"More than twenty small businesses have gone bankrupt this week. The risks of import and export trade have begun to grow uncontrollably for these small businesses. If they cannot adapt and find a good way to spend this special time, it can be expected that What’s more, many small and micro enterprises will go bankrupt in this wave!” At the federal high-level meeting, the undersecretary in charge of import and export trade said to the officials participating in the meeting, “The madness of the Federal Shield” The increase is not entirely good news. We still face many problems that need to be solved. ”
Things that are very normal for ordinary people have attracted the attention of high-level federal officials. These officials have a keener sense of the country's operations, financial mechanisms, and economic construction than ordinary people. The collapse of a small export company means that more small and micro businesses are facing all the problems that the failed company experienced. It is very difficult to maintain the situation when costs increase but income suddenly decreases. There are always some expenses that entrepreneurs cannot get rid of, such as staff salaries.
At the same time, the readjustment of tariffs between the Federation and the Empire also made it difficult for these small and medium-sized enterprises that exported through dumping. Their products were no longer competitive in the Empire market after the removal of tariff exemption, such as some A company that produces lighters. They once dumped their goods to the empire unscrupulously, occupying the empire's market with large trade volumes and cheaper prices. However, with the restoration of tariffs, the prices of their goods within the empire are no longer so attractive, and they are not as popular in the market as the empire's own products.
Of course, where there is light, there must be shadow. Everything has always been divided into pros and cons, with a good side and a bad side.
A deputy minister of the Ministry of Finance then said, "This does not conflict with our previous plans. Gentlemen, liberalizing the relationship with the Imperial Star Yuan exchange rate and opening up a larger market are our most important plans now. In Before we did this work, we already understood that the financial and economic markets in the federation would inevitably face a certain degree of impact, including the collapse of some companies. This is an inevitable pain that we need to endure to break away from the past. The empire has been in power for more than 20 years, and has used the empire's market to nurture a large number of outstanding companies. Under the natural competition and elimination mechanism of the market, if some people succeed, then some people must face failure. "
"It's just that these people are very unfortunate to become one of the losers. They have rigid business concepts and do not know how to adapt their thinking. What makes them face failure is not changes in national policies, but themselves. They cannot turn around their companies in time. If they change their business direction and existing business projects and concepts, they will inevitably be eliminated by the market. Let us focus on those successful companies. In the past twenty years, more than 130 companies have been born in the Federation. Excellent large-scale multinational trading companies. I think the problem that the Undersecretary of Trade is worried about is not a problem in itself. If we don’t do these things, won’t these companies go bankrupt?”
"No, we will not formulate new policies to promote the market to open to the world faster. They will still struggle when they lose their competitiveness. In the end, they will go bankrupt and be forced to liquidate. We all understand that the market is cruel, and we We can sympathize with their situation, but we cannot change our existing policies just because of their current situation.”
“Members of the Joint Parliament and the Speaker have shown optimism about the current situation, and let us focus on those successful companies that do not need special support from us to gain a foothold in international trade and are still able to maintain a foothold in international trade. As for small businesses, I don’t think we need to pay too much attention to them.”
Now the main federal policies and plans are basically formulated to promote the federal shield to become an international currency. The Ministry of Trade has interviewed many entrepreneurs from multinational companies last week, and they have put forward an idea that requires the federal shield to be used in foreign trade. All businesses firmly use the Federal Shield as the settlement currency. It seems like a very stupid thing. It increases the trade process. Those foreign import and export companies need to hold federal shields to trade with federal merchants. But from another perspective, the accelerated expansion of the circulation scope of the Federal Shield on an international scale will have a very good promotion effect on their ultimate goal.
When people are accustomed to keeping some Federal Shields in their pockets and using the Federal Shield as a settlement currency in international trade, the influence of the Merchant Federation and the Federal Shield will rapidly increase in the international arena, and will eventually become mainstream settlement. currency. At that time, the entire world's market will have to comply with the business rules set by the Federation, and in some cases pay for the economic development of the Federation. The influence and benefits it brings far exceed the wave caused by the collapse of some small businesses.
The deputy minister of the Ministry of Trade smiled bitterly and nodded. In fact, he also knew very well that the collapse of small and micro enterprises at this stage is a self-regulation of the market mechanism. The profits of large enterprises began to increase, while those of small enterprises began to decrease. The transfer of profits caused these "disabled" enterprises to be eliminated, and the nutrients and vacated markets after their bankruptcy were used to encourage "sound" enterprises to become stronger.
But..., there is always some worry. Once the wave of bankruptcies forms, it may cause some problems in society. Increased unemployment, an increase in idle property workers, and public security issues will eventually evolve into more complex social problems in a short period of time.
The Undersecretary of Finance continued, "Let me inform you that next month, the central bank will continue to cut interest rates to stimulate the market, and at the same time issue some other financial policies to activate the federal financial market. I hope everyone can cooperate as much as possible. At the same time, Detect market fluctuations… ”
In fact, there is one thing that the deputy minister did not say. After discussions at the Supreme Meeting of the United Parliament, it was decided to issue a new batch of federal shields. To put it simply, it means printing more banknotes.
Now in the international currency market, the Federal Shield is favored by investors from all over the world. It has been determined that there will not be much fluctuation in the short term and will continue to rise in a stable and firm manner. Rising prices will strengthen investor confidence, which will reduce the amount of currency in circulation. In order to spread the influence of the Federal Shield as quickly as possible, the Union Council made such a decision.
Of course, printing a batch of currency will lower the price of the Federal Shield, but this is definitely within an acceptable range. Domestic think tanks believe that this move will cause the exchange rate of the Federal Shield to drop in a short period of time, and will also release An obvious signal is that the federal shield for circulation is no longer sufficient, which will further stimulate investor confidence in the federation.
This news is indeed not suitable to be disclosed prematurely. The Ministry of Finance has always had great confidence in the federal financial economy.
Williams is the sole shareholder of a small import-export trading company, and his product is only one thing - blankets.
In the past ten years, he has made a lot of money, which is enough for him to live in a villa area in the upper city, drive a high-end luxury car, and visit some high-end places that require certification. Even his family can enjoy everything . To this day, he can't forget that his factory worked overtime and frantically made blankets and then packaged them and dumped them into the empire. The dealers in the empire sent him several telegrams every day, urging him to ship the goods as quickly as possible to cope with the crazy market. He was a member of the dumping army.
There were many such people around him. It was definitely a glorious era worth recalling. Countless people used everything they owned to mortgage loans, used the money to open simple small factories, and then went crazy from the empire. It was truly a golden age to make profits. No matter what you produce, as long as you sell it to the empire, you will definitely make money. As long as you dare to gamble, you will definitely win. This is still something people talk about.
At that time, his cheap blankets were deeply loved by low-income people in the empire. A two-star blanket had a gross profit of about 35%, which made him a successful person.
But recently, his good days have come to an end. Even if the federation gave him tax rebates and subsidies, after the tariffs were restored, the sales price of his products at the Empire Terminal has risen to 3.2 yuan, and the gross profit is only a dozen percent. , in other words, he basically does not make money by selling things, but makes small profits by tax refunds and subsidies. The Empire's competitiveness in the market that has recovered is very poor. Compared with the blankets produced by the Empire for two dollars and forty-nine cents, the sales volume of its own blankets is worrying.
The dealer has called him more than once to tell him to cut back on purchases.
Now, he is sitting blankly in the bank's credit department office, looking at a loan document in front of him. He wants to mortgage the villa where he has lived for more than eight years to the bank in exchange for a loan to maintain current production and operations. He didn't know where the road was or how to change it. The city hall has called small entrepreneurs like them to meetings more than once, telling them that they need to transform, be flexible, and make relative adjustments to keep up with the times and policies. But he is the chairman of a small business. He is not an economist. He knows what those words and phrases mean, but he doesn’t know how to do it.
The only thing he can do now is to maintain his business. Maybe the market will get better one day. I heard that several areas have just ended the war and there is a lot of market space. Maybe he can work hard in this regard.
After he picked up the pen and signed his name, the department manager sitting opposite him seemed to have a smile on his face, "Mr. Williams, your loan will be credited to your account within three hours." , you have six months to spend the money. If you cannot repay the loan principal and interest after six months, we may expropriate your house and conduct an auction according to the terms of our contract. Good luck to you. !”
Williams squeezed out a smile and shook hands with the department manager. The other person gave him a business card and said some things that made him unhappy. For example, if he still needed it, he could contact the manager directly. It can save them a lot of steps.
Son of a bitch, you are cursing me! !
Williams had a smile on his face but was cursing secretly in his heart. He felt uncomfortable having to put on a smile again. Watching Williams leave, the department manager smiled and shook his head. Recently, many small and medium-sized enterprises have begun to seek loans to maintain the normal operation of the enterprise, but it must be said that the effect of this is not good. Several small businesses have already Companies lost their collateral because they failed to repay loan principal and interest. They cannot alleviate the current situation at all except continuing to obtain more financial support from banks by selling off their assets.
This is a good time, indeed, for banks. A large number of high-quality assets can be controlled by paying only a small amount of money. It is foreseeable that this year's year-end bonus will have a qualitative breakthrough!
After Williams returned to his factory, he forced out an ugly smile when facing the workers who had stopped working and were smoking and chatting at the entrance of the factory. He did not appear as high-spirited as he expected last night and then cheered up and encouraged the workers. We continue to work. At this moment he felt very tired and exhausted.
"Call people over to settle last month's wages, and inform our friends that we need some new raw materials." Following Williams' words, the idle workers in the factory cheered and slapped their buttocks. There was a lot of dust, and they happily lined up to settle their wages outside the office.
Although they are also worried about the future of the factory, it doesn't seem that bad at the moment. The boss already has money to pay wages, right? And they have to continue to produce, which means their jobs will continue and they can earn money to support their families.
But in the hearts of these workers, there is also a trace of worry about whether wages will be settled next month as they are now.
When he returned home at night, Williams locked himself in his study. Half of the money he got from the bank mortgage today had been used up. After the raw materials arrived tomorrow, he could continue working and could barely make it through the next month.
He doesn't need to pay for the raw materials now. He has a good cooperative relationship and a private friendship with the supplier. The other party will let him temporarily press down a batch of payment. This is not the first time such a thing has happened. What should he do if the product does not sell better next month...
He felt a headache when he thought of this. He had tried his best, but why could he still not see a way out or the light
He fell into a daze, looking for an exit that didn't exist in the fog.
(End of chapter)