As a very open port city, Hong Kong is one of the global financial centers. Because of its unique position, Hong Kong needs a stable exchange rate mechanism to undertake the "transaction benchmark" function of global trade, finance and investment. The so-called linked exchange rate is free to float within a range. If the exchange rate falls below 7.8, it means financial risks and the government needs to intervene and adjust. As one of the global financial centers, Hong Kong has become a transit point for world capital. This is bound to become the shooting range of every round of international speculators, and Hong Kong has also become the top priority of the international currency war. But as a node, only by reducing transaction costs can we attract a large amount of investment and continue to prosper.
The significance of the linked exchange rate is to stabilize the currency and reduce transaction costs. Although it is affordable, it is like a small sampan in the international sea. When the financial tsunami comes, it will become erratic and fragile, because once it decides to adopt the linked exchange rate system, it will not be able to play the role of lender of last resort, that is, it will not greatly improve liquidity through monetary easing. The banking system consists of central banks, policy banks and commercial banks. At this time, commercial banks will become isolated and unable to get help from the central bank and policy banks, that is, they will hand over the knife to the currency issuers linked to the exchange rate system. For Hong Kong, that is, the dollar, at this time, people will kill me as a fish. When the US dollar attacks the Hong Kong dollar, you have already surrendered your cards, and you will definitely lose the seigniorage income issued in local currency, the growth of local currency demand and the interest on local currency stocks. Every defense of the United exchange rate is bloody. Every time the global economy comes to this, we have to fight a war. As long as we fight, the economy will live in half, and the remaining countries will all live. The winner of the Big Cake Award will win the future international take-off buff, the national food and clothing, the rapid rise buff, and the right to speak in the League of Nations. But no one can move the nuclear deterrent there now, so let's fight the financial war.
When the US dollar deals with the RMB, it grabs the Hong Kong dollar first, and the small Asia-Pacific countries around the Hong Kong dollar follow suit. It is much easier to deal with RMB at this time, so to keep the bottom line of RMB, we must first keep the bottom line of Hong Kong dollar. Some time ago, Soros said that he wanted to short the RMB, and I was a little embarrassed. A hedge fund with only $30 billion challenges a big country with 3.33 trillion foreign exchange reserves. I feel a little broken. China is now the second largest economy in the world. Isn't it a little small for a huge economy to try to smash China's rice bowl with tens of billions? The China card gives the China administration enough confidence to deal with the short-selling risk of the US imperialists. As People's Daily said, the life of China people is still very easy for the world.