Winner Takes It All, Resurrection 2009

“After a tentative confrontation in April and May, the pound-dollar exchange rate has fallen from 100 to 165 to the current level of around 155, with no signs of stabilization.

Based on the data analysis of the bearish research reports on the pound recently released by Morgan Stanley, Goldman Sachs and other large Wall Street investment banks.

Internal data from England, Barclays and other large banks in the UK show that the situation is not optimistic...

After receiving the invitation, we organized a wide range of discussions with experts and scholars from various parties. All parties agreed that if there is no external intervention, the pound is likely to fall below the 120 mark within the month..."

As the internal resource exchange came to an end, there was actually nothing much to talk about. The heads of more than a dozen large financial institutions sat together to establish the cooperation framework and general direction.

The rest will naturally be taken care of by his professional team, who will be responsible for optimizing the specific details, and it will take at least several months to reach a deal.

Everyone has not forgotten why they came here today. Zhou Xiaochuan, the central bank official who actually presided over the meeting, asked his assistant to give a brief introduction to the situation.

He then looked at Mr. Xie from the Finance Department and Mr. Lou, Chairman of Huijin Investment, who would soon be in charge of the Finance Department, and politely invited them to speak to set the theme of the meeting.

"The situation is not optimistic..."

Mr. Xie spoke a lot in a very eloquent manner, but he only emphasized the seriousness of the problem without talking about how to solve it. After all, he was about to retire and did not want to steal the limelight from others, nor did he want to cause trouble, so he took the opportunity to throw the problem to Mr. Lou.

After politely declining, the latter coughed and said seriously, "This is a serious matter and we must be cautious. The sharp depreciation of the pound will affect many upstream and downstream import and export trading companies in China..."

As Mr. Lou spoke, everyone quickly took notes, recording key data as an important basis for decision-making, while also weighing the pros and cons in their minds.

Don't think that everyone sitting here is here to rescue the pound exchange rate. You can't guarantee that some of them will profit from the depreciation of the pound.

Even if it does not participate in direct foreign exchange short selling transactions, its import and export trading subsidiaries, or related investment industries, can hardly avoid economic dealings with Dai Ying.

When selling products from Dongda to Daiying, they naturally do not want the pound to depreciate sharply. The series of changes brought about by this will require a lot of extra money and time costs.

However, those who purchase technology, equipment and goods from the UK are happy to see the depreciation of the pound, because the RMB is very stable against the US dollar. After exchanging for the same amount of US dollars, the pound will depreciate against the US dollar.

As you receive more pounds, the remaining pounds for the corresponding purchase or purchase of a certain product but not yet paid will be passively reduced, and the cost of continued purchases in the future will also be reduced.

But from a national perspective, the disadvantages outweigh the advantages. Ou Meng also believes that if the pound sterling weakens, its export competitiveness will be improved, and the UK still has some relatively advantageous industries at this time.

At a time when major economies around the world continue to weaken except for the continued strengthening of the Tokyo University economic engine, the emergence of another competitor means that there will be one more opponent for the fat meat available on the table.

There is another more realistic reason why Todai actively participated in the rescue.

That is the British pound, one of the world's major settlement currencies, whose credit is backed by the dual strength of the British economy and the euro zone.

Together with mainstream currencies such as the US dollar, euro, and yen, it constitutes a credit settlement currency recognized by countries around the world in international commodity trade.

Every time its exchange rate fluctuates sharply, it is likely to have a profound impact on the global economy, especially on the historical process of the RMB becoming a mainstream currency!
This point is particularly important and priceless. It is also the main reason why Dongda rescued the pound this time, and there is no other reason!

Rescue the British pound, show goodwill to the Eurozone, win over the chickens in the basin, and after a wide range of interest exchanges, promote the RMB to first become the regional international trade settlement currency, and then further become the global mainstream currency...

It has been a long time since RMB has wanted to become a mainstream currency accepted by the whole world. During the economic crisis in 08, the University of Tokyo sent a high-level delegation to the United States.

They want to use the East China Sea's vast and cheap industrial products to support the American economy and help it successfully overcome its period of weakness in exchange for the US' support for the RMB to become the world currency (this is one of the core negotiation conditions).

The United States, which was mired in the economic crisis and was on the verge of losing its world power, agreed to everything without hesitation, as if it had grasped a lifeline.

This led to the subsequent Dongya Economic Free Trade Zone and the 5 trillion currency free convertibility operation. Without the approval of American capital, Dongda would never take that step easily given its usual low-key character.

However, the University of Tokyo still underestimated the shamelessness of American capital. Wall Street, which had just initially overcome the crisis and barely suppressed the euro, immediately turned against it and made the Dongya Free Trade Zone stillborn.

This move was like a loud slap in the face, awakening countless people with lofty ideals who were devoted to economic development with full enthusiasm, hoping for peaceful coexistence between the G2 and work together to create a better future.

From then on, a large group of people abandoned their fantasies, returned to reality, and began to be down-to-earth and seek a new path to rise entirely by relying on their own strength.

Therefore, the economic crisis in 08 had such far-reaching impact that it almost laid the foundation for the world's development pattern for the next years!

Looking back at that period, American capital was actually already half-foot in the air. If there had not been a massive influx of cheap industrial products from the University of the East, American capital would have lost its pricing power over the world's major resources by 09 at the latest.

And Europe and the euro will replace the United States and the US dollar and become the new core of the world economy.

This is a fact that American capital cannot accept in any way. Fortunately, it still has the most powerful force in the world and retains the strength to overturn the table, thus gaining the necessary time to delay its decline.

After the most careful and multi-faceted discussion, the University of Tokyo came to the final conclusion that the American economic model, which is unable to generate internal revenue and must rely on external expansion to feed itself, has great drawbacks!
Rather than facing a Europe that has no obvious shortcomings in the three major sectors of manufacturing, finance, and services (America only retains a small amount of mid- to high-end manufacturing), and is difficult to defeat.

It is better to rescue a lame overlord who is ready to be defeated again at any time. Facts have also proved that the original choice of Dongda University was completely correct after the resurgence of American capital.

He spared no effort to suppress Ou Meng, who had grown into a thorn in his side, especially the industrial manufacturing capabilities of Hans and Gaul's family, which were torn into pieces by American capital until the time before Li Zehua was reborn.

Hans 4.0 Industries, which was once the best in the world, is now on its last legs and almost became 0.4. It is no longer a threat. As for Gaul, it almost lost everything.

This is equivalent to American capital helping Southeast University solve its biggest future competitor and in disguise clearing all obstacles for it to reach the top.

American capital itself remains the same as before, choosing to continue deceiving and hypnotizing itself in its drunken state, and covering up the truth at all costs. It is immersed in the lies it has woven and cannot extricate itself, and the key is that it actually believes them.

This is the highest level of fooling people. I don’t care whether you believe it or not. I believe it myself. It’s a typical case of moving oneself.

If we weren't concerned about its power, it could cause enormous damage.

If American capital was not worried that Ou Meng would take the opportunity to break free from his constraints and compete with Tokyo University for world dominance, it would not even see the sun in 2030. However, by 2040 at the latest, after a cycle of two hundred years, Tokyo University will surely return to the top of the world.

Because there is a horrible hidden mine buried under the ass of American capital, which is enough to send everyone on a plane. Once it fails to obtain enough resources from the outside, the serious and irreconcilable hidden mine will have to send American capital to the sky first.

The core of the problem is that after decommunization, which buried the last glimmer of hope for re-emergence, the US economy has been operating in a cycle of almost 5-8 years.

It is a vicious cycle of repeatedly injecting money into the internal economy frantically, and then when the bubble bursts, it looks for an enemy (or ally) to reap the spoils completely and obtain huge profits to make up for its own shortcomings.

That’s why there is a saying: Being an enemy of America is bound to be uncomfortable.

But being an ally of America would be fatally dangerous.

If you look closely at the list of countries that, when the U.S. economy was in decline, reaped the benefits from foreign trade to make up for their own cycles, you will understand what is going on.

From Cao County, to Annan, to the six West Asian crises, the Hansmark crisis, the Plaza Accord, the big cat practicing the Heavenly Demon Disintegration Method, to the 93 pounds, and the 98 Southeast Asian economic crisis.

After the collapse of the NASDAQ in 00, it immediately used the Gemini Stars as an excuse to send troops to the crossroads of Central Asia. Before it had recovered its full health, it immediately took out laundry detergent to divert conflicts.

After the 08 financial crisis, they immediately provoked the European debt crisis in an attempt to reap the European economy. Unexpectedly, Hans Cat and Gaul stood up decisively and confronted each other, leaving American capital helpless.

It was not until he turned the table over at Ermao's house and successfully used the North Atlantic Public Agreement to force European countries to join the group that he was able to barely get through the current difficulties. Everyone knows what happened next. He wanted to blow up the internal economy of Dongda, and he made moves on 15/16 stocks, buildings, bonds, and foreign exchange. Dongda could not bear the pressure, but he never gave up his efforts.

Coupled with the special existence of the offshore exchange rate, it is like biting a hedgehog for American capital, with no way to start, and the only way is to learn and raise prices to reduce inventory.

(Behind this is the policy of tightening money supply and strictly prohibiting money from flowing into a certain industry, which suddenly turned into a flood of money, delaying the completion of the last step of industrial upgrading.)
The profit-seeking nature of capital is destined to remain unchanged. Once they see that the prices of core assets are skyrocketing after being sold halfway up the mountain, American capital and the buying group will regret it. The huge short-term profits force them to come back and take over again.

This time it was the Federal Reserve's turn to be stunned. Its plan to raise interest rates wildly within six months, attract global capital to flow back and take the opportunity to help its rivals across the ocean recover has completely failed.

Wall Street was in a dilemma and felt extremely upset because the whole world knew how heavy a price they paid to deal with Europe, which was almost equally powerful.

They were counting on making back their money from the University of International Business and Economics, but they never expected that the University of International Business and Economics would do the opposite. Seeing that further interest rate hikes would instead explode itself, the Fed decisively stopped and then continued to flood the market with money.

And then nothing happened. Dongda filled the last gap in industrial upgrading and since then it has soared to new heights, leaving all its competitors far behind.

At this time Ou Meng also woke up from his dream. When he saw that the situation was not right, he immediately joined forces with America. Unfortunately, even with the combined power of the entire world, they were unable to suppress the dragon and regain the crown they had lost.

They were able to win in the original time and space. Now with the emergence of the Qingyun system, they can rationally use the abundant scarce resources in their hands, conduct extensive resource exchanges, and start the road to overseas expansion ahead of schedule.

Relying on mobile Internet and online finance, it has laid a solid foundation in Southeast Asia, seduced most of the mainstream domestic groups, and actively participated in the overseas strategy.

The upper echelons took advantage of this opportunity to use it as a breakthrough point to continuously recover the special rights and interests that they had been forced to give up due to temporary compromise. This is particularly important because various groups have lost their special rights and interests at home.

If they want to continue to maintain their superior presence, they must move outward unwaveringly to compete for the huge incremental market and also give the domestic existing market a chance to breathe.

In this process, countless policies that benefit more ordinary people have been continuously introduced, such as the policy of paying annual usage fees for second homes or homes exceeding the area.

It will put an emergency brake on an industry that is experiencing disorderly skyrocketing prices, when prices return to the level where an average person's 8-12 years income (without food or drink) can pay the full amount (excluding all first-tier and quasi-first-tier cities).

The weight of the mountain pressing on the shoulders of ordinary people has suddenly decreased, which has brought new benefits, freeing up necessary space for the domestic consumer market and ushering in a new round of explosive growth in consumption capacity.

As for enterprises in certain industries, the top leaders have established stricter supervision and enforcement cages, and the previous unscrupulous channels for monetizing resources have been completely blocked.

Not only is the area of ​​public areas completely prohibited by law, but even the speculative nature of goods that can be sold in advance before they are completed has been cancelled.

This fundamentally blocks the possibility of companies making money out of nothing and cuts off the source of funds for the hot market. Financial institutions will see the previous method of using one dollar to leverage ten thousand dollars.

After losing the possibility of quick cashing out and having the risks infinitely magnified, people gradually withdraw from the chaotic circle of a certain industry. When the tide recedes, only a mess is left, but it is still no less tragic than the original time and space.

The current mess, which is worth tens of billions at most, can be easily solved.

Of course, because the Difang Group has not completely given up on a certain industry, although in the past one dollar could win hundreds of millions (it relied entirely on the financial industry chain, without the need for capital, only connections).

But it is still profitable now. It is nothing more than spending a few hundred million and making a few hundred million in one or two years. This is also the main reason why Qingyun Real Estate supports the expropriation and actively promotes changes.

Its standardized development not only maintains the long-term vitality of the industry, but also ensures that the financial institutions that provide funds behind it will no longer suffer from risks beyond their scope.

There are more benefits for individuals. Low prices are conducive to maintaining hard work and having hope for life. Also, as the overall entry threshold of the industry is raised, a large number of speculators with no strength will be eliminated.

The mature market is becoming more rational and starting to move towards formalization, with additional tax costs for second homes and homes exceeding the area standards. At the same time, many individual consumer speculators are eliminated, freeing housing from the additional special commodity attributes.

Financial institutions were the first to notice this change in the wind direction and began to introduce relevant supporting policies to stimulate the market. Minsheng Financial Holdings even broke the record by introducing:

Regarding the policy of changing the commercial housing from a credit model to a mortgage model, starting from June 2012, 6, purchase loans can be processed at financial institutions under the People's Government.

Business with a term of 3-5 years and a down payment of more than 5%-15% will be guaranteed by the financial institutions of the People's Government. That is, once an actual default occurs, if the buyer defaults for 6 consecutive periods or n times in total, it will be deemed to have waived the right of priority disposal of the house.

The Minsheng Department can use legal means to directly confiscate the mortgaged property at the latest appraisal price or the purchase price, taking a compromise value, and deduct it within the scope of not exceeding the residual value of the contract.

The excess will be refunded, but no more compensation will be required (the collateral will be handled by Qingyun Great Eastern Insurance, which requires customers to pay an additional premium every year to open up new sources of income.

Its most critical exemption clause is the law corresponding to a certain industry. Once a large-scale revision is made at the national level, Qingyun Great Eastern Insurance and the bank have the right to cancel it unilaterally without liability.)
In other words, no matter how much the down payment is, if the loan is 50, the interest is 30, and the real value of the house is 100 million, then the Minsheng Department will deduct all handling fees and liquidated damages, and can still refund the consumer tens of thousands of yuan, and both parties will be clear.

The principal and interest are 80 yuan, the appraisal value when purchased is 100 million yuan, and the latest appraisal value after the default is 70 yuan. It is normal for the stock to rise and fall. The Minsheng Department should consider itself unlucky, and consumers do not need to pay any more money.

By taking possession of the house according to the contract, the consumer no longer has to bear any responsibility and both parties are clear.

This clause is only implemented in prefecture-level cities and areas above the urban area recognized by the People's Livelihood Department. In principle, county towns and villages do not enjoy it. This avoids the sinking of the market of a certain industry that is booming from the source.

This move stunned other financial institutions, which wanted to learn but could not, because the Minsheng Department had no intention of getting involved in a certain industry on a large scale. Most of the time, it just lent some money to Qingyun Real Estate.

Moreover, the signing threshold is very high. Not only is the interest rate 20-50% higher than other financial institutions, but it also requires the purchase of Qingyun Great Eastern Insurance to provide a bottom-line guarantee service.

If the loan is really for five to fifteen years, the additional interest and premiums will far exceed the possible decline in the value of the house, according to research by a large number of experts, scholars and internal economic analysts.

As long as the above remains unchanged, the Difang Group will lose the support of financial institutions, and although prices in first- and second-tier cities and prefecture-level cities will no longer surge, they will continue to rise slowly at a rate of more than 5% each year.

As the economy and society continue to move forward, consumers have money in their hands.

It is bound to demand a better life, which means living in a house with a larger area and better surrounding environment, and buying a better car. This is the consumption upgrade that Ali has always dreamed of, and it is also an improvement-type consumption demand.

It is also destined that Taotao, Pinxixi and JD.com will coexist for a long time in the e-commerce retail field and fight each other, and no one can win easily.

For the upper class, the more people there are in the stable middle-income group, the more solid the structure will be, the larger the scale of tax payments will be, and the more funds will be available for public spending, thus forming a virtuous development model with a positive cycle.

This is beneficial to everyone!
Only the American capital that wanted to reap the benefits was completely dumbfounded.

Even though its main forces are still trapped in Europe, it can't wait to jump out and put crazy pressure on the University of Tokyo, and even mobilize all internal bans in an attempt to curb this major trend.

Otherwise, who will be harvested in the future?

Feeling tremendous pressure, the University of Tokyo began to massively support Ou Meng. Allowing American capital to dismember Ou Meng's industrial manufacturing strength was one thing, but Ou Meng was suppressed too badly and its strength was greatly weakened.

It is also not in the interests of Tokyo University. After all, once Ou Meng starts to lie down and play badly, all the pressure will be transferred to Tokyo University.

After intense internal discussions, everyone reached a consensus that the pound would never be allowed to fall below 140-150, with 140 being the bottom line.

As a pioneer in going overseas, Qingyun was required to hold on to the 150 point level for at least half a month, because the delegation of the University of Tokyo had arrived in London.

I am discussing with the masters of Downing Street how to make RMB the mainstream currency in the areas surrounding the Western Pacific and Indian Ocean.

In Europe, the University of East China also sent a team to lobby. As long as the Eurozone agrees to support RMB, support from the University of East China will be in place immediately. (End of this chapter)