Chapter 975 Dark War
“All businesses will terminate the use of foreign currency for settlement, the Xin New Dollar will be the only currency accepted for space resource transactions…”
When this passage was read by Secretary of State Kerry in the conference room of the Capitol, the entire conference room went quiet.
Kerry was uncomfortable being the focus of countless eyes, so he moved the document away and shrugged. “I’m finished.”
All the tension in the conference room seemed to have disappeared, as if it were some kind of signal, the whispering gradually grew louder.
Kerry sighed and sat back in his chair. He rubbed his sore eyes and glanced toward Hill and the House of Representatives. Typically, the internal meeting of the Capitol didn’t include people from Congress, especially the Speaker of the House of Representatives, Mr. Paul Ryan, an Republican.
But they couldn’t do that anymore.
The eyebrows of Hill and the Chief of Staff furrowed, and the Minister of Commerce had shut is jaw for the tenth time. The Minister of Internal Affair looked at the ceiling thoughtfully. Economic experts and consultants exchanged opinions in small voices, but it was obvious that they did not have anything to recommend. If there was an idea, they would have brought it up already. After all, the only reason they were here was to contribute their ideas.
This situation lasted for ten minutes and finally an official broke the silence.
“I don’t understand the reason why they do this. The US dollar is the international currency. If it is settled in US dollars, it would make a lot of inconvenient things a lot more convenient!”
“Obviously they are trying to save the crumbling New Xin Dollar,” said an economist from Harvard University.
“No, maybe they have greater ambitions…” Stanford University’s international relations expert said, “just a few days ago, we thought they were crazy about buying back the Xin New Dollar in the foreign exchange market. It was just a temporary solution to patch up their mistake. I didn’t expect everything was a trap they set.”
A Democrat congressman leaned back in his chair and sneered at them with disdain.
“I think we are being too anxious. How big is the market for the development of space resources? At most hundreds of billions.”
“Yes. Our core interests are still on the planet. No matter how much resources they have developed in space, they have to be circulated on the international market. The US dollar still has an undisputed influence, and to challenge the US dollar with just one space elevator. This is simply idiotic.”
“They just captured an asteroid, not to mention the asteroid has not yet been fully developed, even if it’s fully developed, it’s worth hundreds of billions at most. The global US dollar is over 90 trillion, it is not in the same order of magnitude.”
“Unless, they can prove the profitability of the space elevator.”
The debate lasted for a while, but it was Hill who cleared her throat that silenced the room.
Seeing everyone present here look at her, Hill spoke.
“I have just exchanged views with the Speaker of the House of the Representatives. We all agree that it is necessary to send the Secretary of State to conduct a diplomatic visit to Xin. Expanding the application of the US dollar is one of our diplomatic strategic priorities. The US dollar is an international currency. The philosophy we have been working on for decades.”
“At least, using the US dollar and the Xin dollar both for settlement, after all, the US dollar has a certain amount of liquidity in Xin, we must remind them of this.”
Secretary of State Kerry turned the pen in his hand, and his hands on the table spread out slightly.
“Europe? Recently in Europe…”
Hillary looked at him and said.
“I know. Everything has a priority.”
“The EU is our ally, so you should go to Europe first, and when you return, make a stop in Xin on the way.”
Hill emphasized the words “on the way “.
Kerry nodded, fully comprehending.
It was important to convince Celestial Trade to allow the US dollar for settlement, but they couldn’t give Celestial Trade the feeling that it is too important.
Just after Celestial declared that Xin New Dollar as the only settlement currency for space trade, the exchange rate market experienced quite peculiar fluctuations, just like most stocks that bottomed out and rebounded to the original exchange rate at an incredible rate.
Although there were many ideas speculating on Celestial Trade’s decision, central banks collectively made the same decision; to increase their holding of the Xin currency.
If Xin New Dollar was the sole currency for outer space trade, then in order to develop its own aerospace industry with the space elevator, then a rigid demand for Xin New Dollar now exist for their country. Considering that other countries had similar demand, the Xin New Dollar now had room for appreciation, so the central banks all shared the same view.
That was to buy Xin New Dollar from the foreign exchange market with its own currency.
Under the influence of these external factors, it naturally promoted the appreciation of the Xin currency.
As early as when the Xin New Dollar dove to the bottom, Jiang Chen bought a total of 212.7 billion US dollars worth of foreign exchange assets, according to the exchange rate at the time, he purchased 943.1 billion worth of Xin New Dollar for the New Reserve. Now, the exchange rate between the Xin New Dollar and the US dollar was almost the same.
In this event, Jiang Chen has turned over 212.7 billion US dollars of funds held by Future Group and Celestial Trade into 943.1 billion of US dollars in funds.
The reason why it jumped up and down like a seesaw was because low circulation of the Xin New Dollar. For any other major currencies, unless it is a financial tsunami, a large fluctuation is almost impossible.
“Financial instruments are obscure.”
When Xia Shiyu put a financial report on Jiang Chen’s desk, Jiang Chen exclaimed.
Even for Future Group that has grown to the present level, 943.1 billion in US dollar was still an astronomical figure. Although the money was all in Xin New Dollar, the exchange rate was to remain stable in the foreseeable future.
A large-scale printing of banknotes, a long-awaited regulation on the settlement currency, the two paper documents allowed Future Group to sweep more than 700 billion US dollar in just one month, creating Apple out of thin air.
“The US fiscal revenue is only 5 trillion US dollars a year. Even for a country, 900 billion US dollars is not a small number.” Xia Shiyu moved a chair over and sat across from Jiang Chen. Holding her chin, she smiled while studying Jiang Chen’s expression, “How are you going to respond?”
The financial market is a zero-sum game.
It does not create any value in itself. If someone makes money, then it means someone must have lost money. More than 700 billion US dollars was not from thin air, but the intelligence advantage of Future Group that beat the Federal Reserve and the Wall Street predators who manipulated the foreign exchange market.
It’s hard to imagine that they won’t fight back.
“Their means will be nothing more than attacking the Xin New Dollar in the foreign exchange market, suppressing the exchange rate by short selling, and forced our low-priced banknotes to rot in our hands while destroying the economy of the country.” Jiang Chen smiled.
Xia Shiyu looked at Jiang Chen with some surprise.
“Are you surprised?” Jiang Chen was keenly aware of the surprise in her eyes and grinned. “Well, I do also study.”
Although this financial battle has nothing to do with him, everything was directed by the professional financial team of Future Bank and these theories were learned from David Smith.
“Stop bragging,” Xia Shiyu rolled her eyes and got up from the chair. “The long-distance power transmission device on the lunar colony will start tomorrow. Are you sure the laser beam will not poke a hole on Earth?”
Jiang Chen opened his hands and helplessly said.
“How many times have I told you, even if it shoots at Earth, it won’t penetrate the ozone layer.”