BXBX NOVEL Chapter 974 - Start the Money Printers
Chapter 974 Start the Money Printers
The construction of the submarine transmission cable from Ange Island to Malaysia was half complete. Construction had also begun for the cable to Australia. The cable from the New Malaysia Special District to India had also entered the preparation stage of the project.
As Jiang Chen had planned, the global power grid plan was progressing.
Only due to the accidents in Europe did Jiang Chen have to end his trip ahead of schedule. In the list of first countries that joined Celestial Trade’s global power grid, the name South Korea won’t be a part of it.
But it didn’t matter. Jiang Chen couldn’t travel the world for several cables.
When other countries see the benefits of importing electricity from Xin, they will naturally come to negotiate.
At that time, it will no longer be a buyer market, but an absolute seller market.
Promoting the electrification of society, drastically reducing the cost of industrial electricity, improving the energy structure, and reducing the burden of thermal power generation on the environment… These were all visible benefits. Jiang Chen also believed that most countries would not turn a blind eye to this.
After returning to Xin, the first thing Jiang Chen did was convene a Xin Reserve shareholders’ meeting and put forward a resolution that had a profound impact on the country.
Without any precious metals as a guarantee, the Xin Reserve announced that it will issue a total of 14 trillion XND in three batches this February according to the annual GDP data announced by the Xin National Bureau of Statistics. And in the next five years, the Xin Reserve will relax the restrictions on currency issuance to meet the needs of the market.
Does the market really need it?
When Jiang Chen proposed this resolution at the shareholders’ meeting, everyone was rattled.
It was not just printing banknotes, it was simply flooding the market!
Bankers and capitalists of Xin sat in the meeting, most of whom were directly or indirectly supported by Future Group. Of course, many of them also emigrated from other countries in the Commonwealth. After all, in history, this island was once a British colony.
When they heard the resolution proposed by Jiang Chen, someone immediately stood up and raised objections.
“It’s too crazy! The economy of Xin is finally stable. Printing money on such a large scale will undoubtedly cause a large-scale devaluation!”
“This is not printing banknotes, but a bubble!”
“What is the use of printing so many banknotes? I can’t see any benefit except inducing inflation!”
“I don’t have any opinions on printing money, but the figure of 14 trillion is simply whimsical! The total amount of money we are currently issuing is only 13 trillion Xin New Dollars, and the currency circulation is less than 500 billion—”
“Is it crazy?” Standing in the meeting, Jiang Chen looked around at the shareholders. “Ladies and gentlemen, our currency circulation is close to one-third of the total amount of money, which means what? This means we have this strength.”
“Bubble? I want to ask you, how much of our GDP is a bubble? Which of the many businesses of Future Group became a Fortune 500 company through real estate or financial speculation?”
“I want to ask you, how much of the 90% of GDP I contributed is a bubble?”
In a domineering speech, all the shareholders were speechless.
As Jiang Chen said, 90% of the GDP of the country was directly related to the two companies, Future Group and Celestial Trade, and the remaining 10% was basically indirectly related to this man.
After all, four years ago, people on Pannu Islands were still fishing and farming. Today, more than four years later, they not only built the longest submarine tunnel in the world but even built an elevator to the geosynchronous orbit and established a colony on the distant?moon.
Everything in this country was because of the man in front of them.
“This is one Xin New Dollar, the currency of our country.” Jiang Chen took out a coin from his pocket and shook it in front of everyone, and then slapped it on the table. “In five years, it will become the currency of the world.”
“Let’s start the vote,” Jiang Chen glanced at all the shareholders. “Let me see the courage and ambition in you.”
The shareholders looked at each other and exchanged opinions in whispers.
Jiang Chen sat back in the seat and quietly watched everything unfold.
About ten minutes later, the statistics came out.
Looking at the numbers on the big screen, there was a smile on his face.
With the exception of 5 abstained and 2 votes against, almost everyone voted for it.
The miracle created by Future Group has made the shareholders of the Xin Reserve almost unconsciously make their choices.
There was no need to doubt at all, was there?
The large-scale issuance of banknotes did have a certain impact on the exchange rate of the Xin New Dollar. However, because the newly issued currency did not immediately enter the market, the impact was quite limited. After all, the printed banknotes did not get used immediately, but mainly entered the market in the form of lending.
However, while this was the case, the banknotes had been printed and this piece of news entered the market.
For everyone, the passive depreciation seemed inevitable?
The International Monetary Fund had lowered the credit rating of the Xin New Dollar. Central banks had made some adjustments to the exchange rate between the Xin New Dollar and their domestic currency, declining the exchange rate drastically in a short period of time.
After the Xin New Dollar depreciated for a while, Jiang Chen began to gradually exchange all the foreign exchange held by Future Group and Celestial Trade into Xin New Dollar through Future Bank. This included the profitability of major subsidiaries around the world, including the contracts signed on the Outer Space Resources Development Forum.
Even if the foreign exchange did not arrive on the bank yet, it was sold to the Xin Reserve by Jiang Chen in the form of a “loan”.
This move certainly did not escape the eyes of other shareholders of the Xin Reserve, but no one posed an objection. After all, the decline of the Xin New Dollar was imminent. At this time, exchanging foreign exchange in hand to Xin New Dollar was undoubtedly a high-risk move in the short term.
Moreover, at the time when the exchange rate was free falling, the Xin Reserve also needed a large number of foreign exchange reserves to stabilize the value of its currency.
Buying when the exchange rate was falling means that Jiang Chen could use a small amount of foreign exchange to gain a large number of banknotes called Xin New Dollar from the hands of the Xin Reserve.
At this moment, the central banks around the world were watching the show, seeing how the Xin Reserve will play itself by printing a bunch of paper that are useless after all, and messing up its own economy. They planned to acquire the bankrupted companies once they could no longer afford to purchase raw materials.
Just when everyone thought he was crazy.
Celestial Trade suddenly published a resolution on its official website.
[According to the regulations on the Development of Space Resources Act promulgated by Xin, in order to facilitate market management and taxation, Celestial Trade has decided in its internal meetings that the signed contracts are not affected, and from today on, including space elevator freight, cargo import, and export settlement, all businesses will terminate the use of foreign currency for settlement and the Xin New Dollar will be the only currency accepted for space resource transactions…)