Rebirth of the Powerful

Chapter 380 Sterling

Xia Xiaoluo didn't know that he had become the core of many middle school students' rumors in Xinyang City No. [-] High School. He was sitting in the classroom of Class [-], Senior [-], listening to a teacher on the podium talking about a math about permutations and combinations. Question, loud voice, spitting flying, Xia Xiaoluo was very worried that he would be short of oxygen for a moment, and then die.Damn, it's really boring.

Not far away, He Shiyun was listening to the teacher's lecture seriously, with a very serious look, her blushing face was beautiful, with a little sweat, her skin was very radiant, but without a trace of greasy feeling.A beauty is a beauty, even when she sweats.

The teaching conditions of Xinyang No. 1000 High School are much better than those of Luoshui County No. [-] High School, but Tian Fengcai is not around. Thinking of his old friend, Xia Xiaoluo can't help feeling a little depressed.He has not been with Tian Fengcai for a long time, but he admires Tian Fengcai's character very much.Ask Lei Ting and the others to give Tian Fengcai [-] yuan. He is in his third year of high school, and this bird man needs to supplement his nutrition.

Xia Xiaoluo's mind was already wandering, and the thoughts in her mind were all about Soros' attack on the British pound.When financial writers of later generations talked about this matter, they all wrote a lot of bloody words, such as "the gamble of the century", such as "one man defeated the Bank of England" and so on.When people see these words, the adrenal secretion increases and they are very excited.

As a pseudo-financial history expert, Xia Xiaoluo is of course familiar with these things. Combined with the relevant information provided by Hu Shuwen some time ago, he can clearly sort out the context of this event that shocked the world——

On February 1992, 2, 7 member states of the European Union signed the (Maastricht Treaty). This treaty made some European currencies such as the pound sterling and the Italian lira obviously overvalued, and the central banks of these countries will face Huge interest rate cuts or depreciation pressure, can they maintain coordination with Germany, which has strong economic strength, in terms of economic policies? Once the markets of these countries are in turmoil and they are unable to resist, Germany, as a core country, will sacrifice its own national interests to help Are these countries?

As early as when the "Maastricht Treaty" was signed, Soros had foreseen that the European exchange rate system would be difficult to maintain coordination due to the economic strength of each country and their respective national interests.Once some of the "chains" that make up the European exchange rate system loosen, speculators like him will take advantage of it and attack these loose "chains", while other trend followers will also catch the wind and make the exchange rate more volatile , in the end, the reliance on the chasing mechanism is much greater than the capacity of the market to accept them, until the entire system is destroyed.

Sure enough, less than a year after the Maastricht Treaty was signed, some European countries found it difficult to coordinate their respective economic policies.When the British economy is in a long-term recession and is in a lot of difficulties, it is impossible for the UK to maintain a high interest rate policy. The only feasible way to stimulate the country's economic development is to lower interest rates.But if Germany's interest rates are not lowered, the UK's unilateral rate cut will weaken the pound and force the UK to withdraw from the European exchange rate system.

At this moment, Soros and some other speculators have been increasing the size of their positions in the past few months, preparing for the attack on the pound.

As time went on, the British government came under increasing pressure to maintain high interest rates. It asked the German Bundesbank to lower interest rates. A request for a rate cut in the UK was rejected.

The British economy is in recession, and the British government needs to devalue the pound to stimulate exports. However, the British government is restricted by the European exchange rate system and must try to maintain the exchange rate of the pound against the mark.The high interest rate policy of the British government has been questioned by many financial experts, and domestic business leaders are also strongly demanding lower interest rates.In the second quarter of 1992, although Prime Minister John Major and the Chancellor of the Exchequer of the United Kingdom repeatedly reiterated in various public occasions that the current policy remains unchanged and that the United Kingdom has the ability to keep the pound in the European exchange rate system, Soros is convinced that the United Kingdom cannot keep it. The status of the British government in the European exchange rate system is just a bluff.

英镑对马克的比价在不断地下跌，从2．95跌至2．85，又从2．85跌至2．7964。英国政府为了防止投机者使英镑对马克的比价低于欧洲汇率体系中所规定的下限2．7780，已下令英格兰银行购入33亿英镑来干预市场。但政府的干预并未产生好的预期，这使得索罗斯更加坚信自己以前的判断，他决定在危机凸现时出击。

In September 1992, speculators began to attack the weak currencies in the European exchange rate system, including the pound sterling and the Italian lira.Soros and some long-term arbitrage mutual funds and multinational companies sold weak European currencies in the market, making the central banks of these countries have to borrow huge sums of money to support their respective currency values.

Soros is the biggest gambler in this "gamble".After placing the bet, Soros began to wait. In mid-September 1992, the crisis finally broke out.Rumors of the imminent depreciation of the Italian lira were circulating in the market, and there was a lot of selling in the lira. On September 9, the Italian lira depreciated by 9%. Although it was still within the floating range limited by the European exchange rate system, the situation looked very pessimistic.This gives Soros sufficient reason to believe that some member countries of the European Exchange Rate System will eventually not allow the European Exchange Rate System to determine the value of their currencies, and these countries will withdraw from the European Exchange Rate System.

On September 1992, 9, Soros decided to short the pound in large quantities.The exchange rate between the British pound and the Mark fell all the way to 15. Although it was reported that the Bank of England had purchased 2.80 billion pounds, it still failed to stop the decline of the pound.By the end of the evening, the exchange rate between the pound and the mark had almost fallen to the lower limit stipulated by the European exchange rate system.The pound is on the brink of exiting the European exchange rate system.

The British Chancellor of the Exchequer took various measures to deal with the crisis, but still had little effect, and the exchange rate of the pound still failed to stand on the minimum limit of 2.In this action to defend the pound, the British government used foreign exchange reserves worth 778 billion US dollars, but in the end suffered a disastrous defeat and was forced to withdraw from the European exchange rate system.The British called September 269, 1992, the day they withdrew from the European exchange rate system, Black Wednesday.

Soros was the biggest winner in this attack on the pound, and was once called the man who broke the Bank of England by the Economist magazine.Soros has earned close to $10 billion from his short sterling trades, and his long positions on British, French and German interest rate futures and his short trades on the Italian lira have brought his total profit to as much as $20 billion, of which Soros' personal income is 1/3.During the year, Soros' fund grew 67.5%.

This battle made Soros famous and gained the reputation of a financial genius.

Judging from the information provided by Hu Shuwen, although Xia Xiaoluo has changed many historical events in the domestic financial industry, the international environment has not changed. The "Maastricht Treaty" has also been signed, but its internal contradictions remain. Irreconcilable, inherent loopholes still loom large.

Of course, Xia Xiaoluo will not miss this important business opportunity. More importantly, he admires Soros very much. He is willing to join Soros' army, and even become the main force instead of Soros.Soros has caused huge losses to many countries and regions. However, Xia Xiaoluo does not think that Soros is at fault. Soros just discovered the mistakes in the market and corrected the market to return to a normal track.

Xia Xiaoluo's hands itch when he thinks of sniping the British pound, but at this moment, he can only sit on the seat and twist his body a little bit—reminiscent of the symptoms of ADHD in children.

Before departing from Shenzhen, he had already informed the secret shareholders of Tianxia Group that Cao Weiye, Huang Zhuo and others asked them to come to Xinyang City to attend the board meeting.Cao Weiye was on official business and was represented by Huang Zhuo. At the same time, Hu Shuwen, Yang Jingchu, a graduate student in corporate finance at the University of Pennsylvania, and Lin Fengcheng, a partner of Goldman Sachs, also attended the meeting.

It is worth mentioning that when Lin Fengcheng underwrote Huang Zhuo's beer group stock, he helped Xia Xiaoluo again.Xia Xiaoluo offered a sky-high price of 100 million US dollars for one year's consulting fee. Don't think that this flower is unfair. Xia Xiaoluo knows the status of Goldman Sachs in the industry. Although Xia Xiaoluo has flourished in the domestic financial industry, this A regional or even global financial activity still needs the help of real experts.

"Dingling bell", the bell rang after class, and the classroom became chaotic.At the same time, Xia Xiaoluo's cell phone rang. Xia Xiaoluo picked up the cell phone, walked out of the classroom, and pressed the answer button only in a secluded place.

On the other side of the phone was the respectful voice of Zhang Cheng, the general manager of the Red Coral Hotel—"Master Luo, just now, Master Huang Zhuo Huang has arrived, and we sent a car to Wuhan Airport to pick him up. At the same time, there are people from our hotel at Wuhan Airport Waiting for Miss Hu Shuwen. At the same time, Han Yaoyao, the financial director of the group company, is already on the way and will be at the hotel immediately. Look..."

"En. Very good, these are my good friends, I can't neglect them. By the way, where is Mr. Lin Fengcheng?" Xia Xiaoluo asked.

"According to your instructions, we have already called Mr. Lin Fengcheng three days ago. He said that it is not convenient for our company to pick him up. He will drive over by himself." Zhang Cheng replied respectfully.

Xia Xiaoluo nodded, thinking, Lin Fengcheng is a rebellious son in the eyes of the Lin family now, completely separated from their family, the Lin family has many eyes and ears in China, if Lin Fengcheng is found to be involved with the forces of the Cao family, after all not beautiful.So he said, "Then you can do as he asks..."

"Mr. Huang is waiting for you at the hotel, do you want to come and accompany him first?" Zhang Cheng reminded him.From Zhang Cheng's point of view, Huang Zhuo was also a distinguished guest of Tianxia Group, but he didn't know that Huang Zhuo was a shareholder of Tianxia Group, so he felt that he should be received with a high standard and ensure business etiquette.

"It's not necessary. We're all old friends." Xia Xiaoluo said flatly. "Let him wait first."

One sentence shocked Zhang Cheng on the other side of the phone. Damn, Young Master Luo is really born with long eyes. In his eyes, there is no one worthy of his high regard.

Zhang Cheng already knew Huang Zhuo's identity. Huang Zhuo has been making a lot of noise recently. Taking advantage of the reform and opening up, Huang Zhuo relied on the Hong Kong listed company Great Aim Group to aggressively consolidate and acquire shares in state-owned enterprises, and then got listed on the international capital market. For his wealth, Zhang Cheng naturally understands these deeds.

But even such a talented person is "unnecessary" in Xia Xiaoluo's eyes.

Zhang Cheng is very glad that he followed the right person. Although Tianxia Group has not made any movement in the electronics industry, Zhang Cheng believes that if Tianxia Group makes any moves, it will be earth-shattering.

Xia Xiaoluo hung up the phone, peed in the toilet, and then walked towards the classroom.

As soon as he arrived at the door of the classroom, he saw a beautiful woman standing next to He Shiyun's seat. The two were biting their ears. He Shiyun lowered her head with a shy face, and the beautiful woman was also giggling.

Seeing Xia Xiaoluo come in, the beauty gave him a sweet smile and said, "You are Xia Xiaoluo?"

Xia Xiaoluo nodded, He Shiyun turned her head and said, "Xiaoluo, this is our English teacher, Teacher Du."

Xia Xiaoluo smiled at Teacher Du and said, "Hello, Teacher Du."