The rise of nanometers
Chapter 479 Anchoring Value
The concepts of effective currency and effective gross product are derived from a part of GDP, squeezing out the financial water that exists in it.
Although on the surface, this is Li Hongwen's family statement, in fact, his identity determines that what he says means what the Suiren family and the government mean.
"Currency must be valuable and debts must be repaid. No one wants to work hard for decades and get back a pile of waste paper, right?"
Suddenly many industrialists and the audience laughed.
"As one of the global currencies, the Huayuan must adhere to three principles, which are stable currency value, stable anchored goods, and stable convertible actual value."
On the big screen, five words popped up: gold, industrial products, ore, energy, and food.
"These five things are the anchor goods of the Huayuan, and they are also the guarantee of the currency value and the actual convertible value of the Huayuan."
Immediately afterwards, Li Hongwen called up various data.
Gold reserves: 3,776 tons, and 2,573 tons of platinum group precious metal reserves.
Industrial product productivity: 1.06 billion tons of steel (accounting for 83% of the world), 45.37 million tons of electrolytic aluminum (accounting for 72%), raw copper, cement, chips, electronics, electrical appliances, daily chemicals, plastics, etc. Comprehensive industrial productivity occupies the world 71.63% of total production.
Ore productivity and reserves, energy productivity and reserves, food productivity and reserves.
These figures are enough to make people tremble, especially the foreigners. When they think about it carefully, they feel extremely frightened.
Except for the gold reserves, which are second only to the United States, the others rank first in the world. Among these five anchor goods, gold is the least important.
Domestic reserves of gold and platinum are partly due to reserves refined by the mining alliance, and partly due to reserves for industrial use.
The anchoring of food, energy, minerals, and industrial products means that Huayuan can purchase actual goods instead of virtual financial products.
"We don't need to point a gun at you to make you recognize the value of Huayuan, because it already has value. You can buy everything you need with Huayuan."
As a very important grain, China's total grain output last year included 760 million tons of grains, 770 million tons of feed crops, and 34.5 million tons of oil crops.
But among them, there is an invisible region that is not included in the statistics, and that is the Mobei region.
After a series of transformations, the desert and Gobi Desert in Mobei can produce 210 million tons of feed crops and 82 million tons of oil crops.
In addition, the farms and ranches invested by the Food Alliance in the Caspian Sea region in the past two years can also be counted as affiliated to this system.
At present, the annual per capita grain ownership in the country has reached 556 kilograms. Starting this year, due to the large-scale production in rural areas and pastures in Mobei, the Grain Alliance began to systematically reduce the domestic feed and oil planting area and increase the grain planting area.
It is estimated that in 2013, the total domestic grain output will exceed 850 million tons, and an overflow of 200 to 300 million tons of grain is expected.
Similarly, there will be overcapacity in feed and oilseeds, and large-scale exports will be possible.
Grain, feed, oil and cotton, plus vegetables and fruits, and feed ensure meat production. Even ABCD can hardly withstand the powerful offensive of the Grain Alliance, showing a situation of losing ground.
The goal of the Grain Alliance is to achieve a total domestic grain output of 1.4 billion tons and a controllable area grain output of 500 million tons by around 2020.
This grain output is enough to supply 3 to 4 billion people for a year.
Such a huge grain output is the core of the five cornerstones of the Huayuan. The cornerstones of the rice dollar are only gold, finance, energy, and grain, and lack industrial products and ores.
As the world currency attribute of the rice dollar is weakened and financial hegemony becomes unstable, food problems will also arise.
Without the impact of the Food Alliance, perhaps they could have stabilized their food card, but now the Food Alliance's relentless pursuit has put ABCD in a very passive situation.
Grain production involves a shelf life issue. ABCD's previous strategy was to destroy local grain cultivation through early low-price dumping, merge with local agricultural enterprises, and then raise grain prices to achieve profit harvesting.
In this process, several prerequisites must be ensured. First, the cost of agricultural products is relatively low; second, the ability to force the other party to open the market; third, there are no substitute suppliers.
Before the rise of the Grain Alliance, ABCD had become a super oligarch monopolizing the international grain market through alliances, and it relied on the fist of the United States.
But today is different from the past. The emergence of the Grain Alliance has broken the layout of ABCD and gradually suppressed ABCD.
ABCD has a fatal flaw, that is, they are a capital company, and capital needs to make money. One or two years of losses can be tolerated, but once they suffer long-term losses, they will soon fall apart.
Last year's swine fever outbreak and the attack by the Grain Alliance caused ABCD to suffer heavy losses. The worst loss was Cargill's loss of tens of billions of dollars, and the other three companies also lost several billions of dollars.
The situation this year has not improved. In the brutal competition, ABCD has become even more vulnerable due to the depreciation of the dollar.
Many people may think that currency depreciation is conducive to exports, but this is not a conclusive conclusion, because the prerequisite for being conducive to exports is that you have something to export.
Since North America retreated from reality and turned into a financial country, its industrial capabilities have declined a lot.
In recent years, even many mid- to high-end industries have been defeated by Chinese companies, and their industrial productivity has declined even more significantly.
The over-issued rice dollar currency continued to flow back to North America, causing serious inflation in North America. Chinese goods that were previously cheap and high-quality no longer accepted payment in rice dollars, requiring the use of Chinese dollars as the settlement currency.
You must know that about two-thirds of the rice dollar is overseas rice dollars. The foreign exchange reserves of various regions alone exceeded 7 trillion at its peak. If we add 16.7 trillion rice dollars in foreign debt, the global private reserves dollars, the total is definitely approaching 30 trillion.
With such a huge amount of money, if it were all returned to the mainland, based on the previous value of the rice dollar, it could buy everything on the ground in North America several times.
Under such circumstances, the rice dollar will naturally depreciate on a large scale, and other regions are also afraid that the rice dollar will completely turn into waste paper, causing panic and large-scale runs.
Many regions are trying their best to turn their rice dollars into materials, industrial products, raw materials and assets with real value.
It was this panic run on the dollar that attracted great attention in the country.
Taking advantage of the world's currency and over-issuance of currency will naturally not cause many problems during the period of rising national strength; but once the national strength begins to decline, the consequences will be accelerated decline.
In this big run, the rice dollar depreciated wildly, especially the successive purchase restrictions, which intensified the panic. After all, the rice dollar can't buy anything. So the reserved foreign exchange rice dollar, isn't it just a lot of waste paper?
Among them, Japan and Latin America, which were most severely deceived by Noah's Society, became the rice dollar flood discharge area, flooded with water, and inflation caused prices to skyrocket.
The current quantitative easing program can no longer be used. If the Huayuan does not want to become the second rice dollar, it must ensure the stability of the currency value and the realization of value exchange.
At the venue, various financial practitioners and delegations from various regions were considering Huayuan's effective currency plan.
Thank you for your support (⊙⊙), and warm congratulations on the successful landing of Zhurong on Mars!
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