Rebirth of Hong Kong 1981

   Chapter 684 Inflation

   Since the beginning of April, the world situation has suddenly become tense. On the basis of the Cold War, the whole world is like a powder keg that is about to be ignited. No one knows whether the Falklands War will become the fuse of the Third World War.

  Britain and Argentina are not comparable to small countries in the Middle East and Africa. One is a big European country and the other is a big South American country. Once the two countries really go to war, no one can guarantee what will happen next.

  While countries around the world are closely watching the UK and Afghanistan, they are also secretly vigilant against each other in private.

  The fuse of the First World War, the Austro-Hungarian Crown Prince Ferdinand and his wife were shot and killed by the Serbian young Gavrijo Princip when they inspected Sarajevo.

  In the Sarajevo incident, a small assassination led to the outbreak of the First World War. Now Argentina and the United Kingdom are directly fighting, which is much more intense than the assassination.

   There was only 20 years between World War I and World War II. Now it has been more than 30 years since the end of World War II, and it has been almost forty years. No one can guarantee that the third world war will break out.

  In the early 1980s, polar bears were in full swing, and it was almost ten years before they collapsed. At this time, no country in the world would think that ten years later, the giant polar bears would collapse without a word.

The First World War and the Second World War brought unprecedented catastrophe to mankind and brought huge disasters to the participating countries. The influence left over from the two wars has not completely dissipated, and many people still remember it fresh to this day. .

   No one can guarantee that the war between Britain and Afghanistan will involve the United States and the Soviet Union. If the two superpowers are involved, then the third world war will not work even if they do not want to fight.

  At a time when people all over the world were panicking, while Yang Chen signed an investment agreement with the Australian government, he secretly instructed Yuan Tianfan in London and He Hongtao in Argentina to start a money making plan.

  Yang Chen in London was doing it with great fanfare. With the outbreak of the Falklands War, the London stock market was completely chaotic, and blood was dripping across the board. Except for a few arms companies, the stocks of other companies fell to the point where they had no friends.

   After two world wars, although the British were very angry about the war in Argentina, both the top and the bottom of the society, they all clamored to make Argentina look good.

However, lip service is backed by support, whether the stock market should fall or should it fall. The stock market was first invented by the British. Everyone knows that once the war starts, it cannot be controlled by others. Once the UK falls into the quagmire of war , No matter how valuable the stock is in your hand, it will eventually become a blank sheet of paper.

   Therefore, clamoring and clamoring, when it is time to let go, the British are also very neat and unambiguous.

Yang Chen knew that this battle would not last long. Although the impact was great, it did not shake the foundation of the UK. This war would not involve many British companies. The drop in stock prices was only temporary. After the war, it would quickly rebound. .

  All, Yang Chen let Yuan Tianfan buy the stocks of major British listed companies with confidence.

   At this time, no matter how low the price is, you can still receive the stock you want, with the principal plus leverage. From the outsiders’ point of view, Yang Chen’s play is very crazy, he is no different from a lunatic and a gambler.

   Yang Chen doesn't care about this, whether it's a lunatic or a gambler, he'll find out when the UK is over.

And the British government was quite surprised by Yang Chen's actions, especially the royal family. Originally, everyone thought that Yang Chen mobilized funds to enter the London stock market to take advantage of the instability of the pound to make a fortune. Who would have thought that the other party would Under the circumstances that everyone is not optimistic, it is really surprising to buy shares of British listed companies.

   Different from the big moves in the UK, Yang Chen's moves in Argentina were very careful.

   In the face of the unscrupulous Argentine military government, if he dares to make money with great fanfare, it is possible that he will be directly bumped by others.

   When a scholar meets a soldier, he can't make sense.

   People dare to fight even the UK, what else can they dare to do?

   Compared to the UK, Yang Chen is more concerned about the benefits of Argentina, although Argentina cannot be compared with the UK in terms of military or economics.

  However, Argentina is one of the largest countries in South America no matter what.

  Argentina is one of the earliest independent countries in South America, with a land area of ​​nearly 3 million square kilometers and a population of nearly 50 million. It is the largest country in South America after Brazil.

   Since independence, Argentina's economy has developed rapidly. During World War I and World War II, it received a large number of European immigrants, and the domestic economy has entered the fast lane since then.

  After World War II, Argentina's domestic economic development rate was not weaker than that of European developed countries, and its national strength can be described as thriving.

   However, unfortunately, like other South American countries, Argentina was deeply mired in the Latin American debt crisis during this period and could not extricate itself.

   Since the end of the 1970s, due to the outbreak of the second oil crisis, Argentina immediately fell into inflation, and the economic and social contradictions have become increasingly acute. The inflation rate of more than 200% has caused the domestic unemployment in Argentina to continue to rise.

The oil crisis of 1973 and the surge in global oil prices prompted the rapid spread of the dollar reserves in European countries to the rest of the world, and then the oil exporting countries deposited huge oil revenues into European international banks, which in turn lent the money to Developing countries, Latin American countries are the biggest beneficiaries.

The oil crisis has greatly increased the international loans for developing countries, and due to the low loan interest rates, the real interest rates are even negative. Countries such as Brazil, Argentina and Mexico believe that the low interest rates and the growth of foreign exchange earnings from exports have enough fiscal revenue to repay the loans. .

   "A country will never go bankrupt"

   In this period, everyone and the country thought so. Before the Latin American crisis broke out, no one or country in the world would think that a country would go bankrupt because of loans.

   However, the facts slapped everyone in the face, especially Latin America and other lending countries.

The oil crisis not only brought serious economic impact to other countries, but also hit the U.S. economy. As a world superpower, the U.S. will definitely not sit still. In order to stimulate the economy, after the end of the first oil crisis, the federal funds rate quickly fell to pre-crisis levels.

   Of course, this change has not had a major impact on the liquidity of Latin America, and Latin American countries can still hold on to their teeth.

   However, with the outbreak of the second oil crisis in 1978, the Fed's loan interest rate continued to increase, and the interest rate rose to the highest level in history, and the balance was finally broken.

   The impact of the second oil crisis far exceeded that of the first oil crisis. A large amount of funds flowed out of Latin America, the debt pressure of Latin American countries increased sharply, and the fiscal deficit continued to expand.

   Now almost all Latin American countries are in debt crisis and cannot extricate themselves, Argentina is no exception.

  ——

   (end of this chapter)