Rebirth 79: I opened a bank in the United States

Chapter 458 Additional Treasury Bonds and High Interest Rates

Rogers' words came true!

As the saying goes, my honey is my arsenic!

While plundering the population and wealth of nearby cities to enrich Douglas.The consequences of doing so have also arrived!
In addition to the local municipal eviction, Douglas, which is in the opposite situation to the surrounding depression, is undoubtedly the first choice for these refugees.Even if there is no municipal persecution, this is their first choice for escaping.
It is obviously impossible to drive people back.It may even directly arouse public outrage, and then some violent conflicts will erupt.
For such a group of people who have nothing and are struggling near the line of life and death.At this moment, they may still be beggars that you are too lazy to look at, but in the next second, God knows if they will become thugs who are willing to pull the emperor off his horse? !

Anyway, there is no way to retreat, why not? !
"How many people are there in total? How much does it cost just to survive?"

Carter understood Benjamin's difficulties. Facing such a group of people, tough confrontation was not the first choice.

"In addition, can these people be converted into a part of demand? For example, work, such as orders, isn't Douglas expanding south now? Can the city use some money for infrastructure construction? Build parks, schools, roads, everything is good anyway. It's better than wasting money to support these idlers!"

"It's hard, and it's not easy for Benjamin. You haven't forgotten the excise tax relief for your highway business district, have you? In order to make the current situation, the city is now paying less than $[-] in annual revenue and employing three and more people. The following small shops and small businesses are all exempted from city-level taxes, even the city-level taxes on real estate taxes, to encourage these businesses to survive and to employ as many people as possible while surviving.”

"What about external investment? Argyll has acquired two Japanese car companies, and our side should also. I remember that I talked with Benjamin about this matter, and he promised that he would do it. Now there is no improvement. do not have it?"

"Although I really don't want to say that, but... yes, apart from relying on lip service to fool a few local bosses from Atlanta to invest in some shops, which can be regarded as solving eight or nine jobs, there is a factory that can really solve the problem of a large number of laborers. nothing."

Goodman pulled out an investigation report and handed it to Carter:

"Look at this. This is the summary of the situation of various industries in Georgia in the third quarter. Now in Georgia, except for the Lockheed plant in Marietta and its supporting enterprises, which have stable profits, all other industries are suffering. Especially Those insurance companies in Columbus suffered a lot this year, and you should know that insurance companies are a big source of hot money, and the money they used for investment was diverted back to pay customers, and with the current environment, the market is not confident.”

"There is no new injection of hot money. In the consumer market, in addition to rigid demand, a large number of quality consumption has plummeted. In addition, this year's stock market has suffered greatly. Many middle-class people have gone bankrupt or reduced consumption. In this environment, it must be like Japanese cars. Enterprises with core competitiveness, like Lockheed, take defense orders and do not target ordinary consumers at all. As long as the defense budget is not cut, they will not be affected.”

"Only these two types of enterprises, in today's environment, have some desire to increase production and invest. For other enterprises, let's think about how to survive this cold winter! To attract these two types of enterprises, we attract In fact, there is a serious shortage of human resources. Let’s not talk about talents, public resources such as medical care, and the industrial base in Georgia are still very weak, let alone Douglas.”

"Well, let's do something first. Let these people stay in the city center. It's annoying to watch, and it's also a hidden danger in terms of public security. First clean them up to the outskirts of the city. The workers' prefab houses. How much can the residential area deliver now? A property? After the delivery, let them live in the prefabricated houses that have been vacated first, and winter will come soon, so don’t make people freeze to death, or someone will take the risk by then!”

Think about how Toyota was forced to come to the United States to build a factory by the self-restriction agreement. In this environment, they used free land and the double guarantee supported by the auto union to allow them to settle in Georgia.

If you change to a similar company, such as Procter & Gamble that I have seen in Cincinnati.
What the hell are they doing!

As for the defense and military industry companies, there has been no news that the federal government has increased defense spending recently.Although it is reasonable to say that during the Republican period, it is usually a happy time for military enterprises, but that old boy Volker has not stepped down yet!

You can't frantically block the water on the Fed's side, and turn back to the federal government to release water frantically, right? !The right to print money is in the hands of the Federal Reserve!
Judging from the failure to clean up Volcker's behavior after Reagan came to power, the federal government obviously did not deny the correctness of Volcker's behavior.Then, they are unlikely to use administrative power to require the Federal Reserve to issue a large amount of money
No money printed out of thin air, additional defense spending, where does the money come from? !
"National debt!!"

Carter suddenly patted his thigh.
I can't print it myself, can't I borrow it? !
"Bond market, do you have information?!"

"What's the matter? What did you think of? The national debt has indeed been issued a lot this year. And the interest rate is also high."

Goodman was taken aback by Carter's sudden excited reaction.Then quickly find quotes in the bond market
About an hour later, a smile suddenly appeared on Carter's face.

As of last year's statistics day, the balance of US national debt was [-] billion, but now it has become [-] billion.This also means that this year alone, the national debt has been issued no less than [-] billion!

Based on the data of the past years, the balance of national debt in 79 was about 78 billion, an increase of [-] billion; in [-], the balance of national debt was [-] billion, an increase of only more than [-] billion, and then go forward.
This difference is obvious. Since Paul Volcker became the chairman of the Federal Reserve in 80, the scale of national debt issued by the federal government has begun to climb.Especially this year, the interest rate on ten-year treasury bonds has reached a shocking 15.82%
What is this concept? !

The bonds issued by the government of a large economy like the United States are basically equivalent to the risk-free interest rate in the eyes of the economic circles!It is the most basic interest rate in the quoted interest rate, and the most basic interest rate has been added to 15.82%
If we use this as a basis to build the same ten-year loan interest rate for residents, it is the risk-free interest rate of 15.82% + risk premium: for different credit qualifications of loan customers, the risk premium ranges from 1.8% to 4.8% + bank oil and water : 0.2% to 2%
Even with the lowest standard and the highest quality loan customers, the ten-year loan interest rate that I should give should be 17.82%!

That's already scary, just think about it.
For the average person, what kind of loan needs to be loaned for more than ten years?Mortgage!

How much is a normal mortgage?

Around 4.4%, right?
Even for domestic housing loans that will be scolded to death in the future, the interest rate of provident fund loans is usually in the early 3% and commercial loans in the early 5%
17.8%
Is it scary? !
(End of this chapter)