Rebirth 79: I opened a bank in the United States

After looking at the top of the screen to confirm that the program he was watching was a live broadcast from the TV station, Carter rubbed his eyes again and looked at the gold price on the market again.

$534.7 per ounce...

Compared with silver, which has nearly tripled in value in one and a half months, gold, which once enjoyed a high rise, is no longer the darling of the economic media.

Along with the TV reporter's boastful introduction to silver, Carter looked at the price of gold and habitually touched a cigarette from the coffee table in the living room. Amidst the smoke, he fell into deep thought...

As mentioned before, gold is a powerful weapon against inflation. If we follow the normal pace, as long as the current inflation in the United States is not contained, the price of gold will continue to rise. From about 500 US dollars per ounce to about 534 US dollars per ounce now.

, also proves that gold is still rising.

It's just that due to the sudden rise of silver recently, gold's rise seems to be inconspicuous. When faced with the crazy rise of silver, which seems to have eaten gold carats, gold's 6.94% increase looks like a small transparent piece that is harmless to humans and animals.

, if Carter hadn't accidentally caught a glimpse of it out of the corner of his eye just now, Carter wouldn't even have remembered that there was such a thing.

Then here comes the problem!

Reminiscing about the scene where he was frightened by Volcker's "moderate increase in the money supply", Carter couldn't help but think. Even a person like himself who knew the future was frightened by Volcker, so what else would he do?

Where are people?

If other people hear Volcker talking about a "moderate" increase in money supply, will they think that inflation will continue? And if inflation continues to rise, will the price of gold also rise with it?!

After all, in the context of high inflation, money becomes less valuable the more you put it away. Investing in gold for hedging is a very common way of value hedging in times of high inflation.

In other words, if most people are not aware of Volcker's true intention now, the price of gold will still rise. And compared with the abnormal rise of silver, gold is actually more stable.

Because this is not who is manipulating the market at all. It is purely the general trend of the market and the general economic trend that determines that it must rise! If the inflation rate does not fall, gold will not fall!

So the question now is to understand the current market reaction to Volcker's measures. If you see signs of distrust, that is, the market still believes that inflation will continue, you can invest in gold now!

In particular, the market's attention is now focused on silver. If you purchase gold futures contracts by yourself, you should not attract attention. You won't be locked in not long after the purchase, as Julian told himself last time.

some transactions.

"Hello? Julie, are you busy now? Do you have time to chat?"

Thinking of this, Carter, whose savings had just been almost wiped out, couldn't sit still. He picked up his home phone and called Julian.

"You...oh, is it Carter? After changing the phone number, I'm still wondering who this is?"

"Hahaha, this is my home phone number. This is not the Thanksgiving holiday. I am resting at home. I was just thinking, would you be in the office? Why don't you spend two days with your family and have a good rest?"

"Hey, don't talk about it. The market is changing every day. If you don't keep an eye on it, you won't feel at ease. When the market stabilizes, let's rest for a while. Let's not talk about it anymore. You called me to inquire about stock acquisitions.

situation?"

After a wry smile and a long sigh, Julian's voice returned to its normal professional tone.

"The stock acquisition situation is not bad. ADM bought 4,000 shares at about US$60 per share for 240,000. AMD bought the same 4,000 shares at US$25 and spent 100,000. The remaining 60,000 was bought by Intel for 3,400.

However, Intel just conducted a new stock split in April, a two-for-three stock split, and Intel initially issued more shares, so the actual weight of the Intel shares purchased is lower than the other two.

"

The so-called stock split, splitting two shares into three shares, means splitting the original two shares into three shares. The interests of the original shareholders will not change much. For example, a shareholder who originally held 4,000 shares now holds only

It has become 6,000 shares. But the weight is still the same as the original 4,000 shares, because your number of shares has increased, and others have also increased.

It’s just that the value of a single share will become lower due to the split, but at the same time the transaction will become more flexible. When there were originally 4,000 shares, the shareholder wanted to sell one third, which was a bit troublesome, and the price of a single share was relatively high.

, not conducive to retail investors’ purchases.

After such a split, shareholders can sell their stocks and retail investors can buy them. Therefore, stock splits are an operating method to increase trading volume and push up stock prices in disguise.

This is not difficult to understand, but Carter's current focus is not on stocks.

"Okay, no problem. I believe in your ability, Julie. This time I'm calling, I want to ask you what you think of the Fed's current actions? Especially in terms of interest rates and money supply..."

Both ADM and Intel were listed relatively early, and their stock splits have been carried out many times. The shares I have acquired now are not even a drop in their total shares, so there is no need to worry about it. Although AMD has only just been listed on the New York Stock Exchange,

But they also did it as early as 1972

It was listed, but due to its late listing and the fact that the initial stock issuance was only 525,000 shares, even after two stock splits, the total number of shares is now only about 1.18 million, and my 4,000 shares account for AMD's

About 0.34% of the shares.

If we calculate based on AMD's future market value of US$197.75 billion when it is at its highest, this investment of about US$100,000 will bring us a return of more than US$670 million in more than 40 years...

It’s so outrageous that he opened the door for me, it’s so outrageous! Although this is only a very theoretical value, it still makes Carter feel the horror of the advance layout and the real cruelty of the time traveler plug-in!

"If you don't talk to me about this matter, I'm just going to talk to you. Walker's recent behavior is a bit confusing, which is too abnormal. According to my understanding, he is not an easy person to compromise. So I'm here.

I didn't mention it to you when the Fed announced this news in March. I think he might have temporarily compromised in order to cope with the pressure from the White House. To put it bluntly, he was trying to fool Carter in the White House."

Just as Carter secretly smacked his tongue, Julian's confused voice came from the receiver. When he heard the words "Trick the Carter in the White House," Carter even laughed. It seems that many people are deceiving our Comrade Renzong now.

, not one more Walker, not less than him. Instead of interrupting Julian, Carter continued to listen carefully to what he said next...

"But recently, the increase in the discount rate and the changes in the federal funds rate... It stands to reason that the rising interest rates should prove that my judgment is correct. Volcker is going to engage in monetary contraction and reduce market demand. But

The strange thing is that an increase of a few tenths of a percent is a drop in the bucket compared to the current inflation rate that is about to exceed 10 percent and will not have any curbing effect at all."

"Rather than saying that this is Volcker's tightening, it is better to say that... this is just a normal temporary increase, and I am a little unsure now. After all, there is a big difference between the Chairman of the Federal Reserve and the Governor of the Federal Reserve.

.Perhaps, after becoming the chairman of the Federal Reserve, Volcker changed..."