On the 11th, the fifteenth day of the Lunar New Year.

The Henan delegation to the plenary session was the first to arrive in Beijing, and in the next 24 hours, representatives from all provinces, municipalities, autonomous regions, and special administrative regions across the country will arrive in Beijing one after another.

On this day, a big event happened on the other side of the ocean.

At 8:30 a.m. EST on the 11th, Citibank CEO Michael Gustur announced that the merger negotiations with Bank of America had failed, and then filed for bankruptcy protection in the New York District Court on behalf of the board of directors.

Citibank, which has a history of 205 years, went bankrupt!

When the news broke, the three major stock indexes in New York plummeted across the board, with Dawes announcing the suspension of trading 15 minutes after the opening of the market, and the S&P and Nasdaq also announced the suspension of trading before 130.

The collapse of Citibank was both expected and alarmed by investors, who subconsciously refused to accept this fact.

During the global financial crisis, Citibank almost followed in the footsteps of Lehman Brothers and became the first big bank in the United States to fail. Unlike 8 years ago, the global financial crisis that broke out in 16 years not only came more quickly and spread more widely, but the "timing" was still very bad.

At that time, Bush Jr. had not yet stepped down from office, the international situation was relatively relaxed, and various countries were able to introduce rescue policies in a timely manner.

After the collapse of "Lehman Brothers," the US government immediately introduced a "7,500 yuan bailout plan" to save the major US investment banks that were on the verge of bankruptcy. Citibank received more than 100 million bailout funds, and was fortunate to survive the financial crisis.

Before the end of the financial crisis. Mr. Jappel gave a big gift to the major US banks by "weeding out toxic assets".

By 2012. The United States was through the financial crisis. Citibank has made adjustments to its operations. Separated most of the venture capital. The asset structure has changed a lot. With the help of the U.S. government. Citibank underwent a major surgery.

Recently. Citibank, which had just recovered from a recession, went downhill again with the U.S. economy.

Early 20133. The first new concept car with a composite battery and a superconducting electric motor was born in China. Chinese automakers involved in the joint development are expected to launch practical electric sedans to the market between the end of 2013 and the beginning of 2011. The plant is expected to produce and sell 1.5 million units by 2015.

Subsequently. The Chinese government has decided to build a nationwide network of electric vehicle charging stations. Promote the popularization of electric vehicles.

this year. The annual production volume of local automobiles in China reached 25.5 million units, the sales volume reached 24.3 million units, and the total sales volume reached 557c yuan. All three data exceeded the United States of 17.4 million, 18.5 million and 5,260 yuan. To become the number one producer and consumer of automobiles in the world.

Faced with China's challenge, the U.S. government is caught in a dilemma.

In the aftermath of the global financial crisis, China took the lead in implementing a relatively tight monetary policy, recovering excess money from the market and preventing asset bubbles. European countries have also successively changed their policies, from stimulating the economy to stabilizing the economy. At that time, the only major economies that continued to stimulate their economies were the United States and Japan.

After all, Japan is an export-oriented economy, and a moderate depreciation of the yen is beneficial to exports.

It is a bit "unforgivable" that the United States does not tighten monetary policy, but continues to expand the amount of money issued.

However, continuing to issue additional currency is also a very helpless choice for the United States.

In the absence of a significant improvement in the domestic employment environment and relatively weak domestic consumption, the United States must rely on exports to stimulate economic recovery. Increasing the amount of money issued and depreciating the dollar moderately will go a long way in stimulating exports. This is especially true for the U.S. auto industry, which has to keep down selling prices in order to compete with all-electric vehicles produced in China in the international market. In order to ensure that the book is profitable and investors still have confidence in the United States, the only way to reduce the export price of American cars is to reduce the export price of American cars in disguise through the depreciation of the dollar.

In addition to stimulating exports, the United States will have to invest more in scientific research programs.

In order for domestic consumers to buy "domestic products", the U.S. government must introduce a "consumption subsidy" policy.

It can be said that every policy requires a huge amount of money. In this case, the United States can only continue to implement loose monetary policy and put more money into the market.

It was also at this time that the root cause of Citibank's collapse was planted.

Spurred by government policies, Citibank has provided huge loans to the three largest auto companies in the United States. By the end of 20166, loans to Ford Motor Co. were $318, General Motors Co. $27.7 billion and Chrysler Motor Co. $1.9 billion, according to data released by Citibank.

There is no doubt that this is a "big gamble".

In 20166, Ford Motor Company's total sales were only 544 yuan, gross profit was 24 yuan, and net profit was less than 13 yuan, General Motors Company was 521.1 billion yuan, 2.7 billion yuan and 1 US dollar, and Chrysler Motor Company was 388211 billion and 8 yuan respectively.

It can be seen that the three major American car companies simply cannot repay the huge arrears.

At the root of Citibank's "strategic blunder" was the policy of the U.S. government. In two years, the U.S. government provided $2.7 billion, $2.4 billion, and $1.8 billion in "special project research grants" to Ford, General Motors, and Chrysler, respectively, to encourage the three automakers to develop new batteries and electric vehicles. Subsequently, the news was widely reported by major news media in the United States, claiming that the United States could overcome scientific research difficulties by 2015 and produce high-grade batteries that are no less than "composite batteries".

At that time, not only did Citibank make huge loans to the three major auto companies, but other banks in the United States were no exception.

The difference is, Morgantong

U.S. banks have a much more cautious policy and lend far less to automakers.

I need to say more about what happened next.

The United States has not been able to develop a two-stage composite battery, the three major automobile companies Chrysler has been bankrupt and reorganized at the end of 2015, Ford has lost money for three consecutive years, and GM can only rely on the high-end market to barely survive.

If it weren't for the financial crisis that erupted in 20166, Citibank wouldn't have ended so quickly.

It was completely different from the C8 years, when George W. Bush was able to introduce some rescue measures to help the dismal US financial enterprises tide over the difficulties and lay a better foundation for the next president. When the financial crisis broke out in '16, Roddick was threatened with impeachment because of the "house arrestgate" scandal, and the Republicans controlled the House of Representatives and the Democrats controlled the Senate. By the time Frederick came to power, Citibank was insolvent and had almost filed for bankruptcy protection in court.

At the time, Frederick was also trying to save Citibank.

With the assistance of the federal government, Citibank negotiated a merger with Bank of America. Although the situation of the Bank of America is not much better, Frederick privately assured that if the two banks merged, the federal government would work with the Federal Reserve Bank to provide them with a huge amount of bailout money, following the approach of 2009, and strip the two banks of their "toxic assets".

However, the negotiations eventually broke down because of the disagreement between the two banks.

Citibank is required to have a 55% stake in the merged "U.S.-Citibank", while Bank of America is required to acquire at least 50% of the shares. 5% of the difference, which eventually broke down merger negotiations.

The merger failed, and Citibank had no choice but to file for bankruptcy protection in court.

On the afternoon of the 11th, the Secretary of the Treasury of the U.S. federal government announced that the federal government would provide Citibank depositors with $25 trillion in withdrawal security rights in accordance with the agreement signed with Citibank in the early days.

The effect of this news is not obvious.

At the time of bankruptcy, Citibank had a total of $128 trillion in savings deposits and investment products, of which $9 trillion was deposits. The federal government guarantees only half of the savings deposits, which means that the other half of the savings deposits are not guaranteed at all for all investment products.

Subsequently, Federal Reserve Bank President Byrne announced that the Federal Reserve Bank provides withdrawal guarantees to all Citibank customers.

It wasn't until this news was announced that the panic was effectively controlled.

When Citibank declared bankruptcy, its total assets were only US dollars, of which fixed assets accounted for yuan, and the market value of its shares was less than 500 yuan. Citibank's debt reached 6,783 yuan, and even if all fixed assets were sold, the loss exceeded 2,000 yuan.

The Federal Reserve Bank guarantees Citibank customers, which means a loss of at least $2,000.

This is not an ordinary loss, and in order to stabilize the market, the Federal Reserve Bank needs to at least inject money into the market. Coupled with the losses caused by the collapse in the stock price, the Federal Reserve Bank had to inject $7,000 into the market to quell the collapse of Citibank.

Citibank was only the first big US bank to fall, followed by JPMorgan and Bank of America.

In the afternoon of the same day, the three major stock indexes in New York fell again and announced the suspension of trading before 130.

The collapse of Citibank not only caused a 12-magnitude earthquake in the U.S. financial market, but also quickly spread to the financial markets of major economies in the world, such as Europe and the Republic.

The next day, stock market indices in Australia, Seoul, Shanghai, Hong Kong, Singapore, Mumbai, Frankfurt, Paris, London and other financial markets fell across the board, with Shanghai having the smallest decline of 57% and London exceeding 17%.

Citibank's declaration of bankruptcy not only announced that the U.S. financial crisis had entered "**", but also marked the spread of the financial crisis to the world.

From the end of the Sino-Japanese War in the East China Sea to the collapse of Citibank, the prediction of a global financial crisis became a reality in less than half a year.

Although countries around the world have introduced rescue policies and rescue measures in the first time, everyone believes that this financial crisis will completely change the face of the world.

According to the words of some "pessimistic" experts, the 20177 financial crisis, marked by the collapse of Citibank, was a continuation of the financial crisis marked by the collapse of "Lehman Brothers". The 20177 financial crisis was not an accident, but an inevitable event, because major economies such as the United States and Japan did not take the right measures after the 2008 financial crisis ended, laying the foundation for the next financial crisis.

In the eyes of these experts, the global financial crisis is only the beginning, far from the end.

Driven by pessimism, overnight, investors around the world saw a bleak future.

The West is not bright and the East is bright, and the Republic has become the only bright spot in the dark world.

Damn it**

Continue to ask for a monthly pass.

Many brothers have reported that the fourth volume is very "formatted", and Flicker acknowledges this, because the fourth volume is the most important turning point in the book, and it can be said that it is the beginning of a new era in the book. The global financial crisis and the global economic crisis are important backgrounds for the later plots, and this volume also involves the transition of power in the republic, and at the same time that Ji Youguo, the absolute protagonist of the first three volumes, fades out, and needs to shape a new national leader, so Flicker uses multiple chapters in the fourth volume to introduce the background, paving the way for the future. Maybe this has caused inconvenience to many brothers who like this book, and even disgusted, and apologized for the flash, after all, this is a strategic book, without an overall strategic background, and it is difficult to write a taste later.

(To be continued)

Starting