The Wealth Empire Crossing the Hong Kong

Chapter 562 USD Rate Cut
"Jianhui, just got the news that the U.S. Department of Commerce will increase tariffs on individual products starting from the 1st, including our Yushi Motors, Jaguar Motors, Huahong Mobile Phones, Huahong Computers, Hongyu Clothing, Jingyi Electrical appliances, and our semiconductor products including chips, displays, etc.

At the same time, the Federal Reserve also announced that it will implement a new interest rate on January 10, which is another [-] basis points lower than the current interest rate. "

Li Jianhui has long been used to the United States playing this game. In order to protect domestic companies, the US government can be said to do everything possible.

While continuously increasing tariffs on imported products, it also promotes the continuous depreciation of the US dollar to increase the cost of imported products, so that foreign products will not crowd out the US domestic market.

Now the world's major countries and regions are also quite interesting. In the past six months or so, Japan, West Germany, England, France, Italy, and the Asian Tigers have maintained their own currency values. go higher.

In order not to affect the export of their own products, some countries follow the pace of the United States and depreciate the dollar. These countries and regions also promote the depreciation of their own currencies.

Over the past few months, regardless of how much the yen and the British pound have risen against the U.S. dollar, the Hong Kong dollar has risen from 5.12 to the current 4.95, and with today’s news, I’m afraid there will be another increase. It is not impossible to break through 4.9.

Over the past few months, the Hongkong Exchange Fund has adjusted its positions several times, and the US dollar foreign exchange held is less than half of the total foreign exchange reserves. On the contrary, the Japanese yen and British pound have increased significantly.

In addition, after pressure from Li Jianhui, Li Guobao, Feng Jingxi, Qiu Degen and others, the Exchange Fund also took out one-tenth of the foreign exchange to buy gold reserves to balance the Hong Kong dollar exchange rate.

Li Jianhui doesn't know why the U.S. government is so anxious. You have to know that the reason why the other party dared to sign the Plaza Accord with several countries in the previous life was that the reformer in the Soviet Union came to power, and the pressure on the U.S. was greatly reduced because of this. On the little brother.

But now the relationship between the two hegemons is still in extreme confrontation, and the United States is still on the side of being suppressed in the military. It is not ordinary to dare to promote the devaluation of the dollar on a large scale.

However, it has to be said that the United States is not generally ruthless in its treatment of its allies. This time, the most targeted companies are not Xinjian companies, nor Japanese companies that want to attack the US market, but British companies.

Even excluding the companies of the Xinjian Group in England, there are as many as [-] companies in Britain, including automobiles, semiconductors, and industrial equipment, on the U.S. Department of Commerce’s tariff increase list, five more than Japan.

Li Jianhui estimated that the reason why England was targeted the most this time was that England was integrating the Commonwealth market and at the same time promoting the pound's share in major global currency markets.

This obviously touched the scales of the United States. After two world wars, the other party finally pulled the pound from the number one throne. How could they want to see the pound step on the dollar.

However, Li Jianhui is happy to see the success of it. His plan is to make Britain and the United States compete. Only in this way can the future EU be united, and there will be no shit sticks to disrupt the situation in some matters.

As long as Britain, France and Germany are of one mind, they will have the strength to wrestle with the United States, and in many ways they are not inferior to the United States.

In her previous life, Ying Lun had a good card in her hand, but it was a pity that she was beaten badly by herself, and most of the time she just followed the United States and pretended to be powerful.

But this life is very different, because of the butterfly effect brought by Li Jianhui, the British car brand can be retained, unlike the previous life, where almost all that can be sold are sold out. In a car powerhouse, there is no large car belonging to its own country. enterprise.

At the same time, London is also developing very rapidly in terms of semiconductors and the Internet. Although there is still a little gap compared with Silicon Valley in the United States, it still ranks second in the world, and the two sides have direct competition.

Where there is strength, there is ambition, especially for a country and nation that once had a glorious history. Coupled with the ruling of this Iron Lady, the relationship between England and the United States will naturally no longer be as harmonious as it was a few years ago.

It is not decades later, and England still has considerable influence within the Commonwealth. For example, the settlement of sterling for cross-border trade has been actively promoted in the past few months, and dozens of Commonwealths support it.

Especially in the context of the depreciation of the US dollar, Australia, Canada, New Zealand, Malaysia, and Sin Chew have all reached a preliminary agreement with the UK to settle trade within the Commonwealth with pounds, including Xiangjiang.

Moreover, England is negotiating with member states of the European Community to make the pound the trade settlement currency of the European Community and Commonwealth countries and regions.

This can be said to want to completely pull down the US dollar. It is no wonder that the US government is not in a hurry.

It stands to reason that at this time the U.S. government should maintain the value of the U.S. dollar or even promote the appreciation of the U.S. dollar, so that all parties can be optimistic about the U.S. dollar.

It's just that the problem facing the United States now is not only the attack on the pound, but also a lot of problems in the internal economy. In the past two years, the export of domestic grain to the Warsaw Pact member countries has been banned, causing great losses to its domestic farmers.

Even if the ban has been lifted now, its business has been taken away by Canada, Australia, Brazil, Argentina, etc. It is not so easy to get it back.

In terms of industrial products, because of the struggle with the Soviet Union, the United States also focused its energy on the military. In terms of civilian use, the quality and technology were far inferior to West Germany and Japan. Not only did they lose the international market, but the domestic market was also in jeopardy.

In terms of high-tech industries such as semiconductors, computer hardware and software, and even mobile communications, although the United States has gained the first-mover advantage, Japan, Xiangjiang-Treasure Island, and England are not far behind. In terms of market competition, American companies do not have an advantage. .

At this time, they have to make a choice. Whether they like it or not, the dollar must depreciate. Only in this way can they improve the international competitiveness of their products and at the same time promote the upgrading of enterprises.

As for the British pound, how can the United States make England happy? Raising tariffs on British companies is just an appetizer.

Li Jianhui just relied on the memory of his previous life to become a trend-setter in this era. He is not a god, and he doesn't know what plans the giants behind Wall Street have.

From the beginning to the end, the Donghua Society led by Li Jianhui was nothing more than a grasshopper in the eyes of the group of giant crocodiles. Although they danced happily, it did not affect the overall situation at all, and the group of people did not take it too seriously. .

Even if it was targeted several times, it was just incidental, and its main target was never Donghuahui.

Li Jianhui, who thought he had reached the plan, was not at all distressed by the additional tariff increase on his products, but picked up the phone and called Zhou Pengfei who was far away in London.

Invite Zhou Pengfei to make a protest, and at the same time contact British government officials and MPs to push the British government to counter it.

Forget about Xiangjiang. Not only is the market small, but it is also a free port. Apart from protesting through the media, there is no way to fight back.

This is also the biggest helplessness of Li Jianhui and other Xiangjiang businessmen. They currently have no backer to support them, and they can only bear it by themselves in the face of targeted suppression.

(End of this chapter)