Galactic Tech Empire

Chapter 326 Depression Times
This time, the stock market crash triggered by General Motors swept across the entire Western world in just a few days, and it also spread to the whole world.

Despite the rapid response of each to rescue the market, their weak economy is difficult to fight against this financial crisis for a while.

The only exception is the East Asian region. Except for the Sun Country, which is slightly affected, the other countries appear to be quite stable.

The Southeast Asian region, which has been severely affected, immediately became a resistance for the Galaxy Consortium to enter the region.

Although this stock market crash was not as serious as the 1929-1933 economic crisis or the 2008 economic crisis.

However, the plummeting of rice stocks and Xizhou stock markets has led to a substantial increase in the debts of many people or companies, and people have to cut unnecessary consumption to maintain their lives.

According to the research reports of relevant economic research institutions, starting from 2019, the proportion of food and clothing products in the overall consumption of the people in the world has increased significantly, while the consumption of luxury goods is just the opposite.

Buffett once said that the best way to deal with inflation is to cut unnecessary consumption.

In the case of economic depression, most people have to be forced to cut unnecessary consumption, so as to buy hard inflation products.

During the high-speed economic period, we must gradually stay away from bubble industries, such as the tulip event, stay away from tulips; for example, before the financial crisis, when the stock market had a big bubble, we must stay away from the stock market.

If the economic depression is the most valuable thing, the more depressed the economy is, the more valuable the rice, oil, salt, soy sauce, vinegar and tea will be.

However, if you hoard these goods in large quantities, there are great risks, such as: storage risk, these things are difficult to store for a long time; social risk, people can’t afford to eat, and you have to be a rich man, which is no different from profiteers in TV dramas. What a difference.

During the economic boom, the rising speed of gold is usually lower than the economic rising speed. This is because when the economy is good, the world trusts the dollar more, so there are very few gold bubbles; Anti-risk ability.

Therefore, since the beginning of 2019, the international gold price has risen slightly, and the international gold price once rose to a high of 327 Chinese yuan per gram.

However, after the outbreak of the rice stock market crash this time, the international gold price started to skyrocket again. In less than a week, the international gold price hit a new high, reaching a height of 386 Chinese yuan per gram, and the upward trend remained unabated.

In addition to hard currencies such as gold and silver, look at other necessities, even if the economy is poor, people can't do without things, such as the pharmaceutical industry and the food processing industry.

In addition, "national credit" is the last line of defense against economic depression, and investments such as treasury bonds will also maintain their value relatively.

Mars Group.

In the office of the president Zhuge Sansheng, he couldn't help laughing as he looked at the report in his hand.

Thanks to the large increase in the output of the gold and silver refining plant of the Yinhe Mining Group, and the silver purchased by the Mars Bank, the current reserves are 1127 tons of gold and 1.3 tons of silver.

The reason why Mars Group has so many gold reserves is actually related to Dongdao and Gaoli. Dongdao had 423.6 tons of gold before, and Gaoli also had 104 tons of gold. In this way, Mars Group, as the central bank of the Galaxy Consortium, naturally obtained the gold.

As for the remaining gold, part of it was contributed by the newly established Yinhe Mining Group, and the other part was contributed by Dongyin Water Group.

The reason why Dongyin Water Group also produces gold is actually for convenience. Seawater desalination plants in the mainland now have built-in gold and silver filtration membranes.

The gold and silver extracted from these thin films are split [-]-[-] by Dongtang Bank and Mars Bank.

That's why Mars Bank has so many gold reserves. Judging from the current gold and silver production volume of Dongyin Water Group and Yinhe Mining Group, it can add about 500 tons of gold and 6000 to 7000 tons of silver to Mars Group every year.

Of course, so many gold and silver reserves of the Mars Group are not put there for ashes. Silver is an important raw material for iron-silver room-temperature superconductors. In addition, the semiconductor industry also uses a large amount of gold and silver. In addition, a large amount of gold is used in aerospace. These gold and silver reserves are very large. Most of them are supplied to their brother companies.

The Mars Group, which has so many gold reserves, is conducive to stabilizing the value of Mars coins. Although Mars coins are not linked to gold and silver, there is food in hand without panic.

"President!"

"Come in!" Zhuge Sansheng put down the report in his hand.

"This is the economic survey report of Luzon, Annan, Myanmar and other Southeast Asian regions!" The assistant handed him a document.

The three provinces of Zhuge took over the documents and looked through them. Although the impact of the economic depression on Southeast Asia is not serious, it is not much better.

"By the way, what about the investigation report from Tuao?"

"At the bottom of the file."

Zhuge three provinces turned to the end, and they laughed when they saw it. These guys are miserable now. Due to the triple impact of the trade war, drought, and rice stock market crash, the economic situation in Tuao continued to deteriorate.

As a country dominated by agricultural products and mining, many farms in their country have gone bankrupt or are on the way to bankruptcy.

As for the mining industry, although the price of iron ore has risen a lot this year, in order to suppress Tuao, both Dongtang and Yinhe Consortium have reduced the amount of iron ore they purchase from them.

Galaxy Technology uses recycled steel scrap and lean iron ore to make steel. With cheap electricity costs, scrap steel and lean ore have become profitable.

Of course, this is a temporary solution rather than a permanent solution. It is better to use alternative products or own iron ore. Galaxy Technology has been doing these two aspects, and indeed many alternative products have been developed.

As for its own iron ore, Yinhe Technology's plan is to meet its own needs through space mining. After all, iron is on the asteroids in outer space, and there is a lot of it. Why dig around on the blue star.

As for the iron ore demand of Dongtang, they adopt diversified methods to satisfy themselves. On the one hand, they use scrap steel to make steel; , and the development of iron mines in Mobei.

"Go and ask some vice presidents to come to my office for a meeting." Zhuge Sansheng ordered the assistant after reading the economic situation in Southeast Asia and Tuao.

"Ok."

After a while, three vice presidents came to his office.

"sit."

Lin Da, who was in charge of Mars Bank, just sat down and asked, "President, what are your orders?"

"We want to take advantage of the impact of this economic depression to strengthen our influence in Southeast Asia and Tuao." Zhuge Sansheng put down his pen and crossed his fingers.

"Then what is the president's plan?" Linda asked.

"In the name of economic assistance, we can enter their financial field, and we can take the opportunity to hold some local banks and insurance companies." Zhuge Sansheng expressed his thoughts.

"This plan should work, but I'm afraid that some countries will not easily allow us to enter the local financial sector." Huang Guocai, who is in charge of insurance, reminded.

"Don't worry! We will go with the domestic group and Mitsubishi Sanxin to distract them." Of course, Zhuge Sansheng knew that it would be too eye-catching for the Mars Group to go by itself, and they needed Mitsubishi Sanxin to cover them.

"In this case, the success rate is relatively high." Linda nodded.

"We can also invest in their electricity, water supply, road transportation, communications, etc. These can cooperate with the local people to support our spokesperson." Huang Guocai raised his glasses and said.

(End of this chapter)