“The Federal Reserve has a quantitative easing policy,” Chen Dong patiently explained. “Quantitative easing means expanding the issuance of a certain amount of currency, bonds, and financial assets. Quantitative easing will directly lead to an increase in market liquidity.”
"The United States is currently facing significant inflation and pressure. How did they address this? They transferred the crisis to developing countries by issuing government bonds, thereby stimulating the development of their domestic real economy."
The bald man and the other diners were stunned.
At this point, someone suddenly realized and said, "So, they're using the people and financial markets of Southeast Asia to transfer the asset bubble in US dollars?"
“That’s exactly what I mean,” Chen Dong replied.
After saying that, Chen Dong sighed, "With the support of the Federal Reserve and the encouragement of Southeast Asian governments, overseas third-party investment banks and investment companies will be optimistic about this place."
"But think about it, the Southeast Asian financial crisis is not over yet, so what exactly are we optimistic about in this place?"
The bald man seemed to be deep in thought, then lowered his head and pondered, "People are starting to be optimistic about Southeast Asia because the Federal Reserve promised Southeast Asian governments that it would extend a helping hand to the region."
Someone added, "And they will provide a complete set of economic development strategies for the economic recovery of Southeast Asia, and will also formulate policies in their own countries to support the economic growth of Southeast Asia."
Chen Dong then reminded them, "But all of this is just a verbal promise from the Federal Reserve."
“Aside from a belated aid package from the Federal Reserve to the Philippines a week ago, they have done nothing.”
The bald man asked Chen Dong, somewhat dazed, "Didn't the leaders of the United States hold several meetings with the leaders of Thailand, the Philippines, and Singapore before? From the president to the prime minister, from customs officials to federal members of parliament."
"I feel that they are quite sincere."
Chen Dong shook his head. "I still stand by what I said: actions speak louder than words. Don't look at what they say, look at what they do."
The second bubble he referred to was the Federal Reserve.
If the Federal Reserve only makes verbal promises to Southeast Asian governments, they could simply abandon the aid funds and leave.
Perhaps after leaving, the Federal Reserve will complain that it has developed a series of policies and strategies for the economic recovery of Southeast Asia, but still failed to save the situation.
Chen Dong had long seen through the fact that the United States always said one thing and did another.
"This quantitative easing policy you mentioned, this is the first time I've heard of it. Is it really true?" someone asked.
Chen Dong smiled and shook his head. He didn't remember when he learned about this quantitative easing policy; he only knew that it had a name: "QE".
Afang told Chen Dong to get to work, and the diners discussed the Federal Reserve and the Soros Group for a few minutes before they dispersed.
Chen Dong thought that once the price of gold rose to a certain peak, Soros would immediately order the foundation to withdraw, and the Federal Reserve would also achieve its goal and gradually withdraw.
These are all old tricks of Soros.
......
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