Chapter 38: The Collapse of the International Monetary System
Governments of all countries actually have some clues about the affairs of Japan, but no one is willing to act rashly.
Because at this time, no one wants to provoke a turmoil first, and he doesn't want to become the starter of World War III, so he will naturally delay it if he can.
Of course, if we drag it down, our preparations were not behind at all, and the military expenditure of various countries increased significantly.
The military expenditure of Rabbit Country's own country soared from less than 10% of GDP that year to 20%, and there is a trend of continuing to increase above.
In addition, the Rabbit Government also did a big thing, which was to sell Citi's national debt on a large scale and began to spend the foreign exchange they had saved up on a large scale.
Costs at all costs.
What does it mean to be irrelevant?
The so-called pricelessness refers to whether the price of things rises, no matter how much the foreign exchange returns, and how much the loss is left, as long as Citigroup and other countries are willing to sell, they should buy them all quickly.
If you don’t want to sell food, all kinds of equipment and gold that are not related to keeping warm are always different.
Just kidding, the situation is already so messy. If you don’t spend foreign exchange and throw out the government bonds, you know if the foreign exchange and government bonds will turn into a piece of waste paper or a pile of useless data.
Now the sale and use of flowers is the last carnival, and even the Rabbit Government does not know whether it can sell out the sale and use of flowers. Because the number of Citigroup's national debt and foreign exchange reserves they have saved is too much.
Of course, not only do they save a lot of treasury bonds and foreign exchange reserves, but other countries, especially some larger countries, have accumulated a lot of treasury bonds and foreign exchange reserves.
When the Rabbit Kingdom began to sell Citi's national bonds frantically and spend foreign exchange reserves, some other countries immediately reacted, and the whole world was setting off a wave of selling Citi's national bonds and spending foreign exchange reserves from various countries.
Unfortunately, Citigroup did not make everyone lively for a long time. In just less than a week, they had already begun to depreciate their own currency on a large scale. The banknote printing company even worked overtime to print Citigroup coins. The thousand yuan, which had been no longer printed, and even ten thousand yuan, began to be printed on a large scale.
Everyone knows that this is Citigroup’s debt as much as possible, but they are helpless.
In this case, although everyone has not completely broken up, it is actually not much different from breaking up. The skin on the surface has long been broken and cannot be broken anymore. It is just that the fight has not started yet.
In fact, it is a good choice for Citigroup to depreciate its own currency on a large scale. If you are more shameless and directly declare the national debt to be invalidated, you will lose more.
Because at this time, even if Citigroup announced that all the national debts were invalidated, everyone would not have the energy to spend time to deal with them, and it would be even more impossible to mobilize their troops to attack Citigroup.
The saying that people are shameless and invincible in the world has always made sense. This is true for people and countries, and they are shameless, and even more so for countries with very strong military strength.
In this way, everyone could only accept it by pinching their noses. The government bonds and foreign exchange they had been hoarding desperately back then could only take most of the blame.
Fortunately, people in various countries care more about the price level, and more about whether they can eat enough today and whether they can eat meat tomorrow. They are not very concerned about the national bonds and foreign exchange reserves held by the country. In addition, the control of the media by various countries has not caused any chaos.
But even so, the international monetary system, which originally had Citigroup's currency as its core, could no longer hold on and collapsed directly this time.
Originally, the Rabbit Government took many years to build a local international monetary system with its own currency RMB as its core also completely collapsed due to this incident.
Everyone no longer believes in currency exchange between different countries. Precious metals such as gold and silver have become financial standard trading items in various countries again. The prices of precious metals such as gold and silver are even soaring like rockets.
There is no way, everyone is not stupid. They all understand that the major international systems originally formulated by various countries are in a state of collapse. The money exchanged from a certain country today may become waste paper the next day. No one dares to take such risks.
After all, the popular banknotes around the world are actually just a credit currency, just a general equivalent.
When the world is peaceful, it is natural that it doesn't matter if you use this general equivalent. However, when the world is not peaceful and when the big deadbeat of Citiland has appeared, how can you believe that everyone knows this kind of thing that is just printed on paper?
Of course, they changed to bartering or trading with precious metals.
The international financial system and credit monetary system that governments have finally built up took countless years to break down completely in less than three months.
It can be seen how fragile and ridiculous the rules and regulations, moral ethics, and legal provisions formulated by human beings are in the face of natural disasters.
In the end, what remains is the fundamental nature of human nature.
Of course, although the international monetary system and credit monetary system have begun to collapse, it is just an international collapse, and the paper money of various countries has not completely collapsed.
In addition to the problems in their country's credit monetary system due to the large-scale depreciation of currency, the credit monetary system within most other countries has not yet had major problems and can still barely support it.
After all, if governments now announce that all their banknotes are scrapped, they may have a revolution the next day, and the whole world will fall into a state of turmoil on the third day, and the social order established by mankind for thousands of years collapsed instantly.
However, although the credit monetary systems of various countries have not collapsed, everyone is unwilling to put money in the bank or in the bank. The Rabbit Nationals, who have always liked to save money, quickly withdraw all the money and spend it, and exchange it for various materials to be stored at home.
Just kidding, money will depreciate for one day after one day when it is left in the bank, and the prices of things outside are rising like crazy. If you don’t spend money, you can buy a car today, but you may not be able to exchange for a box of apples tomorrow.
In this case, who dares to store the money in the bank for interest?
Chapter completed!