Chapter 1103 (2/2)

According to the Koro city agreement signed the day before yesterday, the main members of the Earth Defense Alliance are Singapore, China, Russia and Germany. The secondary member states include Pakistan Tanzania, Philippines, Morocco, Malaysia and other 21 Asian countries.

According to the consensus reached by many parties, the major member states will contribute 5-7% of GDP according to their territorial area and population weight, and the secondary member states will contribute 3-4% of GDP to the development of aerospace industry.

Of course, although joining the Earth Defense Alliance is for self-protection, it is impossible for the allies to suffer losses from the satellite ring trade.

In the ”Koro city agreement”, star ring trade promised member states that its space resources would be tilted to Member States.

In addition to the outer space defense agreement, 50% of the outer space development tax will also be imposed on all non Earth Defense areas. This money is collected by the star ring trade and used as the Earth Defense Fund for the construction of extra terrestrial fortifications and the formation of earth civilization fleet.

Since it's for the common interests of all people, we can't let some people rush in front of us, and some people still hide behind to watch the fun?

Now you don't have to work hard. Can't you pay too much?

As soon as this measure came out, it caused a great stir in the international community, especially in the financial field, which triggered a big earthquake. Prior to that, those aerospace related enterprises on NASDAQ were suddenly in distress.

It's not just the prospects of aerospace enterprises that have been hurt. At a time when raw materials for light and heavy industries in various countries are increasingly dependent on outer space resources, pessimism soon begins to spread from aerospace enterprises to manufacturing industries.

What is the concept of a 50% defense tax?

Take iron ore as an example. As of July 1, 2019, thanks to the improvement of space elevator capacity of star ring trade, it is regarded as the wind vane of iron ore price, and the pusher's 62% iron ore index is SGD 58 per ton. Before the introduction of the defense tax, the United States could import iron ore from space from Singapore at a minimum price of S $45 per ton. However, after the introduction of the defense tax, their cost will be raised to S $67.5.If that's all, even if it's just like this, the S $67.5 is still lower than the $76 per ton production cost given by the former mining giant vale of Brazil. That is to say, iron ore alone, they can not find a substitute at the same price!

Don't underestimate the difference of S $22.5.

Steel is the foundation of national industry, and the fluctuation of commodity price will be reflected in the cost of manufacturing industry. If it is a global price fluctuation, there may not be much in the balance of the exchange rate lever. But if this kind of price fluctuation is limited to a certain part of the country, then the impact can not be underestimated.

The same unit of industrial manufactured goods needs to consume a ton of 62% grade of iron ore, and the production in China is 22.5 SGD cheaper than that in the United States, so China's products have more market competitiveness of S $22.5 than that of the United States.

Not only iron ore, but all metal minerals from iron ore to rare earth, the United States and other non Earth Defense Alliance members will passively accept this ”unequal treaty”. Unless they pack up and leave, do not use the space elevator, do not go to the new country's port, or they will have to pinch their nose to recognize the 50% heavy tax.

It can be predicted that with the development of space resources, the 50% defense tax will become an unshakable burden on non member states. In the long run, the market competitiveness of the members of the Earth Defense Alliance will only be strong, and will completely leave behind the non member states in the future.

As a result, the weakening of the US dollar and the strengthening of the Singapore dollar are almost predictable.

For Wall Street, this is absolutely bad news. (to be continued. )

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