Riding the wind of rebirth

Chapter 587 Leverage and Risk

Jiang Shuyi has been sitting obediently in the living room, looking like she is watching TV, but she has been paying attention to the movement in the study.

When Zhou Zhi and Jiang Wu came out of the study, Jiang Shuyi immediately stood up.

"Shu Yi, I'm leaving. I'll see you tomorrow." Zhou Zhi said, "By the way, you rarely stay up all night. Go to bed early tonight. You don't have to come over early tomorrow to help. Master Zhang is a professional team, so don't worry."

"Well, I'll see you off." Jiang Shuyi said, "Can you still drive after drinking?"

"Someone will send him off." His sister's attitude towards Zhou Zhi made Jiang Wu feel a little sour: "If you're not comfortable, go talk to my dad. I haven't seen you for two days, so I keep talking about it."

Jiang Shuyi's reply made Jiang Wu roll his eyes: "Well, I'll go after delivering Zhou Zhi."

Back at Suihuaxuan, Zhou Zhi received a call from Hong Kong.

At the end of Qingping, Zhou Zhi, ah no, the expert and professor of the Economics Department of Shu University that Zhou Zhi talked about is now with Jack Li of Hongsheng Accounting Building, because he has become a demigod.

Although the participating countries of the European Monetary System are still full of confidence in this fixed and adjustable exchange rate system.And its operating mechanism-one is the currency basket-the European Currency Unit (ECU); the other is the lattice system-the exchange rate system is full of confidence, but it can still be seen through by those who are interested.

The European Currency Unit is a basket of currencies composed of the currencies of the twelve member states of the European Community. The proportion of the currencies of each member state is determined by their respective economic strengths.

The exchange rate system of the European Monetary System is centered on the European Currency Unit, which links the currencies of the member states to the European Currency Unit, and then uses the European Currency Unit to enable the currencies of the member states to determine bilateral fixed exchange rates.This system of exchange rates is called a grid system, or grid parity.

Because the strength of the member states of the European Community is not fixed, the European currency unit itself is pregnant with certain contradictions.

Once the economic strength between countries changes to a certain extent, it should be required to adjust the weights of the currencies of each member state.

Although it is stipulated that the weights are changed every five years, if the changes are not detected in time, or if the changes are found but not adjusted in time, it will bring crisis to the system.

The way Soros and his gang ransacked the market is, to put it bluntly, unremarkable. It is to use their own strength and energy to create the illusion of [-] percent when the market is only [-] percent, and guide all forces to move towards a certain level. [-]% run wild.

After the first wave of profits, the market will be short-sold suddenly, so that it will quickly fluctuate back to a normal state under the squeeze of all parties.

The violent fluctuations in the market are something that all governments do not want to see. They must intervene to maintain stability.

However, the capabilities of the central banks of various countries are actually limited. At this time, the financial giants will unite and encourage various short-side forces in the market to encircle and suppress the central banks of various countries. The investment of the central banks to maintain market stability will continue to flow. Into the pockets of predators.

At this time, the central banks of various countries have no choice but to admit the loss, because once they give up resistance, the economic shock will soon expand from the financial market to the real estate, energy, metal and other physical markets that are closely related to the financial industry.

By that time, those countries will experience severe economic recession, and the fruits of years of development will eventually be looted by financial predators.

There are actually not many ways to prevent this phenomenon from happening. One is to adjust in time when the economy is overheating. However, most countries are generally cheering for the booming market and high-speed economic growth at this time. Time to spoil the fun.

The second is bloody hand-to-hand combat, wrestling with the short side, forcibly maintaining the economic index near the zero line of the financial predators, until they eat up the chips they say they hold.

This requires a strong national strength and economic reserves sufficient to suppress the excessive spillover caused by market panic, and it must be a big country.

After being reminded by Zhou Zhi, Jack quickly analyzed the financial and macro data, and finally reached a conclusion that was completely consistent with what Zhou Zhi said. Spontaneous market adjustments would lead to a crisis in the European monetary system.

The increase in German power has disrupted the balance of power within the European Community.Its economic strength has been greatly enhanced due to the unification of East and West Germany. The exchange rate of the Mark against the US dollar has risen, and the relative share of the Mark in the European Currency Unit has also continued to increase. 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 rising unemployment. They need to implement low interest rate policies to reduce corporate borrowing costs, allow companies to increase investment, expand employment, increase production, and stimulate household consumption to revive the economy.

But at that time, after the reunification of East and West Germany, Germany had a huge financial deficit. The government was worried that this would cause inflation, which would cause dissatisfaction among Germans who were accustomed to low inflation, and cause political and social problems to erupt.Therefore, instead of rejecting the request of the G[-] summit to cut interest rates, Germany more than doubled the discount rate of the Deutsche Mark in July this year.

The excessively high German interest rate caused a wave of selling other European currencies and snapping up the mark in the foreign exchange market, but it is strange 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 those of Germany, its currency has gone out of the same wave as the Deutsche Mark.

Obviously, someone is artificially raising the pound to create more room for the next crazy suppression.

The British pound and the Hong Kong dollar are closely related. The year-long market for the British pound has allowed Hongsheng accountants to earn a lot of profits for their clients, including Xu Anxin, Xu Anran, and Jincancan Zhouzhi, a joint venture of the Jinan lock company. Foreign exchange, and thoughtful private royalty income.

The two foreign exchange transactions previously totaled more than 370 million US dollars, of which Zhou Zhi personally owned more than 90 US dollars.

Up to now, with the continuous fluctuation of the Finnish mark, the German mark, and the pound sterling, according to the agreement between Zhou Zhi and Jack Lee, foreign exchange derivatives have been gradually purchased, and the income has rapidly expanded to more than 700 million US dollars, and a large amount of money has been mastered. Long and short chips.

Of course, this does not mean that assets have truly doubled, because with the increase in chips and positions, Zhou Zhi's side is also crazily accumulating risks.

If Zhou Zhi was forcibly liquidated by the rules before the bubble really burst, he would lose all his money.

Therefore, even if there are ten times leveraged derivative products, even if Zhou Zhi can clearly know the general trend of European currencies in the future, he still dare not play willfully, and must also take operational risks into consideration.

Fortunately, even so, assets have doubled in just one week, and the next step is to wait for the first signal-the decoupling of the Finnish mark and the German mark to achieve free floating.

(End of this chapter)