Hong Kong Island: Rebirth of the Rong family, plotting against Soros at the beginning

In 1985, with the Hiroshima Agreement as the trigger, the yen appreciated rapidly.

Immediately after the overly loose monetary policy of the central bank and the excessive lending of banks, coupled with the mutual coaxing of stock prices between various consortiums, the stock market and the property market rose rapidly.

In these 10 years, the small government has saddled with the world's highest debt ratio in order to stimulate the economy.

The central bank of the small day is to shake off the arm to print money, invent all kinds of novel monetary policies, and almost buy the whole small day.

This wave of routine operations in small days can be said to have little effect.

At a glance, my rate cut will not work, and it seems that my stimulus policy will have to be upgraded.

So in 1993, the central bank raised interest rates to 0.5% for the first time in history.

Of course, the government is not idle, in order to better stimulate the economy to achieve a two-pronged effect.

In small days, the government began to run a large-scale fiscal deficit, which in layman's terms means that the government is spending money on projects in order to stimulate domestic demand.

This wave of fiscal and monetary easing has a sharp effect, and the effect is immediate.

Domestic demand in small days finally showed signs of recovery, and the economy began to pick up.

But under the surface that all this is developing in a good direction, buried deep is the credit bubble crisis under the capital bubble of small days...

In 1994, the total GDP of the small day was $4.9 trillion, but the amount of government debt issued was as high as 11 trillion US dollars, and the national debt was 2.24 times that of GTP.

There are three types of government bonds, 20-year bonds, 10-year bonds, and 5-year bonds, and the interest rates are also different.

The yield on the 20-year Treasury note was 1.74%, the highest since the issuance of Japanese bonds in the small day.

The yield on the 10-year Treasury note remained high, hitting an intraday high of 0.664%.

The yield on the 5-year Treasury note is 0.3%.

National debt is that the state finds you to borrow money, for example, 100,000, borrow for 5 years, and when it is time to repay it in 2005, the state cannot only repay 100,000, at least 110,000 or even 120,000.

Otherwise, who would want to borrow money?

Everyone is for profit, not for charity.

This involves another problem, not everyone honestly holds the national debt in their hands for 10 years.

As a result, treasury bond futures came into being, and if you want to use money in the middle, you can directly throw it to the futures market to sell.

And glory is to take advantage of this, since the banks do not borrow, then start from the national debt.

Treasury futures are self-leveraged, with five-year multiples of 56 times and ten-year bonds at about 33 times.

So the question arises again, why does the international airdrop not know about the yen foreign debt?

Of course I know.

It's that they don't dare to move, and they came to short the yen.

If the yen depreciates, yen government bonds will naturally passively depreciate.

They are now borrowing 100,000 yen of government bonds, and when they short the yen, they may not be able to make enough money to pay the difference in the depreciation of yen government bonds.

Besides, as long as you have money in hand, the effect of easing policies in small days is so obvious, you can't worry about borrowing yen.

How dare that glory move?

Aren't you afraid of losing money?

Of course I'm afraid, but can't we just go to the futures market?

Borrow!

It's the same as borrowing yen!

Go to an institution that has Japanese yen government bonds in hand and borrow it!

Similarly, borrowing with a 10% margin can solve this matter by waiting for the same amount of treasury bonds to be repaid, plus a certain amount of interest.

It is equivalent to Rongguang adding 10 times the leverage again, that is, the $178.3 billion in Rongguang's hands now, with $28.3 billion, can exert the effect of $283 billion.

Invisibly, Rongguang used the principle of leverage to magnify the $47.8 billion in his hands infinitely countless times.

That's the beauty of leverage.

Thursday, 24 January 1995

Seven o'clock in the morning, small day government compound.

The residence of Shosuke Matsushita.

Matsushita opened his eyes blankly, and his memory was still stuck on the wine table where he met Wang Lao and Rong Lao yesterday.

Shaking his head, which was still a little swollen, the next moment, Matsushita Shousuke was a stirring spirit.

He went to Huaxia here, but to raise money, what was the result?

How it went, he forgot all about it.

Hurriedly got up, looking at his clothes neatly folded in the corner of the bed, on top of which were a contract and a dollar bond.

Looking at the $50 billion figure, Matsushita Shousuke was ecstatic.

I can't wait to pick up the treasury bond roll and kiss them twice.

Moving his gaze down and seeing the contents of the contract, Matsushita Shousuke's body shook for a while.

His face turned pale.

"! It's shameless, I was slaughtered like a pig! "Matsushita Shousuke wanted to cry without tears.

There are two contracts, the first of which is to borrow $50 billion of Chinese government bonds in a small day, and return $70 billion of government bonds two years later.

Second, within ten years, the import tariff on Huaxia will be reduced by 20%.

Reducing the tariff by 20% is the biggest bottom line of Panasonic Shoufu, don't underestimate the 20% tariff.

Xiao Ri is a big importer, and the things imported from China every year are incalculable.

In 1994, the import tariff of Huaxia to Xiaori was 400 billion Chinese dollars.

A reduction of 20% is 80 billion, and ten years is 800 billion Chinese coins!

20 billion US dollars, that is, 163.2 billion Chinese dollars.

Coupled with the tariff of 80 billion Chinese dollars, that is to say, the 50 billion US dollars of national bonds borrowed by Panasonic will be worth trillion Chinese dollars ten years later!

Not counting the $50 billion treasury bonds to be returned!

Don't forget, every year the export volume of Huaxia to Xiaori is increasing!

Matsushita Shousuke wanted to cry without tears, but helpless!

Nine o'clock in the morning.

Panasonic Shousuke and Keysan, who came with $70 billion, have long been waiting on the financial trading floor, waiting for the opening of the foreign exchange market.

The atmosphere is serious and depressing!

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immediately preemptive(Event Period: August 10th to August 20th)