Rebirth of the Tech Madman

"After the end of the Second World War, the analysis of the social foundation that supported Hitler's rise is generally attributed to the fact that hyperinflation at that time was a very important boosting factor."

"Therefore, in the past few decades, West Germany, and even now Germany, has made controlling domestic inflation its top priority. It can even be described as an instinct, and it is necessary to balance the inflation caused by German reunification. , Raising interest rates is the most effective way."

"This is the politics behind the economy." Tang Huan raised his finger and pointed at the people. "Everything in the world is knowledgeable, and human feelings are learned. In the future, you will have a lot to learn in this area."

Jin Long, who has a better understanding of the situation in the UK, suddenly said: “If you follow this line of reasoning, opposing the European exchange rate mechanism is an incentive for the former British Prime Minister Margaret Thatcher to lose the support of most members of the Conservative Party, and joined the European exchange rate mechanism in 1990. It is a political achievement of John Major, who moved from the Chancellor of the Exchequer to the position of Prime Minister of the United Kingdom, and his cabinet naturally tends to defend it."

"Yes." Tang Huan laughed with his palms, "It seems that you have mastered the key rules of this game, so I don't need to worry about the rest of the pure technical operation-you start playing now."

...

It can be said that the richest man is as far away as possible on the surface as far as possible from this speculation in European currency, which is currently only a trifle and has not yet reached its climax.

But there is one exception. Tang Huan did not deliberately conceal the financial operations conducted by Qin He Tactics based in its London office.

As for the intention, of course it is very simple-it is to take the opportunity to retaliate, to vent the dissatisfaction in the heart, and it doesn't matter whether the UK knows it or not.

By the end of August, Qinhe Strategy only short the British pound position, which reached 200 million U.S. dollars.

In fact, after a series of pieces and pieces, the entire speculative circle has gradually confirmed a consensus that every economy that has been hit by the economic recession and the exchange rate is pegged to the Deutsche Mark is now a paper tiger-very fragile.

It is conceivable that the participants in this game are by no means limited to Quantum Funds, diligence and strategy. People with reputations include Paul Tudor Jones and others. And these international free-from-capital, after tacitly pooling and launching an impact, are enough to challenge any central bank that is strong in foreign countries.

under these circumstances. The exchange rates of the British pound and the Italian lira have fallen to the lower limit allowed by the European exchange rate mechanism-the specific figure for the United Kingdom is 2.7780 pound to 1 German mark.

In addition to being deeply mired in the quagmire of economic recession, mortgage loans in the UK are also very sensitive to raising interest rates because they are often not fixed. When the Central Bank of the United Kingdom raises interest rates, British households will immediately feel the payment pressure , And further crack down on spending power.

This transmission mechanism coupled with the economic recession made the United Kingdom unwilling to first raise interest rates to attract external capital and resist the depreciation of the pound. Instead, it hoped that the Central Bank of Germany would cut interest rates.

In order to negotiate this issue, from September 4th to 5th, the finance ministers of the member states of the European Community and officials of the Central Bank met in a small town called Bath in the United Kingdom.

The British Chancellor of the Exchequer Norman Lamont desperately needed to create room for the pound to lower the exchange rate. As a result, he was first questioned by his Italian and French counterparts who were also fighting the economic recession. So he became angry and kept asking Germany to relax its monetary policy. During the process, he slapped the table and shouted at Deutsche Bank President Helmut Schlesinger: "The twelve finance ministers are all sitting here and asking you to lower interest rates. Why don't you agree?"

Norman Lamont's yelling, not only did not scream at him, but it also backfired to arouse resistance. Helmut Schlesinger's first reaction was to leave the meeting in anger.

After the president of Deutsche Bank calmed down, he gave a statement that although he did not intend to cut interest rates, he also believed that there was no reason to raise interest rates.

Norman Lamont immediately passed this cautious almost nonsense statement to the media as a signal of German concessions.

When George Soros and Tang Huan exchanged information, they asked nervously: "Helmut Schlesinger's attitude is due to pressure and he is ready to cut interest rates?"

Tang Huan replied without hesitation: "As far as I know about Helmut Schlesinger, he attaches great importance to the independence of the Central Bank of Germany. Norman Lamont tried to create politics as a foreigner. ~Cure stress, the result can only be counterproductive."

"I think that even if Helmut Schlesinger does not oppose the unification of European currencies, he will subconsciously regard the German mark as an existence beyond other currencies-using the German mark to cut interest rates to make room for devaluation of other currencies. , Very difficult!"

Naturally, George Soros couldn't trust Tang Huan's intelligence unconditionally. In order to find out the attitude of Helmut Schlesinger, a key figure, he specifically stared at each other's every move.

The effort paid off, and George Soros really waited for Helmut Schlesinger to make another public statement.

Because Norman Lamont clamored for several days and used the media to create pressure from public opinion that Germany is about to cut interest rates, which completely angered the Germans, he made a clarification on September 8 that he could not guarantee the German mark interest rate. The future direction, while issuing a warning-he has no confidence in the current fixed exchange rate relationship between European currencies.

In order to emphasize this point, Helmut Schlesinger specifically mentioned the weak foundation of the Italian Lira as a corroboration.

George Soros was one of the audience. In order to determine whether Helmut Schlesinger’s remarks were genuine, he hurried forward to talk after the other party had finished speaking.

"What do you think of the European unified currency?" George Soros cleverly tapped sideways.

Helmut Schlesinger, who was in an impassioned state, replied directly without thinking: "I like the concept of a unified European currency, but I don't like the current name. Maybe it is better called the mark."

George Soros watched the Deutsche Bank president walk away with a smile, and said in his heart, "Tang's inference is really grounded, and I am not used as cannon fodder to retaliate against Britain."

The subtext of Helmut Schlesinger's answer is exactly the result that all speculators in the European financial market hope for at this stage.

The Central Bank of Germany can accept the idea of ​​the European Monetary Union, but this does not mean maintaining European harmony at all costs. Norman Lamont’s political tricks of creating public opinion pressure with his beard and stare cannot shake its maintenance. The deutsche mark is strong, the primary task of preventing inflation and the determination of fine traditions.

The German thinking is-if other economies cannot tolerate the resulting economic contraction, then their currency deserves to depreciate!

George Soros could not help but maliciously speculate about Helmut Schlesinger’s motives-all units have the instinct to protect themselves, and the other party, as a professional central bank official, must be this policy. Representative of governance trends. It is very likely to be happy to see it take its own tough stance and undermine the plan of the European Monetary Union. Because the goal of the alliance includes the establishment of a central bank in Europe, and this central bank will replace the powerful German central bank.

George Soros, who personally got this conclusion, naturally could not share it with Tang Huan. He first called Stanley Druckenmiller in New York, USA, and excitedly informed that "Italian lira is about to depreciate further." ; Then quickly returned to New York and began to prepare for a real big deal.

Under the operation of Stanley Druckenmiller, the Quantum Fund has placed a bet on the British pound at this time, but it is not enough.

...

"George Soros called to request that the US$500 million invested by us be put in place as quickly as possible." Zhuang Menghua walked in and reported softly.

"Where is he currently?" Tang Huan picked up the remote control and turned down the volume of the TV.

"George Soros has returned to New York, USA. He should have raised more funds to build a larger warehouse." Zhuang Menghua watched Helmut Schlesinger on the TV screen and speculated: "This German The bank president, I’m afraid he won’t stay in his position for too long."

"To calm public anger, it can only be an afterthought." Tang Huan smiled faintly, "After the notice, the real drama has begun-for Helmut Schlesinger's statement today, hedge funds will definitely have to test and verify. And the first sharpening stone should be Finland, which is still struggling in the quagmire of economic recession."

...

This is indeed the case.

On Tuesday, September 8, when Helmut Schlesinger, President of Deutsche Bank, announced that Germany could not make any commitments to interest rates, a wave of speculative selling overwhelmed Finland's Central Bank.

This small Nordic country has not yet joined the European exchange rate mechanism, but has only implemented a policy of **** to the European currency unit. Naturally, it cannot receive legal and obligation support. The Finnish mark fell by nearly 15% that day, so the Finnish government was forced to abandon its current currency There is an exchange rate policy.

Profits can be made in a blink of an eye, and the tacit speculators are immediately lifted up to find the appetite of the next target-and Finland's neighbor-Sweden, unfortunately, has become such a victim.

On Wednesday, September 9, Sweden was hit.

With the lessons learned from Finland, which was very close at hand, Sweden, which was extremely shocked, raised interest rates to an unprecedented level of 75% overnight to defend its currency.

...

When Tang Huan walked into the office of his sons, he happened to hear Jin Ge exaggeratingly yelling, "I am not mistaken for the 75% interest rate!"

"In our portfolio, Sweden was considered, but I didn't expect it to be so exaggerated." Jin Chang turned his head and smiled and explained to his father: "In this way, after this round of financial tsunami, bearish Swedish currency will never fall. ."

Tang Huan nodded slightly and pointed out: "This moment of movement is a small battle. Next, hedge funds with increased confidence will definitely start attacking the member states of the European exchange rate mechanism, and the Italian lira will bear the brunt."

Jin Chang opened his notebook and analyzed: "Italy has received support from the powerful German Central Bank, borrowing the equivalent of 36 billion U.S. dollars in lira, and raising the interest rate to 15%, which is a tough bone."

"Italy is something that mud can't support the wall." Tang Huan shook his head disapprovingly, "including European officials, who are still superstitious about the absolute power of the Central Bank, and didn't realize that a new financial order is being established. You can appreciate the insights that are impossible to provide in these books."

...

Italian football is very beautiful. Take the female ship king Christina’s ac Milan, which established a recognized Milan dynasty on the European battlefield, but the economic performance is just as the richest man described it—the mud can’t help it. wall,

On Friday, September 11, the Italian lira was prepared to be fully prepared. It still did not escape the fate of collapse. It fell below the lower limit allowed by the European exchange rate mechanism-the members of the European exchange rate mechanism, for the first time to be called the market , Beating the nose and swollen face, the body is not complete.

But ~www.wuxiaspot.com~ Italy is lucky. The time when the Italian lira collapsed, on the last trading day-Friday, provided a breathing space.

On Saturday, September 12th, the Italians and visiting German officials began negotiations on the devaluation of the lira.

...

The victory of the hedge funds against the Central Bank of Italy was so beautiful that George Soros once again called the richest man who had been to the UK to inspect Jaguar and other industries to ask about the latest developments there.

You know, European countries can be described as turbulent. If Britain, which is in a similar situation as Italy, suddenly takes decisive measures, all preparations will be in vain.

Tang Huan laughed heartily, "Don't worry, the British Prime Minister is still as if a mountain, and the British Chancellor of the Exchequer is as good as he is--Norman Lamont seems to have nothing happened, and there is a leisurely and elegant, according to his schedule. Arranged, attended a concert, and sang the British navy anthem with great interest."

"After all, the economic achievements of the Conservative Party in power in the 1980s are remarkable, and it is confident of coping with the current financial turmoil. And I estimate that there is no shortage of British people's point of view, how can Italy, a sick man in Europe, be on par with himself."

"No, the British media still have time to speculate about my suspicion with John Major."

Some of Qinhe Strategy's operations in the London financial market have been noticed by some interested people and described as trying to take advantage of the fire.

Tang Huan said frankly to reporters who came to verify, “It’s good if you know, there are naturally some obvious motives. For example, after losing the franchise, Xiangjiang Telecom, a subsidiary of Qinhe Group, always has to find a way. Expand the source of income."