Chapter 2838: The Foundation's Risky Move
The way the hegemonic currency is harvested in tides is roughly like this: the first step is to lower interest rates and release water, allowing a large amount of hegemonic currency to invest in the country you want to harvest.
Because of its extremely low interest rate, giant companies in the target countries are willing to borrow money from the hegemonic country.
For example, real estate companies in various countries before the subprime mortgage crisis broke out.
Due to the influx of a large amount of hegemonic country's currency, the assets of the target country will rise sharply, thus forming an asset bubble.
The second step is that when a bubble is formed, the hegemonic country will quickly raise interest rates to allow the hegemonic currency to flow back.
In this way, on the one hand, the target country's economy will fall into recession due to lack of money, and on the other hand, the companies that borrow money will also see their capital chain broken due to the surge in interest rates, thus creating the risk of a collective bankruptcy.
Through these operations, a hegemonic country can achieve the goal of booming the economy of a target country.
The third step is that when the economy is detonated, asset prices will fall sharply, and the people behind the Federal Reserve, such as foundations, and the capital of hegemonic countries, will take the opportunity to buy at the bottom and reap wealth at extremely low prices.
These three steps are indispensable and are the three major tricks for "shearing the sheep" with the hegemonic currency.
It is also the simplest and most useful of all Solomon's "sheep shearing" techniques.
By shearing the wool in this way, the foundation has won the operating rights in the fields of energy, minerals, funds, power grids, agriculture, etc. in many countries.
It is almost equivalent to controlling the economic lifeline of that country.
The interest rate cut this time is so severe that countries around the world are frantically borrowing money from the hegemonic country.
After all, the interest rate of the hegemonic currency is now infinitely close to 0.
If you borrow money from your own country, the interest rate is 5 points or even 6 points, but if you borrow the currency of a dominant country, there is no interest. You can know which one to choose with your eyes closed!
Based on past experience, the interest rate cut cycle is at least half a year, and generally about one year.
Everyone will have a one-year breathing space.
But no one expected that Solomon had gone crazy and was almost bankrupt, so why would he care about the flood in the future?
It has only been a few weeks since the interest rate cut, and Salomon is raising interest rates and harvesting assets!
After something like this happens, the credibility of the hegemonic currency will decline infinitely, and no one will dare to borrow it unless they have no other choice.
As Solomon's interest rate hike order was issued.
Almost all the companies that borrowed money were confused!
"Are you crazy? It's only been a few days since I borrowed the money, and you're already asking for interest?"
"Isn't this bullshit? I just invested the money and the project hasn't even started yet!"
"Is the hegemony about to end? Why are you in such a hurry to harvest?"
"What should we do? They raised the interest rate too high! We can't afford it!!!"
"..."
The first one to fall was the Pharaoh Empire.
The Pharaoh Empire's economy was already very bad, and was pushed to the brink of bankruptcy by the subprime mortgage crisis.
This time, I am thinking of borrowing some interest-free Ba Guo currency to tide over the difficulties.
As a result, the interest rate hike came so quickly!
The Pharaoh Empire lay down on the spot and announced that it was approaching bankruptcy!
The IMF took advantage of the situation to intervene and provide assistance to Pharaoh.
The price was that the Pharaoh's central bank announced that it would relax exchange rate controls and allow the market to determine the exchange rate.
Anyone who is not a fool knows what will happen if exchange rate controls are relaxed.
Sure enough, within a very short period of time, the exchange rate of Pharaoh's coin against the hegemonic currency plummeted by 40%!!!
The Pharaoh's assets have shrunk significantly.
Solomon took the opportunity to seize the business rights related to tourism, oil and canals of the Pharaoh Empire.
After biting off this piece of fat meat, Solomon was not satisfied. He immediately swung his knife and attacked countries all over the world!
“Reap the harvest ruthlessly!!! I want to reap all the wealth in the world!!!
As long as I take over the wealth of countries around the world, I can use all countries to my advantage!!!
By then, Chen Mo will not only be fighting against the hegemonic country, but the whole world!!!
I want to see how he plays!!!"
Solomon said viciously.
Michelle's throat rolled, and she seemed to want to say something but stopped.
He thought that if they really played it this way, it would definitely cause a wave of resistance from the hegemonic currencies!
Once everyone defaults on their debts or stops using your hegemonic currency, that will be the beginning of your hegemonic nightmare!
But after thinking about it, Michelle didn't dare to say it.
Under the current circumstances, it seems that this is the only path the Foundation can take.
If we don’t take this path, the hegemony may still have room to survive, and the hegemony currency may last for a long time, but the foundation will definitely be gone!!!
"How could a dignified foundation and the dignified Rothschild family fall to such a risky move... Oh..."
