Chapter Nine Hundred and Seventieth IX Completely Planned, Printing Money to Repurchase Bonds
Mayor Wang's words made Yang Chen a little confused. The country wants to release the island nation's bonds reserved and distributed?
Is it to reduce losses, or to help short?
These two properties are completely different.
Yang Chen hurriedly asked: "I don't quite understand. So, are we releasing the bonds reserved to avoid more losses, or to help with shorting?"
Mayor Wang: "Haha... This needs to be understood by Director Yang himself. In short, if necessary, we can release some of the bonds we have reserved."
Once he said that, Yang Chen knew what it meant.
Yang Chen: "This price can be released, and you can buy it back later according to actual needs. If the island country government prints more banknotes to buy back bonds, and the bond price rises, you can first convert the island currency sold into rice gold, and then use the rice gold to go Buy bonds or island currency. In the future, the Federal Reserve will raise interest rates by 2.5 points. I can only say so much, how to operate depends on the opinions of the think tank. However, I have to say what I said first, and I cannot say Anyone who dares to leak out, I will make him unable to get along in the country. You tell the people in the think tank what I said."
Mayor Wang: "Haha...Understood, I will pass on your words intact. It seems that Director Yang is very well prepared this time. No matter how the island country operates, you can complete the harvest."
Yang Chen: "Since we've done it, we must ensure that nothing goes wrong. I'm not a fool, and it's impossible for me to take risks with real money. What's more, this time I will take the lead. If I don't make some achievements, how will I handle Wall Street in the future? Those people."
Mayor Wang: "Haha...that makes a lot of sense. Let's stop here. I'll call and convey your words to the higher-ups now."
Yang Chen: "Yes."
If the national team enters the field to help, it will be difficult for the island country to withstand such a large selling pressure.
If they really forcibly print enough banknotes to repurchase bonds, it will inevitably lead to a serious flood of currency in the island country, and they will also follow in the footsteps of the United States. With severe domestic inflation and rapid economic decline, they will be finished.
Soon, the island country released the news.
Just as Yang Chen predicted, they are going to print more funds to buy back the 10-year bonds in the market.
After this news came out, the decline in the island nation's bonds slowed down, and there was even a tendency to withdraw.
However, after all, this is just a verbal announcement. Whether the island country will do this, and what it can do, no one knows for the time being.
Therefore, the reaction in the market is also limited, and it is the best situation to be able to stop the decline.
Now everyone is waiting for the news, and it depends on whether the island country will actually print more money for bond repurchase.
In the evening, the Wall Street giants sent Yang Chen another video conference request.
After Yang Chen finished his dinner, he entered the study room to connect to the video conference request.
President of Goldman Sachs: "Mr. Yang, have you seen the news from the island countries? They are really going to print money to buy back bonds as you expected."
Yang Chen: "Then we can exchange the money into rice gold, and wait to exchange for more island currency."
President of Citigroup: "Haha... This trick is really vicious. Whether they save it or not, we can still make money."
Yang Chen: "What is this? This is just the first step. Our next step is to attack the island country's stock market. When they really print more money and put it into the market, it will definitely push up the island country's stock market. But this depends on The result of forcibly pushing up printing funds is not sustainable and reasonable. When this period of limelight passes, the stock markets of the island countries will definitely plummet and return to a position that matches their economic level. Therefore, we can short them again The stock market makes another wave."
President of Morgan Stanley: "Haha... Mr. Yang is really an investment genius, and this set of chain calculations is really good."
President Miyin Milin: "It's so late to meet each other. If we could have known Mr. Yang earlier, we would all be trillionaires by now."
The wealth controlled by these giants must be in the trillions, but none of them have much money themselves.
For so many years, the rich people everyone has heard are Bahuite, Gates, Musk, Bezos, etc., and there has never been the name of the helm of these giants.
This is the characteristic of these investment banks. The names of these investment banks can scare people, but the people at the helm of these investment banks are not necessarily famous, or even rich.
Yang Chen said with a smile: "The future is long, and we still have many opportunities to cooperate. Sooner or later, you will all become trillionaires."
President of Goldman Sachs: "Haha... trillionaires don't want to, as long as we can cooperate with Mr. Yang and continue to make money."
Yang Chen: "Then be prepared, when the island country's stock market is passively pushed up, we can go short at any time."
The giants nodded, and quickly ordered their subordinates to follow Yang Chen's instructions.
First convert the island currency in your hand into rice gold, then wait for the island government to print more banknotes to repurchase bonds, and then let the Fed officially announce a 2.5 point interest rate increase, and then exchange rice gold for the island currency to earn the difference.
Originally, the island country announced that it would print more money and repurchase 10-year bonds on a large scale, which indeed stopped the decline in the island country's bonds, and even showed signs of withdrawal.
However, just one day later, the prices of island bonds continued to plummet.
Suddenly trillions of island country bonds were ready to be sold in the market, causing the already fragile bond prices to collapse instantly, falling by 15% in one day.
Yukio Yokota, head of the central bank of the island country, denounced the behavior of shorting the bonds of the island country at a press conference.
"Currently, all countries in the world are facing a huge economic crisis. As a participant in international competition, we believe that everyone should work hard to overcome these difficulties, and we can carry out broader and deeper cooperation when necessary. We I think this is a humanitarian choice. However, some capitalists don’t care about the life and death of other countries and people for the sake of profit. For them, as long as they can make money, they don’t care about moral issues at all. As long as they can make money , they can disregard the life and death of the people of other countries. This is an inhumane act, and this is a ruthless choice. However, I want to warn these people, don't think that you are rich enough to short our country's bonds. We have enough Ability to deal with the crisis, and also have enough ability to smash your conspiracy. I officially announce that our bank will increase the supply of market funds and repurchase 10-year bonds on a large scale. Come on, if you have the ability, continue to short us, let us Let's see who is more powerful. I believe that the victory will belong to the just side, and the Great River Nation will win!".
Yukio Yokota's speech did have an effect, and the prices of island bonds, especially ten-year bonds, began to retreat.
But it is only a symbolic withdrawal. Whether the reversal can be realized depends on how much money the central bank of the island country can issue to repurchase bonds.
If the strength is not enough, it means nothing.
If the strength is enough, everyone can follow the trend and do more.
Anyway, no matter how the island country operates, those who hold island country bonds will definitely not lose money.
At the same time, no matter how the island countries operate, they will definitely suffer huge losses.
Either the wealth is harvested, or the domestic inflation bodyguard is waiting, the island currency depreciates excessively, and the economy is getting worse and worse.