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Text Chapter 1234 Many crises

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    Huaguo State Investment Corporation is China's state investment company and holds various bonds in the United States. In 2007, Japan was the largest creditor of the United States, and basically we were the second largest creditor of the United States.

    ¡°More than half of the bonds are in their hands, worth approximately US$700 billion.

    Of the $700 billion, the bonds of Fannie Mae and Freddie Mac accounted for $376 billion.

    Fannie Mae and Freddie Mac are basically government-supported enterprises in the United States, specializing in providing guarantees or holding various mortgage securities or bonds, with a total amount of US$5.3 trillion, accounting for 14% of the total outstanding bonds in the United States.

    Among them, they themselves have issued more than 1.29 trillion US dollars in bonds and mortgage investment portfolios. China, the largest creditor country in the United States, exists as our foreign exchange reserves by holding more than 376 billion US dollars in their bonds.

    You read that right.

    Our foreign exchange reserves are not simply U.S. dollar cash, that is, a piece of paper. Americans can print as much as they want.

    So most of our foreign exchange reserves are held in the form of various bonds.

    The bonds of Fannie Mae and Freddie Mac are known as the most stable bonds, so it is not only held by China, but also by developed countries such as Japan, the United Kingdom, France, and Germany, but we hold the largest share.  .

    Fannie Mae and Freddie Mac are known as "the largest government-funded industries in the United States." Normally, I don't see anything wrong with this. They can also receive generous interest, which looks like a very good investment.

    But in August next year, Fannie Mae and Freddie Mac broke out in the scandal of huge losses of more than 120 billion U.S. dollars. Before people could react, the stock prices quickly plummeted to less than 1 U.S. dollars, directly trapping China and Japan.  all bond owners, etc.

    ¡°And then¡­then they were delisted.

    The US$376 billion in China¡¯s hands has turned into wealth on paper.

    Unless some idiot one day re-lists Fannie Mae and Freddie Mac and develops their scale, there is a possibility of recovering this money.

    Buthehe.

    Of course Niu Ruzheng didn¡¯t know how destructive the subprime mortgage crisis would be if it extended into a financial crisis.

    In fact, this huge destructive power only appeared once in the 1930s, and because it was so long ago, people who have healed their scars and forgotten the pain are repeating this tragedy.

    ¡° If you want to use this 376 billion US dollars, which is more than 2.5 trillion yuan, even Niu Ruzheng, who will become the deputy prime minister next year, does not have the qualifications and authority to make a decision. This must be discussed and approved by the executive meeting of the State Council.

    But based on Xiao Qi¡¯s words, Niu Ruzheng himself didn¡¯t quite believe it, let alone others.

    While thinking, Niu Ruzheng asked solemnly: "Freddie Mac and Freddie Mac, maybe going to collapse?"

    "It's not possible, it will definitely happen!" Xiao Qi started to eat the dishes easily, "Uncle Niu, look, now the real estate investment trust company No. 1 has collapsed. In the next six months, these will have nothing to do with subprime loans.  Commercial mortgage companies that are closely related to each other will go bankrupt one after another They are all like this. What will happen to Fannie Mae and Freddie Mac, who are more closely connected with subprime debt than they are, and the bonds they guarantee and hold?  , I¡¯m afraid there are a lot of subordinated debts, right?¡±

    ¡°According to what you say, then Fannie Mae and Freddie Mac should go bankrupt first. Why are smaller companies starting to go bankrupt instead?¡± Niu Ruzheng asked.

    "Because the U.S. government wants to protect them. And their market is so big, occupying 14% of the circulating bond market. If it falls all of a sudden, wouldn't the U.S. collapse?" Xiao Qi laughed.

    "You are right. If Fannie Mae and Freddie Mac are going to fail, our 376 billion US dollars in bonds will be completely wiped out!" Niu Ru was frowning: "The question now is, will they?  It will fall. If so, when will it fall? "

    "No matter what, we have to wait until the second half of next year. This mess in the United States is going big. Haven't they already begun to fix loopholes and cover up?" Xiao Qi ate and said: "Uncle Niu, what I just said  , you have to pay attention, if it is really a large commercial loan mortgage company that goes bankrupt due to real estate subprime debt, you can take action at the end of this year If it is too late, they will not be able to pay it back to us. "

    Niu Ruzheng nodded, and then asked: "Can they pay it back? Are they willing to pay it back?"

    "As long as you decide, I will teach those people how to get the money." Xiao Qi shrugged, "Of course, if you want someone to take the credit, I can tell him quietly. Anyway, I'm used to it.  Be the hero behind the scenes.¡±

    "You mean, Uncle Niu treats you very badly,"Don¡¯t you often take credit for your achievements?  Niu Ru pointed at him with a smile and said, "Don't forget who sent that corrupt official and his son to prison a few days ago!"  "

    "Haha, I'm just saying, why do you have the nerve to argue with this junior?" Xiao Qi responded lazily.

    "I've written this down. In the coming time, I will observe and find someone to investigate." Niu Ruzheng smiled and started to raise his chopsticks to eat: "By the way, you said you wanted to find a punching bag for me.  , are you referring to Fannie Mae and Freddie Mac? Before the crisis broke out, they almost used me as a punching bag. "

    "You underestimate yourself too much. What are two companies? Our uncle and nephew crushed them with just one kick!" Xiao Qi boasted shamelessly, and then said: "With the outbreak of the subprime mortgage crisis, now  Are you sure?"

    "Absolutely." Niu Ru nodded and said while eating: "Thanks to your reminder, the country has made a lot of preparations recently. This has given me a lot of points, otherwise it would have been even more difficult recently."

    "Then I will come up with another idea, let you get more points, and then find someone to vent your anger on!" Xiao Qi said: "Don't look at me with this expression Don't worry, these are not good things, I'm sure  Don¡¯t accuse good people wrongly.¡±

    As he spoke, Xiao Qi lowered his voice and spoke to Niu Ruzheng in a low voice.

    While Niu Ru was listening, he put down his chopsticks.

    When Xiao Qi finished speaking, he closed his eyes and thought slowly for a while. As he nodded slowly, a wry smile appeared on his face: "Are you helping me find the gas pump, or are you helping others find the powder keg? This matter  It¡¯s good for our company to relieve our anger, but it¡¯s too offending, isn¡¯t it?¡±

    "Tch! When they burned our shoes, banned our tires from entering the country, and raised the penalty tariff on our lighters, why didn't they think of offending us?" Xiao Qi said dismissively.

    "right!"

    Niu Ru smiled brightly as he listened, and patted the table vigorously, "Okay, let's show them what preemptive strike means!" (To be continued. Please search Piao Tian Literature, the novel will be better and updated faster!)
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