Life at The Top novel Chapter 1747

Many people were aware of the subprime mortgage crisis, but their impression of it rested only on the simple concept that the financial tsunami had caused the economy to decline, with the most famous resulting event in it being that Layman Investment Bank, one of the big four US banks, was forced to shut down.

However, Jasper knew that the actual core problem of the subprime mortgage crisis was the subprime loan credit crisis.

In order to stimulate national consumption and maintain its own strength as the world’s largest country, the United States had implemented monetary quantitative easing policies for a long time.

However, this monetary quantitative easing policy was not the same as that of Sunrise Land.

It was essentially the United States printing banknotes for domestic welfare and relief of the government’s own debt. Furthermore, this process had gone on for decades.

If it was some other country trying this, the place would have been long gone from history.

However, it was a different case for the United States. The dominance of global finance and military politics allowed the United States to build a core system, which was the USD settlement system.

Its full academic name was the Bretton Woods system, which was the core system of global USD adoption.

It would be hard to describe in detail, but the crux of it was to make the USD a global currency whilst ensuring the printing power would still be in the hands of the American Federal Reserve Central Bank.

In other words, the United States’ monetary easing policy had made all countries in the world that supported USD settlement pay for the country’s high consumption, high debt, and high welfare.

In this way, the United States had played this game for decades, and it had managed to circumvent many problems

abruptly by making people from all over

the world pay for it.

Even so, this was not foolproof.

The long-term domestic monetary easing policy resulted in an excess supply of cash in the market and within banks.

The profit-seeking nature of capital and currency caused money to inevitably find a n industry to generate profits.