Chapter 338: Currency Wars
As one of the weakest chickens in the European monetary system, and as the most dilapidated ship in the "iron chain", Finland's ability to resist risks is indeed weak. Pen | fun | pavilion www. biquge。 info
Without any hesitation, the "financial shark swarm" led by Fund X opened their huge mouths and bit at Finland.
It is not easy to attack Finland, a financial weak, and even before the X Fund and the Quantum Fund are launched, the Finnish Mark is on the edge of the cliff.
Since the Bundesbank announced an interest rate hike in July, a large number of Finns have exchanged Finnish marks for Deutsche marks, so the exchange rate of the Finnish mark against the Deutsche mark has been falling from July to September.
However, the Finnish government and the central bank have not responded effectively in a timely manner, and have only done something to scratch the itch. After all, how can the exchange tide of ordinary people have a large fluctuating effect on a country's exchange rate.
Unfortunately, behind the small tide of foreign exchange among the people, there is a group of "financial sharks" who are waiting for the opportunity to prey.
Attacking the Finnish mark is not too simple, you just need to sell the Finnish mark in large quantities and buy the Deutsche mark. For a time, the exchange rate market, which was originally just a gentle decline, fell off a cliff, and it was only then that the Bank of Finland realized that there was a big problem in the country's foreign exchange market.
In the face of a large reversal of the exchange rate, the Bank of Finland consciously chose to intervene in the market, hoping to save the Finnish mark, which continued to plummet. As a result, in order to maintain the price comparison, the Bank of Finland began to buy Finnish marks in the market continuously, frantically throwing out German marks - and even taking out its own money.
Unfortunately, the Bank of Finland is so weak that it has not even been able to withstand a round of attacks by international speculators. Not long after, the Bank of Finland suddenly found that the Deutsche Mark in his hand was gone, but the Finnish Mark in the market continued to plummet.
As a result, in less than a round, Finland was picked out by international speculators and was the first to lose - on September 8, the Finnish government announced that the Finnish mark and the Deutsche mark would be decoupled and float freely.
Defeated, so completely defeated, for the Finnish government, this sudden "currency war" was indeed too sudden and too violent, and it directly stunned them.
Moreover, in this life, because of the participation of Fund X, the Finnish mark is even more miserable in the international foreign exchange market, and the loss of the Bank of Finland is a hundred times more tragic than in the previous life.
After winning the first battle, Su Chenyu and Jim Rogers ordered Fund X to stop and see how Germany and the rest of the European Monetary System reacted.
After the X fund stopped attacking, the quantum fund also followed suit and stopped its own pace, and when they saw that the two "leading brothers" had stopped, international speculators also stopped to take a break for a while.
Su Chenyu is in the manor in London, and Jim Rogers and George Soros are in the study.
George Soros smoked his cigar and said happily, "Sue, Jim, I think it's time to take the next step." ”
Indeed, Soros has reason to be happy, this "Finnish Mark Battle" has really made him a lot of money, so he can't wait to continue the attack, after all, every wave of attacks can bring a lot of profits.
"George, our attack on Finland this time is so serious that I am afraid that it will provoke a counterattack from Germany and the members of the European Monetary System. After thinking about it for a while, Su Chenyu said with a smile: "After all, the British and French governments seem to have felt the crisis now, and they seem to be putting pressure on the German government to lower interest rates." ”
Although the "Finnish Campaign" was fought beautifully and slaughtered Finland quickly and ruthlessly, it was precisely because of this that Su Chenyu was worried that history would deviate from the track - the German government intervened in advance.
"Su, you are too cautious, even if the German government enters, what can we do, with our current strength, we can definitely defeat them. George Soros said nonchalantly: "Now it's time to attack the lira and the pound." ”
Listening to George Soros's words, Su Chenyu and Jim Rogers both shook their heads, obviously neither of them was optimistic about George Soros's adventure.
So Jim Rogers said to his friend: "George, I also think that it is a bit hasty to attack the pound now, and the strength of the Bundesbank is definitely not something we can compete with." What's more, once the members of the European Monetary System really decide to enter the war, then the only thing we can do is to retreat. ”
"When that happens, once that situation really arises, the X Foundation will retreat decisively, and I will not accompany the Quantum Fund to take this risk. ”
I have to say that Jim Rogers is indeed much more cautious than George Soros, perhaps this is the reason why George Soros was defeated in the future, but Jim Rogers became famous. In the turbulent financial markets, any caution is not wrong, and while it is good to take risks, it may even bring huge gains, but it can also lead to bankruptcy.
Seeing that George Soros's face was not very good, it was obvious that the old Jewish man was very dissatisfied with the caution of the two. However, Su Chenyu felt that it was better to stabilize Soros now, after all, it was better to let the Jewish Wall Street forces represented by this old guy take the lead in the front - absorb all the damage.
So, after thinking about it, Su Chenyu said: "That's it, George, if within three days, as long as the German government does not intervene, the X Fund will launch an attack on the Italian lira." How?"
"Okay. George Soros finally agreed, took a puff on his cigar and continued: "The German government will not interfere, trust my judgment." ”
Paralysis, of course, I know that the German government will not intervene, but who knows if it will irritate the Germans by hurting Finland so much this time. At this time, Su Chenyu really regretted that on the "Finnish battlefield", Fund X used too much force and directly disabled Finland.
However, Su Chenyu still believes in the train of history, and will definitely go down according to the established track without hesitation.
There was some unhappiness in the taste, George Soros said goodbye to Su Chenyu and Jim Rogers, obviously the "adventurer" Mr. Soros was very unhappy with the two coercion.
"Jim, this former comrade of yours is impulsive. Su Chenyu smiled and said to Jim Rogers opposite: "But that's fine. ”
Jim Rogers shook his head with a smile and said, "George does like to take risks, but at least for now, every one of his adventures has been successful. However, his speculative philosophy is really far from our X fund. ”
"So, Mr. Soros and his Quantum Fund are perfectly suited to rush to the front to get all the eyes and attention for us. ”
nodded, for his former partner, Jim Rogers naturally knows better than anyone else, and there is indeed no better person to be a "front desk lady" than him Soros.
"In this way, after the Italian lira, let Soros and the Quantum Fund take the lead in the pound battlefield. We're going to have to do business with the British government in the future. Tapping on the table, Su Chenyu thought about it and said, "I plan to use this opportunity to solve that matter as well, and then Fund X will be separated and rushed into the stock market." ”
Jim Rogers nodded, and said confidently, "Okay, I'm going to kill them all this time." ”
"Then I wish us success. Haha!"
It has to be said that the inertia of history is really strong, and everything goes down in an orderly manner according to the established script.
After the Finnish mark announced the decoupling of the Deutsche Mark, although Britain and France proposed to Germany to cut interest rates after feeling the seriousness of the problem, the German government and the central bank considered the decoupling of the small role of the Finnish Mark from the Deutsche Mark to be insignificant. Therefore, Germany directly rejected the advice of Britain and France and continued to go its own way - leaving others to follow their own path.
Even on September 11, Bundesbank President Schlesinger publicly and forcefully stated that the German government would never lower interest rates.
Grasping a big grass, this news is like a clarion call for a charge, directly making speculators in countries such as X Fund and Quantum Fund beat their blood, and they are eyeing the constantly strengthening super currency of the Deutsche Mark.
After a trial of the Finnish currency battlefield, Germany's performance did not disappoint the speculators, and it began to attack again with impunity - the horn of the charge had been sounded......
The Italian lira, which exists as a soft currency in the European monetary system, has long been a new target for the "financial sharks". Since the defeat of Finland, the sharks led by the X Fund and the Quantum Fund have been cruising around Italy, but everyone has been restrained from attacking immediately, but waiting for the attitude of the German government.
The Italian government is not a small Finnish man, and after the Finnish mark was finished, they sensed that the same crisis was likely to happen in the lira. So, on September 7 and 9, the bank discount rate was raised twice, from 12% to 15%, and the German mark and franc were thrown out of the market in advance.
But what's the use of that?
With the strong statement of Bundesbank President Schlesinger on the 11th, the quantum fund took the lead and led a kind of financial speculators to launch the "Italian lira campaign".
As a soft currency in the European monetary system, the impact of financial speculators in a few rounds wiped out the Italian lira, and the exchange rate fell sharply, directly falling to the maximum lower limit of the exchange rate of the lira against the Deutsche mark in the exchange rate mechanism of the European monetary system, the Italian lira.
This is just the beginning, in the face of fatty meat, financial speculators are like sharks in blood, constantly frantically pounding and biting the Italian lira.
On September 13, the Italian government could not hold on anymore and had to reluctantly announce the depreciation of the Italian lira, which was reduced by 3.5%. Moreover, because the Italian lira is a member of the European Monetary System, the other 10 currencies in the European Monetary System have automatically appreciated by 3.5 per cent - the first time since 12 January 1987 that the European Monetary System has adjusted its value.
But is this the end of this "Italian lira war"?
Of course not, and more tragic battles are yet to come......