Technology: Breaking the monopoly global hegemony

Chapter 2163 Market
In the economic field, gold is the most reliable ballast.

The reason why the Bretton Woods system was able to establish the US dollar as the center and become an internationally recognized monetary system, in addition to the strong national strength of the United States at the time, the most important reason was that the official documents of the system stipulated that the US dollar at the time must be directly linked to gold, and the currencies of various countries were pegged to the US dollar and implemented a fixed exchange rate system.

According to the regulations at the time, member countries of the system could exchange gold with the United States at the official price of US$35 per ounce (approximately 28.35 grams).

On this basis, the International Monetary Fund (IMF) was established. The main task of this organization is to provide short-term loans to member countries in order to ensure the stability of the international monetary system.

This means that at that time, as long as a member country could use the US dollars they held to exchange for gold, 35 US dollars for 28.35 grams. The United States had to give up this batch of gold in exchange for its own US dollars.

That’s why the “US dollar” is called “American dollars”.

As the United States took control of the IMF and established its core leadership position in the global economic and financial fields, it withdrew from the Bretton Woods system and began to use the US dollar in a strong manner in exchange for cheap resources from other countries and regions.

Countries and regions have long been accustomed to using the US dollar as an international currency. All cross-border transactions are done in US dollars. Naturally, there is no way to leave the US dollar, and they can only continue to use the US dollar with a pinch of their noses.

There are enough markets using the US dollar, and the larger the proportion of the US dollar in economic activities, the stronger it is.

The American people enjoy a high welfare life, where one worker in the family can support the entire family and can buy meat, eggs and milk at extremely low prices, all thanks to the strength of the US dollar.

Now, the summer yuan is strengthening and the US dollar continues to weaken. At this critical period, the price fluctuations of gold can have a greater impact on the market and affect the market nerves.

The price per gram of gold jewelry produced by Daxia's local gold jewelry brand exceeded the 1000 Xia yuan mark after just one day of adjustment, and has been fluctuating upward without any sign of a decline in price.

In the Shuibei Market in Daxia, every gold store is crowded with consumers and buyers.

"I heard that the price of gold has skyrocketed recently. Are the jewelry in your store still the same as last month's prices?"

"My child needs to buy some hardware for him. Do you have any suitable hardware accessories in your store? Are they sold out at around 1,000 per gram? Are they starting at 1,000 now? So expensive!? No, take them out first and let me see them. I definitely need to buy some hardware."

"Hey, why are there so many people here? I've also been paying attention to the changes in gold prices. The Chinese New Year has just passed, and I want to buy some jewelry for my family. Let's see if the timing is right."

"What's going on? When I visited your store last week, the bracelets were only over 600 per gram. How come they start at 1,000 now? I'm going to report you!" Faced with the discussions of customers and the threat of reporting, the clerks of the gold stores in Shuibei Market could only reluctantly explain: "The overall price of gold has risen a lot now. It's not just the gold in our Daxia that's rising in price. The spot gold in the international market is also rising in price. We are also adjusting according to market conditions. This morning, a consumer came to the store several times and still felt that it was a bit expensive. As a result, when he came in the afternoon, the price had risen by another 100. So we now issue orders at real-time prices. The labels on them have been invalidated. Customers can directly scan the QR code on the label to view the real-time price."

When the customers heard this explanation, they were also stunned.

Although they wanted to say that these were all fake, since they entered the Shuibei market, the dense flow of people, the conversations with other people around them, and the news on their mobile phones reminded them all the time: the price of gold is skyrocketing! Buy now and you will make a profit!

The foundation of the financial industry is users' confidence in products and their expectations for the future.

Gold is the best financial product in nature. From ancient times to the present, kings, generals, nobles and wealthy people have all been pursuing gold. Now, gold is rising rapidly. In addition to making customers unable to accept it for a short time, they are even faster to call one by one, asking for money and increasing their credit limit...

They all want to take advantage of the current price and buy a batch of physical gold as soon as possible, to increase the value while also minimizing the shrinkage of family assets.

Because the price of gold has skyrocketed so much, Daxia’s official TV news station also invited relevant experts to conduct “popular science” on gold.

“The price of gold is not a completely controllable financial price. It is affected by many factors, such as the global economy, the economy of gold producing areas, and gold market factors.

First, the amount of gold mined, recycled, and changes in global demand all directly affect the price of gold. Second, the mining cost, industrial demand, and jewelry market demand for gold also affect its price.

In addition, the interest rate decisions and monetary policies of central banks around the world will affect the attractiveness of gold. For example, in a low interest rate environment, banks may reduce the opportunity cost of holding cash, thereby increasing the attractiveness of gold. When inflation expectations are high, gold will also be seen as an excellent hedge against inflation and will begin to appreciate...

In the nine years from 1971 to 1980, the price of gold soared from US$35 per ounce to US$850 per ounce. During this period, the main reasons for the surge in gold prices were the collapse of the Bretton Woods system, the decoupling of the US dollar from gold, increased uncertainty in the global monetary system, and rising inflation.

6◇9◇Book◇Bar

Then, 20 years ago, at the beginning of the century, the global economy experienced a series of events such as the bursting of the Internet bubble, terrorist attacks, and the global financial crisis, which led to a rise in risk aversion in the market. In addition, the Federal Reserve began to promote quantitative easing policies, which pushed up the price of gold. "

After a brief introduction, the expert faced the camera with a serious face and speculated: "This surge in gold prices is the most exaggerated appreciation fluctuation since gold became a financial product. I personally hope that investors can invest calmly, because after a short surge, there will inevitably be a price correction.

And although gold has important industrial value, the current gold production is fully able to meet the market demand for industry and semiconductors..."

After advising investors to invest cautiously, the expert said calmly, "At a time when the global economy is beginning to change dramatically, please invest rationally. I personally think that at this stage, staying healthy is the best investment. Thank you."