Chapter 801: The Pit Dug for the Roshir Family

Xia Yu said slowly: "Sir Carter, you should know that in the second half of the 1970s, due to the changes in the world economy, there was a new development in international banking business. Therefore, starting a few years ago, banks in various countries competed for opportunities. , all began to turn to international strategies.”

Duke Carter Howard nodded slightly in approval, which was the truth.

It is precisely because of this change that Lloyds Bank made a strategic adjustment and turned its attention from the UK to the international market, hoping to rapidly grow Lloyds Bank with the help of the money of the local tyrants in the Middle East.

It can be said that four years ago, Lloyds Bank was basically active in the UK. The UK business accounted for 90% of Lloyds Bank, and the remaining 10% was basically the Commonwealth of Canada and Australia. Asia, Latin America, Africa and other places contribute almost no business.

Xia Yu continued: "It is not wrong for Lloyds Bank to enter the international market, because with the integration of the global economy, it is difficult for Lloyds Bank to join the ranks of the world's largest banks by relying on the domestic business of the UK, and it will even be far away. Left behind."

"But the crux of the problem is that due to strategic mistakes, Lloyds Bank expanded recklessly without understanding the situation, just to compete for the market, but relaxed risk control. Now Lloyds Bank has planted a big bomb, According to the current international economic situation, at most one and a half years, the bomb of Lloyds Bank will go off.”

"And there are two bombs, loans to Latin American countries and loans to commercial real estate."

Duke Carter Howard narrowed his eyes, frowned, looked at Xia Yu seriously and asked, "Xia Yu, are you sure? Give me a reason!"

Xia Yu questioned that Lloyds Bank's strategy was wrong, and Duke Carter Howard did not immediately refute it, because he knew Xia Yu's strength in the financial field, regardless of right or wrong, but he was absolutely qualified to say such things.

He also knows that Lloyds Bank has indeed developed by leaps and bounds in recent years, and relying on the influence of the United Kingdom and major families in Latin American countries, Lloyds Bank has taken many shortcuts and grabbed a lot of business. It makes Lloyds Bank's total loan business in Latin American countries ranked second, after Barclays Bank.

As for commercial real estate loans, because of the physical mortgage, Lloyds Bank's lending openings are relatively large and relatively loose. Commercial real estate loans are now an important business of Lloyds Bank.

It can be said that these two businesses are developed after strategic adjustment, and the growth rate is the most obvious. They are the two pillar businesses of Lloyds Bank and are very important.

But it was because it was too important that he had to pay more attention to Xia Yu's words.

Xia Yu nodded heavily and said with great certainty: "Of course, this is the result of my research and my think tank. I judge that Latin American countries have already walked on the edge of a cliff without knowing it, and are destined to have a sovereign debt crisis. !"

"Sovereign debt crisis!"

After the word came out of Xia Yu's mouth, Duke Carter Howard's expression instantly became solemn, and he asked, "How did you judge it?"

The sovereign debt crisis is no joke. If it does happen, one bank counts as one, and all the banks involved will be unlucky.

What is sovereign debt?

It refers to the debt that a country borrows from other countries and banks, whether it is from the International Monetary Fund, the World Bank, or from other countries and banks, with its own sovereignty as a guarantee.

The reason why Latin America's sovereign debt attracts so many financial institutions is that all financial institutions believe that the sovereign and creditworthiness of Latin America International is sufficient, and they will not lose money by lending to them.

As the chairman of Citibank, Reston once said: "The country will never go bankrupt!"

This sentence is regarded as a standard by major banks and financial institutions.

This aspect is a bit like buying US Treasury bonds in later generations, thinking that the US will never go bankrupt.

Another reason why major banks lend to Latin American countries is that they have too much money saved and have to find a place to spend it, and sovereign debt in Latin America seems to be the most stable.

Because of the sharp rise in oil prices in 1973-1974, the income of oil-exporting countries soared, and these countries deposited huge amounts of oil income in major banks in Europe, and Europe and the United States fell into an economic quagmire, which is not something that money can solve. The major banks will invest their money in developing countries to make money.

Having said that, if there is a sovereign debt crisis, then the country's reputation will go bankrupt, it will cause the collapse of the domestic financial system, and even affect the international financial system. Lloyds Bank, which is in the international financial system, naturally cannot run away. Lose.

Not to mention that Lloyds also lends exceptionally hard.

Seeing that Sir Carter Howard was paying attention, Xia Yu paused and said slowly: "Sir Carter, we have collected some data from Latin American countries, let me tell you first."

"In 1971, Mexico's debt was only $5 billion, but this year, Mexico's debt has risen to $71 billion."

"But last year, Mexico's GDP was only $112 billion, which means the debt balance is 63.4 percent of Mexico's GDP!"

"In contrast, Mexico's economic growth rate last year was only 8.3 percent, which is much lower than the growth rate of debt."

"According to this trend, the debt balance will account for a larger and larger share of Mexico's GDP, and the leverage will be higher and higher!"

"Mexico occupies an important position in the Latin American economic system. Even in Mexico, this is the case. The situation in Brazil, Peru, Argentina and other countries is similar or even more serious."

"However, due to the oil crisis last year, the domestic inflation in the United States was severe, and the Federal Reserve began to implement a tight monetary policy, which forced a large amount of funds to flow out of Latin America, which led to changes in the debt structure of Latin American countries. The proportion of short-term debt was rising, and Mexico's short-term The proportion has risen by 10 percent in just six months. So Mexico's short-term debt repayment pressure is increasing."

"The tightening of the Fed's currency has also strengthened the dollar, forcing commodity prices to fall, and the exports of countries such as Latin America are extremely dependent on commodities, which means that the export income of countries such as Latin America is getting lower and lower, and the balance of payments is becoming more and more unbalanced. ."

"International capital flows have reversed, and the scale of short-term debt has increased rapidly. However, the balance of payments of Latin American countries is not enough, and debt defaults are inevitable. The reason why there is no lightning strike is because Latin America and other countries can still support it."

"But as long as the Fed's tightening monetary policy is not lifted, the situation in Latin America and other countries will become more and more serious until finally sovereign debt defaults."

...

"Sir Carter, do you think the Fed will give up? Inflation is serious in the United States now. For the economic recovery of the United States, Paul Volcker will never give up monetary tightening before the United States is out of the predicament, and no one can interfere! The United States needs The blood of the world to transport nutrients for it."

"Both the major financial groups in the United States and the Jews in the United States need a strong America to ensure their safety!"

The last sentence made Duke Carter Howard's face even more serious.

He had already listened to Xia Yu's words, and the more he thought about it, the more reasonable he felt, and he also knew that Xia Yu was right.

The interests of the United States are the interests of the Jews. The Jews have a pivotal power at the top of the United States. Only when the United States is strong can the Jews of the United States rely on the strength of the United States to ensure the security of Israel and the safety of the Jews of the world. Paul Volcker, this German Jews absolutely put the interests of the United States and Jews first, and will never care about the lives of other countries.

Xia Yu is also aware of the influence of Jews on the US financial system, especially the Federal Reserve.

From 1951 to his rebirth in later generations, except for the one and a half years from 1978 to 1979, when he was not Jewish as the chairman of the Federal Reserve, any other chairman of the Federal Reserve was Jewish!

"Sir Carter, now the major banks and financial institutions only know how to lend. Just like Lloyds Bank, they have been paralyzed by the days of lying and making money. The sooner you run, the better. If you wait another six months, you will definitely There will be financial institutions looking back, and it will be difficult to get away at that time.”

Duke Carter Howard nodded solemnly, and suddenly asked: "What you said is very reasonable. I will secretly arrange for targeted research, and then make a decision."

"By the way, didn't you say you have a proposal? What is it?"

Xia Yu raised his mouth slightly and said with a light smile: "Isn't Barclays still investing in Latin America on a large scale? I heard that Barclays has robbed Lloyds Bank of a lot of business in Latin America. A big bank, Barclays is absolutely in a position to take all of Lloyds' business."

"With the current actions of Barclays Bank, it is absolutely unaware of the crisis. As long as Lloyds Bank is willing to transfer its business, I believe Barclays Bank will be happy to take over."

Hearing this, Duke Carter Howard's eyes became deep, and he took a deep look at Xia Yu, and his impression of Xia Yu changed dramatically.

I can't see it, Xia Yu's surface is gentle and gentle, but he is very cruel in calculating people, and his tactics are old-fashioned and revengeful. Whoever provokes him will be unlucky.

Even if the Rosier family tried to trick him, Xia Yu didn't show his fangs, so Xia Yu directly dig a big hole for the Roshir family, or the kind of big hole that would bury Barclays Bank accidentally.

Barclays is the largest lender in Latin America by volume, and Lloyds is the second largest by volume.

If both are owned by Barclays, then there is no bank in the UK or even Europe that can match Barclays.

But if there is a real explosion and a sovereign debt crisis occurs, then Barclays Bank will have to peel off its skin, and the Rothschild family must be seriously damaged!

PS: I worked overtime and was late, and I didn’t finish writing until 2:30. Ask for a ticket!

https://

Please remember this book's first domain name: . Apex Novel Mobile Version Reading URL: