Chapter 82: Rushing Towards the Crisis (3)
Contini understood Francesco's opinion: he advocated breaking down the big into small, breaking the whole into parts, and transferring it like ants moving. Although this method is slower, it is safer. He couldn't help but ask: "How do these capillaries transfer?"
"Mainly through trade transfer." Francesco gave an example, "For example, let United Real Estate and United Construction go to the United States to undertake projects, and then import raw materials such as PVC pipes from Italy. In fact, one pipe only costs 1 US dollar, and we deliberately mark it at 2 US dollars. In this way, 5 US dollars of every 10 US dollars of business will be transferred through trade channels; of course, PVC trade is still too slow and too small, we can use more violent methods Method, register a shipping company in the United States, and then buy ships from the United Shipyard. Each ship costs millions of dollars. You can order 50 ships at once, and then part of the contract is completed and part of the contract is cancelled. If the contract is cancelled, the money will naturally be earned. There is no need to rush to buy the ship. When the time comes, the shipping company will give an order to drive the ship back to Italy. The things are still controlled by the group. I believe this is not a waste. We will definitely use the ship. "
"Some of it is transferred privately." Francisco smiled, "Since the United Bank has opened a branch in the United States, it can accept remittances from Italian descendants to China. There must be remittances from French descendants, German descendants and other Europeans. We can We add money every time we transfer money. If the remitter sends $1,000, we can add this number to 3,000 or even 4,000. Such small transfers will not attract attention, but it can facilitate our operations. However, there are some risks. The employees who handle it need to be reliable, so we may have to send people from Italy, and they need to be rotated regularly. "
Contini shook his head: "Forget it, the latter method is too dangerous. After all, we are not gangsters laundering money. This makes us very close. Once we attract an investigation, we will be in trouble. "
"In fact, I think the best way is to turn the capital into physical objects. "Francis Ko said, "A simple $5 billion will cause an uproar, but if $4 billion is used for the input of materials and technology, and the other $1 billion is used as capital, I think it will be beneficial to Italy's development. Because the country's industrial strength is not strong and its productivity is too low, a hasty increase of $5 billion will not only fail to solve the problem, but will cause a sharp inflation and eventually destroy Italy's economy. The ultimate goal of this $5 billion is to develop the economy rather than engage in speculation."
"It's not all about the economy, it also has to contribute to national defense." Contini talked about the idea of spending $50 million to build a battleship. Francesco was stunned when he heard it. There is such a consortium leader in the world? But when he thought of Contini's title, he was silent again. This kind of thing seemed inevitable.
Contini didn't dare to tell him the truth about the Aida. Vivian was still on the ship.
After chatting for a long time, it was lunch time again. Contini had just returned to his cabin when he was entangled by a soft body: "Dear, you stayed for a long time."
"I discussed serious matters with my father-in-law..."
Hearing him call "father-in-law" so loudly, Vivian couldn't help but snickering: "Okay, don't emphasize it so deliberately in front of me, just have me in your heart, I really don't care about status..."
Contini couldn't say anything, and the only reward was a deep kiss.
"But what are you talking about? Tell me about it..."
"We are talking about how to transfer money from the United States to Italy."
"Are you still worried about this? Use bank drafts and checks... That's how I got back the millions of dollars last time."
"But what if it's not millions?" Contini gently hugged Vivian's waist and whispered in her ear, "I have several hundred million dollars to transfer back, and I don't want the Americans to find out the truth."
"Uh..." Vivian was also stunned. She didn't expect Contini to say this. After thinking for a long time, she said, "Then I can't think of it. I can only use a stupid way to change the money into gold, jewelry, diamonds and other valuables. The money-making things are then shipped back by ship! Gold is the best, which is not only valuable, but also easy to estimate! Sometimes jewelry and diamonds are out of stock. "
"Baby, you are so smart!" Contini was not overjoyed because Vivian reminded him that he could use gold and diamonds to transfer wealth, but he suddenly remembered that after the Great Depression, Britain, the United States and other countries successively left the gold standard, and the United States also implemented the "Silver Act". That was really a financial war that could continue large-scale speculation. Not only could they rapidly accumulate wealth, but they also did not have to bear such a big political risk as shorting the US stock market. He was overjoyed and could not help but pick up Vivian and turn her three times.
"Hate it, I'm dizzy because of you..."
"Let me check it for you." Vivian felt dizzy in her head, but the domineering president "checked" the part below. In order to facilitate the "check", he also began to undress...
After a spring afternoon, he continued to sit down at dinner time to think about how to maximize capital benefits. Now the plan to transport the money back has been thought out, and even the idea of hoarding precious metals such as gold and silver has been approved by Francisco. The focus of the problem is how to harvest and sell the stocks without causing a market crash, or at least not let the stock market collapse before the company's stocks are sold out.
"There are two ways: First, we will continue to reduce our holdings starting next year. Such a large amount of stocks must be exchanged. It cannot be done in a day or two, a week or two weeks, or even a month and two months. It must be continued. It takes a long time, so it is impossible for all stocks to be sold at the highest point, and we must continue to retreat, taking advantage of an opportunity to retreat or sell every time; secondly, we set up a securities company to conduct regular over-the-counter transactions..."
Contini curiously asked: "What is a formal OTC transaction?"
"The so-called over-the-counter trading does not actually hold real positions. Instead, the organizers use their concentrated advantages to make bets before investors. If they cannot find a suitable counterparty, they will bet with investors." Francisco Xiaoxiao, "But you are different. You hold a large number of stocks, so if they want to buy, you can just transfer the stocks directly. In this way, the price is locked and hedged without entering the market. If you really want to sell, At that time, it doesn’t matter what the price is. It’s already locked anyway. Of course, it has to be the actively traded part, not the inactive stocks…”
Francisco talked enthusiastically for most of the night, telling all the tricks on how to cut leeks: what is pulling up to counter the trend, distributing on highs, selling on good news, accumulating on bad news, selling after the trend, creating concepts, and shaking the market. They were all theories that Contini had heard of but had never practiced. Leo also talked about these principles, but what Leo told was too convoluted and theoretical, and not as vivid and lively as Francisco’s image. As expected, theory and practice are not the same. It's the same thing, whether you have experience or not makes a big difference.
"Of course, I am talking in general terms. After all, I only realized it after observing. Real operation requires hiring a few good traders. A good strategy is the prerequisite, and traders are tactics and must be coordinated." Francisco said with a smile. , "But we are different from ordinary stock speculators. Banks consider finance, credit, interest rates and cash flow comprehensively, so sometimes their methods are relatively conservative. They are not as radical as they are. Either they will get rich or go bankrupt. The risks of banks Control prevents me from doing this, so we usually don’t bet on one side. We basically consider it in conjunction with the foreign exchange, bond market and even the bill market. If we do it in the United States, we don’t need to consider so much, so you Good traders are needed.”
Contini smiled and nodded: "Trader, don't worry, I have the right person."
When it comes to traders, is there anyone better than Jesse Livermore, the most legendary short seller in Wall Street history? Although Livermore was considered the number one figure on Wall Street, that was not enough in front of a wealthy CEO. Contini felt there was a way to control him. Of course, it is too early to talk to Livermore about this. It is only February 1927, and the market is still on the eve of a crazy rise. Are you talking about a collapse? It's too early!