Extraordinary Genius

In fact, it has also been discovered that Huaxia is a manufacturing power, which is not a compliment at all.

If you are doing high-value-added precision manufacturing, then profitability is very high, and such manufacturing powers as Germany, the US, island countries, etc. will become developed countries.

Huaxia, the so-called manufacturing power, relies mostly on cheap labor to become a factory in the world, which is an outward economy.

Simply put, Huaxia's foreign trade is mainly aimed at generating foreign exchange.

Such a model could rapidly improve technology and efficiency and enhance international competitiveness, but at the same time there was a great risk of overdependence on international markets.

Changes in international markets can have a serious impact, if not a blow, on this pattern of economic development. The cost of such economic development is considerable.

Developed countries, for their part, have a domestic demand economy, with high consumption, wages and investment.

Huaxia did make a lot of foreign exchange, and then what? Some are used as foreign exchange reserves, while others are mainly for the purchase of foreign bonds.

Foreign bonds are issued to promote your own consumption, that is, you buy people's bonds, which is equivalent to giving money to others to live a wasted life.

How much money a bond can make, that is, it keeps you in value. But people have taken your money to stimulate the domestic demand economy, and they've already made more money.

Huaxia cannot rely on cheap labour as a means of competition, nor can it use environmental damage as a means of development, which is highly unsound.

Just as Huaxia has the largest foreign exchange reserves in the world, it seems to increase the country's resilience to risk, but it also has the great disadvantage of being easily kidnapped by foreign exchange, especially the United States dollar.

By selling the dollar, the financial markets will be affected, the stock market in Huaxia will be affected and RMB's exchange rate will be affected. So the result is that you can only buy foreign exchange, but you can't sell it, which is equivalent to helping the US stabilize the dollar.

The strong US and UK economies, booming financial markets, have a lot to do with their currency position in the world. But that status is not static.

Just like in that year, didn't Soros take a hit on the pound exchange rate and make a lot of money? It was also that time that the United States dollar replaced the pound sterling and became the foreign-exchange market's number one currency.

Upper Huaxia actually noticed this, and now they are gradually making less of these low-value-added products, like clothing and leather shoes, which are really competitive internationally, but with an anti-dumping ticket in the EU, have they not been significantly affected?

At this time, Huaxia is also making import substitutions, which means that the development of technologies related to products that Huaxia has to import is not subject to foreign restrictions.

Just as Huaxia was the world's number one pen maker, a little guy who made ballpoint pens had to import them from abroad.

The best of these are island countries, followed by Germany and Switzerland. Seems like a worthless little thing, but when it comes to quantity, it's profitable.

This is also a direct reflection of Huaxia's large gap from the world's most advanced materials and so on.

Was Huaxia lacking some scientific talent? Of course not. Huaxia's talent is absolutely enormous.

But a lot of people are doing other things, like focusing on military ~ technology, etc. Of course this is true, the military ~ is not strong enough to become a powerful country.

But military-military integration, it's too bad. Many technologies, which can be used directly for civilian purposes, can both improve people's livelihoods and generate profits, so that more funds can support technological development and innovation.

The outward-looking economy is good, good, but the outward-looking economy depends on the economic advantages of the country. This advantage would be perfect if it were technology, even if it were capital, but if it was just a cheap workforce, what else could you be proud of?

It's not right that the country is growing and people don't make more money, is it? That's what people expect only if they live in better conditions.

Huaxia has always said that the development model of other countries can only be referenced and must not be reproduced. This is the logic that everyone understands.

Because national circumstances vary from country to country, no one can develop according to someone else's model. Just like Thailand in the beginning, how bad did it turn out to be, following someone else's model?

Even without Feng Yu's involvement, Soros led the way in severely hitting the economy such as Thailand and involving a group of countries closely related to its economy.

Huaxia was worried that this would happen, which is why it increased its foreign exchange reserves, but not too much.

In fact, it has also been found that there are serious shortcomings in excess of foreign exchange reserves, and that improving the international position of local currencies is the most correct approach at this time.

Huaxia has too many US Treasury bonds, which is equivalent to tying its economy to the US, then depreciating the US dollar and stimulating RMB appreciation will shrink US debt in Huaxia's hands.

For example, if the exchange rate changed from 1: 8 to 1: 7, then the US owed 800 million RMB to Huaxia, and now it only needs to pay 700 million RMB, which reduces the US debt and fiscal deficit, which is equivalent to Huaxia paying for US debt, and causes inflation in Huaxia.

What can you do without losing money? Continue to buy the dollar, pull up the dollar's exchange rate, and keep Huaxia up the dollar's foreign exchange reserves. Then the cost of products exported from Huaxia abroad will rise and competitiveness will decline.

Mainly because the US owes Huaxia too much money, and Huaxia has too much foreign exchange investment in the US.

Such exchange rate movements can have a serious impact on property in Huaxia. Look at the yen. Exchange rates are very low. Isn't the island economy bad?

RMB appreciation is already a trend, at this time try to avoid losses and make this trend slower and more reasonable.

It is fundamental that currencies must be aligned with purchasing power, particularly in conjunction with the national economy.

Of course, many issues may be considered by Feng Yu. After all, he doesn't really understand some of the political ~ political developments at the top level, but Huaxia's trade surplus is too strong, and a lot of international hot money poured into Huaxia, which is definitely not a good thing.

In particular, much of this trade surplus is derived from export subsidies. Many enterprises, which depend on this export subsidy to make a profit, can such enterprises say that they are developing well?

Huaxia's exports are severely constrained by international technical barriers, and anti-dumping cases against Huaxia are on the rise, all of which can cause huge losses to Huaxia.

This economic crisis in the US wants countries like Huaxia to pay for it, then Feng Yu must find a way for the US to pay for this idea!

……