Chapter 1666 Fu Guangzheng Not Calm

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"Feng Yu, why hasn't the news you mentioned come out yet?" Fu Guangzheng was a little anxious.

Feng Yu said with certainty that the price of crude oil will rise this time, not only because Iran will definitely cut crude oil production, but also because Feng Yu analyzed that the Fed will cut interest rates again.

It seems that the Fed's interest rate cut has nothing to do with the rise in crude oil, but in fact it has a lot to do with it.

If the Federal Reserve cuts interest rates, the cost of using the US dollar will be reduced. The US dollar is a common reserve currency in the world. The foreign exchange reserves of all countries in the world basically include US dollars, which makes the US dollar a hard currency almost like gold.

As the world's common reserve currency, the U.S. dollar is naturally freely convertible. If the Federal Reserve lowers interest rates, many people will exchange their U.S. dollars for convertible currencies that have not lowered interest rates, or other commodities.

What kind of situation will this cause, that is, to sell the dollar and cause the dollar to depreciate.

This is like the financial turmoil in Asia at the beginning, the Thai baht and others were constantly being sold, thus depreciating continuously.

You said that the U.S. dollar has depreciated. Doesn’t the United States suffer?

Really not necessarily, the US dollar is not a foreign exchange reserve in the United States, but the euro and Japanese yen are. Moreover, it can be seen from Huaxia's several interest rate cuts that this is a means of stimulating currency circulation and consumption, which can stimulate the domestic economy very well.

Because at this time, the United States has already seen that their economic growth has slowed down and there are signs of recession. As the world's largest economic power, how can you watch other countries grow far faster than them? Especially China, Russia, etc., which they have been trying to suppress, the economic growth is too fast, which makes them very disturbed.

And in this way, it can also hit countries with very large US dollar foreign exchange reserves. Where is the main reason for this? The main ones are Asian countries, including China, island countries, etc., which are among the largest countries in the world with US dollar foreign exchange reserves.

The depreciation of the dollar means that the wealth they have stored has devalued and their wealth has evaporated.

This is a means of killing multiple birds with one stone, so even though the Federal Reserve is not a political unit, it also represents the interests of the United States and those investors in the United States.

The Fed cut interest rates and the dollar depreciated, so what impact will it have on crude oil futures?

Crude oil is pegged to the U.S. dollar. All crude oil transactions are measured in U.S. dollars. Crude oil price fluctuations are also based on one cent. If pegged, what impact will it have?

That is to strengthen the value of the U.S. dollar. Crude oil is the most important energy used in the world. After it is linked to the U.S. dollar, the United States can use the U.S. dollar to influence the price of crude oil to a certain extent, guarantee their interests, and continue to expand the influence of the U.S. dollar. .

Therefore, fluctuations in the price of the US dollar have a very important impact on crude oil. The depreciation of the US dollar means that a barrel of crude oil at the same price has actually depreciated, and the purchasing power has decreased.

So how to ensure that the actual value of crude oil remains unchanged? It's simple, increase the price.

Crude oil, which was originally priced at US$55/barrel, has risen to US$60/barrel, so the purchasing power will remain the same.

Feng Yu persuaded Fu Rongqi and the others that crude oil production would be reduced and the dollar would depreciate, so the price of crude oil would inevitably rise.

But in the current situation, only Iran unilaterally announced a reduction in crude oil production, and other OPEC members did not say a word. Although they did not object, they did not support it either.

Moreover, the Federal Reserve did not cut interest rates, and the dollar did not continue to depreciate. How could the price of crude oil rise so sharply?

He Zhaoji told Soros that each company spends billions of dollars to raise the price of crude oil, which is actually used to suppress the dollar. Just like when they suppressed the Thai baht, they just kept borrowing from the bank and selling it at a low price.

The price difference here is definitely a loss. The two parties agreed to prepare for a loss of one billion US dollars.

But this part of the loss can be earned back through the rise in crude oil prices. Moreover, the depreciation of the U.S. dollar does not have a bad impact on the United States. They can raise interest rates through the Federal Reserve at any time to reverse this impact. This is also a means for them to manipulate the economy.

Therefore, Soros and Fengyu Consulting jointly suppressed the US dollar, and he did not have any psychological burden. Anyway, in this way, it is more in line with the interests of the United States.

In the second quarter of last year, the Federal Reserve cut interest rates once, which indeed greatly stimulated the domestic economy of the United States. At that time, crude oil also rose to nearly 80 US dollars per barrel.

Then it slowly fell back to the normal level of fifty or sixty dollars, also because the Fed kept raising interest rates.

Feng Yu firmly believes that the Federal Reserve will cut interest rates again, but other people don't really believe it.

How is it possible to cut interest rates again in less than a year?

Feng Yu looked at the anxious Fu Guangzheng: "Wait a minute, the news is coming soon. If Soros didn't join, we still have doubts, but if Soros has joined, then this will definitely happen."

Among Quantum Fund's clients, there are many big bankers, including the Federal Reserve Bank of the Federal Reserve. Moreover, among Soros's friends, there is also the executive committee member of the Federal Reserve, and there will definitely be news channels in this regard.

Of course, one of the executive committee members is also a friend of Ralph's. As for how to make friends, I won't mention it here.

Through these people, we can know that the Federal Reserve does intend to cut interest rates again to stimulate the economy and let people spend money in the bank.

"But how long do we have to wait?" Fu Guangzheng asked.

Feng Yu glanced at Fu Guangzheng: "Guangzheng, why are you so impatient? Although the price of crude oil has been fluctuating these days, it has also risen amid fluctuations. We are still profitable."

"But the profit is far less than investing in stocks. If we use the money to invest in stock index futures, we will definitely earn more." Fu Guangzheng retorted.

Professor Liang shook his head: "Guangzheng, you can't look at things this way. Do you think we needed to buy stock index futures urgently before, and then it would be best to enter the market after the news of the Fed's interest rate cut and crude oil production cut?"

"In that case, the price of crude oil must have risen a lot, and our profit margin will be much less. And there is a very important point, then we will no longer be the bellwether."

"Now that we have entered earlier, many investment institutions and hot money are staring at us, using our operations as a wind vane. That is to say, we can already influence crude oil prices to a certain extent."

"The biggest advantage is that when we sell short in the opposite direction, we can also drive other people to follow suit, so as to ensure that we can obtain the maximum profit."

"There is a question of initiative, which is the most important point, and it can also minimize our risk."

Feng Yu suddenly asked with a smile: "Guangzheng, have you borrowed a lot of money?"

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