On the first day of the New Year, there is another major event that affects the world, that is, the euro is officially launched in the eleven EU countries.

The introduction of the euro is a challenge to the hegemony of the US dollar. Because among the eleven countries in the EU, France, Germany, Belgium, Italy, the Netherlands, Luxembourg, etc., are all economically developed countries.

They joined forces to use the euro as the official currency, which made the euro extremely trustworthy, no less than the US dollar. In addition, Europeans have a great influence around the world, which makes the euro smoothly promoted and become a currency that can be circulated around the world, and an important currency for foreign exchange reserves in many countries.

In this way, the market position of the US dollar will be greatly affected. Once the US dollar market shrinks, the US economy will be greatly affected.

For example, the shrinking of the US dollar market has caused the seigniorship income of the US government to drop significantly, which will directly affect the income of the US government. Once the income of the US government drops, all expenditures will be forced to shrink. For example, education, medical care, military, scientific research, etc. This not only affects millions of jobs, but also affects the fate of the US government.

The so-called seigniorage tax is actually the income from issuing currency. For example, the printing cost of one hundred dollars is only one dollar, but it can buy goods worth one hundred dollars. Then the difference of ninety-nine dollars is seigniorage tax, which is the main source of fiscal revenue of the government.

Secondly, the US government has accumulated a large amount of fiscal deficits in recent times. The US government now relies on issuing government bonds to maintain the operation of the government.

Once the US dollar market shrinks and loses its dominance, the value of US bonds will naturally be greatly reduced. Once no other country is willing to pay for the Treasury bonds issued by the US issuing, it is unknown whether the US government can maintain it.

Moreover, there are still 40 million people in the United States who belong to the poor and need the assistance of the U.S. government. Once the U.S. government reduces welfare due to a decline in income, the lives of tens of millions of people will be seriously affected.

In addition, American people have long been accustomed to spending in advance and eating food for the first time. The money they overdraft comes from banks to borrow. Bank funds come from depositors. Once the US dollar market shrinks and credit falls, people will withdraw the US dollar as soon as possible and exchange it for other currencies, so the deposit amount of Midea bank will naturally drop.

In this way, if the bank has no money, it will stop lending to the outside world, and many beauties will fall into a situation where there is no money available.

Therefore, the introduction of the euro is a serious threat to the dominance of the US dollar.

...

However, this incident actually has little impact on Xia Tian.

And he also knew that although Europe tried its best to push the euro to challenge the dominance of the dollar, it was really very, very difficult for the euro to replace the dominance of the dollar because the euro itself had great flaws.

Although the euro is the official currency recognized by the 11 EU countries, the EU itself is not a monolithic part. It does not have a unified fiscal system, and the finances of each family are still separated.

The unified use of the euro means that the eleven countries adopt the same interest rate and exchange rate. This makes these countries lose the freedom to independently implement monetary policies based on their own economic conditions, and lose a great help in regulating the economy.

Once an economic crisis breaks out, a unified monetary policy makes it impossible for countries to stimulate exports and drive their economy through currency depreciation. In order to save the economy, countries can only adopt expansionary fiscal policies, issue government bonds, reduce taxes, and increase fiscal expenditures to stimulate economic growth. But this will easily cause the deficit of the government to soar, debts are high, and the economic situation will further deteriorate.

In addition, the lack of a unified fiscal system also makes it difficult to effectively implement fiscal supervision, which lays a hidden danger for the future financial crisis and economic crisis.

Just like when Greece joined the EU by making fake accounts, but the EU did not find out. After the subprime mortgage crisis in 2007, the Greek economic crisis broke out, dragging the entire EU back and almost collapsed.

These hidden dangers make it undoubtedly very difficult for the euro to replace the US dollar and become the world's general currency.

...

Not to mention that since World War II, Europe's international economic status has been declining, and has been surpassed by Fuso, Zhong, Indedo, Bassi, South Korea and other countries. However, the United States has always occupied the world's largest economy and superpower status.

Compared with the United States, the euro will naturally not be able to harden the dollar when facing the euro.

What's more, Europe is at the forefront of a conflict of civilizations. Once a war breaks out, refugees will definitely flow like Europe like a tide. By then, Europe will be in turmoil and the security situation will be severe, and the people will even be threatened with basic personal safety. So how good can Europe's economic situation be?

Therefore, the euro is basically destined to not replace the US dollar market position.

Now, media around the world are cheering for the birth of the euro, especially the eleven EU countries are even more excited. It is already a foregone conclusion that it will be defeated by the US dollar and unify the global currency market. The dawn of victory is ahead.

Xia Tian watched coldly, watching how long it was arrogant.

...

New Year and new atmosphere.

In the new year, the main energy of summer is to focus on Wang Xian.

Except for going to various companies to guide their business in the afternoon, I spent most of my time with Wang Xian.

Although it was not the first time Wang Xian came to Yanjing, he had just stayed temporarily for the past few times, and he was just a glimpse of the appearance of Yanjing City.

This time, she would stay in Yanjing for three or four months until the beginning of the next year. The time can be said to be very sufficient, so in summer, she took Wang Xian to visit Yanjing City. The Forbidden City, Xiangshan, Beihai, Summer Palace, Badaling, and the Thirteen Tombs. Of course, the most distinctive alleys in Yanjing are inevitable.

"Brother Tian, ​​walking in these alleys feels like traveling through time and space. People from hundreds of years ago lived in these houses and walked in these alleys." Wang Xian smiled at Xia Tian.

"That's right, many of these alleys have hundreds of years of history." Xia Tian nodded, "In the future, with the great development of Yanjing, alleys like these may no longer exist."

"Ah?!Why, why should I demolish it?" Wang Xian asked in surprise when he heard this.

These alleys are quaint and charming. Walking through them, I imagine the life of the old Yanjing people a hundred years ago. The fish tank and pomegranate trees in the ceiling, the pomegranate trees, the fat dog and the fat girl, how moist and comfortable.
Chapter completed!