A country's economic development can never be maintained in a very, very stable state. It may exceed the plan, or it may be lower than the plan. There is always a need for development. The development of economic construction will also bring about a series of chain reactions. With the recovery of the empire's economy, the trade volume between the two countries began to increase significantly. In particular, the Federation intentionally adjusted some tariffs to normal tariffs to allow the Federation's economy to go through the adaptation period from dumping to competition.
Many entrepreneurs don't quite understand this. There are still more than two years left, so why not continue to dump the country's goods to the empire? Even if you can only make money for two years, it is better than having to start thinking about a series of things now. factors to enhance the competitiveness of industries within the federation.
The Joint Council also has its own ideas. Once these domestic companies that are accustomed to making huge profits through dumping of light industrial goods are no longer able to continue to make money through dumping, they will first reduce the size of the company to save expenses, and then it is very likely that they will In the process of transformation, there is no way out. It will either go bankrupt or transform into other businesses. In this process, a large number of working class people will be released to roam the streets. These unemployed people will bring the security of various industrial cities in the federation to the most terrifying extent, and even cause turmoil as a result.
What's even more frightening is that if these capitalists and companies give up their original companies or products because they cannot repeat the past methods of making huge profits, it will be the Empire's turn to start dumping low-priced goods into the Federation to occupy the Federation's light industrial market. The Empire has a big advantage in this regard. They have very cheap labor and very cheap land. Their ass love index, that is, the industrial production cost index is lower than that of the Federation. Even after they pay enough tariffs, It is also very competitive in the society within the federation.
After a series of adjustments to the economy in various aspects, there is not without good news. For example, the recovery and rapid development of the federal economy has led the federal economy to enter a period of rapid development, and there are fewer and fewer international wars and trade. Due to various extremely complex reasons such as the increase in exchange rate, the Union Council suddenly realized that stabilizing the exchange rate with the empire itself may not be suitable for the current situation. Especially in the settlement of import and export trade, the Federation suffered a loss.
This is very obvious. If the Federation two years ago is compared to a galloping carriage with two horses pulling it, the history of the Empire is a galloping carriage with only one horse pulling it. There is a pole between the two carriages. The chain called the exchange rate is connected together, so the problem may not be too big. Although the speed of the federal carriage will be limited by the empire's carriage, this speed limit is still within the acceptable range of everyone.
So today, two years later, the empire's economy has begun to take off, the federal market has become more diversified, and import and export trade has become more frequent. The number of horses pulling the federation's carriage has become four, and the number of horses pulling the empire's carriage has become two. . From a purely numerical point of view, everyone has doubled, but the problem is that from the perspective of development speed and trend, the development speed of the more mature federal free economic market is much higher than the current economic development speed of the empire. This will inevitably brings a series of problems. Including the doubling of the Federation's import and export trade volume this year, if this chain is still maintained, it will inhibit the economic development of the Federation.
This is a very obvious thing. In international trade, people have become accustomed to using the Imperial Star Yuan to settle accounts with the Federation. Because of the "Currency Memorandum of Understanding", both countries abide by this agreement and make the exchange rate very stable. This has become an international currency. I suffered from the most prominent lumbar disc in my business. The use of Imperial Star Dollars for settlement has reduced the cost of other trading countries importing from the Federation, but it has harmed the profits of the Federation's export trade. Some businessmen have begun to voluntarily ban the use of Imperial Star Dollars for settlement in foreign trade.
So this group of people very cunningly registered a trading company in the Shining Star Empire, exchanged it for Imperial Star Dollars through the Empire's free-floating international currency market, and then turned around to import goods from the Federation and transfer them to their real country. . Although it went in a circle, this was still an advantage.
Now the United Parliament has two relatively simple choices. The first is to provide assistance to the Yaoxing Empire to help the empire's economic development speed keep up with the pace of the Federation and help them achieve a real take-off in economic development. The currency relations between the two countries and International monetary relations tend to normalize. But is this a very selfish choice to use one's own money to help the development of the federation? I'm afraid that group of crazy "patriots" will march outside the parliament building every day to ensure that all members cannot have a good rest at work.
The second option is to temporarily release the "Currency Memorandum of Understanding" signed with the Empire, cut off the stable exchange rate between the Star Dollar and the Federation Shield, and allow it to float freely. This will not only make those fanatics who daydream about re-invading the Empire to eliminate tyranny and regret why they did not insist on continuing to attack and completely defeat the Empire less violent, it will also strengthen the circulation of the Federation Shield in the international market, allowing the Federation to The shield became one of the mainstream currencies in circulation.
Once this is achieved, the federal shield becomes the mainstream international currency, which means that the federation will occupy a dominant position in the entire international market. They can control the international financial market through various means of regulation and control to a greater extent. The idea of cutting wool from countries around the world to strengthen the Federation itself is currently the most mainstream voice in the Union Parliament.
Compared with the first option, which is less emotionally acceptable, the second option is obviously more in line with the requirements of the current mainstream society in the Federation. Federation capitalists have always believed that in the entire international market, Federation businessmen should play a role. A more important role should not focus too much on how to check and balance the development of the empire. Moreover, the Federation started earlier than the Empire in international trade. This decisive factor destined the Empire to always pursue a goal that it could never catch up with.
Therefore, the Supreme Speaker of the United Parliament initiated this meeting to decide whether to tear up the "Currency Memorandum of Understanding" and let the exchange rate of the Federal Guild float freely in the foreign exchange market.
"Everyone, let's talk about your opinions. I have to go home to have dinner with my family in the evening. I'm old and I don't want to sit here all day." One speaker took off his glasses and rubbed his eyes. Someone brought two blowers in to blow out all the smoke in the conference room. It was so irritating to the eyes.
Albert, who was sitting at the bottom seat on his left, was holding a pipe. He looked at the others and tapped his fingers on the table twice. These two sounds made everyone focus on the young man named Albert. In fact, if you say he is young, he is not young, but he is very good. The Atlantic Group Company he formed has achieved leapfrog development in just a few years. Albert has become the idol of many young people in federal society. In particular, the United Construction Engineering Company within his group company has successfully opened up the empire's market and is fiercely competing with the empire's established capitalists.
With the continuous listing of various subsidiaries, it only took Albert nearly three years to go from an inconspicuous young entrepreneur to a hot federal upstart. He even entered the federal government in last year's general election. Supreme Council, became a member.
Many people say that his success is due to luck, but luck itself is part of strength, because not everyone has luck, and not everyone can grasp luck. In the first half of the year, United Construction Engineering also signed a 20,000-kilometer railway construction plan with several companies in the empire, allowing United Construction Engineering's stock to directly lead the entire construction industry sector. Recently, there was news that United Construction Engineering would join forces with other companies. Several companies are working together to build a "round the world" track to connect four continents, including the design of an undersea tunnel that is being tendered.
This is a young man with a fortune of billions, and every decision he makes will cause earthquakes in some industries within the federation.
Albert didn't panic at all when facing so many eyes. He calmly knocked the ash from his pipe into the ashtray, then looked around, "Why not?"
"Many of the basic materials used by the United Construction Company to build railways are imported from the Federation because it is cheaper and more cost-effective than producing them themselves. Look at the outside world today. People all over the world are making money from us. We Just sitting here, a lot of profits are flying out of our pockets every second because of unreasonable exchange rate agreements. This is unfair, Speakers, and all the gentlemen here!”
"Perhaps this was a good agreement in the past, stabilizing the trade balance between our two countries, but there are fewer and fewer wars in the outside world, and we no longer need to use the empire as a risk countermeasure plan to face the world."
"If I had to choose, I would vote in favor of signing a new agreement to end the relationship between the two currencies."
Albert's words immediately triggered the recognition of other members in the conference room. In the Federation of Commerce, almost all members are big capitalists, because this is a country where capital originates. In the past, a large number of business groups were stationed here. In the end, these business groups became larger and larger, and their residences gradually formed cities. The government officials they elected were also big capitalists. This is why the empire has always looked down on the Federation. The reason - a country of deceitful villains, what is there to respect
Of course, the Civil War taught the Empire the consequences of arrogance.
Another congressman also stood up. He raised his watch and said: "I also agree with Congressman Albert's suggestion. We should not trap ourselves because of a backward agreement. The world is changing every minute and every second. In the face of change, nothing should last forever, including this agreement. If the empire needs it, we can sign a new agreement that is consistent with the current international situation, but it must be ended!"
The author doesn't know anything about finance, so what he writes may be full of errors and omissions. Just think of it as a characteristic of another world.
(End of chapter)