Rebirth 79: I opened a bank in the United States

Chapter 233 Small Central Bank

When a truck full of goods drove into the construction site, Jim also bid farewell to Madison, who was about to start busy, and drove on to the next site.

The HT store in the south!

Crouching on the side of Highway 23, chewing on his taco and staring at the passing cars, Jim has mixed emotions.

On the one hand, after seeing these scenes, Jim admires Carter as a little friend psychologically.Compared with the goodwill he valued, Carter's local reputation is not very good now!
As long as he doesn't have brain twitches and takes the initiative to stand against these people, his words may be more effective than the governor and mayor in this one-third of an acre of land.

As a businessman, he can do business like this, which is enough to make Jim feel admirable.And this kind of wanton coin distribution to boost the economy also allowed Jim to see a kind of responsibility that big merchants seldom had in Carter.

But on the other hand, as Jim learned more, the worries in his heart grew deeper.

Just like the law of energy conservation, everything is impossible without a price!Behind Carter's actions, the risks and costs are too great!
Feeling flustered, Jim finished eating the taco in his hand. Jim didn't dare to delay any longer. After getting in the car, he went straight to Black Bank.
"Jim?! What are you doing?"

About a quarter of an hour later, Carter rubbed his eyes in disbelief at Jim Rogers who suddenly appeared at the door of his office.But before Carter finished his surprise words, Jim suddenly snorted coldly:
"You can really do it! Carter, being the Douglas Fed here, no, the chairman of Georgia Central South United Savings, isn't it enjoyable?"

With a teasing expression on his face, Jim walked over to Carter's desk and sat down.Unceremoniously grabbed the cigarette on Carter's table, lit it on his own, and continued to say with a gun and a stick:
"It's quantitative easing again, and it's sucking blood from other places to fertilize your own territory. You guys are really not afraid to continue playing like this, it's thunderous!"

"Huh? What, what are you talking about, why can't I understand?"

Carter fished his head, completely ignoring what Jim wanted to express.What is the Central Bank of Georgia, what is quantitative easing, what are these things? !

"You and I mean you are doing these things now!!"

Carter's confused expression does not seem to be fake, but this kind of sincere confusion makes Jim feel even more angry:
"I know you are a savings banker, I don't know, I thought you were the helm of the central bank! Look at everything you do now, what is the difference from the central bank's regulation?!"

"Cut interest rates to stimulate the economy, and then absorb money from other places and put it into the market. For Douglas, this money is completely over-issued currency, which is the amount of currency that this place should not have at this point in time! This is quantitative easing. Forcibly intervening in the public market with excess funds to influence the trend of LPR."

"The most important thing is that you, a small central bank, are still fighting against our big central bank! Singing against you! Who gave you the courage to do this?!"

Liang Jing bah!
"No, no, wait, Jim, what are you talking about? I'm still."

Carter frantically recalled that he didn't seem to have offended Jim, the more he listened, the more foggy his mind became.Do you have a problem doing this yourself?
Of course there is a problem!
Carter himself is actually very clear that the current prosperity is just an appearance, or a bubble!

The bubble that is forced out is like real estate.

There are about [-] DOG construction workers plus DOG real estate, nearly [-] people, no, it should be said that the livelihood of [-] households is based on the bubble.

What will happen to these people after all the residential areas are completed? !
Expatriate?It is a way out, but how can so many construction workers be absorbed in other places now?This thing is completely different from the scattered HT stores.

Xiao Gu's construction team of dozens of people was scattered, and they were not competitive at all.But if you pull out a team of 1800 people at once, that's enough competitiveness, and then wait to be boycotted by local forces.

It doesn't matter whether you can get the job, but if you get it, someone will come to your construction site to make trouble every now and then, smashing, stealing a set of combined punches, and you are still working a fart job!
What's more, only the metropolis can digest so many construction workers at once.And the demand over there is no longer this kind of low-rise housing. You will be given the entire skyscraper at every turn. Just these half-assed workers and mediocre architects, do they have the ability to build tall buildings? !

But once there is no life, how to feed these people will be a big trouble!

"Come here! Sit here, and I will teach you a lesson! The most basic introduction to the economic system. What do you think is the basis of an economic system?"

Seeing that Carter still couldn't understand what he meant, Jim was almost pissed off by Carter.

This kind of feeling is like, obviously you are a rookie, you are obviously just messing around with the keyboard, and it turns out to be a collection material? !Where are you letting their playful faces go? !

If it hadn't been for seeing the high school textbooks on Carter's desk that hadn't been cleaned up in the future, Jim had every reason to suspect that this guy was pretending to be a chicken, pretending to be a pig and eating a tiger, deliberately amusing his old family in his thirties.
"Basic? Money?"

No matter what Jim wants to say, Carter immediately moved up the small bench and sat next to Jim
"Money? Then?"

Glancing sideways at Carter, Jim picked up a blank notebook on the table, then picked up a pen, and began to write and draw.

"The circulation of money is the foundation of the economy, and the core of money circulation is interest rates. Interest rates directly affect the circulation of money. For example, when interest rates are high, deposit interest rates are high, and people are more willing to deposit money in banks; loan interest rates are high, and borrowing The cost increases, so people will borrow less, and there will be less money in circulation!"

"And this is what I just said, the keynote of the big central bank's actions!"

"I know this! I have been watching the Fed's federal funds rate changes"

Hearing this, Carter immediately raised his hand, expressing that he is not a rookie who is completely confused.
"You know what! The federal funds rate is just the overnight lending rate. The only thing the Fed can control is this! You should have noticed that when the interest rate was first raised, the interest rates on the [-]-year and [-]-year treasury bonds rose, right?"

"Yes, yes! I have noticed!"

If you want to say that the interest rate on national debt has risen abnormally, then Carter will not be sleepy.Because this issue had attracted his attention at that time, he also probably knew that this was a market reaction that the market lacked confidence in the Fed’s interest rate hike and still believed that high inflation would continue.

"Very good! Then you should understand that the Federal Reserve, including the central banks of various countries, can't actually control the interest rates of medium and long-term loans. Well, you can simply understand the interest rate as the time cost of money!"

"That is, how long does it take for a sum of money to have a natural attrition rate. The original purpose of the interest rate is to maintain the purchasing power of the money from loss! On the basis of this function, it is to generate income"

(End of this chapter)