Reborn Financial Overlord

Chapter 127

Jamin Disraeli said: There are no eternal friends, only eternal interests.

During World War II, the Anglo-Soviet reconciliation, Prime Minister Winston Churchill extended this sentence: There are no eternal friends, nor eternal enemies, only eternal interests.

"Mr. Brooke. The market's bearish view on the pound is based on the weak economic foundation of the United Kingdom. Even Germany believes that the pound needs to be devalued. Now, you are tantamount to persuading us to give up the profits we have made."

"Mr John. From an objective point of view, our proposal is not entirely in the interest of the pound. It is a balance.

I don't think sterling has much more room to fall, although the Bank of England's foreign exchange reserves are down compared to before.But it also means that the central bank has more liberal monetary policy to adjust the economy. "

"But it will take time."

"Yes, time is what we need, but it is also what you need, isn't it? There is no contradiction."

“…”

There are no surprises.

During the weekend, Norman Lamont led the special economic advisory group headed by Pound Brook, and Capital One's financial research team headed by Robert John, and launched a private discussion in the reception room on the top floor of the Navy Building. discuss.

Pound Brook proposed that Capital One gradually liquidate its short positions on the British pound, and he chose the sharpest point of attack as a bargaining chip for this negotiation.There are good reasons. When the British government announced its withdrawal from the European exchange rate system, the Bank of England was not obliged to maintain the value of the pound against the mark, and the attack on the pound by international hot money came to an end.

This should have been the logic of being short on the pound, but Brooke regarded it as the most favorable breakthrough.

Some people may ask that the Bank of England is no longer obliged to buy the pound, which means that the market lacks more funds to buy, which is even more negative for the pound and will further depreciate the pound. How could it become a bargaining chip for the Bank of England to negotiate with short sellers.

the reason is simple.

The price of a currency is based on a country's sovereign reputation, and the decisive factor is the purchase of capital, which depends on different judgments on market prices.

From a larger perspective, it is like the relationship between two connected reservoirs. The currency exchange rate between countries is like two different pools. With a relative equilibrium, the price at this equilibrium is the normal exchange rate level.

However, in order to keep the pound in the European exchange rate system, the pound was forced to withstand the pit of the German central bank's continuous interest rate hikes, and a dam was forced to be set up between the two pools to prevent the inflow of pool water.

The logic of the market’s bearish view of the British pound is based on this relationship. The use of funds to continuously push up the price of the US dollar and the Deutsche mark will tilt the balance and put more and more pressure on the Bank of England. When this pit reaches a certain limit, the British water level will It is equivalent to rising continuously, the balance is broken, and the water in the British pool will involuntarily flow into Germany, which has dug a big hole, until the dam limit formed by the foreign exchange in England bursts to achieve the effect of flood discharge.

Now that the UK has been forced out of the ERM, it also means that the water in the UK and Germany and the pegged currency can flow freely again, although there will be a short-term plummet in the initial flood, but the lower exchange rate is bound to Stimulate the British economy to strengthen, and the water level will return to a balanced level.

In other words, after the Bank of England announces that the British pound will no longer be pegged to the mark, the British pound will depreciate sharply in a short period of time, and then reach a market recognized as an equilibrium price. As the market price stabilizes, both foreign exchange buyers and sellers in the market will be in a relative position. level of balance.

Man is born in nature, and it is doomed that all derived social structures cannot escape from nature.

After all, the United Kingdom is one of the most powerful countries in the world. The daily turnover of the British pound is also hundreds of billions of dollars. Whether it is Capital One, Wall Street or other sellers, shorting the British pound is at the high point of the general trend .

Now, this trend has changed dramatically with the Bank of England's exit from the European Exchange Rate Mechanism.

It means that with the passage of time, the market buyer will no longer be the Bank of England alone, but buyers and sellers composed of countless foreign exchange dealers, and the transaction amount will not be comparable to that of an investment company.

In other words, even if you hold more pounds and continue to short, there will be no random followers in the market. Instead, there may be more multinational trading companies or foreign exchange exchanges doing arbitrage in the opposite direction.

Of course, this is just a bargaining chip used by the British Economic Special Advisory Group.

In fact, the market has been beaten to death.

That's right, he was beaten to death.

Since the fall of the pound has completely exceeded market expectations, all the bulls involved in the buying of the pound have been killed, and they have been fatally strangled again and again. The bulls who bought the pound have a deep fear of buying the pound just like a frightened bird. .

If there is a slight fluctuation in the market, the bulls who bought the pound at the bottom will immediately choose to stop the loss and get out, making the price of the pound like a dwarf who has fallen into the abyss, with no sign of a rebound at all.

In another room across the reception room, Shen Jiannan brought Qina Kanowski and Yulia Sidorov to talk with John Major and several chancellors of the exchequer.

"Mr. Brooke has a good point, but the UK needs lower interest rates to stimulate the economy. Compared with time, the UK needs more time, at least, more time than we need to close out our positions."

"I don't think it's in our interest to liquidate our positions now. Unless, you can make more concessions."

Rascal.

Totally scoundrel and hooligan.

Shen Jiannan's face was completely devoid of the humility that one should have when meeting a big man like the Prime Minister. Except for the polite greeting at the beginning, it was completely a hooligan posture that a dead pig is not afraid of boiling water.

The muscles in the corners of John Major's eyes trembled involuntarily at the words of this guy, and the Minister of Commerce and Finance, regardless of the Minister of Finance, and the cabinet advisers were all stared angrily at the words of this guy.

When has the mighty British Empire been humiliated like this?

Finally, John Hancock, Minister of the Interior and Speaker of the Privy Council, couldn't stand this guy's arrogance and rascal attitude.

"Shen. This is Great Britain. Haven't you considered how this matter will end?"

Threat.

Outright threat.

Shen Jiannan's momentum suddenly withered, showing a look of fear.But Qina Kanowski didn't think it was a big deal at all, and slapped the table hard.

"Mr. Hancock, are you threatening us?"

"......"

Chapter 128 Makes You Don't Even Use Toilet Paper

As the saying goes: soft people are afraid of hard people, hard people are afraid of poor people, poor people are afraid of cruel people, stupid people are afraid of stupid people, stupid people are afraid of lifeless people, lifeless people are afraid of shameless people, and shameless people are afraid of shameless people. Money.

Round poor, who can compare with the current polar bear.

With the continuous promotion of the privatization process and the continuous depreciation of the ruble, this country has sunk from being rich to the hell of poverty. Last winter, tens of thousands of people froze to death just because they had no money to keep warm. You can often see it on the street. Tramps are nothing, even little girls around 14 years old have taken to the streets to sell their lives, just for a bite of bread.

Barefoot people are not afraid of those who wear shoes. Poor enough, polar bears no longer have the restraint they had during the Soviet Union. Not only are they rampaging in Africa, the third battlefield, but even the Middle East is arbitrarily aggressive. It is unreasonable.

It's okay if it's just poor, but these guys are desperate and shameless.

Not long ago, before the Finnish government said anything, the Baltic Fleet dropped several bombs in the pond in front of someone’s house, causing people to panic, not even mentioning that Bilian was frying fish to subsidize food expenses.

Poor, shameless, and shameless were taken up by these guys.

But it's not all.

Who dares to think that the arsenal is packaged and sold?

Polar bears dare, not only dare to think, but also dare to do it. It is trivial to package and sell AK47 as scrap iron. Military helicopters, strategic missiles, and even warships and nuclear submarines don’t know how much they packaged and sold secretly.

There are even rumors in the arms black market, as long as you give money, nuclear bombs are also available.

Barefoot, not afraid of wearing shoes.

After all, Britain is an old capitalist developed country. Although it has encountered a little setback now, the bureaucrats are still living happily. Only when their heads are flooded will they provoke this gang who are so poor that they want money to the point of no care.

So, as Qina Kanoski got up, John Hancock was like a duck with its neck stuck, blushing, but unable to speak a word.

Threatening Kanoski?

Are you kidding me? According to MI6's intelligence, if the Duma is established next year, it is already a certainty that this guy will enter the Duma.

And this damned KGB head has close ties with the military, threatening his daughter and trying to rob their house, who knows if a few nuclear bombs will fall from the sky in London one day.

In the past, the Soviet Union did not. It was because of the money. Now the polar bears are almost crazy. These guys have been looking for a reason to fight with others every day.

Seeing that the negotiations had come to an impasse, the atmosphere had become very awkward again, and John Major had no choice but to speak up himself to interrupt the bad atmosphere.

"Miss Kanowski. I think you have misunderstood. Your Excellency Hancock means the same as Mr. Brooke. For the current currency market, no one is a continuous winner. Settle the positions you hold, It will take a long time, and this is not an easy ending. We can definitely find a more compromise way to achieve the result that each other wants."

John Major spoke politely, and as the words fell to the ground, he cast a questioning look at Shen Jiannan.

This glance made Shen Jiannan return a sincere smile.

"I agree with Lord Major's proposal that Great Britain needs a freer and easier monetary policy to stimulate the economy, which is why I am bearish on the pound. But like I said in front of friends in the media, I am doing this only in the hope that England will Banks recognize the mistakes of staying in the EU and the drawbacks of having too high a pound."

I thank you so much!

John Major was well-mannered, but he was still twitched by Shen Jiannan's angry words.

It's so nice to say, but you're such a shit, you're returning the money you earned from us.

But he is a top politician after all, and he also knows that Shen Jiannan's words mean that the drunkard is not drinking, but a sharp spear piercing the shortcomings of Britain.

At present, if the UK wants to restore its economy, it cannot do without opening water to stimulate the economy. This means that the British pound bought by the Bank of England will be put on the market again, but as the circulation of the pound in the market increases, the price of the pound will continue to bear. huge stress.

Threat.

Still a threat.

Of course, compared to the previous threat, it has been much more subtle. To be precise, this is a bargaining chip.

John Major glanced calmly at several ministers and chief advisers present, and in an instant, several people exchanged opinions with their eyes.

"Then what kind of concessions does Mr. Shen want us to make?" The Minister of Trade and Economy asked.

"You guys misunderstood me. I am a compassionate person and I am disturbed when I see someone suffering because of poverty. Yesterday, I even helped three homeless children and donated a sum of money to them .And I am also very optimistic about the economic development of Great Britain, and I am very willing to invest in Great Britain.”

Sympathy?

Europe's economy is in a mess right now, hundreds of thousands of people are displaced and all thanks to you, you say you have compassion?

The muscles on the faces of all the people present couldn't help but twitched.

Including Qina Kanowski and Yulia Sidorov, the two of them deeply knew how cheap Shen Jiannan's sympathy was.

Fifty pence - £[-].

And the cigars that this bastard smoked cost more than 5000 pounds, and he threw them away after a few puffs.

In his words: Anyway, they were all sent by the British.

The venue fell into a brief silence, and each other began to think about their own ghosts.

The meaning of Shen Jiannan is already very clear. He can support the price of the British pound, but this requires the cabinet to approve his investment in the UK. As long as this bastard injects his assets into the British real economy or the stock market, not only will the pressure on the depreciation of the British pound be relieved Not surprisingly, the recovery of the British economy will also inject new vitality.

But does the weasel pay New Year greetings to the chicken?

For such a good thing, everyone knows that Great Britain must make concessions for this.

John Major once again exchanged glances with all the ministers present, but this time, an agreement could not be reached. No one knew how big the appetite of this crocodile, Shen Jiannan, was, and no one could bear such a risk.

"I don't know what investment Mr. Shen is optimistic about?"

"toilet paper."

"Walter?"

"Oh. I mean, I want to invest in health and healthcare in the UK, but of course it's not limited to that. I'm also bullish on industrial development in the UK, but before today, I never thought I would invest in the UK .”

Having said this, Shen Jiannan spread his hands.

"It's all because today's meeting gave me an idea, so I haven't figured out what to invest in. Of course, unless you don't want me to do so."

Chapter 129 Holding UK

People can refuse the temptation of money.

But for a country, for a country with a capitalist economy, capital cannot be denied at all, nor can it be denied.

Especially when the country desperately needs more capital injections.

As Shen Jiannan finished speaking, the people in the cabinet couldn't help but looked at each other, they couldn't figure out what this guy wanted to do at all.

do not wish?

Only a fool would not want it.

Capital One represents the largest short seller in the pound sterling market. If the biggest short seller turns into an investor who injects capital into the UK, it will be no less than the defection of an enemy general in a war. It is conceivable that as Capital One And the unwinding of the sell positions held by German and Kamandy will kill large-scale short speculators.

The price of sterling will also bottom out as a result.

As for whether Capital One will take the opportunity to monopolize some domestic enterprises, it is simply not within the scope of the cabinet's consideration.

There is nothing more important than the looming political turmoil brought on by the economy, and if they can't fix the woes the pound is facing right now, they'll just wait to step down.

What's more, according to the "Monopoly Law" and "UK Foreign Investment Review", no matter how much Capital One invests, it is impossible to cause any hidden dangers to national security.

that's it?

Happiness came so suddenly, John Major and the others couldn't help but have an unbelievable expression on their faces, even a sense of absurdity.

It is so unscientific that the meat in the mouth will be spit out again if you don't bite it hard.

Even Qina Kanowski and Yulia Sidorov looked at each other, and had to pinch Shen Jiannan's thigh secretly to remind him not to care about the table guys.

Regarding this, Shen Jiannan acted as if he didn't notice anything, but this guy felt a little disapproving.