1138 A Crisis that No One Expected

"Leaders from twenty countries and regions gathered here to form the Silver Alliance. Starting from this day..."

The news reported on TV makes many people feel inexplicably uneasy, and this uneasiness does not originate from the rise of silver and the decline of gold.

The replacement of precious metals is actually not a long process in history.

Human beings do not occupy a large space in the history of world time, but even in this small space, there have been more than ten changes in precious metals.

Silver replaced gold, and like every change before it, it was not unsettling.

What is really disturbing is a document read by a reporter on TV. The Silver Alliance seems to be planning to launch a brand new "silver coin" as a currency in circulation based on their original currency.

This is what makes people feel really uneasy.

Galil's sudden death was not long ago, and people seemed to still vaguely remember that it would not take long for those banknotes to suddenly be worth only their price in the scrap market.

If silver currency is born, it will have a huge impact on the international market, and it will also have a terrible impact on international settlements.

Because within these twenty countries and regions, whether you are a Gefra or a federal person, whether you are strong or not, you must abide by the financial rules set by the Silver Alliance.

Maybe a policy can make you one of the richest people in the world, or a policy can make your ten years of hard work become a thing of the past!

People who do business with these countries must hold silver currency, which also means that it will have a wider role——

Existing currencies are actually one-to-one, such as the Federal Sol, no matter how many outside countries have reserved the Federal Sol as reserve foreign exchange.

In an isolated trade, settling with the federal sol or not settling with the federal sol, it's a one-to-one thing.

But silver currency will destroy this rule, because people will find that as long as they hold silver currency, they can initiate trade and settle settlements with twenty countries and regions on the basis of a stable exchange rate!

Its convenience will hopefully affect more people. For example, both A and B are doing business with the Silver Alliance, and their trading partners do not even need to be an independent country or region.

But because of the versatility of silver currency, they may also use silver currency for settlement during the trade process.

In particular, cooperation between exporting and importing countries will be promoted further due to the wider applicability of silver currency!

A exported goods to countries in the Silver Alliance and obtained silver currency.

B, on the other hand, needs to import and buy the commodities from the Silver Alliance and at the same time export commodities to A, so that the silver currency in A's hands can flow into the hands of B and flow back to the Silver Alliance again, forming a cycle.

As more people continue to join this alliance, eventually the influence of the Silver Alliance and the silver currency will surpass everything else!

This is why people are uneasy, even though most people don't know it, they just instinctively feel that this is not a good fucking thing, but they don't necessarily know what the problem is, but they just feel like this.

The birth of the Silver Alliance directly caused gold to plummet. The exchanges were particularly sensitive to the world's financial order. A large amount of gold was sold off, and silver also began a new round of gains.

"Mr. Lynch... Recently some customers have been asking us if we can handle silver." Lem stood in front of Lynch, leaning on his gem walking stick, with a tentative expression on his face.

There are many investors in funds and companies who are very interested in silver, which is very popular now. However, Lynch vaguely revealed last time that this thing is not so reliable, and Lem has not dared to take action.

But he couldn't bear the fact that there were too many people who couldn't see the future clearly, so many people complained about his inaction on the board of directors. Now he met Lynch, and he wanted to discuss it with Lynch.

Lin Qi ignored him, and he didn't worry, he just stood aside and shouted.

During this period, Lem's secretary came in to deliver coffee, and she looked at Lem unbearably.

Lime's left leg was broken, and because he missed the best time for treatment, he was crippled forever.

And standing for too long will make the place where he was once broken start to hurt, and the pain will become more and more painful.

At this time, a thin layer of sweat began to form on Lime's forehead, but Lynch still had no intention of letting him sit down or talking to him.

He stood aside, supporting the crutches with both hands, standing, waiting for Lynch.

It wasn't until the reports about the Silver Alliance ended that Lynch breathed a sigh of relief.

He took out a cigarette, and seemed to have found an opportunity to move around. Lem limped over quickly, took out a lighter and lit it for Lynch.

Lynch looked at him, "You know, sometimes I wonder, you have seen the darkest Bupen, and you have also seen the most beautiful Bupen standing on the top of the building. Why are you still so stupid?"

Rhyme was a little confused, and he acted like he was accepting education honestly, "I don't quite understand, Mr. Lynch."

Lynch shook his head, "Your mentality is not correct, so you don't understand."

"A question, which one is more valuable, an ordinary stone or a piece of gold?"

Lime hesitated, "Gold must be more valuable."

Lynch nodded and asked again, "Suppose this gold is worth ten thousand yuan, and someone is willing to buy that stone for twenty thousand yuan, which one do you think is more valuable?"

Lime was a little confused. He thought for a while and asked softly in a tentative way, "Is the stone more valuable?"

Lynch didn't give him an answer, "Now someone wants to buy this stone for 30,000 yuan. Who do you think is more valuable?"

Lime's attitude was no longer as cautious as before, "The stone should be more valuable."

Lynch asked roughly the same question again, "If someone else is willing to pay 50,000 yuan to buy the stone in your hand, which one do you think is more valuable?"

"Stone!" This time his answer was quick and decisive.

Lynch shook his head, "You are wrong, gold is more valuable."

"When we talk about the value of a thing, we should not be disturbed by its capital means. A stone is a stone, and it will never be more valuable than gold, unless the production of this stone is rarer than gold and has collection value. .”

"Otherwise it's not inherently as valuable as gold, no matter how much it's worth."

He pointed at Lem with the finger holding the cigarette, "Capital turns finance into a fraud. We all know that the price of silver is less than one-tenth of the price of gold, but now silver is close to the peak price of gold. half."

"Do you think this is normal market behavior?"

Lime shook his head, "I know there are people speculating on silver, brother and sister Charlie."

"If you flip something worth only one or two yuan to more than ten yuan, it has already passed its initial profit-making period. Do you understand?"

"If another customer asks these stupid questions, you sign an agreement with them that they are fully responsible for their choices."

On the surface, Lynch was blaming those customers, but he was actually telling Lem.

Institutions like foundations can get ten or even twenty times the capital allocation from banks, which means that even one percent profit is still ten or twenty percent for them. Profits fluctuate.

Everyone thinks that silver needs to exceed twenty yuan, and there is still room for an increase of about 15%.

Through capital leverage, ten times is a 150% profit, and twenty times is a 300% profit.

Three hundred percent profit is enough for people to crush their own sanity and jump in headlong.

Lime was also jealous of this huge bonus, but only on the issue of silver and gold, Lynch did not allow him to operate, so he did not dare to disobey Lynch's order.

In fact, the foundation also makes money, and it makes a lot of money. After Lynch gave Lem the order, the foundation began to short gold.

So far, the apparent income has exceeded 13%, and with the addition of capital allocation, it has achieved a return rate of almost 50%.

The reason why the proportion of capital allocation is so low is because the foundation is also responsible for the investments of its clients. The money is not their own, and they need to control the safety of the funds within a reasonable range.

Sometimes when investing in such a foundation, some agreements will be signed, which include clauses that consider the safety of the funds.

Violation of these terms will result in serious lawsuits and even staggering compensation, so not every foundation dares to mess around.

This is a formal financial fund, and naturally it will not mess around.

But with the money that belongs to the fund, they can take it as they please, and they themselves are the responsible persons.

If Lem messes up, the Foundation will be investigated, that's inevitable.

It needs to be explained here that if you don't use capital allocation, suppose you buy a certain commodity for ten yuan, even if the price plummets and only one yuan is left, at least the funds are still "safe" because it exists.

But if the capital is allocated, for example, the capital allocation increases by ten yuan, it means buying two lots for twenty yuan.

In order to ensure the safety of their own funds and legitimate returns, funding institutions will develop a safety mechanism in conjunction with the exchange, that is, forced liquidation.

When the price of this product is lower than six yuan, preparations will begin to close the position.

And sell it at a suitable price.

And this often means investors lose a penny!

If the funds are gone, it is naturally unsafe.

Many people play stocks and futures and go bankrupt because they not only borrow money but also allocate funds!

All Lynch had to do was warn Lem not to mess around.

Just when they were about to say something, the phone on the table rang. Both of them looked at the phone at the same time. At the same time, Lem's secretary knocked on the door again and poked his head in. "The phone number is for Lin." Mr. Qi’s.”

Lynch looked at Lem, who took the initiative to leave his office...

When Lynch answered the phone, Mr. Trueman's voice rang out, "Our car is downstairs. There is an emergency meeting at the Presidential Palace that you need to attend. We are waiting for you."

"This time you are an 'economic expert'!"