Chapter 711: Link's Conspiracy Theory (5,000 words)
"Isabel, Daddy is getting ready. Link said to Isabel, who was sitting on her lap talking to herself at the computer. "Next time you come and talk to Avril!"
Isabel looked up at him, her eyes sparkling and asked, "Daddy, when will I be able to play with Avril?"
"Daddy has time to take you to play with her!"
Isabel said "um" and turned back to Avril on the computer to give a flying kiss. "Avril, I'll talk to you again tomorrow. Bye-bye!" she said, sliding off Link's lap and trotting out of the study.
Link looked at Lily holding Avril in the computer and said with a smile, "I'll video with you next time." β
Lily smiled faintly and said, "Good!"
Link smiled again and said to his little daughter who was looking at him through the screen, "Avril bye!" and he made a goodbye gesture. He also got a response from his youngest daughter.
He turned off the video and shook his head slightly.
Now several children in the family have already seen Avril through video, and they have not shown dislike or dissatisfaction, especially Isabel, who has a strong curiosity compared to her younger sister. Ever since I first videoed with Avril, every day I would ask Link if he wanted to video with his sister. If it was, she'd definitely step in.
Jessica didn't object to the kids doing that, either. Link is glad that he didn't make the house uneasy because of one more child.
He turned off the video and continued his work.
It wasn't long before his phone rang. There aren't many people who can call his phone directly. He picked it up and looked at it. It was found to be Charlie's number. He answered and asked, "Charlie, it's me!"
"You guessed it right. The Fed did propose a series of monetary tightening measures in Congress, including interest rate hikes, to prevent inflation. β
Link wouldn't tell Charlie that it was Neil's judgment.
"Thanks for the reminder, Charlie. β
He didn't even ask when the Fed would start doing that. As long as he knows that the Fed will tighten its monetary policy, he can judge a few things.
Neil said that the Fed should have pursued that policy last year, but the rise in gold futures and crude oil prices two years ago proved that the dollar was oversaturated. And last year it was already at a tipping point. But the Fed has been doing nothing.
Based on the current state of the economy, the U.S. stock market is out of control. Neil judged that tight monetary policy is likely to be the needle that punctures the Wall Street bubble.
Neil even said: "Unless American capital is actively bailing out the market, as it was in the 1987 stock market crash." It is likely that this is only a short-term stock market correction, and the recession period will not be too long. But if not handled well, it could become a long-term recession that will affect most countries in the West and Asia. β
Naturally, Link has also studied some major economic cases. For example, the stock market crash in 1987. It was a rather strange stock market crash.
During the stock market crash of 1987, although the US stock market index fell by a great margin, the financial market suffered a lot of losses. But in the history of the United States, the impact of the stock market crash on the American mainland was actually not particularly large.
U.S. capital showed a very positive attitude during the stock market crash. Most of the major companies actively bought back their shares, and within a few days the company's share price did not fall. In fact, there are only those investors who have losses. The loss of American capital is actually modest. The vitality is still there.
However, the city bank almost collapsed that year, and there was a need for money everywhere. In the end, it was a prince from the Middle East who bought a 12% non-dividend option on City Bank, and it was relieved. But the prince later became the largest shareholder of City Bank.
In the aftermath of the crash, most of the world's countries were hit hard, but countries also recovered quickly, especially in the country of Jipan.
The U.S. stock market crash and the depreciation of assets forced the yen, which was already under pressure from the Plaza Accord to appreciate, to accelerate its appreciation.
Taking advantage of this opportunity, U.S. domestic capital has completed the transformation, basically abandoning heavy industry, and capital flows to high-tech and new materials and chemical industries.
After the transformation was completed, the United States suddenly made it difficult to harvest the economic lifeblood of the chicken plate, so that the economy of the chicken plate would not advance for 30 years. And the United States has taken out an unknown amount of money from this super ATM, and then entered the era of Clinton's long-term prosperity.
Judging from the performance of American capital in that stock market crash, Link even felt that it was a pre-planned conspiracy against the chicken plate people.
The Fed's performance now looks similar to that crash. It is also deliberately making the US economy make a drastic adjustment.
Only this time Link didn't see any signs of transformation in the U.S. economy.
Or that it is already difficult for American capital to turn around. Just like in the era of European hegemony, Germany could not come out of the Junkers big business economy. France could not move out of mercantilism. Britain also could not come out of the colonial economy.
The United States is similar today, and it is now unable to move out of the so-called infiltrated economic system, elite finance.
Because assets are concentrated in the hands of a few. These few people have taken Americans' lifestyle and consumption habits to an extreme. American society and people are extremely dependent on other countries to provide them with their products.
If this is to be changed, the elite will have too much power to sacrifice.
Link thought about this question, and the more he thought about it, the more distracted he became.
He wondered, why did the United States give up all those heavy industries, simply because the working class was demanding higher wages?
He thought it might just be a faΓ§ade.
What does the working class represent? Perhaps no one has thought about it.
In order for the workers not to rebel, the business owners need to make very big concessions, and they must constantly make the demands of the workers satisfied. In the fifties and sixties of the last century, there were already signs of social instability in the United States. At that time, the workers' strikes had already taken on a violent tendency.
And industrial workers are the most powerful group of workers. The Soviet Union relied on industrial workers to overthrow Tsarist Russia. Originally, heavy industry was developed in the United States. If the workers rebelled, those industrial workers could easily build tanks, cannons, and airplanes, and then fight against the federal government. and even the end of the federal government.
Could it be that I thought I was in this worry. The United States took advantage of the fact that the hearts of those workers were still too big, and abandoned all those heavy industries and drastically reduced the number of industrial workers. At the same time, the concept of early consumption is established for the people, so that everyone has the illusion that "they are rich", so that all workers can be "satisfied".
After the transformation, there will be no more industrial workers, and those service workers will not be able to make trouble if they want to.
Because all men are selfish. The number of workers in those industries is small. If there is such a social crisis. Business owners only need to meet the requirements of those small number of industrial workers. Stabilize these people. What can other workers do? They can't make weapons.
Link thought about it, and he couldn't help but laugh. He seems to be thinking about it. But whether that conspiracy theory is true or not, the United States has always flaunted its democracy and denigrated the Soviet Union or China's system in order to make the people refuse to change. That's the most powerful weapon ever.
He couldn't figure out which country the Fed's initiative to "adjust" this time was aimed at. However, the most likely, of course, is that China, which has already faintly shown a super-fighting posture, is the most likely target.
However, there is a problem here. Why does it happen that someone wants to snipe at the Ozette consortium during this time period. If those of his opponents had already gotten the news in advance, they would have thought of striking him at this time. That is, some capital has already gotten the news.
And Link, as the richest person in the United States at the moment, is the head of a new consortium in the United States. Why didn't he get any news? If Neil hadn't predicted it, how would he have been passive in this possible stock market crash that might be actively triggered?
Could it be that those on Wall Street want to wipe out all the capital except the Jews, and he is not the only one who does not know that the American economy is likely to regulate?
Thinking of this, he called Charlie back and said, "Charlie, I have a question. Did the Fed mention the risks of monetary tightening that they were prepared to implement?"
"Naturally, there is. But their view leads us to believe that there is a controllable adjustment at this point. The U.S. economy will not experience a prolonged recession as a result. β
Link didn't understand what he was saying on the phone.
"When will you return to California?" Link asked. "To the recess of the Parliament?"
"Yes. Charlie said. "I may need to return to California in June. β
Link thought for a moment and said, "If you come by time, I'd like to meet you." But I don't want to be in the DC DC. β
Charlie hesitated for a moment and said, "The day after tomorrow is the weekend, maybe I can go to New Mexico to visit my dad." β
Link said, "Okay, then we'll see you on the weekend!"
β¦β¦β¦β¦
On Friday night, Link flew to Bell Farm on a Gulfstream plane. The next day, a small plane landed at the airport at Bell Farm.
Near the airport, there was no one but Link and his bodyguards. Charlie got off the plane and got into Rylink's car. When the car started, he asked, "I'm curious why you're in such a hurry to see me." β
Link said, "We'll talk about it when we get to the villa." β
Together, Bell Farm and Hanova Farm are one of the largest cattle farms in New Mexico and the largest small alpaca farm. But the most striking thing here are the Truss No. 1 grapes, which were sentenced to death a few years ago, and which are still being cultivated.
The grapes are twenty or thirty thousand acres in total, and Link has been used to make wine in the past two years, although it has not been sold, but for two consecutive years, which shows that those grape diseases are not really as bad as the outside world says.
There is a large winery here, and naturally there will be a large villa built here.
The car drove directly into the villa. Charlie did not see any of the servants after entering the villa.
Link beckoned him to sit down in the living room. I went and fetched another bottle of brandy from Hanova Farm and poured two glasses.
After giving Charlie a glass, Link put the bottle on the table and said, "I'm curious to see how the Fed describes the risk of monetary tightening in its face of congressional questioning." β
Charlie took a sip of wine and said, "Why are you curious about this?" You know it's a breach of confidentiality. β
"Because I want to know their purpose. Link said, looking at the orange liquor in the glass. "I was told that if we tighten now, the impact on the economy will be very large. You know I have a major stake in several banks. Banks are the most susceptible to crises in stock market volatility. I need to know how they're dealing with this risk and be prepared for it. β
Charlie is also acceptable to his rhetoric. Banks are indeed the most vulnerable during economic volatility cycles. In particular, banks in the United States are required by law to lend large amounts of money by providing margin at 8% of the stock price. Banks can easily receive large amounts of money.
If a bank's stock price plummets, it means that it has lent more money than it is allowed to borrow. Then you will have to pay a higher margin. In order to ensure balance, banks are not allowed to collect loans or seek help from other banks. Otherwise, there is a possibility that the government will take over temporarily.
Once the general environment changes, almost all banks will be affected. At that point, it seems that collecting the loan is the only avenue.
What's especially scary is that many banks will lend most of their funds to the companies they invest in. And when the financial environment deteriorates, the loss in the financial market is enough to cause the bank to collapse directly.
This is the main reason for the failure of banks in the subprime mortgage crisis that began in '07.
Charlie hesitated, took another sip of wine, and said, "I don't think the situation will be as pessimistic as you think." They said they were ready to do anything. We will work hard to ensure the stability of the U.S. financial system. The most important of these measures is that more than US$650 billion will be raised to help major banks weather their risks. And rely on the banking system to maintain the stock market, so that the stock market can avoid collapse. β
After hearing what he said, Link pursed his lips and said, "But they haven't communicated with Ozette Bank. β
The assets of Ozette Bank may not be among the largest banks in the United States. But everyone knows that Bank Ozette controls seven large regional banks. And the business coverage is all over the United States, especially in the agricultural industry.
It can be said that the Ozetta Bank Group is a bank to be reckoned with in the United States. If the Fed wants to ensure the stability of the US economy, it will inevitably have to ventilate with the Bank of Ozette so that it can prepare in advance. But they didn't do that?
Charlie was taken aback when he heard the news, frowned again, and said: "Didn't ventilate with you? Are they crazy? You must know that the Ozette Bank Group occupies more than 60% of the agricultural market in the United States. β
Link took a sip of wine and said with a smile: "Because even if Ozette collapses, American agriculture will not collapse." He paused and said with a sneer. "There are just too many big banks in the United States. β
"So, they're planning to strike at the Ozette Banking Group?" said Cha Li after a moment's pause. "Or maybe the target is you. β
Link nodded and said, "If the Ozette Bank Group is short of funds, it can only collect the customer's loan." But in an economic crisis, even if the company does not go bankrupt, how can it still repay the loan. Even if they are able to repay the loan, they must have taken out a loan from another bank or received financing. β
Charlie listened to the situation he described, and if that happened, it would be another wave of annexation.
Link added: "If the Ozette Bank Group doesn't collect the loan and doesn't want to be penalized to take over, it can only accept the financing." He sneered. "Either way, they will be able to join the Ozette Banking Group. Those farmers need to continue taking out loans in the midst of the economic crisis, and my bank can't fund those customers. Naturally, I had to find other banks. The loan agreement restricts those farms to the products of the Benehans Group through competitors......"
He didn't have to say any more.
Charlie could have thought of that as a consequence. If that happens, both of Link's pillars will be hit hard. Even Link could lose control of the Ozette consortium.
Charlie didn't want to see Link get hit like that. Because Link isn't just his gold owner. It is even more the big benefactor of the small political group he is now pulling together.
If Link fails, then his position with the Democratic Party will also receive a major setback.
He looked at Link and said, "Since you already have that kind of defense, there should be appropriate countermeasures. β
"They're going to convince the American public that this is an ordinary market correction," Link said with a laugh. Judging by the signs now. They are not going to do that, but want to suck blood on all Americans. He paused and said. "But even if we knew that, we couldn't fight them. I can only assume that I don't know. Make a profit. Then save yourself. As for what happens after that, I'll talk about it later. β
Charlie had to agree with Link's words. Even if they knew, they wouldn't be able to do the opposite. Because what the Fed wants to do is the general trend. The only consequence of going against the trend is to kill yourself.
He nodded and said, "Hopefully we can get through this together." Of course, I hope your guess is wrong. β
Link laughed and said, "I hope I'm wrong, too." β
If his guess really came up. Then he will be in far more trouble than he just said. Most farmers in the United States borrow like the banks of the Ozette consortium. Under monetary tightening, his bank will certainly not be able to borrow more money. Farmers will also be unable to repay their loans due to changes in the futures market and lower sales prices of agricultural products.
If he wants to maintain Benihans' share of American agriculture, Ozette Bank Group will have to keep those agricultural customers.
Then, there is a big contradiction.