphere looked brighter than the southern hemisphere.
If the time was at 06:00 or 18:00, one side would be particularly bright and the other side would be particularly dark.
At the same time, there were also the rough changes on the surface of the earth at that time. It was as if the sun and the moon were shining on the earth at the same time. It made people gasp in amazement. They could only exclaim that this was the greatest and most civilized currency on Earth. The goodwill and recognition of it surpassed any government currency since ancient times.
After the terrorist attack in China, the RMB currency in the Global Gold Channel began to change drastically, and the RMB depreciated at an alarming rate. 24 hours had already been worth twice as much.
And they began to abandon the yuan in an increasingly serious panic. There was a possibility that the yuan would depreciate further, and the Chinese government had yet to announce any news or measures in this regard. It also caused the RMB to weaken.
Some media outlets said," The catastrophe caused by this terrorist attack has paralyzed a large area of the Chinese government. In the short term, there is no way to implement any measures.”
Following that, the RMB exchange rate of major countries such as Europe and the United States also fell.
As China, Japan, Korea, Southeast Asia, and other Asian countries that were greatly influenced by Chinese culture were also celebrating the Spring Festival, the stock market, foreign exchange market, and other trading markets were closed for holidays. These countries also suffered heavy losses due to the sharp fall of the RMB. However, the Chinese New Year only had one or two days off, so it was adjusted very quickly. He had avoided further and greater losses.
Ever since the great flood caused by the great terrorist attack, the prices of various commodities in the world began to rise in a large arc, or it could be said that the traditional currency had depreciated greatly. The strongest currency fell back to gold.
Similarly, gold coins and gold scrolls began to appreciate, dragging down the value of gold against the dollar and the dollar.
This time, the RMB exchange rate storm caused the already weak world economy to once again produce a more serious financial and economic crisis, and the future performance was unpredictable.
It wasn't until dawn three days later (72 hours after the big explosion) that the Chinese government announced a pitiful number of remedy and reform measures.
In the next few months, the financial crisis in China began to rise and fall due to the forced reform. Eventually, due to the stability of the mainland, the economy and the financial industry slowly stabilized.
At the same time, the world's currency began to slowly stabilize from the violent fluctuations in one region after another. However, due to the fact that the world had not completely stabilized in the later period, and it was still full of new and unknown changes, the economy and trade had not improved much. This event was called the Second Financial Storm. Because it followed the first global economic crisis not long ago, it produced a more serious global economic decline. However, in order to better distinguish it from the first economic crisis, it was named the Second Financial Crisis.
Note 1: The first global economic crisis caused by the global financial crisis caused by the competition between the global gold and the US dollar for the dominance of the global trade currency was mainly manifested in the competition of the pricing power of the currency for the main commodities and the changes in the exchange rate of the main currency during the period.
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