nashuaworldcup Chapter 144 Borrowing money from Eagle Country Bank to short the pound
Chapter 144 Borrowing money from Eagle Country Bank to short the pound
Thoros also noticed the changes coming from the west.
His first thought was to go long the German currency mark.
Because once the Berlin Wall falls and the two Germanys merge, the impoverished GDR will inevitably increase official financial expenditures.
Germany, which is already in a deep economic recession, will have a huge fiscal deficit.
The government has no money, so the quickest solution is to start printing money like crazy.
Printing money will cause a chain reaction, the most direct one is to increase inflation.
The German government wants to solve inflation, and the fastest way to combat inflation is to raise interest rates.
The so-called interest rate increase refers to increases in borrowing interest and deposit interest.
Take the overprinted money back to the bank.
Lao Suo realized that this was an opportunity to make quick money. Raising interest rates would cause hot money from all over the world to flow into Germany, and the mark would definitely appreciate significantly.
With this in mind, he mobilized nearly 20 billion U.S. dollars to buy the mark within a few days.
He made a lot of money from short selling on Sakurajima. Although his heart was inflated, he still maintained a trace of caution and did not make a desperate move.
But what surprised him was that the mark appreciated by 30% in two months!
This appreciation rate has far exceeded his expectations.
Is someone also eyeing Mark?
Moreover, the other party is consciously buying Mark on a large scale, otherwise the Mark would not have risen so sharply.
A figure suddenly appeared in his mind - Cayman Capital!
Sure enough, the man who is known as the King of Shorts actually thought of me again.
Soros was hesitant, should she follow Stud or not?
If it were sold now, it would have earned nearly US$7 million in revenue.
After thinking about it, Soros decided to explore Robert's voice first.
"Boss, Cayman Capital is also eyeing Mark?"
"You old boy must have bought a lot of marks too."
Both of them couldn't help but smile knowingly.
Soros began his own test: "Boss, if you are so big, aren't you afraid that the German President will not continue to raise interest rates due to pressure from other countries and start to cut interest rates?"
Because the currencies of many Western countries are bound to the mark (the predecessor of the Euro system), Germany's monetary policy to combat inflation will further exacerbate the economic recession of other countries and make it difficult for other countries to get off the ground.
At this time, in order to resist the economic recession, Western countries are implementing interest rate reduction policies to encourage consumption.
If Germany is not strong enough and is forced to cut interest rates, then Cayman Capital’s huge investment will definitely be in vain.
"Lao Suo, our actuaries are professional, and the Mark has great liquidity. Even if Germany is forced to cut interest rates under pressure, we can close our positions at any time!"
Robert emphasized again:
"My maximum loss is about 0.5%, but if I make a profit, I can get more than double the profit."
Lao Suo, who was already a bit arrogant, was shocked because he couldn't figure out how Cayman Capital could more than double its profits.
He even felt that Robert was lying and deliberately irritating him.
No one can make more money than they know.
A veteran of finance like Lao Suo is no exception.
"Boss, you don't trust me?"
"Why do I need you to believe? It has nothing to do with me whether you increase your position or not. You can see for yourself."
After saying that, Robert simply hung up the phone.
"Hmph, I want to see how you can make more than double the profit." Soros cursed but decided to stay put and wait and see how the situation develops.
Robert really didn't have any excuses. He followed Wang Lei's prompts and used the national debt of the United States as collateral early to borrow a large amount of pounds.
At this time, the Eagle Country's economy was in recession, and in order to stimulate consumption, loan interest rates were very low.
He sold all the borrowed pounds and bought marks instead.
I plan to go short the British pound and go high on the Mark at the same time.
Wang Lei and Robert are betting that the pound will collapse and the mark will rise sharply!
After the pound depreciated significantly, the sharply increased mark was exchanged for the pound that had depreciated significantly.
Then use part of the pounds to exchange for the national debt of the United States, and use the remaining pounds to buy the core industries that the Eagle Country begins to sell off!
This time, the profit will be doubled.
A series of tricks were unknown to Lao Suo, so he naturally regarded doubling profits as a fantasy.
Even Eagle Country officials did not realize that the pounds lent to Cayman Capital would be used backhand to short the pound.
Of course, the premise of all this is that Germany will firmly implement the strategy of raising interest rates and will not be affected by its allies.
For this reason, Wang Lei came to Germany without stopping after Lindgren joined the economic reform team.
Sitting in a luxurious private jet, Lindgren sat restrainedly in the corner of the sofa.
He resisted from the bottom of his heart to join Wang Lei's reform group.
It was his wife Maria who convinced him that for the benefit of the company, he could only let this eccentric consultant be at his disposal at any time.
Yes, in Lindgren's eyes, Wang Lei is a guy with a weird temper.
She always said some incomprehensible things to him, and sometimes smiled weirdly at him.
"Sir, what are we going to do in Germany? The Democratic Republic of Germany has already broken away from the wings of the goose. We are trying to make up for it by going there."
Lindgren's words are very reasonable. The Democratic Republic of Germany took advantage of the internal chaos in the big goose to tear down the Berlin Wall and join the Federal Republic of Germany. The merger of the two parties has become an irreversible reality.
"Lindgren, I smell a conspiracy. I forgot to introduce another identity to you. I was the president of Sakurajima Anti-Short Selling Association."
Lindgren was stunned: "Do you think someone is going to take the opportunity to short the newly merged Germany?"
"It's hard to say now, we have to get to Germany quickly."
Wang Lei's determined expression moved Lindgren's face.
The back of his new boss suddenly looked much taller in his eyes.
Thinking that he could also participate in this reversal, his heart became hot.
And Wang Lei couldn't help but think of the previous meeting with Robert.
"Boss, you really have to take that guy Lindgren with you. You have never seen how much trouble that guy can do."
Thinking of this, Robert couldn't help but chuckle to himself. Lindgren almost did something bad out of kindness. Afterwards, Wang Lei complained harshly in front of him.
"Well, I dare to use him, so of course I don't have to worry about this."
In order to make good use of Lindgren's genius, Wang Lei even wrote a one-page "Instruction Manual for Gangling Lindgren". He thought that bringing Lindgren with him might have a miraculous effect.
There is a more critical point. Lindgren is a German and has a close relationship with Schlesinger, the current president of Germany.
It's just that there is a bad relationship between the two of them.
He was looking forward to Schlesinger's reaction when he saw Lindgren.