Rebirth of the Financial Overlord

Snapped!

Shen Jiannan snapped his fingers, making everyone in the audience pay attention to himself.

"Mary. Tell me about the recent capital liquidity in the UK market."

"Yes, boss."

"."

"."

From 1982 to 1989, the British market was in a typical state of excess capital, represented by the liquidity represented by M3 and the prices of real estate and stock prices as assets. The rising speed was much higher than the rising speed of GDP and CPI. The stock market has risen by 320% within one hundred and sixty percent in a row.

Among them, in 1986, the excess currency index EM was as high as 16%, which was abnormally higher than 1.6% in 1985. In 1987, the EM index reached a historic high of 80%.

In terms of interest rates, in 1985, the privatization reform process drove the short-term growth of the British economy, and the CPI index also reached 6.1%. The Bank of England raised the overnight lending rate to 12.5%. After falling to 5%, the short-term lending rate dropped from 10% to 9.5%.

In 1988, the Bank of England raised interest rates again, perhaps because it was aware of the crisis caused by excessive market speculation and currency flooding. In 1989, the overnight lending rate was raised to 13.5%. In 1990, the interest rate was even raised to Fourteen point seven percent.

Those present were all experienced elites in the market. Even William, who had acquired relevant knowledge, could not understand the meaning of Shen Jiannan and Mary's question and answer.

Sterling has been severely overissued, and it is precisely because of the massive overissue of currencies that the stock market and real estate market have continued to rise.

The relationship between supply and demand determines the price factor. The huge excess circulation of the British pound corresponds to the pressure of depreciation. If you want to maintain the price of the British pound, you need to raise interest rates to shrink the market circulation of the British pound.

However, after the privatization reform, the British economy is mostly affected by the European Community and the North American market. With the economic crisis in Northern Europe such as Finland and Iceland, the British export industry has been greatly affected, and the unemployment rate remains high. It is very necessary to cut interest rates to stimulate inflation. .

Soon, Mary's narration came to an end, and the huge conference room became silent.

Obviously, the purpose of my boss is to short the pound.

The idea is horrific.

The empire on which the sun never sets is so powerful that it once ruled almost half of the earth. Although the United Kingdom is now in a state of decline, the emaciated camels are bigger than horses, and the rotten broken ships still have a few catties of nails.

With the strength of Capital One, if you want to short the British pound, this is not an egg hitting a rock, but a mouse trying to kill an elephant, which is courting death.

grunt!

Andy Smith swallowed, but it was difficult to say something.

Shorting a country's currency is tantamount to challenging the authority of a country, and the UK is one of the member states of the European Community. If it wants to short the pound, it is challenging the behemoth of the European Community.

MI5 and MI6 are not just for nothing. God knows what kind of trouble they will cause.

If you succeed, you will have no good fruit, and if you fail, you will lose your own money.

"Smith. If you have any ideas, don't be restrained."

Andy Smith couldn't help straightening his back, and spoke seriously.

"Boss. With all due respect, shorting the British pound is a very stupid idea. Although there is a loophole in the exchange rate mechanism of the European Community, and the UK is no longer as glorious as it used to be, the Bank of England's foreign exchange reserves are as high as 24 billion Dollar, no one is very capable of shaking such a UK.

Even if we find a weakness in Britain, there is nothing we can do about it.

A skinny camel is bigger than a horse. Regardless of success or failure, this is a country with complete sovereignty. If we provoke it, we simply cannot bear the consequences. "

as a result of?

Shen Jiannan raised his eyebrows, stood up, walked behind Andy Smith, and slapped him heavily on the shoulder.

"Andy, don't worry about the consequences. You're right. A skinny camel is bigger than a horse, so don't worry about it. Now, we're talking about the market. Capital determines the price. How much money do you think we need to prepare? earned money."

Andy Smith frowned, but soon, he let go of unnecessary thoughts. His identity was just an investment manager, and he didn't have to think about anything other than the market.

"Boss. According to the European Community's exchange rate mechanism, when the exchange rate reaches the lower band of floating, the central banks of various countries are obliged to intervene in the market."

"That's right. They don't manipulate foreign exchange prices, but only intervene in the market."

Andy Smith was taken aback for a moment, wondering why Shen Jiannan's tone was suddenly sarcastic.

Shen Jiannan didn't explain, and patted him on the shoulder, making it suitable for him to continue.

"If the exchange rate price breaks through the lower band of volatility, the central banks of the member states must intervene in the market. This will be the main logic for us to make money. Otherwise, no matter how much money we invest, we will lose nothing like those idiots who shorted the ruble.

But this is also our limitation.

As a member of the European Community, Deutsche Bank will not stand idly by if the pound is hit hard. The UK itself has foreign exchange reserves of more than 20 billion US dollars. What's more, the UK is also a member of the IMF and can borrow from the IMF if necessary. A lot of money.

We have no chance at all.

Secondly, it is not only the UK that needs to cut interest rates to stimulate inflation, Italy, Luxembourg and other countries also need to stimulate inflation. All member states, except Germany, need to implement lower interest rates, or even lower interest rates. I think Deutsche Bank must also support it. Despite the pressure from the major member states, if Deutsche Bank lowers the benchmark interest rate, then all the consortiums on Wall Street can only lose in a mess. "

Shen Jiannan nodded, patted Andy Smith on the shoulder without hesitation, and gave him a word of approval.

"You are right. If Deutsche Bank lowers the benchmark interest rate and truly shares prosperity with the European Community, then no one can do anything even if there is a loophole in front of us."

Andy Smith didn't answer. He knew that Shen Jiannan must have something to say.

As a true financial elite, he could feel the arrogance and arrogance, arrogance and nervousness in Shen Jiannan's bones.

It's not crazy, who dares to challenge a country's central bank.

Today's Capital One has a liquidity of only 300 million US dollars, and wanting to short the British pound is no different from touching your own neck.

But a person who can control an investment company with assets of two billion US dollars is really crazy.

Andy Smith listened quietly, hoping that Shen Jiannan could convince him, and also hoped that Shen Jiannan could find out the flaws in his analysis. He was a guy who was really obsessed with currency research.

Naturally, Shen Jiannan would not disappoint him.

He let go of the hand on Andy Smith's shoulder, walked to the window, and looked out at the starry night through the glass.

At night, Canary Wharf is very beautiful. As a financial district, there is no shortage of feasting lights, fluorescent lights, and colorful colors like bright gems, embellishing the city as far as the eye can see, which is extremely beautiful.

Everyone present quietly looked at Shen Jiannan's back, waiting for his explanation, anticipation, and a different kind of excitement.

Everyone knows that once a person like Shen Jiannan opens his mouth, the reason will definitely be shocking. This top-level forager has already mastered the rules of the world.

"After World War II, Deutsche Bank had a traditional responsibility to fight inflation. To prevent the revival of populism, I think you all know this?"

What is populism?

World War II was not only a risk transfer caused by the economic downturn, but also a collective outbreak of populism.

Scattered flowers gradually become charming eyes.

Wealth, power, desire, self-confidence.

When any kind of thing reaches the point of expansion, that kind of psychological arrogance and arrogance, supercilious, is an extremely dangerous thing.

Money is a person's blood.

When there is enough energy and blood, a person will become extraordinarily strong, and his heart will become crazy and arrogant like a wild horse.

Just like Japan, as a defeated country, it is a shame and a lesson in itself, but since the economy developed, people have money in their pockets, and they forget the price they paid in the past.

Even the prime minister spoke wildly, mocking the United States as an inferior country, and Americans are nothing more than that.

The prime minister is like this, let alone the public. Under the guidance of media and public opinion, the Japanese have forgotten how they were defeated. Since the Plaza Accord, they have spent a lot of money all over the world in an attempt to buy the entire Earth.

Whenever someone dares to say that Japan is not good at all, they will be insulted and threatened, and even labeled as a Japanese traitor. Once, Li Daxiao was accused of blaming Japan for daring to say that the Japanese economy is about to end. The scolding is well known in Japan.

But Germany is different. As a defeated country, it has deeply absorbed its lessons, and has always been very resistant and afraid of the kind of psychological expansion brought about by wealth.

Therefore, the president of Deutsche Bank has an unwritten duty, regardless of the situation, to fight inflation as the first duty.

bang bang bang!

Several people present could hear their own heartbeats.

The responsibility of Deutsche Bank has only been heard in legends, but Shen Jiannan said so, that is, for sure.

That. With Germany's current inflation rate, Deutsche Bank probably won't really cut rates.

July is not long, at the next German interest rate meeting, if Germany does not lower interest rates

"If Germany doesn't cut interest rates, or even raise them, you guys think it will be fun."

"Ha ha!"

Shen Jiannan laughed wildly, showing his madness.

But no one is dissatisfied with this. If Germany raises interest rates instead of cutting interest rates, the exchange rate mechanism of the European Community will be directly smashed by Germany.

Everyone present couldn't help but get excited. If the situation develops as the boss thinks, it will be a huge opportunity waiting for him.

No one is a fool. If the capital of the whole world is mobilized, let alone the United Kingdom, the United States will not be able to handle it either.

But

Obscenity cannot become a reality. To speculate, you must always keep your blood under your belt.

Excitement makes everyone's blood flow faster, but reason keeps everyone awake.

"Boss. But what if Germany can't bear the pressure of the major member states and cuts interest rates?"

"Carrot head. Now, you can't really bury yourself wherever there's a hole like a carrot. OK?"

Damn, what the hell is that metaphor.

Robert John secretly slandered, very dissatisfied with Shen Jiannan's title and evaluation of him, but awe could not help but spread in his bones.

"Oh Maikar. Praise God. Boss, your wisdom is like the light of God shining on the world. I finally know why you let me build a financial company."