Chapter 980 Step 1 Completed, Start Step 2 Short-Selling Plan

Even if you decide to print more banknotes, you can't see the effect in a day or two.

About ten days later, it was obvious that a large amount of money was buying island bonds in the international bond market.

Obviously, the banknotes printed by the central bank of the island country were put into use in the market.

Island bonds fell by 35% at the lowest point before, which means that a bond with a face value of 10,000 is only worth 6,500 island currency.

However, because the central bank of the island country invested real money in repurchases, bond prices slowly rose again.

At that time, Yang Chen and Wall Street giants 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 If the scale wants to reverse the situation, the central bank of the island country has to print at least 10 trillion more funds to have a significant effect.

If you want to completely reverse the situation, you need at least 20 trillion funds.

Because this time it was not a simple market behavior, but Yang Chen led the Wall Street giants to maliciously sell short.

It is impossible for the island country to reverse the situation without investing a huge amount of money.

After the central bank of the island country took action, many financial professionals in Daxia expressed their personal views again.

For example, the financial meatball girl.

"Family, Boss Yang has led Wall Street to short-sell the bonds of the island country to a climax. Not long ago, the spokesman for the island country's central bank, Yukio Yokota, said that he would print more money to deal with this crisis. According to their vision, they will increase the Print a lot of money for bond repurchases. The focus of their repurchase is the 10-year bond on the market, which is the main bond they issue. If the price of the 10-year bond can be pulled back, the price of bonds of other maturities should follow. Back up. Just today, the island country’s room finally took substantive action. Today, a large amount of funds to buy island country bonds suddenly appeared in the bond market. As a result, the price of island country bonds rebounded rapidly. Before that, the largest drop in island country bonds was as high as 35%, which means that you only need 6,500 island currency to buy a bond with a face value of 10,000 island currency. Up to now, the decline of island country bonds has narrowed to 23%, which shows that the central bank of the island country is very strong in issuing funds, and the effect is very good Obviously. But! A new problem has arisen again. The central bank of the island country has issued so much currency. Once the currency returns to the island country, it will inevitably have a huge impact on the island country’s already sluggish economy. Perhaps, 500,000 pieces of bread The historical scene will reappear in the island country, hey."

Another example is civilian finance.

"My family, Boss Yang led Wall Street to short-sell the bonds of the island country. It is becoming more and more interesting! Originally, the economy of the island country was in a downturn, and international energy and food prices soared. In addition, Maozi imposed an energy embargo on the island country. The economy of the island country is in a mess. Hey, at this time, anyone with a little economic knowledge knows that shorting the island country will definitely make money. So, Boss Yang and Wall Street tycoons are eyeing the bonds of the island country. I have to praise Boss Yang’s wisdom here. He didn't choose to short other fields, but shorted the bonds of the island countries. Why should he short the national bonds? Because the national bonds are linked to the credit of the country, if they fall too much, it will affect the credit of the country. Who would dare to buy the bonds of the island countries in the future. Therefore, the island countries The side will definitely try its best to increase the bond price and not let the country's honor be discredited. So how can the island country increase the bond price? Their only way is to print more money and use the excess money to buy back the bond, thereby stabilizing the bond Price. But what is the harm of over-issuing currency? You can think about how terrible it was for a piece of bread to cost 500,000 marks when Germany was tossed by the Jews. So, Boss Yang’s move to short island bonds is a big deal. Yangmou. The island countries must know the dangers of over-issuing currency, but they have to do so. Because over-issuing currency will at most affect the economic order of the country, and the people will suffer a little. But once the bond depreciates too much, then It is to damage the credibility of the country. Once the country loses its credibility, it will further lead to the depreciation of bonds, and even other countries will no longer accept the currency of the island country.

Therefore, the island country can only sacrifice the interests of its own economy and people, and must ensure the maintenance of national credibility. It can only be said that Boss Yang's move is really too powerful. With his own efforts, the island country's economy can be set back at least ten years. "

Although what the blogger said is a bit exaggerated, the theory and impact he said are not wrong, but the estimated results are too serious.

It is not wrong to say that this is a certain Yang, and it is not wrong for the island government to save it, nor is it right not to save it.

The final result is that they can only choose to sacrifice their own economic and national interests, strive to maintain the country's credibility, and must ensure that the bonds return to normal levels.

They have already done this, and then the Fed can play next.

In the evening, the Fed announced that it would raise interest rates by 2.5 points.

This also means that rice gold flowing into the international market will return to the United States at an extremely fast speed.

The United States has long had low interest rates, even negative interest rates. Raising interest rates by 2.5 points at once is too tempting for funds.

The rapid return of rice gold in the international market to the United States means that rice gold is more valuable in the international market.

When the Wall Street giants officially shorted the island nation's bonds, 1 meter of gold could be exchanged for 138 island nation currency.

Later, the island country's bonds fell sharply, which in turn triggered the depreciation of the island country's currency. 1 meter of gold can be exchanged for 145 island countries' currency.

Later, the island country printed banknotes to repurchase bonds, which led to the over-issue of island country currency in the international market, and 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 that the island currency has depreciated in disguise. Now 1 rice gold can be exchanged for 155 island currency.

Wall Street giants exchanged 138 island currency for 1 meter of gold at that time, and now they exchange 1 meter of gold for 155 island currency to repay the 138 island currency they borrowed before, which is equivalent to earning 17 island currency for 1 meter of gold.

At this time, Wall Street tycoons only need to convert the rice gold they hold into a sufficient amount of island currency to repay the island currency spent on lending bonds before, and the remaining rice gold is the money they earned from this operation. .

After a few days of exchange and selling, in the end, shorting island bonds made a total of 14.3 billion meters of gold.

Yang Chen holds 30% of the shares, so he should be allocated 4.2 billion gold.

But he only needs 40 meters of gold, and the rest will be divided among other giants, which can be regarded as thanks to them for this operation.

This time Daxia followed Yang Chen's rhythm and made a difference of more than one billion rice gold through high-selling land.

Making money is only one of the benefits, and another benefit is that the island country has severe inflation and a large amount of currency is overissued, causing domestic prices to soar.

The super-issued currency has nowhere to go, but can only enter the property market and stock market.

Just as Yang Chen predicted before, the stock market of the island country will definitely be pushed up by the excess currency within a short period of time.

But because the economy is not economical, it cannot sustain the rise, and then it will definitely fall again.

Therefore, the second step of Yang Chen's plan to short the island country can begin...