Wang Qiang's economy is just the level of eating melons in elementary school. When faced with this problem, he was immediately confused: "Is this a junior high school course in economics?"

Su Su shook her head and smiled, "No, this is a strategic problem. There has never been a simple economics, only political economy, socioeconomics, etc. Just like the Abe economics that was previously said to be depreciating the yen, he originally wanted to solve an economic problem, but he was facing the Japanese social problems of Buddhist youth and aging, and there was no solution."

Wang Qiang was excited: "The strategic issue is good, I'm the most strategic!"

Su Su said: "I will give you the answer directly - this is a good opportunity for the enemy to retreat and advance and promote the internationalization of the RMB. So the RMB will not only not follow the interest rate hike, but may also cut interest rates, lower reserve requirement ratios, and release money..."

Wang Qiang was stunned for a moment: "Let the water be released? Lower the reserve requirement ratio? What does it mean?"

Su Su replied: "The meaning of letting go is that banks invest some money into the market, making the market more money and increasing the market's cash flow. It is usually carried out through low-interest lending, repurchasing treasury bonds and other operations."

Wang Qiang said in surprise: "Repurchase the treasury bonds?"

Su Su smiled and said, "Yes, when the country is short of money, it needs to absorb private working capital. Banks raise interest rates to make big moves, which will affect the stock market and foreign exchange market too much. So, treasury bonds are issued, and the interest rate is higher than that of banks. Most people who want to buy have to queue up at the bank gate early in the morning. In short, issuing a large amount of treasury bonds can reduce the flow of private money. So if you want to make private funds flow larger, then operate in the reverse direction and buy back all the treasury bonds you sold previously."

Wang Qiang nodded: "Oh, it's easy to understand. But if the market has too much money, will inflation and prices rise?"

Su Su smiled and said, "This is just an ordinary currency. The US dollar is an international currency. For example, the United States printed a lot of money in 1933 and got out of the crisis. However, if a large amount of money continues to stay in the country, it will inevitably cause the price increase and inflation that Brother Qiang said. Therefore, the United States is using the extra money to invest in the poor Germany, which is so poor."

"In the 1970s, the United States fell into the quagmire of Vietnam War and the economy was on the verge of collapse, and the United States also printed money frantically and struggled to support it. These extra money could not be left in the United States, so the United States invested in Southeast Asia and gave birth to four little dragons and four little tigers. In short, this kind of loan to the world is called water release."

Wang Qiang understood: "What about the reserve requirement ratio cut?"

Su Su replied: "The abbreviation of reducing the reserve ratio. The deposits absorbed by banks must not be used all, and a part of them must be kept. The part left is called reserves. At the same time, branches in various places must send part of the deposits to the central bank as reserves. The reduction of the reserve requirement ratio means that banks do not need to keep so many deposits, nor do they need to send so much money to the central bank."

Wang Qiang Rally: "That is, the reduction of reserve requirement ratio is a condition for letting go."

Su Su smiled and said, "Yes, a reserve requirement ratio cut is a accumulation of momentum that has no impact on the market. Don't get confused with interest rate cuts. As long as interest rate cuts, depositors will not save money, withdraw money to spend or trade stocks, and the market will fluctuate. In short, a reserve requirement ratio cut, a rate cut, and a water supply are all fancy operations to put money into the market. The opposite operation is called balance sheet reduction, interest rate hike, and a water supply. These are common means of bank operations for the return of US dollar."

Wang Qiang was stunned: "Reduce the balance?"

Su Su replied: "The abbreviation of reducing the debt balance sheet means that the state order is directly issued, and banks are not allowed to lend. Cooperating with interest rate hikes to destroy debts, reducing the liquidity of the money in the market, that is, the money becomes valuable, and the effect of stabilizing prices can be achieved. In short, these operations that take back all the money in the market are collectively called pumping."

Wang Qiang nodded: "I understand!"

Susu nodded: "Well, let's do the basic terms of situations, and to cooperate with the previously mentioned exchange rate appreciation and depreciation, let's see how the US dollar sucks blood all over the world. First of all, taking Latin American countries in the 1970s as an example, if the US dollar prints too much, it will be released here. If you want money, equipment, population, and population, it will be prosperous in the 1970s."

Wang Qiang said: "Then when you get fatter, the US dollar will use a big move to force debt by raising interest rates + appreciation!"

Su Su said: "Yes, their prosperity is thriving on borrowed dollars. Suddenly, a big move to counter debts was used. Their dollar foreign exchange reserves had to return to the United States to pay off debts, and at the same time, the money in the stock market ran out to eat interest. Then their own country was forced to coerce and the stock market crash and double-killed, and there was not much US dollars. International trade requires US dollars to buy oil, and trade between countries only collected hard currency such as US dollars. If they don't have US dollars, they would suffocate to death and go bankrupt."

Wang Qiangming: "Then at this time the US dollar came back to buy the bottom and bought these bankrupt factories and mines at a low price!"

Su Su smiled and said, "Yes, but international financial capital bought bankrupt industrial and mining industries and mines not because they had the interest in developing industries, but just when the market improved, they were sold at a high price. During this period, there was a legendary figure - the King of Bankruptcy and Reorganization, Wilbur Ross! That is, the Jew who was appointed as Minister of Commerce by Chuan Jianguo and came to China for negotiations a few days ago. Jianguo used to play real estate and went bankrupt. This bankrupt king actually let Jianguo go one step further, so Jianguo has always been grateful and respectful to the King of Bankruptcy."
Chapter completed!