Originally, the 20th National Finance Ministers' Meeting was scheduled to be held in Beijing last year. The sudden financial tsunami disrupted the entire meeting process. The arrogant Western aid countries in the past became countries seeking help. This huge psychological gap made this meeting a sign of Western recession. At this time, the United States, which was deeply involved in two overseas wars, could no longer sit still. It felt that it was fighting to death for "world peace" and terrorists. You all benefited from your own development. Now the boss is in trouble, and you can't help but not be able to do anything. It feels that the 20th National Congress is good, and it is the place to pay back the money.

So Finance Minister Paulson went to China as soon as he took office. Not only did he upgrade the economic dialogue between China and the United States, but he could discuss strategies and politics. He also asked Beijing to come forward and upgrade the 20-country Finance Ministers' Meeting to a summit, and the topics also focused on discussing how to resist the current financial crisis.

It was at this summit that countries reached a consensus on strengthening financial supervision, curbing the worsening of the debt crisis, encouraging economic growth policies, coordinating the currency issuance mechanisms of various countries, and preventing the scramble to depreciate and triggering a currency war, which played a great role in preventing the spread and deterioration of the financial tsunami. After the meeting, the central banks of major countries such as Western countries and China took unified action to invest funds into the market, alleviating the lack of liquidity in the market.

Yang Xing also attended the summit as a special guest. Because he "accurately" predicted the arrival of the financial tsunami and the many countermeasures he proposed were adopted by the United States, the various ways to resist the crisis he talked about were adopted by governments, but it is unknown whether it contained ill-intentions. For example, the deposit tax that caused the European Bank to panic was strongly recommended at the venue, but the EU people called him a "vampire".

Not to mention these details, the Beijing summit reached an agreement to fight the financial crisis, which made Americans feel that the Summit of the West (G7) was indeed outdated and could not play with the world economy. So the United States proposed that the meeting unanimously adopted the Summit of the 20-Country Summit to replace the previous G7 and Treasury Secretary Meetings of the 20-Country Summit. Russia also suggested that the mechanism of the Summit of the 20-Country Summit was fixed, and in the future, it would not only discuss the economy but also political issues.

China, the organizer of the 20 National Peak, is even more popular because the US and European economies are still hovering on the edge of the cliff, while the economies of China and India have regained vitality. The 4 trillion yuan of rescue funds launched by China has kept the economic growth rate at 10. It is the country with the fastest economic growth in the world and the number one engine that drives world economic growth. The G7 has become the G20, and China has reached an equal footing with the United States.

Of course, China also needs to adapt to the sudden role of the G20 Group. This reputation sounds good, but it also has good substantive interests. Among the G20 Group, G7 has obviously become a group and is still trying to win over South Korea, Mexico and other countries. If the remaining people are still disorganized, then the G20 will be destined to become a puppet of the G7, which is something other countries don’t want. The "BRICS countries" have both strength and reputation and cooperation, so they hit it off, and these five countries reached a consensus during the G20 meeting.

By April 2006, at the Asian Economic Forum held in Boao, Hai-Nan, the BRICS heads, who were invited, quickly announced during the meeting with Chinese leaders that the first BRICS summit would be held in Hai-Nan. The news came out and attracted attention from all parties. Although the initial summit only discussed the basic charter and meeting model, the move of several emerging market countries to put aside the West and form an alliance still made the world geopolitics feel a major earthquake.

Yang Xing, as an advocate of the "BRICS" at this summit, was naturally among the guests, and under his guidance, the only international organization established has also produced many substantial results. In response to the increasingly fierce financial tsunami, the "BRICS" promised to promote the reform of international financial institutions and increase the voice of emerging markets in similar to the International Monetary Fund and the World Bank; improve the international trade and investment environment, curb trade protectionism; discuss diversification of energy resources supply and strengthen dialogue and cooperation on climate change.

The most important point is that the "BRICS countries" have agreed to promote specific measures for cooperation and coordination such as science, education, culture, etc., form a cooperation mechanism, and start dialogues in trade cooperation, investment cooperation, technological innovation cooperation, and financial cooperation. Although many Western media ridiculed this as a barely pieced-up combination, the GDP of BRICS countries has surpassed Japan and Germany together, and only ranked in the United States and the European Union, and after barely surpassing it, the land area and population account for more than half of the world. The reporters at the conference almost one-sidedly compared "BRICS" with "Groupof Seven (G7)". The new group's English abbreviation B5 spread like wildfire, and many people regard B5 as the biggest threat to challenge representing the Western G7 group!

The emergence of B5 has undoubtedly triggered the most vulnerable nerves in the West. Now many challengers are rising outside. Western society has unstable status. Their internal and external people have grown rapidly due to the impact of successive economic crises. The unemployed population has grown rapidly and their living standards have dropped sharply. They are full of dissatisfaction with the government and society. Many people even question the Western free market economic system itself. As long as the barriers of internal and external difficulties are not too stupid, they must come up with ways to change their courses to win the hearts of the people. The first thing they have to do is to put a culprit of this economic crisis. The financial industry that used to be free and free will be put on the reins and bridles.

In November 2006, within a year, BRICS officials gathered again. Although it was only at the level of the Minister of Finance and Commerce, they still reached an agreement to jointly establish a funding pool to prevent trouble in the financial tsunami. It also revealed that the funds did not necessarily have to be used in BRICS countries, but also provide foreign aid. This is undoubtedly a direct slap for the internationally recognized rescue chief, the International Monetary Fund and the World Bank.

If you think about it carefully, this is not a surprise attack, because developing countries were dissatisfied with the situation where their share and economic development influence were inconsistent. During this European debt crisis, the two major organizations used the funds paid by each country to rescue European countries. Compared with the Asian financial crisis, the harsh conditions offered by the recipient countries were too far apart, which had long caused dissatisfaction.

However, it took decades for the West to establish the current international economic order, so naturally they did not want to give up, so they repeatedly rude away. Many representatives of developing countries in the two major organizations took the opportunity to attack, believing that Westerners have occupied too many senior positions in the two major organizations and are suspected of being biased. European and American countries must give up some seats and shares to allow emerging countries to participate in decision-making more. Now the BRICS countries are planning to start a new business, so why not panic in the West?

On November 14, under this pressure, after the subprime mortgage crisis broke out last year, the Wall Street Reform and Consumer Protection Act, which proposed to comprehensively revise the domestic financial system, was finally passed after 20 hours of fierce debate. This was named after Christopher Dodd, chairman of the Senate Banking Committee and Barney Frank, chairman of the House Financial Committee. Also known as the Dodd-Frank Act, Wall Street has undoubtedly become the biggest loser.

Although Wall Street has been lobbying repeatedly in order to prevent the bill from passing, it is a pity that the general situation is over. Now financiers have become rats crossing the street. A large group of protesters gathered on the ground of Wall Street to "occupy Wall Street". Every day, demonstrations have become headlines on TV in various countries. With the surging public opinion, no matter how rich Wall Street is, it can only lower its arrogant head.

This "Wall Street Reform" bill is a 180-degree turn for the previous liberalized financial policies. Wall Street lamented that the golden age was over and the regulatory era was coming. In addition, the United States is not only at the forefront of the development of the financial field, but also has a dominant voice in international regulatory organizations such as the International Monetary Fund and the Bank for International Settlements. Therefore, this domestic financial reform bill will also profoundly affect the revision of global financial reform and the new regulatory agreement. Some of the provisions in its bill may even be directly elevated to global rules formulated by international organizations.

Therefore, the world is very concerned about the content of this bill. This US financial regulatory reform has two pillars. The first is to establish a new regulatory framework to effectively prevent systemic financial risks. The global economic crisis triggered by the bankruptcy of Lehman Brothers is a dangerous precedent. It is the primary meaning of this round of regulatory reform to prevent the failure of the so-called "big but not falling" super financial institutions and trigger systemic crisis. At the same time, the credit risk caused by excessive debt is the root cause of the outbreak of the subprime mortgage crisis. Protecting consumers from financial fraud and ensuring full information disclosure will be the necessary means to effectively prevent similar crises from happening again. This is also the full name of the bill.

To this end, the US government has established a new Financial Stability Supervision Committee in response to the problems of multiple financial regulatory departments in the past and inefficient administrative efficiency, which is led by the Treasury Department. Its members include multiple regulatory agencies. The most eye-catching thing is that the institution will obtain a "preemptive" regulatory authorization, that is, after the two-thirds majority votes, it can approve the Federal Reserve's forced spin-off and reorganization of large financial institutions, or divestitures, to prevent possible systemic risks.

At the same time, the Federal Reserve has greater power to establish the Consumer Financial Protection Agency (CFPA) under its subordinates to ensure that American consumers get clear and accurate information when choosing to use housing mortgages, credit cards and other financial products, while eliminating hidden fees, predatory terms and deceptive practices.
Chapter completed!