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MillionNovel > Cosma Empire > Chapter 828

Chapter 828

    A country''s economic development can never be maintained in a very, very stable state. It may exceed or be lower than the plan. It always needs development. The development of economic construction will also bring a series of chain reactions. With the recovery of the imperial economy, the trade volume between the two countries began to increase greatly. In particular, the federal government deliberately adjusted some tariffs to normal tariffs, so that the federal economy could pass the adaptation period from dumping to competition.


    In this regard, many entrepreneurs do not quite understand that there are still more than two years left. Why not continue to let their own goods continue to be dumped into the Empire? Even if they can only make two years of money, it is always better than now. We need to start considering a series of factors to strengthen the competitiveness of industries in the Federation.


    The United parliament also has its own ideas. Once these domestic enterprises who are used to making huge profits through the dumping of light industrial commodities can not continue to make money through dumping, they must first reduce the scale of enterprises to save expenses, and then they are likely to find no way out in the process of transformation, either go bankrupt or transform into other businesses. In this process, a large number of working class will be released to roam the streets. These unemployed people will pull the security of various industrial cities in the Federation to the most terrible level, and even cause turbulence.


    What''s more terrible is that if these capitalists and enterprises give up their original companies or products because they can''t repeat the past ways to earn huge profits, it will be the turn of the Empire to start dumping low-priced goods to the Federation to occupy the federal light industry market. The Empire has a great advantage in this regard. They have cheap labor and cheap land. Their fart love index, that is, the industrial production cost index, is lower than that of the Federation. Even after paying enough tariffs, they have great competitiveness in the society within the Federation.


    After a series of economic adjustments in various aspects, there is not no good news. For example, because the recovery and rapid development of the federal economy has led the federal economy to enter a period of rapid development, there are fewer and fewer wars in the world, and the trade volume begins to increase, and so on, The joint parliament suddenly realized that stabilizing the exchange rate with the Empire itself might not be appropriate for the current situation. Especially in the settlement of import and export trade, the Federation suffered a loss.


    This is very obvious. If the Federation two years ago is compared to a carriage with two horses pulling and galloping, and the imperial history is a carriage with only one horse pulling and running, and the two carriages are connected by a chain called exchange rate, the problem may not be too big. Although the federal carriage will be limited by the imperial carriage, This speed limit is still within the acceptable range.


    Two years later, the economy of the Empire began to take off, the federal market became more diversified, and the import and export trade became more frequent. The horses driving the federal carriage became four, and the horses driving the imperial carriage became two. In terms of numbers alone, everyone has doubled, but the problem is that in terms of the speed and trend of development, the development speed of the more mature federal free economic market is much higher than the current economic development speed of the Empire, which will inevitably bring a series of problems. Including the doubling of the federal import and export trade this year, if this chain is still kept, it will inhibit the federal economic development.


    This is a very obvious thing. In international trade, people began to get used to using imperial stars and the Federation for settlement. Because of the currency memorandum of understanding, the two countries jointly abide by this Agreement and make the exchange rate very stable, which has become the most prominent one suffering from waist problems in international trade. The use of Imperial Star for settlement reduces the cost of importing from the Federation by other trading countries, but damages the profits of federal takeout export trade. Some businessmen have begun to spontaneously prohibit the use of Imperial Star for settlement in foreign trade.


    So this group of people very cunningly registered a trading company in Yaoxing Empire, changed it into imperial Xingyuan through the Empire''s international free floating money market, and then turned around to import goods from the Federation and then transfer them to their real country. Although it took a turn, it still took advantage of it.


    Now the joint parliament has two relatively simple choices. The first is to provide assistance to Yaoxing Empire, help the Empire''s economic development speed keep pace with the pace of the Federation, help them realize the real take-off of economic development, and normalize the monetary relations and international monetary relations between the two countries. But this is a very cynical choice to use their own money to help the federal development? I''m afraid that group of crazy "patriots" will march outside the parliament building every day to ensure that all members can''t work and rest well.


    The second option is to temporarily liberalize the currency memorandum of understanding signed with the Empire, cut the stable exchange rate between Xingyuan and the federal shield and float freely. In this way, not only will the fanatics who fantasize about re invading the Empire and eliminating tyranny every day, but also regret why they did not insist on continuing the attack and completely overthrow the Empire not be so grumpy, but also they can strengthen the liquidity of the federal shield in the international market and make the federal shield one of the mainstream circulating currencies.


    Once this is achieved, that is, the federal shield has become the international mainstream currency, which means that the Federation occupies a dominant position in the whole international market. They can control the international financial market through various means of regulation and control, and expand the Federation by cutting wool from countries around the world to a greater extent. This is also the most mainstream voice in the joint Parliament.


    Compared with the first choice that is not so easy to accept emotionally, the second choice is obviously more in line with the requirements of the current federal mainstream society. Federal capitalists have always believed that federal businessmen should play a more important role in the whole international market and should not focus too much on how to check and balance the development of the Empire. Moreover, the Federation started earlier than the Empire in international trade. This decisive factor doomed the Empire to always catch up with a goal that it will never catch up with.


    Therefore, the supreme speaker of the joint parliament initiated this meeting. Should we tear up the memorandum of understanding on currency and let the exchange rate of the federal shield float freely in the foreign exchange market.


    "Let''s talk about our views. I have to go home to have dinner with my family in the evening. I''m old and I don''t want to sit here all day.", a speaker took off his glasses and rubbed his eyes. He asked someone to bring in two blowers to blow out the smoke in the conference room. It was too choking to his eyes.


    Albert, who sat at the bottom of the table on his left, had a pipe in his mouth. He looked at the others and tapped twice on the table with his fingers. The two voices made everyone focus on the young man named Albert. In fact, he is young, he is not young, but he is excellent. The Atlantic group he founded has achieved leapfrog development in just a few years. Albert has become an idol of many young people in the federal society. In particular, the joint construction project in his group company has successfully opened the market of the Empire and fought with the old capitalist of the Empire.


    With the continuous listing of subsidiaries, Albert changed from a humble young entrepreneur to a hot federal upstart in nearly three years. He entered the Federal Supreme Council and became a member of Parliament in last year''s general election.


    Many people say that his success is luck, but luck itself is a part of strength, because not everyone has luck, nor can anyone grasp it. In the first half of the year, jCG also signed a 20000 km railway construction plan with several imperial enterprises, allowing jCG''s shares to directly lead the whole construction industry. Recently, there was news that jCG wanted to cooperate with several other companies to build a "world around" track to connect the four continents, It includes the design scheme of subsea tunnel under bidding.


    This is a young man with a fortune of hundreds of millions. His every decision will cause earthquakes in some industries in the Federation.


    In the face of many eyes, Albert didn''t panic at all. He calmly knocked the ash from his pipe into the ashtray, and then looked around, "why not?"


    "At present, many basic materials for railway construction are imported from the federal government, because it is cheaper and more cost-effective than their own production. Look at the outside world today, people all over the world are making our money. We sit here and make a lot of profits every second. It is unfair because unreasonable exchange rate agreements fly away from our pockets , speakers, and all the gentlemen present! "


    "In the past, perhaps this was a good agreement to stabilize the trade balance between our two countries, but there are fewer and fewer wars in the outside world. We don''t need to take the Empire as a risk confrontation plan to face the world."


    "If I choose, I will vote in favor of it. I agree to sign a new agreement to end the relationship between the two currencies."


    Albert''s words immediately aroused the approval of other members in the conference room. In the Federation of business unions, almost all members are big capitalists, because this is originally a country of capital origin. In the past, a large number of business groups were stationed here. Finally, these business groups grew larger and larger. Their places of residence gradually formed cities. The government officials they elected were also big capitalists, which is the reason why the Empire has always looked down on the Federation - a country of deceitful villains. What needs respect?


    Of course, the civil war made the Empire understand the consequences of the Congress.


    Another congressman also stood up. He raised his watch and said: "I also agree with Senator Albert''s suggestion that we should not trap ourselves because of a backward agreement. The world is changing every minute and every second. Nothing should last forever, including this agreement. If the Empire needs it, we can re sign a new agreement in line with the current international situation, but it must end It! "
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