Chapter 588 Leverage and Risk
Jiang Shuyi has been sitting obediently in the living room, seemingly watching TV, but in fact she has been paying attention to the movements in the study.
When Zhou Zhi and Jiang Wu came out of the study, Jiang Shuyi stood up immediately.
"Shu Yi, I have to leave, see you tomorrow." Zhou Zhi said: "By the way, you rarely stay up all night, so go to bed early tonight, and there is no need to come over too early to help tomorrow. Master Zhang is a professional team , don’t worry.”
“Well, I’ll give it to you.” Jiang Shuyi said, “Can you still drive after drinking?”
"Someone will give it to him." His sister's attitude towards Zhou Zhi made Jiang Wu feel a little sour: "If you feel uncomfortable, go and talk to my dad. I haven't seen you for two days, so you keep talking to me."
< br>Jiang Shuyi's reply choked Jiang Wu and rolled his eyes: "Well, I'll go after seeing Zhou Zhi off."
Back at Suihuaxuan, Zhou Zhi received a call from Hong Kong.
At the end of Fengqi Qingping, Zhou Zhi, ah no, the expert professor from the Economics Department of Shu University who Zhou Zhi said is now with Jack Li of Hongsheng Accounting Office, because he has become a demigod.
Although the participating countries in the European Monetary System are still full of confidence in this fixed and adjustable exchange rate system. As well as its operating mechanism - first, the currency basket - the European Currency Unit (ECU); second, the grid system - the exchange rate system is full of confidence, but it can still be seen through clues by those who are interested.
The European Monetary Unit is a basket of currencies composed of the currencies of the twelve member states of the European Community. The proportion of each member's currency in it is determined by their respective economic strength.
The exchange rate system of the European Monetary System is centered on the European Monetary Unit, which pegs the currencies of member states to the European Monetary Unit, and then uses the European Monetary Unit to determine bilateral fixed exchange rates for the currencies of member states. This exchange rate system is called a grid system, or parity network.
Because the strength of the European Community member states is not fixed, the European Monetary Unit itself breeds certain contradictions.
Once the economic strength between countries changes to a certain extent, it should be required to adjust the weight of each member's currency.
Although it is stipulated that the weights will change every five years, if the changes are not discovered in time, or if the changes are discovered but fail to be adjusted in time, it will bring crisis to the system.
The method used by Soros and his gang to loot the market is, to put it bluntly, ordinary. They use their own strength and energy to create the illusion of 80% when the market is only 50%, and guide all parties to move towards the same direction. 100% running.
After the first wave of profits, the market was suddenly shorted, causing it to quickly fluctuate back to a normal state under the squeeze from all parties.
Violent market fluctuations are something that no government wants to see. They must intervene to maintain stability.
However, the capabilities of central banks of various countries are actually limited. At this time, financial giants will unite and encourage various short forces in the market to launch an encirclement and suppression of central banks of various countries. Central banks will invest in maintaining market stability. , will continuously flow into the pockets of the predators.
At this time, the central banks of various countries have no choice but to admit their losses, because once they give up resistance, the economic shock will soon expand from the financial market to real estate, energy, and metals that are closely related to the financial industry. and other physical markets.
By that time, those countries will experience a severe economic recession, and the fruits of years of development will eventually be robbed by financial giants. There are actually not many ways to prevent this phenomenon from happening. One is to make timely adjustments when the economy shows signs of overheating. However, most countries are generally cheering for the prosperous market and rapid economic growth at this time. Almost no one will do so. Disappointing time.
The second is a bloody hand-to-hand fight with the short side to force the economic index to remain near the zero line of the financial giants until they eat up the chips they say they hold.
This requires strong national power and economic reserves sufficient to suppress excessive spillover caused by market panic. It must be a big country.
After being reminded by Zhou Zhi, Jack quickly analyzed the financial macro data, and finally reached the conclusion that was completely consistent with what Zhou Zhi had said. Through spontaneous market adjustments, a crisis would erupt in the European monetary system. .
The increase in German power has broken the balance of power within the European Community. Its economic strength has been greatly enhanced by the reunification of East and West Germany. The exchange rate of the mark against the US dollar has increased. The relative share of the mark in the European currency unit has also continued to increase. Its value changes and German monetary policy have not only affected Germany's macroeconomics, but also the European Union. The macroeconomics of other members of the Community will also have a greater impact.
At the same time, the British and Italian economies have been sluggish, with slow growth and increasing unemployment. They need to implement low interest rate policies to reduce corporate borrowing costs, allow companies to increase investment, expand employment, increase output, and stimulate Residents spend to boost the economy.
But at that time, after the reunification of East and West Germany, Germany ran a huge fiscal deficit. The government was worried that this would trigger inflation, cause dissatisfaction among Germans who were accustomed to low inflation, and erupt political and social problems. Therefore, Germany not only rejected the request from the last G7 summit to cut interest rates, but more than doubled the discount rate of the German mark in July this year.
The excessively high German interest rates caused a wave of selling of other European currencies in the foreign exchange market and a rush to buy marks. However, the strange thing is that the exchange rate of the pound against the US dollar at this time is still miraculously rising.
A country whose economic fundamentals are completely different from Germany's, its currency has experienced the same trend as the German mark.
Obviously, someone is artificially raising the pound, creating more room for the subsequent crazy suppression.
The market prices of the pound and the Hong Kong dollar are closely related. The year-long market price of the pound has allowed Hongsheng Accountants to earn a large amount of profits for clients, including Xu Jin’an Lock Company. An Xin Xu Anran Jin Cancan Zhou Zhi's shared foreign exchange, and Zhou Zhi's personal royalties income.
The two foreign exchange transactions previously totaled more than 3.7 million U.S. dollars, of which Zhou Zhi personally owned more than 900,000 U.S. dollars.
Now, as the Finnish mark, German mark, and pound sterling continue to fluctuate, Zhou Zhi gradually purchases foreign exchange derivatives according to the agreement with Jack Lee, and the income has rapidly expanded to more than 7 million. US dollars, and has a large number of long and short chips.
Of course, this does not mean a real doubling of assets, because as the chips increase and the positions increase, the risks faced by Zhou Zhi are also being accumulated crazily.
If Zhou Zhi is forced to close his position by regulations before the bubble actually bursts, he will also lose everything.
Therefore, even if there are derivatives with ten times leverage, and even if Zhou Zhi can clearly know the general trend of European currencies in the future, he still dare not play willfully, and operational risks must also be taken into account.
Fortunately, even this has already doubled the assets in just one week. The next step is to wait for the first signal-the Finnish mark and the German mark decouple and achieve free floating.
(End of this chapter)