Winner Takes It All, Resurrection 2009

"Look, those people on Wall Street have made new demands, as if the world would stop autobiography without them."

Acting British Chancellor of the Exchequer Osborne threw the documents aside and continued to enjoy his afternoon tea leisurely. This was his habit. Even if the sky fell, he had to maintain the traditional aristocratic elegance.

It’s a pity that now, dragged down by the high fiscal deficit, the domestic economy is like a rotten house with leaks everywhere that needs to be repaired, and even the quality of afternoon tea has been reduced.

Philip, the chief financial secretary next to him, was not as relaxed as him and frowned and said, "Perhaps we should listen carefully to the correct voice from Wall Street.

Although it is not so pleasant sometimes, it is the best choice at present. Hans and the Gauls just want to make the empire lose its last penny. "

George Osborne looked at him sideways, his face neither sad nor happy, "So, Philip, do you have any good suggestions?"

Philip pointed outside the door and said, "Mr. Prince, the chief investment officer of Bridgewater, came with the common friendship between Goldman Sachs and Bridgewater and has been waiting outside the door for more than two hours.

Perhaps listening to his professional opinion can help you find the final answer to solve the problem. Believe me, he is very worthy of your precious time to meet with him.

Maybe in five minutes we can end this damn dispute.”

Seeing that the Chancellor seemed to be still hesitating, Philip said without hesitation: "George, there is no need to hesitate. In just two days, as much as 150 billion pounds of market-crashing funds have emerged in the market.

The US dollar assets held by Barclays are about to be exhausted. Mr. Charles asked me to tell you that there is no second Li to fill the gap.

If the situation does not improve tomorrow, Barclays Bank will be forced to publicly announce this cruel fact with regret. We have done our best.

Because it takes enough dollars to defend the pound, and the institutions that produce a steady stream of dollars are frantically shorting us. Continuing to fight against them will inevitably be a complete disaster. "

George Osborne could not deny that he was certain that his chief secretary was secretly holding investments shorting the pound, as evidenced by his active exaggeration of the extent of the crisis.

However, he did not point it out, because the chief secretary was not his personal assistant. Strictly speaking, the other party was the shadow chancellor of the core department of finance.

He is just a temporary manager passing by, and he may have to move to another position someday. During his term of office, he, as the Minister of Finance, also needs the cooperation of others to achieve results.

He didn't want to tear his face apart unless it was necessary, so he smiled perfunctorily and said, "Maybe I can call that Zhou and ask his boss to pack a few more Lis from Hong Kong and send them over."

Poor Li Bancheng, carrying hundreds of billions of dollars in cash and dollar equivalents, hurried to London to seek asylum, but before he could even sit down, he was targeted by a large group of people.

Fortunately, Dai Ying still had a role to play, so he was not completely divided up. However, his end was not much better. All the US dollar assets he held were used to fill the gap in this exchange rate war.

Once the pound can no longer maintain its current exchange rate, Li Bancheng's remaining assets will also shrink significantly. Fortunately, he is doing this "voluntarily" and no one forces him to do so.

Whether outsiders believe it or not, George Osborne believed it anyway. After saying this, he planned to find an excuse to send the person away.

After all, at this critical moment, he had to wait for the real master of Downing Street to speak before he could proceed with the next plan.

London's financial district is where the final say in this country lies. Once it goes against their collective will, one can imagine what will happen to George Osborne.

And now, they are still fighting!

Unfortunately, people outside seemed unable to wait any longer. Even though it was night, American capital still submitted multiple short-term dismantling applications totaling more than 200 billion pounds to British financial institutions through convenient mobile networks and open channels.

Everything was in line with the rules of the game. Commercial banks on behalf of the UK made collateralized loans to financial institutions on behalf of the UK, paid interest on time and repaid the loans when due. George Osborne had no reason to refuse, and could not even delay.

Because American capital controls almost all channels of public opinion, once no valid reasons can be provided, overwhelming accusations will come upon us instantly, and no one can bear the serious consequences of disrupting economic development.

He knew that this was an ultimatum from the other party. If he did not compromise, American capital would use the numerous commercial bank channels in the UK to continue borrowing massive amounts of pounds.

Then they will spare no expense to openly dump the market until the last of Britain's dollar reserves are exhausted. At that time, the pound, having lost all its chips, will be like meat on the chopping board.

Let others slaughter you.

At this moment, he was extremely envious of the offshore exchange rate market system of the University of Tokyo. If he wanted to borrow, he could. As long as he had sufficient collateral and sufficient commercial investment projects, he would be given as much as he wanted.

The problem can only be solved internally. If you want to use the onshore RMB to drive down the exchange rate in the offshore market, you are dreaming!

But the pound sterling has no firewall protection, and within the UK, there are a large number of multinational companies headquartered in the United States that can borrow a lot of pounds by finding any reason.

Even if it is impossible to borrow on behalf of financial institutions in the UK, Oumeng has a lot of pounds. There is no strict review and access system among Oumeng members, so effective prevention is just empty talk.

It’s okay to fool laymen who know nothing.

George Osborne had a bitter mouth. He knew that the people behind him would not be able to hold on for much longer and failure seemed to be imminent.

“Damn it, why can’t they just agree to those Dongda people quickly? They have plenty of money, so they can just sell some outdated technology and equipment, even if Dongda gets it.

Can they still cross the entire Eurasian continent and pose a threat to Britain?
The damn Hans and the Gauls can only comfort each other with words. Once they see that the US capital is serious, they run away faster than anyone else. Until now, they still refuse to agree to use euros to guarantee the exchange of RMB for pounds.

It seems that the bigwigs in London's financial street are getting restless. "

Sure enough, the office phone rang urgently soon...

As the call ended, George Osborne's face turned pale, but Philip couldn't stop smiling. He even took the initiative to invite Prince of Bridgewater Fund in without Osborne's permission.

The latter seemed to have anticipated this moment, and confidently extended his hand, "Good evening, George, Mr. Dalio (founder of Bridgewater) asked me to say hello to you."

George Osborne looked up at the face that deserved a beating and said unhappily: "Bob, the war is not over yet, don't rush to open the champagne at halftime."

"Didn't it end early?"

Prince laughed and said, "More than 150 American companies have come forward collectively to supply pounds without limit. I can't think of any other means you can use to reverse the situation.

Do you expect the Dongda people who are visiting everywhere like a headless fly in London's financial street?

Or is it Hans, the Gaul, hiding in the corner, ready to stab Dai Ying in the back at any time?
Believe me, their threat is so minor that Wall Street can easily solve all the problems by just snapping its fingers."

Prince is indeed qualified to be arrogant, because after months of planning and exchange of interests, American capital has successfully lobbied and unified major internal groups in order to maintain the world ba of the US dollar.

Everyone showed unprecedented unity and worked towards the common goal of defeating Dai Ying, which was almost impossible to achieve in the past.

Because Daiying is not just any random person on the street, it is also one of the five permanent members of the UN Security Council, and its economic scale ranks among the top ten in the world. Many American Internet high-tech and energy financial groups have saved a lot of costs by using Daiying as a springboard to enter Europe.

Under normal circumstances, these large groups curry favor with the British in order to gain more benefits, provide enough jobs and taxes as required by the British, and there is no time to do so (with corresponding excess returns).

How dare they collectively short the pound and take the huge risk of angering Britain and facing fatal retaliation afterwards?
Unfortunately, there is no way. Wall Street has given too much, and there are rumors from Washington that the two houses have reached an agreement that they will do everything they can to force Dai Ying to break away from Ou Meng in the coming period.

This time, all the multinational groups with huge interests in Britain have been completely controlled.

Because of the special relationship between Britain and the United States, when American capital enters the European market, it often first establishes its European headquarters in Britain, taking advantage of the preferential terms between members of the European Alliance and taking huge profits.

If Dai Ying chooses to leave the EU, even if it is just a simple test, it will mean that huge risks will arise, because Ou Meng will definitely offer generous conditions to seduce Dai Ying in order to retain her.

Whether Dai Ying really intends to withdraw or is using this as a bargaining chip in negotiations, he will definitely have to respond with a bargaining chip that Ou Meng is interested in. Given Dai Ying's character of only taking advantage and not suffering losses, when the US capital uses Dai Ying's Ou Meng vests to take advantage of them crazily, it is bound to be put on the trading platform, and Ou Meng's offer will exceed the benefits brought by the US capital.

Dai Ying will soon agree reluctantly, and will have to sell off all the American companies, and what awaits them will surely be sky-high tax bills and fines!

Once the UK successfully leaves the EU, the special benefits of American multinational companies will disappear, and no matter what choice they make, they will no longer have a future. Therefore, American companies that are still hesitating will collectively choose to turn against it after confirming that the news is accurate.

Even while borrowing pounds, some large groups with backup plans were already planning to move their European headquarters from the UK to the more cost-effective Ireland.

Because the latter promised to provide a ten-year overall tax relief package to every multinational group that moved its headquarters there.

Since they are destined not to stay in the UK in the future, these companies are naturally not afraid of offending Downing Street again. The worst that can happen is that they will just argue endlessly and engage in a war of words from a distance.

Before leaving, you can also short the British pound through borrowing and earn a large amount of excess exchange rate profits. Why not do it?

So Bob Prince had enough confidence to show off his power. In his opinion, the acting British Chancellor of the Exchequer had no room for resistance, and the sooner he compromised, the less loss he would suffer.

The threats from Hans, Gaul and Dongda are not worth mentioning. These economies, each with different interests, want their allies to take the lead in resisting the pressure from American capital, and no one dares to take the initiative to cross the line.

Just when he was feeling smug and satisfied, expecting the other party to say the destined answer he wanted to hear, the phone on the Chancellor's desk rang again.

George Osborne was about to open his mouth to say something compromising, but he instantly took it back.

Even if it was just for a short phone call, he wanted to delay it as a small revenge.

Sure enough, he saw the impatience and a flash of disappointment he most wanted to see on Bob Prince's face, but who cared?

Even the most useless confrontation is enough to make the other party suffer a setback.

He didn't have any expectations for this phone call. After all, if even Dai Ying and Ou Meng couldn't solve the dilemma, who else could?

But the moment he picked up the phone, it was as if a heavenly sound rang in his ears, and his expression instantly underwent a series of wonderful changes.

The look he showed towards Bob Prince also changed from disdain at the beginning, to confusion, to helplessness after reluctant compromise, until finally he looked at him with pity as if he was looking at a clown after answering the phone.

The phone call came from No. 10 Downing Street, and the familiar voice formally informed him that he was authorized to use the agreed special measures to deal with the crisis.
After hanging up the phone, George Osborne seemed to have changed into a different person. He stood up and looked down at the poor man who was still in the dark. He told him with a condescending and disdainful attitude:

"I'm sorry, Bob, but the farce is over. I am authorized to announce to the world in ten minutes that the short-term lending rate between financial institutions will be temporarily raised to over 30%.

If the ambitions of some crazy guys cannot be stopped, then I will be forced to announce that the lending rate will be increased to an unprecedented 100% or even higher.

This policy will remain in place until it can effectively curb overheated speculation in the market and ensure the stability of Britain's financial markets."

Raising the lending rate is a strategy of mutual destruction where one kills one thousand enemies but loses three thousand of one's own at any time, because it means the situation is completely out of control and the short sellers are forced to turn the table.

The blow to currency credit is fatal!
Bob Prince almost went crazy. He said in disbelief: "Are you crazy? This will ruin everything in Daiying."

Chief Secretary Philip also stood up to object, saying: "Mr. Osborne, please face up to your words and deeds. This will put unimaginable pressure on the British economy."

Perhaps out of fear of investment bankruptcy, he spoke in a panic and uttered a lot of unpleasant and difficult to understand local slang.

But no one cared about this, because Bob Prince was trying to force the Chancellor of the Exchequer to retract his decision through intimidation.

“…If the short-term lending rate rises above 30%, then I will have to inform you, on behalf of the American companies that have huge investments in Daiying, that within the next month.

What kind of serious consequences will you face? It includes the loss of at least 5 high-paying jobs with an annual salary of more than 50 pounds, and a tax loss of more than billion pounds per year...

Dai Ying will also be devastated by this, and this year's GDP growth will be forced to show negative growth because of it, and your future will be very bleak.

Because every product from Daiying will receive special care...

Even if you insist on doing so, the powerful Wall Street capital will not back down. We will resolutely defend our legitimate rights and interests. Even 30% or even 100% interest rates cannot stop our determination to achieve our goals!
This very evening, we will throw out a huge amount of pounds that Britain cannot bear until it collapses completely!
I swear, you will regret it. When the sun rises tomorrow, you will crawl at my feet, crying and begging for forgiveness from Wall Street..."

He also cited some examples, such as the international trade settlement system controlled by the United States, which will strictly review every commercial remittance from the UK, and strictly prohibit US capital and friendly businesses from related countries from investing in the UK.

It seems that without the support of America, Dai Ying is destined to have no tomorrow.

But George Osborne, who had obtained a definite promise, was not afraid at all, because the Prime Minister told him clearly on the phone that extraordinary times must use extraordinary measures to buy enough time for their faction.

Even if it means dragging Dai Ying into the abyss, it would not matter, because with Dai Ying's strength, it will not be a problem for him to hold on for a few more years. If he can get the support promised by his allies, he will not be afraid to hold on for ten years.

As for who will be in this position ten years later, who will be responsible?

If they do nothing now and allow American capital to bring the pound down from its pedestal, then the London financial Street, which will suffer serious losses, will use practical actions to tell them what revenge does not last overnight.

This class may not even make it to next week, so what future can we talk about?
Moreover, Cameron received a mysterious phone call from the East, and got a personal promise from a big shot who did not want to reveal his name but was personally guaranteed by the two big bosses of the East's finance department and the central bank.

In fact, even if the other party didn't say it, Cameron knew who the other party was, because at the same time he answered the phone, Zhou Shouyuan, president of Qingyun Europe and America Business Group, was in his office.

So is there any need to think about the identity of the person who brought the phone and made the promise to him?

After verifying the facts of the other party through secret channels, Cameron immediately called Hans Merkel and had a friendly conversation with him, and finally made up his mind...

American capital will certainly not give up. While George Osborne was informing the market through public channels, American companies were resisting the 30% interest rate and frantically selling massive amounts of pounds.

At the same time, Wall Street took advantage of its institutional strongholds in capital markets around the world to launch coordinated market-crashing attacks in the foreign exchange market, and massive amounts of funds poured into the foreign exchange market at one time.

The financial capitals in Daiying, which had received the notice long ago and were on high alert, invested huge amounts of money to set up layers of defense at key nodes such as 152/151/150 and launched a desperate resistance.

Both sides are really angry and neither is willing to back down. American capital bears the 30% interest rate difference and will suffer a huge loss as soon as it borrows the money, even if the cost is balanced by previous investment.

The pound must also be driven below 145 to ensure huge profits.

Dai Ying did not dare to gamble on the appetite of American capital. He only knew that he had to fight to the death and not give up an inch until allies such as Ou Meng, Dongda, Jiaobenji and others came to help.

Otherwise, once the pound collapses, the losses can be infinitely magnified by American capital, and even the entire country may be lost.

Just as the market was in a tense stalemate, Washington, which has long been under the control of capital, also stood up and openly supported American capital. Its stern statement was quickly transmitted to the capital market.

The 150-152 defense line that Daiying Capital had painstakingly built collapsed in an instant, and countless international hot money, individual speculators, and fund investment banks who dreamed of getting rich overnight ended their wait-and-see stance.

Under the influence of the American capital's consistently strong inertial thinking, people followed suit and shorted with their money in hand. When this huge force joined the battlefield, the balance of victory and defeat quickly tilted towards the American capital.

Daiying Capital was beaten so badly that it had no power to fight back. It was instantly defeated and retreated to the 150-point defense line. Moreover, its chips were quickly consumed. It was about to be defeated.
Just as American capital and all short-selling forces were cheering and going crazy for the rapidly increasing profits on the books~
On this ordinary late night in London, an event that will change the trend of the next twenty years and will profoundly affect the world pattern has just begun.

Just when everyone thought that it was only a matter of time before the pound fell, and that even raising the lending rate to 100% would not restore market confidence... (End of this chapter)