Chapter 1591 [It is a headache to deal with too much money]

Around 15:20 in the afternoon.

Fang Hong was conducting an internal video conference within Qunxing Group. He did not go to the company. Several people present at the meeting were the core decision-makers of Qunxing Group, namely Hua Yu, Cao Chenghui, Qiu Guangcheng, Zhao Sheng, Wu Cheng, Shi Yao and Tian Jiayi .

At this time, Zhao Sheng, the current rotating head of the Qunxing Group, said: "The media in Europe and America are exaggerating the so-called imported inflation crisis. Although it is a war of public opinion, it is undeniable that what they say is not entirely wrong. We, the Qunxing Group, are crazy The return of US$3.13 trillion of wealth to the country will definitely bear the pressure of imported inflation. This is an objective problem that cannot be ignored. "

So many U.S. dollars have been earned outside, but U.S. dollars cannot be circulated domestically and need to be converted into RMB according to the exchange rate. The wealth of 3.13 trillion U.S. dollars has returned, and the corresponding additional RMB issuance is a terrifying scale of more than 21 trillion.

If an economy wants to operate healthily, the amount of currency issuance and the supply of materials should correspond. As much currency is issued as there are materials, otherwise problems will arise.

If there is more money and less supplies, it will cause inflation and currency depreciation; otherwise, deflation and insufficient liquidity will occur.

If the domestic currency and materials are now balanced, there are 100 trillion yuan and 100 trillion materials in the market, so they can correspond one to one. Now that Qunxing has made 3.13 trillion U.S. dollars from overseas, and with so much money, he has to exchange it with the central government to RMB for domestic circulation and investment. The central government has to print out 21.72 trillion yuan of new renminbi and give it to Qunxing Group, instead of taking the original renminbi. Redeem to Star Group.

This is because the newly printed RMB can theoretically achieve a balance between currency and materials, because the 3.13 trillion U.S. dollars brought back by the stars cannot be understood as currency, but are equivalent to equivalent commodities and materials worth so much money, which is equivalent to converting 3.13 trillion U.S. dollars worth of Trillions of dollars of commodities and materials were brought back from abroad and placed in the domestic market. In order to correspond to the commodities and materials worth 3.13 trillion U.S. dollars, a corresponding amount of RMB must be issued according to the exchange rate. Only in theory can a balance between currency and materials be achieved. .

Because the central government can use the 3.13 trillion U.S. dollars to purchase food, resources, and gold in the international market to achieve balance. This is the operating logic dominated by the current U.S. dollar system. Before the U.S. dollar collapses, it can only play like this.

In short, just think of the dollars earned from outside as goods. With so many more goods, the corresponding renminbi must be printed to achieve a theoretical monetary and material balance.

The so-called imported inflation refers to the sudden increase of such a huge amount of money supply in the short term, coupled with the currency derivatives of banks and other financial institutions, it may eventually reach the terrifying level of hundreds of billions.

With so much money, no matter which market or field it pours into, the prices of products in this market and field will skyrocket.

If it floods into the field of people's livelihood, the prices of various commodities, fruits and vegetables will skyrocket. A bottle of mineral water may cost more than 10 yuan in the future, which is definitely unaffordable for ordinary families with a monthly income of several thousand yuan. .

If this money pours into the real estate market, then the real estate market prices will skyrocket. If it pours into the stock market, then the stock market will also skyrocket.

Today's A-share market trend is extremely intuitive. The SGX 50 Index soared by 4 percentage points, easily breaking through the pressure level and directly reaching a record high of over 7,600 points. The transaction size of the SGX market also hit 1.57 trillion. scale.

Obviously, it is because Qunxing Group has harvested a huge amount of wealth of US$3.13 trillion, which has generated strong expectations. This money has not yet officially flowed back into the Greater China market, but the capital market has begun to react in advance.

But at this moment, Hua Yu, who was attending the meeting, said in a deep voice: "There are only two options, either to suggest that Yangyang Bank raise interest rates, or to let the three trillion US dollars of wealth go offshore without returning."

Zhao Sheng couldn't help but say: "The whole world is cutting interest rates. In the era of zero interest rates, are we pushing for an interest rate increase?"

After a while, Wu Cheng also spoke: "To be honest, the domestic economy is now a bit overheated, so raising interest rates may not be an option."

It is worth mentioning that the situation in this world is far different from Fang Hong’s previous life. The economic environment in 2020 was not so good in his previous life, but this year’s domestic economy is extremely good.

The purpose of raising interest rates is that when the economy overheats, demand exceeds supply, causing prices of goods and services to rise. Raising interest rates can curb credit demand by increasing financing costs, reduce the money supply in the market, and thereby curb inflation.

Raising interest rates will also push up corporate investment costs, thereby reducing corporate investment activities and reducing the money supply in the market to prevent overheated investment behavior from causing unnecessary waste of social resources.

At this time, Qiu Guangcheng, who was present at the meeting, put forward a different view and said: "I agree that our country's economy is very hot now. Traditionally, economic overheating is due to economic growth exceeding the potential growth rate, but the current economic overheating does not mean There is no potential growth rate.”

Qiu Guangcheng added: "To build a space photovoltaic power station, as well as our entire space engineering strategic plan, the potential economic growth rate ceiling is beyond our imagination. The entire space engineering strategic layout, let alone more than 20 trillion , even if it is more than 200 trillion, it can still be filled in without any pressure. "

His meaning is very simple. This money will not go into the real estate market, nor the stock market, nor will it flow into the people's livelihood field to cause a surge in the cost of living for all people. Instead, it will flow into the field of space engineering for incremental accumulation. Looking up at the stars and expanding the boundaries of the universe is also the biggest long-term strategic plan of the Star Group.

Qiu Guangcheng added: "Raising interest rates is not without disadvantages. Although it will help stabilize the economy in the short term, excessively high interest rates will also lead to rising financing costs for enterprises and individuals, affecting the normal growth of the economy, and will cause a huge temperature difference, resulting in inflation on one side and deflation on the other side at the same time."

Cao Chenghui said concisely at this time: "Then we can't just go all-in on the space sector. After all, we are already pioneers in this path. No one has gone further than us. There is no historical experience to learn from. In the future, there will definitely be no shortage of thunder and detours. These are all potential tuition fees. The costs here have to be considered."

As soon as he finished speaking, everyone at the meeting was silent and frowned. This is indeed a headache. It is difficult to find a way to have the best of both worlds, which also illustrates the complexity of the problem from the side.

So everyone looked at the real big boss Fang Hong, who didn't say much at this moment.

At last, Fang Hong paused for a moment and said with a smile: "It's true that having too much money and not knowing how to deal with it is a headache, but it's much better than having no money and being a headache. There's no need to go to extremes. Let's compromise and find a relative balance point."

Speaking of this, Fang Hong paused and thought for a moment before adding in an orderly manner: "This 3 trillion US dollars, equivalent to more than 21 trillion yuan, will be divided into three parts. One third will be offshore as cash reserves, one third will be spent on buying resources around the world, and one third will flow back to the mainland."

When everyone was hesitating about the handling of this huge amount of wealth, Fang Hong decisively decided on the general direction. He set the general direction, and let the people below handle the specific matters.

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