Chapter 980: Step 1 Completed, Start Step 2 of Short Selling Plan
[After three years of signing, my identity as a great person was exposed] []
Even if you decide to print more money, you won't be able to see the effects in a day or two.
After about ten days, it was obvious that a large amount of money was buying island country bonds in the international bond market.
Obviously, the banknotes printed by the central bank of the island country have been put into the market for use.
The island nation's bonds fell by 35% at their lowest point, which means that a bond with a face value of 10,000 is only worth 6,500 island currencies.
However, because the central bank of the island country invested real gold and silver in repurchases, bond prices slowly rebounded.
At that time, Yang Chen and Wall Street giants alone released 20 trillion bonds, plus Daxia also released 10 trillion bonds, plus other countries and investors invested a total of about 5 trillion bonds, such a huge short sale If the scale wants to reverse the situation, the central bank of the island country must print at least 10 trillion more funds to have a significant effect.
If you want to completely reverse the situation, you will need at least 20 trillion yuan in funds.
Because this time it is not a simple market behavior, but Yang Chen leading Wall Street giants to maliciously short-sell.
It is impossible for the island country to reverse the situation without investing huge amounts of money.
After the central bank of the island country took action, many financial people in Daxia expressed their personal opinions.
For example, the financial girl.
"Family, Boss Yang has led Wall Street to short-sell the island nation's bonds. Not long ago, Yukio Yokota, the spokesman for the island nation's central bank, said that more money will be printed to deal with this crisis. According to their vision, they will increase Print a large amount of funds for bond repurchases. The focus of their repurchases is the 10-year bonds on the market, which are the main bonds they issue. If the price of 10-year bonds can be brought back, the prices of bonds with other maturities should follow. Back up. Just today, the island country room finally took substantive action. Today, a large amount of funds suddenly appeared in the bond market to buy island country bonds. As a result, the price of island country bonds rebounded rapidly. Before that, the largest decline in island country bonds was as high as 35%, which means that you only need 6,500 island currencies to buy a bond with a face value of 10,000 island currencies. So far, the decline in island nation bonds has narrowed to 23%. It can be seen that the island nation’s central bank has issued funds very vigorously and the effect is very good. Obviously. But! A new problem has arisen again. The central bank of the island country has overissued so much currency. Once these currencies return to the island country, it will inevitably have a huge impact on the already sluggish economy of the island country. Perhaps, 500,000 for a piece of bread Historical scenes will reappear in the island country."
Another example is civilian finance.
"Family, Boss Yang is leading Wall Street to short-sell the island nation's bonds. It is becoming more and more interesting! Originally, the island nation's economy was in decline, and international energy and food prices soared. In addition, Maozi imposed an energy embargo on the island nation. As a result, The economy of the island country is in a mess. Hey, anyone with some economic knowledge at this time knows that you can definitely make money by shorting the island country. So, Boss Yang and the Wall Street giants have focused on the island country’s bonds. I have to praise Boss Yang’s wisdom here. . He did not choose to go short in other areas, but shorted island country bonds. Why should he short treasury bonds? Because treasury bonds are linked to the country’s credibility. If they fall too much, it will affect the country’s credibility. Who will dare to buy island country bonds in the future. Therefore, island countries They will definitely try their best to raise bond prices and not let the country's honor be ruined. So what can island countries do to raise bond prices? Their only way is to print more money and use the excess banknotes to buy back bonds, thereby stabilizing bonds. price. But what are the dangers of over-issuance of currency? You can think about how terrible it was when Germany was tortured by the Jews and a piece of bread cost 500,000 marks. Therefore, Boss Yang’s move to short the island nation’s bonds is a scam Conspiracy. The island countries must know the harm caused by over-issuance of currency, but they have to do it. Because over-issuance of currency will at most affect the economic order of the country, and at most it will make the people's lives miserable.
But once the bonds depreciate too much, it will damage the country's credibility. Once a country loses its credibility, it will further lead to a devaluation of bonds, and even other countries will no longer accept the currency of the island country.
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[After three years of signing, my identity as a great person was exposed] []
Therefore, the island country can only sacrifice the interests of its own economy and citizens, and must ensure that the country's credibility is maintained. It can only be said that Boss Yang's move is really powerful. He can set back the island country's economy by at least ten years on his own. "
Although what this blogger said is a bit exaggerated, the theory and impact he mentioned are not wrong, but the predicted results are too serious.
It is not wrong at all to say that this is Yang. It is not wrong for the island country government to save him, and it is wrong not to save him.
The final result is that they can only choose to sacrifice their country's economy and national interests, strive to maintain the country's credibility, and must ensure that bonds return to normal levels.
They have already done this, and then the Fed can come on the scene.
In the evening, the Federal Reserve announced that it would officially raise interest rates by 2.5 points.
This also means that rice gold flowing into the international market will flow back to the United States at an extremely fast speed.
The United States has had low interest rates, or even negative interest rates, for a long time. A sudden increase in interest rates by 2.5 points is too tempting for funds.
Rice gold in the international market is quickly returning to the United States, which means that rice gold is more valuable in the international market.
When Wall Street giants officially shorted island bonds, -1 meter of gold could be exchanged for 138 island currencies.
Later, the island nation's bonds fell sharply, which in turn triggered the devaluation of the island nation's currency. One meter of gold can be exchanged for 145 island nation currency.
Later, the island country printed more banknotes to repurchase bonds, which resulted in the over-issuance of island country currency in the international market. 1 meter of gold can be exchanged for 150 island country currency.
Now the Fed has raised interest rates by 2.5 points, which has led to the appreciation of rice gold, which means a disguised depreciation of the currency of island countries. Now 1 rice gold can be exchanged for 155 island countries' currencies.
Wall Street giants exchanged 138 island currency for 1 meter of gold, and now use 1 meter of gold to exchange for 155 island currency to repay the 138 island currency they borrowed before. This is equivalent to earning 17 island currency for 1 meter of gold.
At this time, the Wall Street giants only need to exchange the rice gold they hold into a sufficient amount of island currency to repay the island currency they spent when lending bonds before. The remaining rice gold is the money they earned from this operation. .
After several days of exchange and selling, a total of 14.3 billion gold was earned from shorting island country bonds this time.
Yang Chen holds 30% of the shares and should receive 4.2 billion meters of gold.
But he only wanted 40 meters of gold, and the rest was divided among the other giants as a thank you to them for this operation.
This time Daxia followed Yang Chen's lead and made a profit of over a billion meters of gold by selling and buying land at a high price.
Making money is only one of the benefits. Another benefit is that the island country has serious inflation and a large amount of currency is issued, causing domestic prices to soar.
The over-issued currency has nowhere to go and can only enter the property market and stock market.
As Yang Chen expected before, the stock market of the island country will definitely be pushed up by the over-issuance of currency in a short period of time.
But because the economy is uneconomic, it cannot sustain its rise and will surely fall sharply again.
Therefore, Yang Chen’s second step plan to short the island country can begin...