Rebirth of the Financial Overlord

United States, Wall Street.

　　 Stanley Druckenmiller gently rotated the pen in his hand, his eyes focused on the computer on the table.

　　ISK5.8135 sell 666

　　ISK5.8145 sell 666

　　ISK5.8148 sell 666

　　......

　　ISK5.8235 sell 666

　　......

　　666?

What does it mean?

　　 Druckenmiller was lost in thought.

Since discussing with Soros and setting his goal in Europe, he has been paying attention to the financial markets of European countries. Recently, the Finnish market has suddenly changed. First, the securities market continued to plummet and soar, and then the Finnish mark price was suppressed. All of these made Druckenmiller very interested.

　　404!

　　4044444

　　666

　　 to 66666666

　　 Whenever there is a series of meaningless but exactly the same numbers in the market, the price of the Finnish mark will vent.

　　 As for the meaning of numbers, Druckenmiller just feels interesting. Based on experience and intuition, he can guess and see that it is someone who has the same opinion as him and put it into action.

　　 As for 404 or 666.

　　 Maybe, that guy is a believer in the devil.

Is not it?

　　 Otherwise, why would it be 666 instead of 999.

　　 But it doesn't matter, what really makes Druckenmiller contemplate is how much profit he can get from it.

　　Markka, 4.5855 sold 666

　　......

　　 Within twenty minutes, the Finnish mark has fallen by 10%, but now, the Quantum Fund’s position in the Finnish mark is not very large. If we follow up at this time, God knows if we will make wedding dresses for others.

　　 Swedish Krona...

　　 With his eyes closed, Druckenmiller began to think.

　　 From 1870 to 1970, Sweden experienced a century of rapid economic growth, transforming from one of the poorest countries in Europe to the fourth richest country in the world.

The reason is that during the "Golden Era of European Liberalism", Sweden implemented extensive market-oriented reforms, thereby laying the institutional foundation for the lasting prosperity of the economy; and during the subsequent two world wars, Sweden was always out of the picture, and was in other European countries. When industrial facilities were severely damaged or even reduced to rubble, Sweden’s industrial infrastructure remained unscathed.

　　 Not only that, relying on military industry and advanced manufacturing, Sweden made a lot of money when it was injured in other countries.

　　 After World War II, the welfare state system was established and expanded in Sweden.

　　Especially in the late 1960s, the political wind has undergone significant changes. Under the dominance of Keynesianism, governments in the Western world have generally increased their interference in the economy and society.

　　 In the 1950s and 1970s, the Swedish model has achieved world-renowned achievements. Its appeal is not only its outstanding economic performance, but also the envy of other countries in terms of social performance.

Therefore, in the subsequent 1970s and 1980s, Sweden’s welfare state system began a period of almost crazy expansion, and the social welfare provided by the government continued to expand its coverage. Almost all social welfare was almost “free” equal to the people. open.

　　 Free medical care, free education, and even free pensions.

　　 But the relationship between market economy, social welfare and government is a very complicated process. The logic of law, economics, ethics, and social psychology all require participation, not to mention the right to speak in politics and ideology.

As an empirical science, the focus of economic research is the efficiency of institutional arrangements. "Justice" is mainly a topic of ethics and social psychology. When a society decides that it is necessary to sacrifice some efficiency for the sake of "justice" or other social value goals In principle, economics has no right to oppose it.

　　 However, the logic of economics cannot be ignored, because when economic efficiency is sacrificed too much, no matter how attractive the value ideals are respected, this system is ultimately unsustainable.

　　 Public is also unfair, unfair is public.

　　In the process of economic development, if free is not supported by sufficient resources, the day will be tilted.

When products or services with wider and wider coverage of social welfare are provided by the government as social welfare almost free of charge to citizens, on the one hand, the government needs to provide capital for the production of these public services at an average tax rate of more than 50%. While taking on such a tax burden, since enjoying welfare has become a national right, the national demand for these services will inevitably be greatly encouraged.

As a result, the production of this type of service has to expand accordingly. While financial pressure continues to increase, the efficiency of providing public services will inevitably be compromised due to the lack of effective incentive mechanisms, and the growth of the public service sector means more and more scarcity. The transfer of resources from the private sector of production to the production of social welfare has resulted in the distortion of resource allocation at the industrial structure level.

　　Based on basic economic principles, it is conceivable that the long-term consequences of the Swedish-style welfare state system will inevitably be the inefficiency of resource allocation, the distortion and weakness of economic incentives, and the deteriorating government financial situation.

　　 Since resources, including people's time and energy, are scarce, the principles of competition and opportunity cost will always work.

　　 There is no "free lunch".

Moreover, when social welfare is almost "free" and equal to the people, people who enjoy rights will pay another price, that is, the price of waiting in line. Many people with power and relationship resources will definitely get close to the water. , So business relationships and rent-seeking behavior are bound to be encouraged.

　　The logic is simple and clear. You only need to grasp the principle of relative prices and understand the concepts of opportunity cost and economic rent, and it is not difficult to imagine the economic consequences of the welfare state model.

　　 In the past two decades, the Swedish government's deficit has increased sharply. In 1985, the national debt increased by 10 times that of 1975.

　　 At the same time, the inflation rate remains high, and in order to promote exports, the Swedish Krona exchange rate has repeatedly devalued, making the inflation situation worse. Before and after the signing of the Washington Agreement by the Group of Ten, the exchange rate of the krona depreciated by 3% in 1976, first by 6% in 1977, then by 10% again, by 10% in 1981, and then by 16% in 1982.

　　 Until 1991, Krona was unilaterally linked to Egypt and implemented a fixed exchange rate system.

　　 Druckenmiller, who closed his eyes, opened his eyes, and a bright light flashed across his brown eyes.

　　 In Europe, Sweden and Finland are facing the same capital flow problems. After the reunification of the two Germanys, Germany continuously raised interest rates and the mark currency value continued to rise.

　　 Since Sweden is unilaterally affiliated with Eju, and Eju’s core weight is the Deutsche Mark, it is transmitted to Sweden through Sweden’s fixed exchange rate, further raising the Swedish interest rate.

　　 However, the long-term high welfare has overdrawn Sweden's potential, and the Swedish economy has shown signs of crisis. In order to prevent the crisis, the Swedish government proposed tax reform in early 1991.

　　At the same time, the central bank raised bank interest rates to implement tightening monetary policy.

　　 With the currency tightening, the stock market plummeted by 30%, and real estate prices fell by 25%.

　　ISK5.8545 sell 666

　　...

　　 Looking at the trend of the crown on the computer, Druckenmiller did not hesitate any more, and decisively picked up the phone.

　　 toot——

　　 The phone rang twice and was connected.

　　 "John. It's me, Stanley. I need you to establish a position in Swedish Krona."

　　 "Yes. Short sale. Five hundred million dollars."

　　 "......"

　　What is a fixed exchange rate?

　　 The exchange rate that is basically a fixed exchange rate between one country's currency and another country's currency is a fixed exchange rate, but in fact, a fixed exchange rate is not a completely fixed exchange rate, but fluctuates around a relatively fixed upper and lower parity range.

　　 The highest point in the range is called the upper limit ~ www.readwn.com ~ the lowest point is called the lower limit. When the exchange rate rises or falls to the upper or lower limit, the central bank will take measures to keep the exchange rate unchanged.

　　 Finland, Helkisin.

　　 Six tall, burly, and extremely sturdy women standing in the office of Geman Investment Management Company in a military posture.

　　 If the Bank of Finland cried out not long ago that bank clerk was there, he would definitely recognize one of the women.

　　 There is no coincidence in the world, and under the general trend, there has never been a coincidence.

　　 However, when the coincidence becomes a coincidence, it is better to choose to make the coincidence more coincidental.

　　 This is not a question of being afraid.

　　 "Irina. Pay attention to safety on the road. If there is something wrong, safety first."

　　 "Don't worry, miss. Even if the Finns knew that and gave them a hundred courage, they wouldn't dare to move us, we did not commit any crime."

　　 "That's good. My plane has been arranged. When I get to the airport, someone will pick you up."

　　 "Miss, goodbye."

　　 After a salute, Irina Shayk silently cast a pleased look at Shen Jiannan, then turned around and left with a few people.

In the huge room, Qina and Shen Jiannan were left. They knew each other well and didn't need any scruples anymore. Qina cheered and jumped on Shen Jiannan.

　　 "Honey. What shall we do with Sweden now?"

　　 "Lady. Lady. The word fuck, don’t spit it out of your mouth."

　　 "......"