Mediterranean hegemon

Logically speaking, it is impossible for Contini to earn 8.7 billion and withdraw all of it back to Italy. The GNP of the entire United States in 1929 was only 110 billion US dollars (the actual historical figure was 101.3 billion, and considering that Italy's orders pushed up the US GDP, it was adjusted to 110 billion), and M2 (the total amount of accumulated currency in history) was less than 50 billion. Now these countries dare not issue currency indiscriminately because of the constraints of the gold standard. They are very cautious when issuing banknotes. It is not like the era when Contini traveled through time, when each country was more shameless than the other. China's M2/GDP ratio has exceeded 2.1, the standard world's first, and the United States is the world's second. After three rounds of QE, it is almost 1.8. Of course, the US dollar is used all over the world, and the RMB is only used in China. It is obvious who has more sophisticated means of issuing money!

It is quite shocking to withdraw 8.7 billion from the 50 billion currency reserves. Not to mention that it cannot be withdrawn at all, even if it can be withdrawn, the United States will be almost like Germany in the currency crisis and unable to take care of itself. The United Group will not do such a thing - it is okay to get more oil and water from the big pot of the US capital market, but to smash the pot in order to get more oil and water? Don’t be so stupid!

The United Group was very clever in withdrawing the 8.7 billion in profits, using a multi-step approach:

The first step was that the United Group borrowed money from various US banks to purchase equipment and replenish working capital, involving a total of more than 3 billion US dollars, which was completed in 7 years. After this operation, the debt was borne by the United Group. Half of the funds flowed out first, and the other half flowed out in the form of equipment. One-third of the outflow funds needed to flow back (to pay annual interest), so the actual outflow was about 34%. The proceeds from Contini's reduction of stock holdings did not flow out directly, but were used to repay the debts owed by the United Group. After these debts were gradually wiped out, it was equivalent to a change in economic relations. The creditor bank may still be the same, but the liability subject was transferred from the United Group to the investor. This was the biggest step, almost 3 billion US dollars;

The second step was related transactions, the most typical of which was the United Shipping American branch. This branch borrowed money from multiple US banks and then went to Italy to order ship production and manufacturing. In theory, it was capital outflow and asset inflow, and the overall balance sheet was balanced, but what are assets? Isn't it just ships? All of these can be moved, and Contini has ordered them all to return to Italy. In the future, they will either not return to the United States or change to other registered countries and display them as foreign ships. So now the shipping company is left with only liabilities.

However, the bank is not worried because the United Group has gradually repaid the loan. Where does the money for repaying the loan come from? Of course, it comes from the harvest of short selling. In this way of related transactions and transfer payments, the United Group took away $900 million;

The third step is the exit of precious metals. The United Bank exchanged $800 million worth of gold. The money used by the United Bank during the exchange was actually borrowed. This does not matter. The debt is on the back, and the gold is exited. Gold is both a commodity and a currency. It is a normal way to transfer funds in the form of gold. Once the United Group makes money, the United Bank will repay the loan, and the amount of funds will remain in the United States. However, the 800 million gold in Italy will not be returned, which means another 800 million has been lost.

After completing these three steps, the United Group has wiped out nearly $4.7 billion in revenue, and there is still 4 billion left.

The fourth step is public transfer. Everyone in the market knows that the United Group issued $1.5 billion through convertible bonds. This money is a normal investment by American investors to acquire shares in the United Group, and it can be transferred legally and compliantly. There is an outflow of 1.5 billion here. As for the fact that the United Group used the short-selling proceeds to buy back the diluted equity after the outflow, it is another matter. This step wiped out 1.5 billion;

The fifth step is asset acquisition. The United Group waved its checkbook to acquire bankrupt banks, bankrupt companies, and bankrupt liquidation assets through the United Bank and other affiliated institutions. In just a few days, more than 400 million US dollars were spent. This money is also short-selling proceeds. It just flows out in the form of US bankrupt assets. This step wiped out 400 million;

The sixth step is bond repurchase. In addition to lending to US financial institutions, the United Group had previously issued more than 500 million US dollars in long-term construction bonds. When the situation of the United Bank was the most critical and rumors of its collapse were shaky, these bonds generally fell to only 60%-70% of the face value. Livermore repurchased them as much as possible according to instructions. In the end, most of these bonds were recovered, and this wiped out about 300 million in profits.

Through steps 4-6, the United Group wiped out 2.2 billion in profits, leaving 1.8 billion.

The seventh step is the distribution of income and the return of funds. United Trust is a large investment company with 10,000 employees. Since it has made money, it must be returned and distributed. Francesco carefully distributed 500 million - on the surface, it seems that each customer has an average of 50,000, which does not seem to be much, but in fact, all of this 500 million has flowed into the shadow company controlled by the United Group;

The eighth step is the action taken before this - didn't the United Group pay a deposit of 500 million US dollars? Because the contract could not be negotiated, it was temporarily listed as a bad debt loss, which wiped out another 500 million;

Among the remaining 800 million, Contini had withdrawn 200 million in cash in the early stage, sponsored 100 million to the Italian treasury, and the United Bank withdrew 400 million to defend the lira exchange rate. After a full calculation, there was only 100 million left. What was this 100 million used for?

- Pay taxes!

To sum up, the United Group’s 8.7 billion revenue has slipped away in a multi-form, multi-channel, multi-year, cross-field, and wide-scope manner. It is inextricably linked to the U.S. financial sector and inseparable from the U.S. business community. Is trading a variety of normal forms of capital harvesting? How to check? How can we find out?

To take a step back, so what if we find out? Isn’t free flow of capital and free making money the fundamental system of the United States? Wall Street will only be jealous of others making money, and will not block this kind of road - because if it wants to make money, it will also use this road. To investigate now is equivalent to overthrowing Wall Street's old bottom of following the trend of short selling - they have changed their direction too much. Later, we were not as fully prepared as the United Group, so the United Group's affairs could not be discovered. Wall Street itself was exposed first. This is something that Mellon, Morgan, Rockefeller and other tycoons will never allow themselves to be trapped in!

Their current expectation is that United Group will use the money earned from speculating in the stock market to buy the equipment in their hands: Contini's bottom line is 41% off, and their bottom line is 40% off. The two sides are in a stalemate, but they sincerely want to trade.

Contini's method of promoting transactions and lowering prices is to acquire old equipment and bankrupt assets to put pressure on Wall Street; Wall Street's method of promoting transactions and raising prices is to negotiate order transfers with the Soviet Union to put pressure on United Group. For the time being, everyone is in a bullish state. , only time can give an arbitration order to this transaction.