Chapter 110: Cause and Effect

The earth is big, but the global village is small.

The high-speed transmission of the Internet has connected the whole world as if it were a vein.

It is precisely the operation of the financial market and the economy that is interdependent and mutually influential.

The British did not borrow money from the French at this time, in addition to the fact that the relationship between Britain and France has not been very good, there is another very important reason, the French do not dare to lend money to the British.

Because the price of the pound is calculated according to the comparison of a basket of currencies, the purchase of the pound is paid for foreign exchange, including the German mark, the French franc, the US dollar and other currencies, but with Finland buying the Finnish mark, Italy buying the lira, Spain buying the peseta, the foreign currency that was originally used as the reserve of each country is all circulated in the market.

It created an unprecedented seesaw effect, where would France dare to lend money to Britain again.

If they dare to borrow money, the franc is at risk of depreciation due to the surge in liquidity in the market.

Hong Kong is now facing similar problems.

Although the Hong Kong dollar is the token of the US dollar, shorting the Hong Kong dollar is equivalent to shorting the US dollar, but this prerequisite is based on the condition of the issuance and payment of the equivalent US dollar in the Hong Kong dollar, and now the State Administration of Foreign Exchange is buying the British pound in the Asian market, which has reduced the foreign exchange reserves of the Hong Kong government and caused the expansion of the scale of Hong Kong dollar circulation.

And, especially, even.

After all, the Hong Kong dollar is not a sovereign credibility, and the value of the Hong Kong dollar is completely measured by the dollar standard, and the depreciation is simply a matter of course if it loses a large number of dollars.

Shen Jiannan turned around and looked at Yu Zheng with a dignified face, with a hint of strangeness in his eyes.

When he pulled Yu Zheng to the company from school, he was actually not optimistic about Yu Zheng, this guy studied in his third year of high school for six years, and he graduated from college at the age of almost thirty.

But in the past year or so, Yu Zheng's progress has been incredible, and many things can be seen directly to the essence.

Even the old folks at the University of London, Harvard University, or Stanford Graduate School of Business, who have been immersed in the economic field for many years, may not be able to figure out what the economic crisis in Europe has to do with Hong Kong in Asia.

But now...... Still a little too tender.

Feeling out a cigarette and lighting it, Shen Jiannan tilted his legs on the table and put on a posture of being a teacher. Yu Zheng looked at Hanhan, but he was not naΓ―ve at all, Ma Yu picked up the ashtray and came over, smiling, ready to listen to the teachings.

"The formation of a short position in the Hong Kong dollar is inevitable. ”

"Capital is chasing profits, think about it, with the current environment in Europe, where will capital retreat?"

"It's like the TV show right now, and I bet a lot of them are ready to move their assets to other locations. ”

β€œ......”

A hint of realization flashed in Yu Zheng's eyes.

Capital is profit-seeking, as in Finland, Italy, and Spain, and if it weren't for the massive outflow of capital, let alone the first capital, even a hundred first capitals would not have been able to collapse the currencies of these countries.

But this capital only flows out and does not evaporate out of thin air, leaving Europe, it is necessary to choose other carriers.

From the perspective of the whole world, there are not many carriers that these capital outflows want to choose.

The stability of profits requires the stability of the political landscape, the African continent is constantly in war, the lazy and aggressive nature of blacks can be ruled out, the entire European economy is in turmoil, and the crisis can be seen and eliminated by anyone, then only the American market and the Asian market are suitable carriers.

However, the current market is in a downward trend, and the Ministry of Finance's comprehensive restrictions on real estate have almost locked up the space in the securities market and the real estate market, so the choice of capital in the Asian market is too limited.

"What, you feel uncomfortable?"

Hell if you're comfortable.

How Hong Kong's economy developed, Yu Zheng still does not understand, completely relying on the unlimited potential of the mainland market to control the port to make money, but now, the British are not taking it to buy the pound sterling, which is simply naked destruction.

The British didn't know that this would put Hong Kong's economy in a big crisis?

Definitely know.

Still don't know that if the Hong Kong dollar is attacked, Hong Kong's financial and economic collapse will even collapse?

How could it not be known.

But those bastards don't care about that.

Facing Shen Jiannan's ridicule, Yu Zheng nodded with a disgruntled face, in front of this teacher, he had nothing to hide.

"You have to endure the discomfort. You're British, and you're doing that. ”

"I'm disgusted that they talk about human rights, democracy and freedom, but they do a lot of things. Teacher, you said that we put the news out and then take the opportunity to establish a position, can we pit the British. If they continue to play like this, Hong Kong will have to be played out sooner or later, so it is better for us to make a profit, and let Hong Kong people see their faces. ”

"Do you have proof?"

"There's no news from Hong Kong. ”

"Invisible means cannot be used as evidence. We have no way of proving how much money the State Administration of Foreign Exchange has invested in the market, so we can only smash our teeth and swallow it in our stomachs. ”

"Moreover, although the British have touched the foundation of the Hong Kong dollar, as long as they do it well, the risk of the Hong Kong dollar can be suppressed for a few more years. ”

β€œ......”

Suddenly, Yu Zheng understood what Shen Jiannan meant.

According to the summary of the intelligence services, during this period, the inflow of capital into the Asian market was mainly concentrated in five regions, except for Thailand, Malaysia, the Philippines and Indonesia, and Hong Kong was the largest place for capital inflows.

Just like the human body, there is a huge amount of capital liquidity, and all acne diseases will not break out at all for a while and a half, and the huge liquidity can completely cover up the loss of the Hong Kong government on the pound.

"Doesn't that mean we're helping the British now?"

β€œ......”

Shen Jiannan was almost choked to death by Yu Zheng's guy, if it was in the original trajectory, this matter had nothing to do with him, but looking at it now, this is not the truth.

First Capital cooperated with the United States to expel European capital from Europe, and these capital were forced to flow into Southeast Asia and Hong Kong, which perfectly changed the consumption of foreign exchange by the Hong Kong Foreign Exchange Administration.

Nima ...... It's called something.

Shen Jiannan was completely defeated by his own logic, and in a fit of anger, he kicked him in the right leg.

"You're talking a lot. Go and tell William to let him continue to fill the air for Lao Tzu, and if he doesn't break the Bank of England before nine o'clock, he won't eat. ”

"Hey......