Extraordinary Genius

Chapter 1783: Poor America

The two housing groups were taken over by the US government axe, and Feng Yu released a series of data in the media at a time when everyone thought the two housing groups might have survived.

These include the fiscal revenues and expenditures of the US government axe in the first half of this year, the amount of liabilities and debt ratios of the two housing groups, the amount of losses of the major US banks, the default rate of real estate loans, etc.

Once published, the data immediately caused an outcry.

Ordinary people may not be paying too much attention to these, they just look at some superficial phenomena and think that the US is the richest country in the world, and the US political axe is certainly the richest political axe.

But when they saw the fiscal deficit, they were surprised to find that the US political axe was no longer rich.

And the number of US government bonds issued by the Axe far exceeds that of other countries, with a little over $5 trillion, purchased by many countries in Europe and Asia.

Interest on Treasury bonds is higher than bank interest, meaning that even if the tax is good, the US pays off the matured Treasury bonds held by other countries before they can be used for the proper functioning of the political axe.

And US taxes simply can't support this normal operation, and they can only continue to issue government bonds and run liabilities.

Although the US economy seems to have developed very well in recent years, when Boo X took office, there was a war going on. The money consumed by war is also an astronomical figure.

It's not just buying those weapons and equipment, it's paying military salaries and pensions and all that, it's a huge expense.

Infrastructure, welfare, etc. cannot be stopped. The number of unemployed persons in many industries in the United States has increased dramatically since last year, increasing the number of people receiving political axe benefits and spending on political axe.

It was also a major expense to help those financial institutions to stabilize the market economy last year and the first half of this year. The current US political axe is simply an over-indebtedness situation.

How can such a US political axe save a two-room group?

If there's money, of course it's easy to say. It's hard to make $10,000 fast, but there are a million, and there are many ways to make $10,000 fast.

The problem is, the US government axe has no money at all!

That pit in the two rooms is simply unsaveable. Some of the consortia have money, but will never come out to fill this pit.

In general, when the political axe has no money, there are actually two ways. One is issuing government bonds, the other is lending to banks. Then next year, finding ways to increase income repayments could raise tax rates and stimulate the economy and so on.

But at this time, the US treasury bonds cannot be issued normally, the US economy is like this, who buys the US treasury bonds?

Boo X talked to Hua Xia, and he found that Hua Xia was the one who could come up with a lot of cash now. Unconsciously, Huaxia's economy is growing so fast, and Huaxia's state-owned enterprises are developing very well. Revenues are rising dramatically year after year. Huaxia's political axe must be rich.

Boo wanted to sell a lot of treasury bonds to Huaxia so that the US would have the money to function properly, and he was willing to pay high interest for it.

But unfortunately, it was rejected directly by Huaxia. Hua Xia responded that Hua Xia was also short of money and had issued a number of government bonds in preparation for the Olympic Games, and that it was time to pay them back.

And because the Olympic Games allocate more money to the capital city, and other provinces are complaining, Huaxia intends to allocate more money to other provinces, invest in infrastructure, transportation and so on, and really don't have the money to buy US Treasury bonds anymore.

Although Huaxia's foreign exchange reserves are high, most of them buy European government bonds and very little cash. Huaxia's foreign exchange reserves would be short of cash if the US Treasury bonds were purchased in large quantities.

But now that Boo has opened his mouth, Hua Xia has a friendly and helpful attitude to show. So what, buy five hundred million dollars in U.S. Treasury bonds.

Boo Ten heard these words and almost didn't die of anger!

Five hundred million dollars, so much money. Are we going to issue treasury bonds? How can you start with $10 billion?

Hua Xia, you're not helping us. You're ruining us! We're so big, we spend so much money, 500 million dollars, you're sending out those small African countries!

Xiaobu X did not talk to Hua Xia, but also with the EU, island countries, South Korea, South Ocean and other countries. Unfortunately, these countries do not have much money now.

And because of the huge banking shortage in the US, they've already helped a lot of money. Where's more money? If it's billions of dollars, they can take it out, but tens of billions of dollars, they can't even answer that.

Boo X certainly knew that they were also an excuse, a hundred billion dollars, which he could get out of these countries. Especially the EU, how can a strategic alliance of so many countries not have 10 billion dollars?

These are obvious excuses, but he can't help it. Why do you have to help the US?

The United States could have made bank loans, but too many banks were already bankrupt in the United States, and some of the remaining banks were in short supply.

Although banks seem to have strong assets, there is no real amount of money available, and most of them lend or invest.

Now the economic situation is that their cash is higher than usual to cope with a possible centralized payment, and they can't pay their customers with bonds or anything?

The bank wants to lend money, but the credit rating of Miguo Axe is still very high. But they really don't have the money, and small loans, like the US government axe, are tens of billions of dollars in loans, and US banks can't afford it.

Let's not forget that by this year, the highest number of redundancies were in financial institutions such as banks, more than in the U.S. automotive industry, which is on the verge of bankruptcy.

It can be seen that commercial banks in the United States have also used various means to save money. Not to mention, these banks have plenty of mortgages, car loans and all that.

Once upon a time, the US encouraged financial innovation, with all kinds of financial derivatives, the largest on the US side. But when the economic situation deteriorated, financial institutions also suffered the greatest losses.

Their short-term volumes simply cannot solve the current dilemma, which has led to the bankruptcy of a large number of US financial institutions and has affected many financial institutions in Europe, Asia and elsewhere.

When you look at this data and the situation analysis, you're shocked.

Has it reached the point where their confident US political axe has run out of oil?

So will the US government axe be dragged down by the two-room group after taking over the two-room group?

Can the two groups really save it?

After the opening of the day, the shares of both Housing Groups fell again, by more than 40%!

……