Soviet Godfather

Almost every year at the beginning of the year, it is the busiest time for treasury ministries in Western countries, because the fiscal budget for the new year is about to be released. The so-called fiscal budget is to estimate how much money the government will spend in this fiscal year. The department responsible for preparing the budget is usually the Ministry of Finance of each country in Western countries.

The Ministry of Finance will make a detailed financial statement based on the budgets of various government departments. This statement is only a plan until now. Whether the plan can be implemented smoothly will have to go through the cooperation of the other two important joints, the Congress and the Central Bank.

In some western countries, the central bank’s treasury departments are subordinate to each other, but in the United States, the Federal Reserve is independent of the treasury department. The Fed does not need to be responsible to the government for any decision, but serves the US financial institutions represented by the Federal Reserve Board.

The first difficulty for the fiscal budget designated by the Ministry of Finance to overcome is Congress. Reagan’s Republican Party now firmly holds the majority of seats in Congress. As long as there is no disagreement within the Republican Party, the budget will basically not encounter any setbacks in Congress. On the contrary, the Fed is a bit difficult. In this series of processes, the Treasury Department only estimates how much the government will spend, while Congress has decided not to agree with the government to spend this money. It is here at the Fed that helps the government raise this. Money.

The budget of the US government is definitely the largest in the world, and the Fed must find ways to raise this money every year. Most of this money comes from Wall Street's wealthy investment banks and financial institutions. The Fed and Wall Street conduct this transaction mainly through U.S. Treasury bonds.

Whenever the government needs to issue treasury bonds, it will consult various financial institutions through bidding in order to determine the interest rate of the overload and the scale of the issuance. If the U.S. national debt for the next year is scarce, it will be a major event that will affect the government's finances for the next year.

Just last year, due to the influence of the "Plaza Agreement". U.S. Treasury yields continued to fall. However, although inflation has stimulated exports, it has not improved the taxation and fiscal expenditures of each government. The United States has always been facing tremendous pressure from the Soviet Union, and military spending will only increase. The current high inflation rate makes the large financial institutions in the United States extremely dissatisfied. If the dollar is still allowed to continue to depreciate, then financial institutions will definitely not Will go after U.S. Treasury bonds.

The current Fed Chairman Paul Walker is obviously on the side of Wall Street, and his aversion to inflation is well known in the American financial world. He has repeatedly said in public that inflation is a public hazard to the American economy, and Paul Walker's actions have also proved that he is a firm opponent of the "Plant Square."

It is against this background that the 1987 U.S. bond bidding faced numerous difficulties. At this time, Sergey Shah intends to enter the bond market. Sergei asked Mikhail to consult with Bill Gross. Unexpectedly, Bill Gross seemed to have full confidence in the 1987 U.S. Treasury yield.

"Sir, the Fed Chairman Paul Walker's attitude towards inflation is well known. Under this circumstance, he will make full use of his rights to withdraw excess funds in the market, so this year's Treasury bond issuance may be unprecedented. Big, and the interest rate should be very attractive!" Bill Gross said confidently.

"But now the U.S. dollar is depreciating!" Mikhail still asked rhetorically, uneasy.

"Sir, Paul Walker is not obedient to President Reagan. He is very arrogant and has always been known for his tough attitude. He is absolutely impossible to cooperate with the government's fiscal policy. Only the Ministry of Finance cooperates with him! So, I judge the dollar. The devaluation trend will not take long for the government to intervene. The Treasury Department will definitely respond to Paul Walker’s tightening of liquidity."

After listening to Bill Gross’s explanation, Mikhail relayed Bill Gross’s argument to Selesha. After Selesha listened to it, he stood by Bill Gross almost without thinking. Rose's side.

"Mikhail, we are not short of money now. What we lack is talents, safe and stable capital circulation channels, and what we lack is the means to keep this wealth in value and increase in value. Therefore, our thinking needs to be changed and the income is stable. To participate in national debt, fast-moving consumer companies with stable cash flow are also what we need, and infrastructure investment like the British Gas Company is also a good channel to preserve our wealth! So ~www.readwn.com~Mikhail, No doubt, no doubt, please support Bill Gross and the Blackstone Group with all your strength!"

With these words of Sergei Sha, Mikhail was naturally relieved a lot. After only a week or so, Bill Gross's prediction was fulfilled.

While the world's funds continued to pursue the Japanese economy, the U.S. Treasury Department finally couldn't sit still. On February 22, 1987, the finance ministers and central bank governors of the seven countries of the United States, Britain, France, the Federal Republic of Germany, Japan, Canada, and Italy signed a new agreement at the Louvre in Paris. According to this agreement, the seven countries will jointly intervene in the exchange rate market to prevent the continued depreciation of the U.S. dollar. As soon as the news came out, the yen began to depreciate drastically due to the positive impact of the US dollar. And Sergei Shah, who had already escaped the Japanese market, successfully escaped the catastrophe and saved the fruits of his victory.

Bill Gross's bond investment has also paid off handsomely in the past few days. The short-term treasury bonds in the hands of the Bank of Colombia have risen. Although the increase is not large, it is a signal to the treasury bond market. Bill Gross took the opportunity and began to sell the profitable short-term treasury bonds to the market, and part of it was withdrawn. After funding, he once again entered the Japanese foreign exchange market.

Sergei has been paying attention to Bill Gross's trading methods. Although in Bill Gross's view, the Japanese market has begun to frustrate under the dominance of the Louvre Agreement, but it is still an attractive investment target. However, Sergey Sha’s funds are too large, and if it is released, it will have a significant impact on the market, so this time Sergey Sha does not intend to follow Bill Gross to re-enter the Japanese market.

Sergei through Mikhail proposed a new consultation to Blackstone, that is, how to acquire Volkswagen from the Federal Government of Germany at the least cost.