Dominate South Asia
Chapter 438 Black Monday
What to do? While selling dollars, they began to ask the United States for help.
This is not the future. Britain is still the main ally of the United States and a stable position against the Soviet Union. If the British economy encounters huge problems, it will also be unacceptable to the United States.
London can no longer manage the problems in Hong Kong, and even began to regret the foreign exchange reserves that were borrowed in the past. If the foreign exchange reserves had not been used, the world capital would not have seen the opportunity.
Now, they can only ask for support from the Americans.
After receiving the British request for help, the United States quickly stated that it could support about 20 billion US dollars to help stabilize the pound market.
However, the Americans did not know that a bigger storm was taking place in the United States.
October 16, Friday.
On this day, as usual, the US stock exchange was crowded with people.
It was not only the Hong Kong stock market that was hot, but the US stock market was even more outrageous.
Since August 1982, the US stock market has begun to rise for five consecutive years; to date, the total value of the New York Stock Exchange has increased by nearly 3 times, from 1.1 trillion US dollars to 2.8 trillion US dollars. One in three American adults invests directly in the stock market, and millions more benefit from it through retirement funds, individual retirement accounts, insurance and other plans. A large part of Pakistan's funds also flowed into the US stock market, from which they obtained high returns. Of course, all Pakistan's funds have now slipped away.
A month ago, the Hong Kong stock market fluctuated and soon turned into a stock market crash. The Hong Kong stock market crash also led to the US stock market to begin to fall, but. This momentum was quickly curbed.
However, the high stock prices are always pregnant with dangers. Without the control of external funds, the US stock market suddenly fell sharply.
When everyone watched the curve begin to decline, they all became as uneasy as the Hong Kong people in their hearts. What should they do? Continue to hold the stocks, or sell them quickly?
Many people have the same choice. They can't smash these stocks in their hands! Sell the stocks quickly!
This day. The Dow Jones Industrial Average fell 108.35 points at the close of the market, and the number of shares traded hit an unprecedented record of 388.5 million shares. However, this is still a prelude to the big storm.
This day is Friday, and the stock market can rest for two days, but Monday is the most frightening.
Faced with the changes in its own stock market, the US government is also anxious. In any country, the collapse of the stock market means that there will be problems in the economy and that the ruling party will attract public dissatisfaction.
How to save the US economy? For a strong United States, every time it encounters risks, it will transfer risks. Strong military force is the foundation of the United States.
So, after urgent consultations, on the morning of October 18, Sunday, US Treasury Secretary Baker solemnly announced: "If the Federal Republic of Germany does not lower interest rates, the United States will consider letting the dollar continue to fall."
Now, only the German mark is the strongest. Their high deposit interest rates have attracted countless funds. Only by lowering Germany's interest rates will funds flow into the US stock market.
However, Germany is very stubborn and continues to maintain its own monetary policy despite the pressure from the United States. This is obviously bad news. And the impact is global.
October 19, Monday.
The United States continues to exert its military power around the world. In the unstable Persian Gulf, American warships attacked an Iranian offshore oil platform. Recently, the situation in the Middle East has been uneasy. The sharp reduction in crude oil production is also a reason for the deterioration of the US economy.
Phelan, chairman of the New York Stock Exchange, walked into the exchange with heavy steps. He knew that what happened today would be quite troublesome.
There are not only ordinary employees in the exchange, but also police, in order to prevent possible riots in advance.
Seeing their wealth shrinking, no one will have a good temper. They are likely to attack the traders in the exchange and dislike the traders' slow movements.
"Okay, let's get started. I hope everyone stays calm. Maybe we can still get through this alive." Looking at the computer in front of him, Phelan mustered up the courage to say.
"Boom, move." At 9:30, the opening bell rang. After the opening, a large-scale selling appeared. Everyone expected that the market would fall at the end, but no one thought about how far it would fall.
The Dow Jones Index began to plummet. In a few minutes, it dropped by 200 points.
Everyone was selling stocks, but there was no buyer, which led to a further decline in the index. The situation was out of control, just like what happened in Hong Kong.
The White House could not sit still. White House Chief of Staff Baker had called Wall Street to inquire about the stock market. He needed to report everything that happened to the president, but unfortunately, his report could not keep up with the changes in the stock market. In the last half hour, the Dow Jones Index fell another 130 points.
At 4 o'clock in the afternoon, the New York Stock Exchange closed. No one could face this reality. The stock market had collapsed.
The Dow Jones Industrial Average fell by 23%, 508 points, and closed at points. All the losses added up to $560 billion, which was about the same as the GDP of France!
This decline even exceeded that of 1929, the year of the Great Depression. At that time, it fell 13% that day, and the total decline did not exceed 30%. Today, in just one day, it fell 2%. More than ten! It can be guessed that after the market opens tomorrow, the decline will be more serious.
At this time, the United States cannot even take care of its own economy, so how can it care about its younger brother.
The pound continues to depreciate. The British government hopes to borrow more U.S. dollars to exchange for pounds in order to maintain the pound's exchange rate. Unfortunately, at the last moment, the Americans broke their promise and did not give the British government a cent. help.
Moreover, the stock market crash in the United States began to spread around the world, and the British economy, which was already unstable, worsened. The stock market crash also affected London, and the stock market began to shrink significantly.
At the same time, during the depreciation of the pound, someone made a fortune, and the size of the Quantum Fund increased from US$15 billion to US$19 billion. It later expanded to $22 billion. Soros and his partners earned at least 20% of the increase in value of the US$7 billion, because the funds were raised and he earned commissions. From this alone, he earned more than one billion. Dollar. This was Soros's biggest move, and it was a complete success.
Of course, he also knew that this success was mainly the result of another huge amount of funds. If he was the only one, he would not be able to complete this attack on the pound. Which consortium does this fund belong to? ?
No matter what, monitor the flow of these funds and follow along to continue making money!
Islamabad.
"A demonstration broke out in the UK to oppose the ruling party's wrong economic policies, which caused economic turmoil in the UK." Lilith told Hamad: "This winter should be the saddest winter for the British."
"British guy, you deserve it. Even the Quantum Fund didn't miss this opportunity." Mhammad said. If you dare to cause trouble to Pakistan, you should have such a result!
In later generations, large-scale wars have become less and less common. Dealing with a country is mainly an economic war. But this time, Hamad was able to launch an attack on the British economy and use a developing country against a developed country. The main reason for the old capitalist countries is that Hamad has mastered the knowledge of future generations, knows that a stock market crash will occur, knows the loopholes of the Hong Kong dollar, and knows that Britain’s foreign exchange reserves are insufficient. Of course, there is more importantly, after several years of Due to the hype, Pakistan has flowed huge amounts of funds abroad, and these funds will turn into a terrible weapon.
"This time we gained another 20 billion US dollars in revenue through the action of sniping the pound." Lilith said: "Now, all our funds have been transferred to the island country. They can only flow back after circulating in the island country for a period of time." Pakistan."
Although this wealth is very huge, Pakistan cannot use it immediately. It is still the Cold War period. The United States and Britain are brothers, and the pound has been maliciously targeted. If the United States finds out that Pakistan is behind it, there will be trouble. Big.
It first circulates in the market for a period of time, and then can secretly flow back to Pakistan to support Pakistan's economic construction.
After several years of development, Pakistan has undergone earth-shaking changes. It has almost become the industrial center of South Asia.
At the same time, after several years of education, a steady stream of highly educated people have entered jobs in Pakistan, driving Pakistan's economy to continue to develop healthily.
"Well, Lilith, you did a good job." Hamad said: "Financial war is also a tool we can wield."
Hamad could even think that it would be good to visit those small countries in Southeast Asia at the right time in the future.
After leaving Lilith's office, Mhamad returned to his room, where Musaaf was already waiting for Mhamad.
"President, I have two pieces of good news," Mushaaf said to Mhamad.
"Speak." Hamad also had a smile on his face.
"The first one is the deal between India and the UK. The contract for forty Tornado fighter jets has fallen through." Mushaaf said: "We held a military exercise at the border, which shocked the Indians, and then , our ambassador went to collect debts from Rajiv and successfully recovered five million US dollars." (To be continued~^~)
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