The Rebirth of the Financial Hegemon

Chapter 32 1 Billion Dollars

The United States is a federal republican constitutional country composed of multiple races, multiple colors, and multiple regions.

Freedom and equality.

It is the foundation upon which the United States of America was founded.

But it turns out that freedom and equality are a joke.

In the centuries-old history of the United States, racial discrimination and oppression have never ceased.

In 1882, the U.S. Congress accepted the Chinese Exclusion Bill submitted by Republican Senator John Miller.

This was one of the most severe restrictions on immigration in U.S. history.

The Chinese Exclusion Act prohibited Chinese workers employed as miners from entering the United States within ten years, under pain of imprisonment or deportation. Many Chinese were brutally beaten and killed simply because of their race.

When the Chinese are deprived of equal job opportunities and the rights to own land, do business, and receive education, the activities of the Chinese living in the United States can only be limited to the Chinese community.

That is "Chinatown".

They can only make a living by running laundromats, restaurants, grocery stores and other low-class and humble service industries.

Even after the Chinese Exclusion Act was repealed in 1943, the status of Chinese in the United States was still very low.

In California, the prohibition on intermarriage between Chinese and whites was not abolished until 1948.

In other states, similar regulations are still in place.

In 1967, the U.S. Supreme Court unanimously ruled that the ban on interracial marriage was unconstitutional.

Zhao Jiangchuan has stayed abroad for such a long time, so he naturally knows the attitude of the upper class in the United States towards Chinese people.

If black people are treated as slaves, Chinese people can only be regarded as second-class humans.

In a celebrity gathering place like Wall Street, if you don't have enough pomp and circumstance, in addition to being discriminated against and disliked by others, you may be arrested by the federal police for any reason.

The police never need a real reason to arrest someone.

In order to avoid unnecessary conflicts and troubles, Zhao Jiangchuan and his party all dressed in a fashion that was in line with the upper class.

Zhao Jiangchuan was wearing a handmade customized Anima suit worth hundreds of thousands.

He looked handsome in his well-tailored dark blue suit, spotless Egyptian cotton white shirt and burgundy striped tie.

Ouyang Lan wore a pure white lace dress.

The cinched bodice showed off her exquisite and concave figure to the fullest. The luxurious diamond necklace around her neck made her look graceful and noble.

Behind them, Li Jingming and Zhang Weitao, were also wearing decent suits.

But they maintained a steady distance from Zhao Jiangchuan, making it obvious at a glance that they were bodyguards.

People rely on clothes, Buddha relies on gold.

Under wealth, racial distinctions are always unconsciously downplayed.

As the group of people arrived, they immediately attracted the attention of bank duty manager Andy Smith.

To be a lobby manager at Wells Fargo, in addition to the necessary high-quality service, you also need to have a good vision.

That outfit is worth tens of thousands of dollars, and the necklace around the female companion's neck is worth hundreds of thousands of dollars.

This is a big customer.

Based on the clothing and temperament of Zhao Jiangchuan and his party, Smith immediately classified the customer levels in his mind.

After Zhao Jiangchuan entered the hall, he immediately walked over quickly.

"Hello, distinguished sir, I am Andy Smith, the hall manager. Is there anything I can help you with?"

Smith's posture was very low. He held his chest with one hand and bowed towards Zhao Jiangchuan.

Zhao Jiangchuan naturally didn't feel flattered by Smith's attitude, and he answered casually.

"Hello, Mr. Smith, I need to buy treasury bonds. I wonder if you can help me."

The national debt in the United States is, of course, the U.S. Treasury debt.

It refers to the national bonds issued by the U.S. Treasury Department on behalf of the federal government. In layman's terms, they are bonds issued by the U.S. government with national credit.

Since the issuer of treasury bonds is the state, they have the highest credibility and are recognized as the safest investment tools.

According to different issuance methods, U.S. Treasury bonds can be divided into three types: certificate-type Treasury bonds, physical bond-type Treasury bonds and book-entry Treasury bonds.

Because of its high security and considered to be the most stable and reliable bond.

Therefore, government bonds are also known as "gilt-edged securities".

According to different repayment periods, treasury bonds can be classified into term treasury bonds and irregular treasury bonds.

Term treasury bonds: refer to treasury bonds issued by the state with strict stipulations on the repayment period of principal and interest.

Term treasury bonds can be divided into short-term treasury bonds, medium-term treasury bonds and long-term treasury bonds according to the length of the debt repayment period.

This short-term to long-term period is generally between one and thirty years.

When it comes to investing, risk and return are often relative.

Since government bonds are known as the most reliable investment tools, it means that their returns are not too high.

Under normal circumstances, the interest rate on 30-year U.S. Treasury bonds is basically around 3.1%, and the yield on 10-year U.S. Treasury bonds is currently around 3%.

What Zhao Jiangchuan wants to buy this time is an anonymous ten-year treasury bond.

Zhao Jiangchuan certainly looks down on the income from national debt.

However, one characteristic of U.S. Treasury bonds is that they are highly liquid and will be purchased by governments around the world.

Internationally, its value is equivalent to the U.S. dollar.

In addition, treasury bonds have stable returns, so if you are in urgent need of cash, you can almost use treasury bonds as collateral to obtain the equivalent of local currency.

Because Treasury bonds are bonds issued by the U.S. government, as long as the U.S. government exists, they will be redeemed with interest at the promised return upon maturity.

Against this backdrop, U.S. Treasuries are almost equal to the value of the U.S. dollar.

This is the only reason why Zhao Jiangchuan purchased U.S. Treasury bonds.

As long as you hold a large amount of U.S. Treasury bonds, you can mortgage them into the local currencies of other countries at will.

In addition to preventing exchange rate risks, there will also be a certain amount of income, and it can be sold in the market at any time.

Zhao Jiangchuan's answer to Andy Smith was not surprising.

The annual issuance of Treasury bonds in the United States is approximately US$500-600 billion.

Basically, the United States issues Treasury bonds every week.

The largest buyers of these Treasury bonds are U.S. institutional investors, U.S. banks, and U.S. individual investors, which account for about 60% of U.S. debt issuance.

Otherwise, they are all sold to governments or investors from around the world.

Because in addition to stable income, government bonds are also a good tax avoidance tool.

In order to encourage investors to subscribe for treasury bonds, the U.S. government stipulates that interest income from the purchase of treasury bonds can be reduced or exempted from income tax.

This is undoubtedly very attractive as the gains from marketable securities must be included in the investor's total income and subject to income tax.

As a domestic bank in the United States, Wells Fargo is naturally one of the underwriters of national debt.

In addition, American residents are very investment-minded. Almost every day, customers come to banks to purchase treasury bonds.

As a bank account manager, Smith is very responsible.

After mentally confirming Zhao Jiangchuan's rating, his service was very good.

Although it is not groveling, it is definitely the best service.

This is the purpose of the American banking industry, the customer is God.

After some conversation, Smith asked again after understanding the types of treasury bonds Zhao Jiangchuan wanted to buy.

"Sir, how much worth of Treasury bonds do you want to buy?"

This time, Zhao Jiangchuan did not answer.

He silently held out a finger.

One finger.

Smith probed.