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MillionNovel > Cosma Empire > Chapter 856

Chapter 856

    "More than 20 small enterprises have gone bankrupt this week. For these small enterprises, the risk of import and export trade begins to grow uncontrollably. If they can''t adapt and find a good way to spend this special time, it can be expected that many small and micro enterprises will go bankrupt in this wave!" at the federal high-level meeting, The vice minister in charge of import and export trade said to the officials participating in the meeting, "the crazy increase of the federal shield is not entirely good news. We also face many problems that need to be solved urgently."


    For ordinary people, very normal things have attracted the attention of the federal high-level. These officials have a sharper sense of smell than ordinary people for the operation of the country, financial mechanism and economic construction. The collapse of a small export enterprise means that more small and micro enterprises are facing all the problems experienced by the failed enterprise. It is very difficult to maintain it when the cost increases but the income decreases suddenly. There are always some expenses that entrepreneurs can''t get rid of, such as personnel salaries.


    At the same time, the readjustment of tariffs between the Federation and the Empire has also made it difficult for these small and medium-sized enterprises exported by dumping. Their goods are no longer competitive in the imperial market on the premise of abolishing tariff exemption, such as some enterprises producing lighters. Once they wantonly dumped their goods to the Empire, and the large volume of trade and lower prices occupied the Empire''s market. However, with the resumption of tariffs, the price of their goods in the empire is no longer so attractive, and their products are not as popular as the Empire''s own products.


    Of course, where there is light, there must be shadow. Everything has always been divided into positive and negative sides, both good and bad.


    A deputy minister of finance then said, "This is not in conflict with our previous plans. Gentlemen, opening up the relationship with the Imperial Star dollar exchange rate and opening up a larger market are our most important plans. Before we have done these work, we have understood that the financial and economic markets in the Federation will inevitably face a certain degree of impact, including the collapse of some enterprises. This is our goal Breaking away from the inevitable pain that we have to bear in the past, we have held the power of the Empire for more than 20 years, and have nurtured a large number of excellent enterprises with the Empire''s market. Under the market natural competition elimination mechanism, if someone succeeds, then someone must face failure. "


    "However, these people unfortunately become one of the losers. They have rigid business philosophy and don''t know flexible ideas. It is not the changes of national policies that make them face failure, but themselves. If they can''t timely change the direction of enterprise operation and change the existing business projects and ideas, they will be eliminated by the market. Let''s focus on For those successful enterprises, over 130 excellent multinational large trading companies have been born in the Federation in the past 20 years. I think the problem your Excellency the Vice Minister of trade is worried about is not a problem in itself. Will these enterprises not go bankrupt if we don''t do these things? "


    "No, if we don''t formulate new policies to promote the market to face the world faster, they will also face difficulties when they lose their competitiveness, and finally go bankrupt and be forced to liquidate. We all understand that the market is cruel, and we can sympathize with their suffering, but we can''t change our existing policies because of their current situation."


    "The members and speakers of the United Parliament are optimistic about the current situation. Let''s focus on those successful enterprises. They can gain a firm foothold in international trade without our special support, and they are still growing. That''s what we need to pay attention to. As for those small enterprises, I don''t think we need to pay attention to Too much. "


    At present, the main federal policies and plans are basically formulated to promote the federal shield to become an international currency. The Ministry of trade has interviewed many entrepreneurs of multinational enterprises last week. They put forward an idea that all enterprises are required to resolutely use the federal shield as the settlement currency in foreign trade. It seems like a stupid thing to increase trade According to Yi''s process, those foreign import and export enterprises need to take the federal shield to trade with federal businessmen. On the other hand, the acceleration and expansion of the circulation scope of the federal shield in the international scope will greatly promote their ultimate goal.


    When people are used to keeping some federal shields in their pockets and using the federal shield as the settlement currency in international trade, the international influence of the commercial union federation and the federal shield will increase rapidly and eventually become the mainstream settlement currency. At that time, the whole world market will comply with the business rules formulated by the Federation and, in some cases, contribute to the federal economy The influence and benefits brought by development far exceed the wave formed by the bankruptcy of some small enterprises.


    The Vice Minister of the Ministry of trade smiled bitterly and nodded. In fact, he also knew that the bankruptcy of small and micro enterprises at this stage was a self-regulation of the market mechanism. The profits of large enterprises began to increase, the profits of small enterprises began to decrease, and the transfer of profits led to the elimination of these "disabled" enterprises. They used their nutrients after bankruptcy and the empty market to encourage "sound" Our enterprises will become stronger.


    But... There are always some worries. Once the wave of bankruptcy is formed, it may lead to some social problems, such as the increase of unemployment rate, the increase of idle property personnel, and the problem of public security will eventually evolve into more complex social problems in a short time.


    The Vice Minister of Finance continued, "let me first inform you that next month, the central bank will continue to cut interest rates to stimulate the market, and promulgate some other financial policies to activate the activity of the federal financial market. I hope you can cooperate as much as possible and detect market fluctuations..."


    In fact, the vice minister did not say one thing. After the discussion at the supreme session of the joint parliament, he decided to issue a new batch of federal shields. In a nutshell, it is to print more money.


    Now in the international money market, the federal shield is popular with investors all over the world. It has been determined that there will be no big ups and downs in a short time and will continue to rise with a stable and firm attitude. Rising prices will strengthen investor confidence, which will make the amount of currency in circulation less. In order to spread the influence of the federal shield as soon as possible, the joint parliament made such a decision.


    Of course, printing a batch of currencies will reduce the price of the federal shield, but this is definitely within an acceptable range. Domestic think tanks believe that this will reduce the exchange rate of the federal shield in a short time. At the same time, it will also release an obvious signal that the federal shield for circulation is insufficient, which will further stimulate investors'' confidence in the Federation.


    This news is really not suitable for premature disclosure. The Ministry of finance has always had great confidence in the federal finance and economy.


    Williams is the sole shareholder of a small import and export trading company. His product has only one thing - blankets.


    In the past ten years, he has made a lot of money, enough for him to live in the villa area of Shangcheng District, drive high-end luxury cars, go in and out of some high-end places requiring qualification certification, and his family has enjoyed everything. To this day, he can''t forget that his factory worked overtime, madly made blankets and then packaged and dumped them to the Empire. The dealers on the other side of the Empire sent him telegrams several times a day to urge him to transport the goods as soon as possible to deal with the crazy market. He is one of the dumping army.


    There are many such people around him. It is definitely a glorious era worthy of everyone''s memory. Countless people use all their mortgages and take the money to start humble small factories, and then make crazy profits from the Empire. It is really a golden age. No matter what it produces, in short, as long as it is sold to the Empire, it will make money. As long as it dares to gamble, it will win. Up to now, it is still a thing that people like to talk about.


    At that time, his cheap blankets were deeply loved by the low-income people in the Empire. A two-star blanket had a gross profit of about 35%, which made him a successful person.


    However, his good days have come to an end recently. Even if the federal side has given him tax rebates and subsidies, after the resumption of tariffs, the sales price of his products at the imperial terminal has risen to $32, and the gross profit is only more than 10%. In other words, he is now basically not making money by selling things, but making meager profits by tax rebates and subsidies. In the market where the Empire has recovered, its competitiveness is very poor. Compared with the two forty-nine pieces of blankets produced by the Empire, its own blanket sales are worrying.


    The dealer has called him more than once to tell him to reduce the purchase volume.


    Now, he sits blankly in the office of the bank''s credit department and looks at a loan document in front of him. He wants to mortgage the villa he has lived in for more than eight years to the bank in exchange for a loan to maintain the current production and operation. He didn''t know where the road was and how to change it. The city hall has asked these small entrepreneurs to hold meetings more than once, telling them to transform, adapt, keep up with the pace of the times and make relative adjustments to policies. But he is the chairman of a small business. He is not an economist. He knows what those words and words mean, but he doesn''t know how to do it.


    The only thing we can do now is to maintain our own enterprises. Maybe the market will turn for the better one day. I heard that there are a few areas that have just ended the war and have a lot of market space. Maybe he can make efforts in this regard.


    After he picked up the pen and signed his name, the Department Manager sitting opposite him smiled like flowers, "Mr. Williams, your loan will be credited to your account within three hours. You have six months to spend the money. If you can''t repay the loan principal and interest after six months, we may collect your house and auction it according to the terms of our contract. Good luck!"


    Williams squeezed out a smile and shook hands with the Department Manager. The other party gave him a business card and said something that made him unhappy. For example, if he still needs to contact the manager directly, they can save a lot of steps.


    Son of a bitch, this is cursing me!!


    Williams has a smile on his face, but he is secretly scolding in his heart. He has to show a smiling face, which makes him very uncomfortable. Looking at Williams''s departure, the department manager smiled and shook his head. Recently, many small and medium-sized enterprises have begun to seek loans to maintain the normal operation of enterprises, but it has to be said that the effect of doing so is not good. There are already several small enterprises because they can''t afford it The loan principal and interest have lost their collateral. In addition to continuing to obtain more financial support from banks in the same way as sale, they can not alleviate the current situation at all.


    This is a good era, indeed for banks. A large number of high-quality assets can be controlled by paying a small amount of money. It can be predicted that there will be a qualitative breakthrough in this year''s year-end bonus!


    After Williams returned to his factory, he squeezed out an ugly smile in the face of the workers who had stopped work and smoked and chatted at the gate of the factory. He didn''t show his high spirits as he expected last night, and then cheer up and encourage the workers to continue their work. At this moment, he felt very tired and exhausted.


    "Call someone over to settle last month''s salary and inform our friends that we need some new raw materials." with Williams''s words, the idle workers in the factory cheered, slapped the dust on their hips and lined up happily to settle the salary outside the office.


    Although they are also worried about the future of the factory, it doesn''t seem so bad at present. The boss has money to pay wages, doesn''t he? And they have to continue to produce, which means that their work will continue and they can earn money to support their families.


    But in the hearts of these workers, there is also a trace of concern about whether they can settle their wages like this next month.


    When he returned home in the evening, Williams locked himself in his study. Today, half of the money borrowed from the bank mortgage has been used up. When the raw materials come tomorrow, he can continue to work and barely spend the next month.


    He doesn''t need to pay for raw materials now. He has a good cooperative relationship with suppliers and private friendship. The other party will let him temporarily press a batch of payment for goods. This is not the first time. What should he do if there is no better market for the goods next month?


    At the thought of this, he felt a headache. He had tried his best, but why was he still unable to see the way out and the light?


    He fell into a daze, looking for an exit that didn''t exist in a fog.
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