America’s Big Hero

On April 15, the governors of many central banks held a meeting in Basel. In his speech, Schlesinger publicly stated that he could not guarantee the trend of future interest rates, and expressed that he did not have much confidence in the fixed exchange rates of European currencies. Italian lira.

This news was tantamount to a severe blow to the British, causing the financial market that had just eased to become turbulent again.

The currencies of various countries began to fall as a whole, but it was not the British but the Italians who suffered the most.

Yidali is completely stupid, what the hell, your boss and second child have a dispute, it's none of our Yidali's business!

Why mention me, ah, why mention me!

Is there any reason?

Is there still Wang Fa!

...

High EQ: Caring about partners and devoting ourselves wholeheartedly.

Low EQ: No trust in partners, always asking about progress.

After discovering that Soros was doing something, Sean waited for a few days and then called to inquire about the situation.

"Everything is on the right track." Soros was in a good mood and reported the progress to Sean with a smile. "We can see many things, but those ordinary people can't understand."

"They are overwhelmed by work and family life every day, so we need to lift the lid and expose it to everyone."

"The results are very satisfactory. Now the whole of Europe knows that the European exchange rate system created by binding the Deutsche mark to various countries has gone wrong. All countries except Germany hope that Germany will cut interest rates, but Germany refuses to accept it."

"After yesterday's meeting, the media interviewed Schlesinger. We asked him how he feels about the concept of ECU?"

"Guess what he said?" Soros was in a good mood and started to sue Sean.

Sean doesn't mind either, as long as he is capable and can help me make money, he will only feel good when joking around.

"Oh, how would he answer, he wouldn't want to..." Xiao En was stunned for a moment, and then said softly, "It's really possible!"

"Hahaha, Mr. Sean is so young, but he has such a keen grasp of human nature, which is really enviable!" Soros patted him as soon as he flattered him, and his movements were extremely natural," Schlesinger said : I like the idea of ​​the Eurocurrency, but don't like the name "ECU", I'd rather it be called the Deutsche Mark."

As he said that, Soros laughed and didn't give Schlesinger a penny, but he is our most staunch ally!

ECU, European Currency Unit, is the predecessor of the euro, representing the idea of ​​a unified European currency, which was proposed together with the European Exchange Rate Mechanism in 1979.

The European Exchange Rate Mechanism was proposed. The first purpose is to break the exchange rate barriers, strengthen economic cooperation between regions, and make the European continent a big market. While further activating it, it also promotes mutual cooperation among countries, rationally distributes the industrial chain, and increases Market resilience.

But the second purpose is fundamental, that is to open the way for Europe to agree on the currency, the euro!

The euro sounds simple, that is, the unified use of one currency by all European countries, but in fact, there are many difficulties in it. It took 43 years from the proposal to the real implementation of this idea!

This is really not an inkblot. For example, the exchange rate issue is one of the more difficult ones. After all, it is currency unification rather than national merger.

The purpose of the euro is to improve the European single market, make free trade among countries more convenient, and speed up the integration process of the European Union, instead of letting powerful countries suck the blood of weak and small countries! !

Therefore, many things must be pushed a little bit, experimented, and learned from failures, just like the north, the European Exchange Rate Mechanism is a test field.

In fact, after Soros shorted the currencies of European countries this time, the European exchange rate mechanism has evolved, from ERM-1 to ERM-2. The most important point is that the fluctuation has expanded from 7% to 15%. A more relaxed environment and space are given.

Closer to home, but the European Exchange Rate Mechanism has really withstood the test, then it will inevitably evolve, countries will jointly establish the European Central Bank, and the European Central Bank will replace the current position of the Bundesbank.

The establishment of the European Central Bank is a very good thing of historical significance for the overall development of Europe, but this does not mean that it is a good thing for Schlesinger.

Schlesinger, who is now the president of the Bundesbank, can be said to be the brightest boy in Europe. One sentence can determine the rise and fall of many countries. The 12 countries all depend on Schlesinger's face!

Even European countries that have not joined this exchange rate mechanism should look up to Schlesinger!

This kind of right is a poison that men can never quit!

But once the European Central Bank is established, Schlesinger will never be allowed to be the president!

Germany was already in the leading position, and the president of the European Central Bank returned it to Schlesinger. Then the European Central Bank was set up as a fart, and the Bundesbank was directly used!

Therefore, Schlesinger is the last person who wants the European Central Bank to be established now.

I can be patriotic, and I can also love the world, but this cannot be based on harming my interests.

Therefore, Schlesinger's position must be tough, even if it will damage the interests of many countries and many people...

One will succeed and ten thousand bones will dry up!

Relentless?

Soft-hearted, you follow your mother's politics!

After listening to Soros' words, Sean clicked his tongue. He also thought of some things just now, but they didn't go deep.

After thinking about it, Sean asked again: "Then do you think, after this time, is it a good thing or a bad thing for the birth of the euro?"

"This...should be a good thing." Soros sighed.

The European Exchange Rate Mechanism is used to find the way, and their action this time can be regarded as helping the other party find out the problem. From this perspective, the Europeans should be grateful to them.

He made billions of dollars with tears in his eyes!

However, for the United States, this is really a bad thing.

The U.S. dollar is undoubtedly the largest foreign exchange reserve currency, but once the euro is born, it must have strong competitiveness.

Europe is currently the second largest market in the world. The background of the euro is too strong. It is certain to snatch the US dollar's share of the reserve currency. If, if the pound is added...

It is inevitable that the dollar will be challenged.

Of course, no matter whether Soros is short or not, it cannot prevent the birth of the euro. At most, the time will change from morning to noon...

Xiao En sorted out his mood and said with a smile: "Since it's a good thing, let's say it. I'll arrange someone to prepare the manuscript and clean up the floor for you afterwards."

Soros: "..."

Are there tears in your eyes?

Is this what it feels like to have a dad caring?

Love it, love it!

...

The day after the communication with Xiao En, April 17.

Schlesinger announced that Germany could not make any promises about future interest rates. This incident was widely reported by the media. Soros took action directly. With the cooperation of other foreign exchange companies on Wall Street, everyone began to sell the Finnish marks in their hands in the foreign exchange market, and bought them firmly. of the Deutsche Mark.

The initial move was not particularly large, and it was reserved for the Bank of Finland to urgently mobilize foreign exchange reserves in US dollars to enter the market to sweep up Finnish marks.

The Finnish central bank does not invest, and there is no takeover. Whose money do you make!

The Bank of Finland invested 1 billion US dollars in half a day, but nothing happened except that the price of the Finnish mark started to fluctuate rapidly. In the afternoon, the selling power of Wall Street suddenly increased...

The Bank of Finland suddenly discovered that its foreign exchange reserves were insufficient, and some capital predators were eyeing them on Finland.

Regardless of the 1990 GDP of Finland of more than 120 billion U.S. dollars, Finland is a developed country, but it still cannot withstand this impact. In the afternoon, the Bank of Finland publicly stated that it would abandon the Finnish mark and abandon the fixed exchange rate system.

In one day, the Finnish mark plummeted by 15%!

That's all right, it can't really be turned into waste paper, Finland's size is too small, so no one can make money!

Finland’s losses are not less than those of Thailand in the next few years. Of course, Finland’s industrial level is not comparable to that of Thailand, and its ability to resist risks is higher.

On April 18, following the fall of the Finnish mark, Soros and others once again set their sights on the Swedish krona.

In fact, there are no other Wall Street companies that specialize in foreign exchange speculation to cooperate with Soros's money... The cash dollars in his hands are twice that of Sweden's foreign exchange reserves, but the cake must always be cut and shared, so that birthdays can be happy.

Within a day, the Riksbank raised interest rates wildly, and the interest rate soared to 75% within a day. Even so, the Swedish krona fell as much as 12%.

On April 19th, Soros and others discarded the bloody and broken body in Sweden, and they flew towards the Italians as if flying!

Do you think that Soros and the others moved towards Finland and Sweden first because of the profit?

No!

Those profits are not much, especially after everyone shares the food, what everyone wants is to create an atmosphere of panic!

Let the cloud of the financial crisis hang over the heads of the Europeans and blow their confidence!

Now, Soros and others have eaten Finland and Sweden, accumulated enough momentum, and led a mighty speculator to attack the Italian lira aggressively!

After all, Italy is not Finland and Sweden. He is one of the 13 countries of the European Exchange Rate Mechanism. If the lira is captured, it means the failure of the European Exchange Rate Mechanism. He will definitely be rescued!

On April 20, the Italians borrowed $36 billion in one go, backed by the mighty Bundesbank.

36 billion US dollars just want to scare Soros?

Stop it!

With Sean's support, Quantum Fund's own cash flow can reach as high as 5 billion US dollars, and this number can be turned into 12 billion at any time!

Soros believes that as long as he speaks, Sean can make this number 220, 320 in a short time...

There are also Wall Street hungry wolves who follow to eat meat!

There are also speculators who follow the soup!

There is no shortage of Europeans here, and there are a lot of them.

Schlesinger was right in saying that there is indeed a huge risk in lira.

In the foreign exchange market, a group of people led by Soros began to frantically sell the lira positions they had obtained from major European banks, and exchanged them for the more valuable Deutsche Marks.

On the first day, Italians invested 5 billion US dollars in three consecutive installments...

Even so, it is barely keeping the lira from falling, and the appreciation is a no-brainer!

This allows the speculators to follow the wind to see an opportunity. This group of people is the craziest, daring to leverage hundreds of times.

The next day, more sales orders came in. In just one morning, Italians invested another 5 billion US dollars, and at night, a total of 8 billion US dollars were invested...

Crazy, so crazy!

In just one day, the funds used by the two parties exceeded 20 billion U.S. dollars, and if they were placed in the financial market, they would be able to exert an effect of trillions. How many countries can only have a GDP of more than 100 billion a year in these years!

Before the winner is decided, there is no gain, and both sides are suffering losses.

Only banks as transaction assurance platforms are making money...

Banks are the most profitable business!

This madness is not over yet. On the third day, the Italians poured in 10 billion US dollars, but the Lira is still seesawing, and there is no hope of victory at all.

Three days, three days, do you know how Italians spend these three days?

In three days, 23 billion U.S. dollars was invested, how much money is there in total?

Damn, don't you need to repay the borrowed dollars?

This kind of madness not only made the Italians feel unbearable, but even the British across the sea were terrified!

In the past two months, the pound has fallen from 1 pound to 2.95 marks, 2.85...2.7964...2.7780...

In order to stabilize the value of the pound, the Bank of England has swept 3.3 billion pounds from the market, but this government intervention has not achieved any effect, and the pound is still falling.

This is because Soros and the others did not attack the pound, but on the premise that they secretly closed their positions on the pound.

So where did these depreciations come from?

The answer is that the British did it themselves!

As we said earlier, the British are severely divided internally.

The British economy is in recession and exports are blocked. In theory, the British government needs to cut interest rates and depreciate the currency to stimulate exports. However, the United Kingdom is restricted by the European Exchange Rate Mechanism. However, it has been raising interest rates to stimulate the rise of the currency and maintain the exchange rate with the mark.

This behavior of the British government has been criticized by the vast majority of financial experts in the country, and domestic business leaders are also constantly lobbying the government, speaking in the media and demanding a lower exchange rate.

People also want to cut interest rates because of real estate mortgage loans...

Various reasons plus Murdoch's fueling have caused this situation!

However, the British Prime Minister Major and the Chancellor of the Exchequer publicly stood up for interviews, repeatedly reaffirming their insistence on keeping the existing British policy unchanged, emphasizing that the UK has the ability to keep the pound in the European exchange rate system.

Leave your mother alone! !

Soros and others have not done anything yet, and the pound will not be able to hold on!

On the fourth day, April 24th, Soros and others continued to increase their selling of the lira. At the same time, they joined hands with Murdoch to analyze the economic situation of Italy in the media, and analyzed why the government failed to raise the lira after investing such a huge amount of money. , to analyze where the problem lies.

The more you analyze, the more pessimistic you are. All kinds of evidence show that the Italian economy has a major problem, and the lira will not be able to bear it.

The fifth day, the sixth day... Within three days, Idaly emptied all the cards in his hand, including the 36 billion US dollars borrowed and his own foreign exchange reserves.

On the seventh day, the lira plummeted by 7% in one day, falling to the lower line allowed by the European Exchange Rate Mechanism. The Germans finally couldn't sit still and stood up and promised to cut interest rates by 0.25%.

good news?

wrong!

As soon as the news came out, Soros and others cheered, and the market completely collapsed!

Lira, crash!

All the money that Soros and the others had invested in before was earned back, and a large piece of meat was torn off from the Italian. A group of hungry wolves with mouths full of blood all aimed at the pound!