Lin Lingdong:(⊙_⊙)!!!

Are you very good at shirking the blame?

The company collapsed and was thrown into the heads of the three major organizations.

But I have to admit that what Lao Ivan said was the truth.

The Soviet Union is not bad.

In any aspect, the Soviet Union was not inferior to the United States in terms of territory, science and technology, production capacity, natural resources, geographical conditions, geopolitics, and working population.

The only difference is climatic conditions.

Its failure, loss in trade mode, and monetary policy.

As the two poles of the world, the Soviet Union and the United States have completely different trade models.

In the Soviet Union, it adopted distribution trade and birdcage economy.

Monetary policy is relatively single.

Rubles are issued in Eastern European franchises, and through foreign aid, they promote the counterpart settlement of rubles in neighboring countries and form a strong monetary alliance.

Ruble becomes sovereign currency.

This is certainly fine for a powerful Soviet Union.

But what about a recession of the Soviet Union?

The problem is a big deal.

To understand currency, you must talk about exchange rates.

What is an exchange rate?

Actually, this question is easy to understand.

There are only three periods in total.

The first period was the British Empire.

In the 17th century, Britain became the world's number one power by relying on colonial economy and maritime trade, and the British pound became the world's currency. During this period, the gold standard was determined.

The Queen of England announced that 9.1 pounds = 1 gram of gold.

Countries around the world nail the pound to calculate the exchange rate.

For example, during the Republic of China, 10 yuan of oceans was equivalent to 1 yuan of pound.

The targeting of a currency is called a fixed exchange rate system, also called a nailing exchange rate system, and a nailing pound.

But the biggest problem is...

The money printing machine is in the hands of the queen.

It’s okay for her to abide by her credit, but what should I do if she doesn’t? Its currency can be purchased from all over the world. As long as she prints money crazily, wouldn’t it be bought all over the world?

So the meaning of the gold standard is reflected here—

At that time, the Queen promised that she would print as much gold as the treasury. Any country or any private person in the world could take pounds to the British Imperial Bank to exchange for equal amounts of gold.

Peel pound to gold.

A wave of reverse operations, countries around the world want my currency? Please work hard to mine and bring the annual gold freight over. I will give you pounds.

Mastering monetary sovereignty is equivalent to opening a World Bank.

Just start the printing machine and you can harvest global wealth and global gold.

You can make money even while lying down.

Through this operation, the British Empire was extremely powerful.

At its peak, its colonies occupied 1/4 of the total global area and carried out a large-scale plantation economy. Cocoa coffee from Africa, spice cotton from India, rubber from Sri Lankan, silk ceramics from China, wheat grain from America, and iron ore coal from Australia were all continuously transported back to the UK.

Relying on the first industrial revolution, the development of steam engines, and the application of trains and ships, we have reaped global wealth.

International trade, the concept was formally proposed and flourished.

During this period, Britain's economy was unprecedentedly strong, and London became an international trade center and financial center.

Drive the whole of Europe.

They have got rid of agricultural countries and transitioned to industrial countries.

An international order led by Britain was also established.

But the problem is...

The sovereign state is strong and keeps its promises. Everything is good and orderly.

But what should we do if this sovereign state starts to play rogues?

The money printing machine is in her hands.

What if she starts to print money randomly?

By the 18th century, European countries had already developed, and were no longer the British dominant, and they developed into European powers.

These great powers finally broke out in war and created the First World War.

In the end, Britain won.

But what is the price of winning this war?

The nuclear-powered money printing machine was started and the money was printed frantically. The British pound depreciated by double its value, wasting all its colonial wealth and all its gold reserves, from the world's largest creditor to the net debtor country.

The pound fell from the altar from the sovereign currency.

And what are the consequences of the depreciation of the pound?

The colonial countries and major trade franchisees cried. The pound of 100 tons of gold became 50 tons. The official depreciation was 1 times, but in fact it depreciated more than 10 times. 100 tons of gold became 10 tons. Is it still impossible to withdraw it? Is it owed the debt?

Isn't this a joke?

Especially colonial countries, they began to shake.

I have done nothing for decades of hard work in the country. What are you doing in war? I am innocently caught in the gun.

And what about gold?

Where did it flow?

It flowed to the United States.

During this period, the United States flourished across the ocean. As the basic supplier of the alliance between Britain, France and Russia, the United States exported a large amount of weapons, materials, and supplies. At least half of the gold reserves of Europe fell into the pockets of the Americans.

Before World War I, the Americans owed the UK $3 billion.

After World War I, the British owed the Americans $4.7 billion after paying $3 billion in gold reserves.

From the UK alone, the United States has earned tens of billions of dollars.

This was 1920.

This is the case with a country's circulation wealth.

This is just the UK, plus France, Tsarist Russia, and even Germany, the Americans sold equipment on both sides, becoming the world's number one arms dealer, plundering European wealth.

After the end of World War I, the United States had 40% of the global gold reserves.

After World War II, this number became a horrifying 75%, or more.

Almost all the gold in the world has flowed into the pockets of the Americans through war mechanisms.

Washington replaced London and became the world trade center and financial center.

In July 1944, two months before the end of World War II, the US dollar officially ascended the throne. 44 countries around the world held a meeting at Mount Washington, the highest peak in the United States, Bretton Woods Park to build a Bretton Woods system, announcing that 1 US dollar is equal to 0.88 grams of gold.

The other 43 participating countries stared at the US dollar and formed a fixed exchange rate.

Still a gold standard.

The operation with the queen is like a slightest.

How much gold is there, how much currency is printed, and the total amount of money is equal to the gold reserves.

Who will supervise it?

The output of gold is increasing every day, and it is digging every day. How can you check and balance you? You are playing the Queen's set and crazy money printing machine model. Wouldn't the world suffer with you?

There is a way.

Everyone will supervise jointly.

When signing the Bretton Woods system, three additional agreements were signed.

The first item is the IMF International Monetary Fund, which is supervised by the IMF and controls the exchange rate.

The second item is to establish the World Bank, and the United States promises to help Europe complete post-war reconstruction in exchange for the bigwigs of various countries bowing their heads.

The third item is to sign the General Agreement on Tariffs and Trade, which is the predecessor of the WTO World Trade Organization.

Through these three major organizations in the world, we will supervise exchange rates, coordinate trade, and promote these three major purposes of post-war reconstruction.
To be continued...