Chapter 249: Mexico's Fiscal Crisis on the Brink

Why is it so expensive to buy news from a consulting firm?

Because their noses are better than the paparazzi, they expand their intelligence sources to the government, the military, customs, and the Ministry of Communications, and all parties need to spend money to make points, if they want to buy it, they can even get what Han Xuan has eaten at noon, and the high-level tacit understanding is not to touch them, and one day they will use it themselves, which has become an unspoken rule in the business and political circles.

Anthony brought information that Dario of Bridgewater-Associates, Cohen of the Point72-Asset-Management hedge fund, and even George Soros, who successfully sniped the British pound in 1992 and became famous in one fell swoop, the manager of the quantum fund, also made a high-profile vacation to Mexico City, the capital of Mexico.

For fear that others would not know, he swaggered with a group of people at JFK Airport, in the name of being optimistic about the Mexican economy and wanting to invest.

In the London incident in 91, the financial predator Soros used $10 billion to attack the pound, which triggered international funds to follow suit, and finally led to the depreciation of the pound by 7%-12%, and Soros made a profit of about $1 billion through short selling and short buying.

Mexico, which has not concealed its whereabouts, perhaps because its fiscal deficit is higher than its foreign exchange reserves, has become their meal, and a pack of wolves can besiege them to turn the steamed buns on their plates into meat.

As long as you use your brain, you can find out that something is wrong, and he is obviously asking people to follow up and make a big cake together.

"Looking for a helper......"

Han Xuan muttered after watching the strange fluctuations in Mexico's economic data.

According to the statement released by the Mexican Ministry of Finance, in the first three quarters of this year, the deficit in economic projects reached 21 billion US dollars, and the total deficit is expected to exceed 28 billion this year, and the net inflow of international hot money assets exceeded 30 billion last year, and the entire Mexican economy is based on these funds.

The Mexican government pegged short-term bonds to the US dollar. Some time ago, a total of 27 billion short-term bonds were issued to stabilize the confidence of foreign investors, and now there are still 1 billion unsubscribed, of which 15.74 billion US dollars are due in the first half of 1995, and the total foreign exchange reserves of the entire Mexico. But it is only more than $8 billion.

Hot money has contributed to the appreciation of Mexico's currency, the peso, and the current-account deficit should not exceed the 3% of GDP limit for a long time, and Mexico's current account deficit now stands at $29 billion, equivalent to 8% of GDP.

The average annual growth rate of GDP in 1980-1989 was only 0.7 per cent, per capita GDP was below the population growth rate, and inflation continued to rise, reaching a record rate of 159.2 per cent in 1987.

The heavy burden of foreign debt payments and the flight of domestic funds have exacerbated the drying up of investment funds, business closures and unemployment, and the gradual change in Mexico's closed inward-looking development model. The degree of opening up to the outside world has been increasing.

Even Han Xuan, a beginner in finance, could see that the economic crisis in Mexico was breaking out, and it was impossible for the local government not to know about it, so they decided to push for currency devaluation

In Han Xuan's view, this is no different from looking for death, most of the short-term bonds are in the hands of these funds, and once the depreciation of the Xuan currency will definitely trigger a large-scale sell-off.

The Mexican government's inability to convert such a large number of short-term bonds will inevitably trigger a crisis of confidence in the government and exacerbate foreign capital flight.

The bottom of the tour capital is withdrawn. Can the weak industrial system built on it still be stable?

Of course not!

Foreign capital invested in the stock market suffers losses due to the depreciation of the peso. This causes the stock market to fall.

The decline in the stock market, in turn, will exacerbate the depreciation of Mexico's currency, exacerbating the crisis.

When the time comes, it doesn't matter how much the government says about the depreciation, and those funds can call the shots.

This is a naked conspiracy.

Last month, Mexico applied to the U.S. government for a $20 billion long-term low-interest loan, and President Clinton agreed to it, but it was rejected after two congressional discussions, and the Federal Reserve has just raised interest rates to attract international investors. Who will send money out again, on the grounds that the Mexican economy is in good shape.

Han Xuan always felt that there was a smell of conspiracy inside.

There are extremely powerful forces hidden in the financial world, and the game behind the financial shady scenes really determines the financial operation in our real world.

The Soviet economy collapsed, and how much money the United States earned from it has always been a mystery. But it is certainly not the $28 trillion rumored on the Internet in later generations, and in Han Xuan's view, that article is a complete lie.

During the Gulf War in 91, the price of gold actually rose, and shorting 2,000 tons of gold led to a crash, which was naturally fabricated out of thin air.

The London incident Soros led more than 28 billion to depreciate the pound by 7% to 12%, at that time the British government had $26 billion in reserves, and it was conceivable that it would take a lot of money to plunder the 28 trillion wealth of the Soviet Union.

Money does not exist as a physical currency, and reverse extrapolation concludes that most of it has evaporated with empty promises issued by the Soviet Union.

However, the United States has made a profit of at least $5 trillion, and this money has been secretly invested in infrastructure, military research and development, social welfare and other projects, which has promoted the United States to usher in a period of high growth for more than a decade.

It is not difficult to see that the economic crises of the past few years have revolved around countries with close ties to the United States.

Japan in '90, Britain in '92, and Mexico on the horizon? They are all too deeply involved with the dollar, saying that there is no shadow of the United States, and Han Xuan's death is not believed.

It is calculated that the next assets to be used are around $1.5 billion, and the remaining billion was intended to be invested in the US stock market, and now it seems that there are better opportunities for speculation.

The Mexican currency peso has risen too much, and the stock market has also risen too much, so much that Han Xuan feels at ease.

One-way shorting has always been a very risky thing, and after the economic crisis in China, the news reviews the previous economic crisis events, and indeed mentions the Mexican gold crisis.

Coupled with detailed data analysis, every financial data analyst is a good mathematician, and at the end of Anthony's table, the probability of a financial crisis is clearly marked in red pen as 75%.

Triple insurance made Han Xuan think that it was necessary to go in and insert a kick, eggs can't be put in the same basket, although there are many profits from placing heavy bets, it will inevitably cause the old man to worry, too radical is not a good habit.

"Mr. Anthony, take 700 million from East West Bank, follow behind those funds, don't do anything about smashing the market, no one will pay attention to our small company.

If you ask about the movements of the Mexican Congress, as long as they decide to adopt a floating exchange rate and depreciate the peso, they will all be shorted, and I will look low on the peso. ”

Han Xuan's fingers tapped on the table.

The voices could only be heard by him and Anthony, Harris went to buy sandwiches and eat them, and no one knew that a plan of hundreds of millions of dollars was going on in this small café.

Anthony frowned, he was going to persuade him to take out $100 million, expecting that he could make $70 million to $150 million from tenfold futures short selling, but now he was timid, "So much?"

"Well, the peso exchange rate is set to sell and close positions at 5% floating on the upside, and buy to close positions at 35% on the downside. ”

"Do you think the peso can go down by 35%?!"

"Maybe it's not all, you're underestimating the ambitions of those guys.

My grandfather didn't need to know about it, Mr. Anthony, and I think you know what I mean" (To be continued.) )