Rebirth of the Financial Overlord
Vol 5 Chapter 110: Causal relationship
The earth is very big, but the global village is very small.
The high-speed transmission of the Internet makes the whole world seem to be connected together.
Precisely, between the operation of the financial market and the economy, there is another relationship of mutual dependence and mutual influence.
At this time, the British do not ask the French to borrow money. Apart from the fact that the relationship between Britain and France has not been very good, there is another very important reason. The French dare not lend money to the British.
Because the price of pound sterling is calculated based on a basket of currencies. When buying pound sterling, all you pay are foreign exchange. This foreign exchange includes Deutsche Mark, French franc, U.S. dollar and other currencies. However, as Finland bought the Finnish mark, Italy bought it. Lira and Spain purchased pesetas, and all foreign currencies that were originally reserved by various countries were circulated on the market.
It has created an unprecedented seesaw effect. How dare France lend money to Britain anymore?
If they dare to borrow money, the franc will face the risk of depreciation because of the surge in market circulation.
Hong Kong is now also facing similar problems.
Although the Hong Kong dollar is a token of the U.S. dollar, shorting the Hong Kong dollar is equivalent to shorting the U.S. dollar. However, this prerequisite is based on the issuance of the Hong Kong dollar and the payment of the equivalent U.S. dollar. The Administration of Foreign Exchange is now buying the British pound in the Asian market to make the Hong Kong government foreign exchange reserves The reduction has also resulted in the expansion of the circulation of the Hong Kong dollar. Under this seesaw, the Hong Kong dollar, like major European currencies, faces the risk of depreciation.
And, especially even.
After all, the Hong Kong dollar is not sovereign credibility. The value of the Hong Kong dollar is completely measured on the basis of the US dollar. If a large amount of US dollars is lost, the depreciation of the Hong Kong dollar is a matter of course.
Shen Jiannan turned around and looked at Yu Zheng with a straight face, with a strange color in his eyes.
At the beginning, he pulled Yu Zheng from school to the company. He was actually not optimistic about Yu Zheng. This guy had been in high school for six years, and he was only graduating from university at the age of 30. It seems that he was a silly one. The reason why he was taken away was because he wanted to Set an ideological role model for the students so that they can go back to win more people.
But in the past year or so, Yu Zheng's progress is incredible. Many things can directly see the essence.
Just as it is mentioned now that the establishment of a short position in the Hong Kong dollar, even those old guys from the University of London, Harvard University or Stanford Business School who have been immersed in the economic field for many years may not be able to figure out what the economic crisis in Europe has to do with Hong Kong in Asia.
But now... it's still a bit too tender.
Taking out a cigarette spot, Shen Jiannan tilted his leg on the table and set up a posture as an example. This guy Yu Zheng looked silly, but not silly at all, Ma Liu picked up the ashtray and leaned over, smiling, ready to listen to the teachings.
"The formation of a short Hong Kong dollar is inevitable."
"Capital is chasing profit. Think about it. Given the current environment in Europe, where will capital retreat?"
"Like these actors on TV right now, I bet that many of them are ready to transfer their assets to other regions."
"..."
A faint of enlightenment flashed in Yu Zheng's eyes.
Capital pursues profit, just like Finland, Italy, and Spain. If it weren't for a large-scale capital outflow, let alone capital one, it would be impossible for a hundred capital one to collapse the currencies of these countries.
But these capitals are only flowing out rather than evaporating out of thin air. Once they leave Europe, they need to choose other carriers.
From the perspective of the whole world, there are not many carriers that these capitals want to choose when they flow out.
The stability of profits requires the stability of the political structure. The African continent is constantly fighting, and the blacks are lazy and aggressive and can be eliminated. The economic turmoil in Europe as a whole can be seen by anyone and can be eliminated; then only the US market And the Asian market is the appropriate carrier.
However, the Japanese market is declining. The total restrictions imposed by the Ministry of Finance on real estate have almost blocked the space for the securities market and the real estate market. The choices of capital in the Asian market are too limited.
"Why, feel uncomfortable?"
Hell if you feel comfortable.
How did Hong Kong’s economy develop? Yu Zheng still doesn’t understand. It is all made by relying on the unlimited potential of the mainland market to control the port. But now, it is simply naked to be bought by the British indiscriminately. damage.
Don't those British people know that this will make Hong Kong's economy face a big crisis?
I know for sure.
Still don't know if the Hong Kong dollar is attacked, Hong Kong's finance and economy will even collapse?
How could I not know.
But those **** don't care about it at all.
Facing Shen Jiannan's ridicule, Yu Zheng nodded in disgust. In front of this teacher, he had nothing to hide.
"If you feel uncomfortable, you have to bear it. You are British, so you did the same."
"I'm just disgusting. They talk about human rights, democracy and freedom, but they do a lot of people. Teacher, you said that we let the news out and then take the opportunity to establish a position. Can you smash the British? If they continue to play like this, Hong Kong will have to be scrapped sooner or later. UU reading www.uukanshu.com might as well make a fortune and let Hong Kong people see their faces."
"Do you have evidence?"
"There is no news from Hong Kong."
"The obscure means can't be used as evidence. We can't prove how much money the foreign exchange administration has invested in the market. We can only smash teeth and swallow it in our stomach."
"Moreover, although this wave of British operations has moved the fundamentals of the Hong Kong dollar, as long as they do well, the risk of the Hong Kong dollar can be held down for a few more years."
"..."
Suddenly, Yu Zheng understood what Shen Jiannan meant.
Judging from the summary of intelligence agencies, during this period of time, the capital flowing into the Asian market was mainly concentrated in five regions. Except for Thailand, Malaysia, the Philippines and Indonesia, Hong Kong was the place with the largest inflow of capital.
Just like the human body, it has a huge amount of capital liquidity. All acne diseases will not break out at all for a while, and the huge liquidity can completely cover up the Hong Kong government's loss of pounds.
"Doesn't that mean that we are helping the British now?"
"..."
Shen Jiannan was almost choked to death by Yu Zheng's guy. If he were in the original trajectory, this matter had nothing to do with him, but now, it is not the truth.
Capital One cooperated with the United States to expel European capital from Europe, and these capitals were forced to flow into Southeast Asia and Hong Kong, which perfectly changed the Hong Kong Administration of Foreign Exchange's consumption of foreign exchange.
Nima what is this called?
Shen Jiannan was completely defeated by his own logic, and in a fit of anger, he severely kicked his leg.
"You're just trying to force me. Go tell William and let Lao Tzu continue to add space. If you don't break the Bank of England before nine o'clock, don't eat."
"Hey"
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