The city of Nottingham in the United Kingdom declared de facto bankruptcy, and the cities of Birmingham and Clayton also declared bankruptcy after that, both due to excessive spending on public services.
The British economy is no longer tense
But you can't look at it according to the Chinese way of thinking, do you think that the bankruptcy of these cities in the UK will be like our thinking to cut back on food and clothing to tide over the difficulties?
No, that's not how Westerners think. Their greatest aim was to take the debts of the city to all the Britons. When there are more and more such cities, Britain will have a national bankruptcy similar to it, and it will lose all its external debts, and of course this kind of reliance will be like the United States to issue national bonds all over the world, and exchange white slips for goods to maintain the life of the so-called developed countries.
Then the question arises again, can't other countries see clearly, why am I willing to exchange your white slips in kind?
The secret here is the exchange rate, which is the secret of the developed countries in the West to live a good life collectively.
Before talking about this matter, let me first talk about the most real thing about the exchange rate, and after this matter is understood, you will understand why the West is willing to be the little brother of the United States collectively.
After the Russian-Ukrainian war, India used Indian rupees to buy Russian oil, and when there were more than 100 billion US dollars, it turned out that Russia used rupees to buy Indian grain, India did not do it, and other commodities were not as cost-effective as Chinese goods, which was equivalent to pitting more than 100 billion US dollars of Russian oil in vain. Then Russia stopped doing it and asked for the use of yuan, but India was unwilling to pay the yuan on the grounds that China and India were in competition, and Russia did not do it. Then India said that it could use the UAE dirham to buy Russian oil, and the dirham is fixed to the US dollar, which means that no matter how the currency changes in the future, the same amount of dirham can be exchanged for the equivalent US dollar anyway, which seems to be a very fair new solution.
So where did the dirhams come from in India?The reason is that India and the UAE have a currency swap agreement, which seems to be $100 billion. The reason why there is this agreement is because the UAE is a small country, but it is the third largest country in India. India's small abacus is to let the UAE endorse India and cheat the oil in vain, anyway, the currency has been changed, and it will be said when it will be changed back.
In this way, it seems that the problem of Russian-Indian oil ** has been solved, but the Russians have found that the problem has arisen. Because Russia found that even if it is used through a third party, it cannot be exchanged for dollars at a fixed exchange rate, why?People don't recognize the dollar, which is a unilateral fixed exchange rate.
In retrospect, why can the West live a good life?Because like the pound, even if it does not have a currency anchor such as industrial goods, energy, and technology as a support, it is essentially an anchored dollar, because of the exchange rate of the pound sterling, it can really exchange so many dollars, and with dollars you can buy goods all over the world. Therefore, the people of the West such as Western Europe have high welfare, and most people can live a much better life than developing countries without working at all, the main reason is that the currency exchange rate is very high and very valuable, the main reason is here, of course, it cannot be said that others have no core competitiveness at all, such as some high-tech, but it is impossible and long-term support for so many people to live a life of high welfare. The main reason why the United States believes that it is so that the younger brothers can also eat meat and at least drink soup, and in addition, the United States has enough strength to let these little brothers realize their interests at any time, and its control over these little brothers is to send and receive them freely, like an arm and a finger.
What will happen to the rest of the world if they don't recognize the dollar?Either color revolutions, direct wars, or long-term sanctions blockades, there is no other way to choose but these three paths. So this is the real anchor of the dollar, the fist is big, even if it is a white stripe, you have to admit it.
Looking back, what does the future hold for the UK?It will follow the United States more closely, and it will become more and more a vassal of the United States, so as to seek the protection of the United States and live and die with the dollar, which is the general trend of the West, and the most essential reason why European countries are losing their autonomy more and more, because they want to live.
This is also because no matter how strong a person is, he has to eat.