"After the end of the Second World War, analyses of the social base that supported Hitler's rise generally boiled down to the fact that hyperinflation was a very important contributing factor at the time. Pen %Fun %Pavilion www.biquge.info"

"Therefore, in recent decades, West Germany, and now Germany, has made controlling domestic inflation the first priority, and it can even be described as an instinct, and the most effective way to balance the inflation generated by German reunification is to raise interest rates."

"This is the politics ~ governance behind the economy." Tang Huan raised his finger and pointed at the small ones, "The world is full of knowledge, and the practice of human feelings is the article." In the future, you will have a lot to learn in this area. ”

Jinlong, who is more familiar with the situation in Britain, suddenly said: "If we follow this line of reasoning, the opposition to the European Exchange Rate Mechanism was an incentive for the former British Prime Minister Margaret Thatcher to lose the support of most members of the Conservative Party, and the accession to the European Exchange Rate Mechanism in 1990 was a political achievement of John Major, who rose from the British Chancellor of the Exchequer to the position of British Prime Minister, and his cabinet was naturally inclined to defend it." ”

"Yes." Tang Huan stroked his palms and laughed, "It seems that you have mastered the key rules of this game, so I don't need to worry about the remaining purely technical operations - you can start playing now." ”

……

It can be said that on the surface, Mr. the richest man tries to distance himself from this European currency speculation, which is currently only a small fight and has not yet reached a high ~ tide.

But there is one exception, that is, the financial operations carried out by Qinhe Strategy's office in London, England, Tang Huan did not deliberately conceal it.

As for the intention, of course, it is very simple - it is to take the opportunity to take revenge, vent the dissatisfaction in the heart, and do not care whether Britain knows it or not.

By the end of August, the company's short position in the pound alone had reached $200 million.

In fact, after a series of piecemeal discussions, the entire speculative circle has gradually confirmed a consensus that every economy that has been hit by a recession and whose exchange rate is pegged to the mark is now a paper tiger - very fragile.

It is conceivable that the participants in this game are by no means limited to the Quantum Fund, Qin and Strategy, but also the famous people such as Paul Tudor Jones. And these international free~capital, tacitly concentrated to launch an impact, is enough to challenge any foreign power and middle central bank.

In this case. The exchange rate of the British pound and the Italian lira has fallen to the lower limit allowed by the European Exchange Rate Mechanism - in the case of the United Kingdom, the specific figure is 2.7780 pounds sterling to 1 German mark.

Because in addition to being mired in a recession, UK mortgage loans are also very sensitive to raising interest rates - because they are often not fixed, when the UK's central ~ central bank raises interest rates, British households will immediately feel the pressure to pay, and further hit their spending power.

This transmission mechanism, coupled with the economic recession, makes the UK reluctant to attract external capital and resist the depreciation of the pound by raising interest rates first, but hopes that the German Central Bank will cut interest rates.

In order to negotiate this issue, between September 4 and 5, the finance ministers of the European Community member states and the officials of the Central ~ Central Bank met in a small town called Bath in the United Kingdom.

British Chancellor of the Exchequer Norman Lamont was in desperate need of room for the pound to lower its exchange rate, and was first questioned by his counterparts in Italy and France, who were also battling the recession, so he became angry, and in the process of constantly asking Germany to ease its monetary policy, he slapped the table and yelled at Helmut Schlesinger, the president of Deutsche Bank: "Twelve finance ministers are sitting here and asking you to lower interest rates." Why don't you agree? ”

Norman Lamont's shouting not only did not impress the other party, but also counterproductively caused resistance, and Helmut Schlesinger's first reaction was to leave the table in anger.

After the president of Deutsche Bank calmed down, he still gave a statement, that is, although he does not plan to cut interest rates, he also sees no reason to raise them.

Norman Lamont immediately sent this cautious, almost nonsense statement to the press as a signal of German concessions.

When George Soros and Tang Huan exchanged information, he nervously asked: "Is Helmut Schlesinger's attitude forced to cut interest rates under pressure?" ”

Tang Huan replied without hesitation: "As far as I know about Helmut Schlesinger, he attaches great importance to the independence of the German Central Bank~, and Norman Lamont's attempt to create political pressure as a foreigner can only be counterproductive. ”

"I think that even if Helmut Schlesinger is not opposed to the unification of the European currency, he will subconsciously see the Deutsche Mark as an existence beyond other currencies - it is very difficult to use the Deutsche Mark to cut interest rates to make room for other currencies to depreciate!"

George Soros naturally couldn't unconditionally believe Tang Huan's intelligence, and in order to find out the attitude of Helmut Schlesinger, a key person, he focused on the other party's every move.

The hard work paid off, and George Soros really waited for Helmut Schlesinger to make another public statement.

Norman Lamont, who had been clamoring for several days on a continuous basis to create public pressure through the media that Germany was about to cut interest rates, completely angered the Germans, and on 8 September he made a clarification that he could not guarantee the future direction of the Deutsche mark interest rate and warned that he had little confidence in the current fixed exchange rate relationship between European currencies.

To underline this point, Helmut Schlesinger singled out the weakly based Italian lira as evidence.

George Soros was one of the audience members, and in order to determine whether Helmut Schlesinger's remarks were sincere, he hurried forward to talk after the other party had finished speaking.

"What do you think of a single European currency?" George Soros cleverly side-clicked.

Helmut Schlesinger, who was in an impassioned state, replied directly: "I like the concept of a single European currency, but I don't like the current name, maybe he should be called the mark." ”

George Soros watched with a smile as the Deutsche Bank president walked away, and said to himself, "Don's inference is really well-founded, and he is not using me as a sharp knife to take revenge on Britain." ”

Helmut Schlesinger's answer is exactly what all speculators in the European financial markets hope for at this stage.

Germany's central ~ central bank can accept the idea of the European Monetary Union, but this does not mean that it will maintain the harmonious situation in Europe at any cost -- Norman Lamont's political ~ political trick of blowing his beard and glaring to create public opinion pressure cannot shake his determination to keep the Deutsche Mark strong and prevent inflation in the first priority and fine tradition.

The German thinking is that if other economies can't stand the resulting austerity, then their currencies deserve to be devalued!

George Soros could not help but maliciously speculate about Helmut Schlesinger's motives - all units have the instinct of self-preservation, and the other party, as a professional official of the central ~ central bank, must be the representative of this political ~ political trend. It is highly likely that it will be happy to see it take a tough stance and undermine the plans of the European Monetary Union. Because the goal of the alliance includes the establishment of a European central ~ central bank, and this central ~ central bank will replace the powerful German central ~ central bank.

George Soros, who personally came to this conclusion, naturally could not share it with Tang Huan, he first called Stanley Druckenmiller in New York, USA, and excitedly informed that "the Italian lira is about to depreciate further"; Then he hurried back to New York and began to prepare for the real big deal.

Under Stanley Druckenmiller, the Quantum Fund has already made a bet on the pound by this time, but it is far from enough.

……

"George Soros called and asked us to get the $500 million we invested as quickly as possible." Zhuang Menghua walked in and reported softly.

"Where is he now?" Tang Huan picked up the remote control and turned down the volume of the TV.

"George Soros has returned to New York, and he should be raising more money to build a bigger position." Zhuang Menghua looked at Helmut Schlesinger on the TV screen and speculated: "This president of Deutsche Bank may not stay in his position for too long." ”

"To quell the anger of the people, it can only be an afterthought." Tang Huan smiled faintly, "Notice, the real drama has begun - for today's statement by Helmut Schlesinger, hedge funds must test and verify, and the first whetstone should be Finland, which is still struggling in the quagmire of economic recession." ”

……

And so it was.

On Tuesday, September 8, the day Deutsche Bank President Helmut Schlesinger announced that Germany could not make any commitments on interest rates, a wave of speculative selling overwhelmed the Central Bank of Finland.

This small Nordic country has not yet joined the European exchange rate mechanism, but only implements the policy of pegging to the European currency unit, naturally can not get legal and obligatory support, the Finnish mark fell by nearly 15% on the same day, so the Finnish government ~ government can only be forced to abandon the existing exchange rate policy.

The blink of an eye to the profit immediately aroused the appetite of the tacit speculators to find their next target - and Finland's neighbor, Sweden, was unfortunately the victim.

On Wednesday, September 9, Sweden was hit. With Finland at hand, Sweden was shocked to defend its currency by raising interest rates to an unprecedented 75% overnight.

……

When Tang Huan walked into his sons' office, he happened to hear Jinge exclaiming, "75% interest rate, I'm not mistaken!" ”

"We had Sweden in our portfolio, but we didn't expect it to be so exaggerated." Jin Chang turned his head and explained to his father with a smile: "In this way, after this round of financial tsunami, the bearish Swedish currency must not be left behind. ”

Tang Huan bowed slightly, and pointed: "This little movement in front of me is a small battle, and next, the hedge funds that have increased their confidence will definitely start attacking the member countries of the European Exchange Rate Mechanism, and the Italian lira will bear the brunt." ”

Jin Chang opened his notebook and analyzed: "Italy has received support from the powerful German Central Bank ~ borrowed the equivalent of 36 billion US dollars in lira and raised the interest rate to 15%, which is a hard bone." ”

"Italy is a thing that can't hold up to the wall." Tang Huan shook his head disappreciatively, "Including the officials in Europe, they are still superstitious ~ The absolute strength of the central bank does not realize that a new financial order is being established." Take advantage of the insights that are not possible in these books. ”

……

Italian football is very beautiful, take the female ship king Cristina AC Milan as an example, it has established a recognized Milan dynasty on the European battlefield, but the economic performance is as described by the richest man - mud can't hold up the wall,

On Friday, 11 September, the Italian lira, which was fully prepared, did not escape the fate of collapse and fell below the lower limit allowed by the European Exchange Rate Mechanism - the members of the European Exchange Rate Mechanism were beaten for the first time by the so-called market.

However, Italy was fortunate that the Italian lira collapsed at the last trading day, on Friday, which provided a respite.

On Saturday, September 12, the Italians began negotiations with visiting German officials on the depreciation of the lira.

……

The battle of hedging funds to defeat Italy's Central ~ Central Bank was so beautiful that George Soros once again called the richest man who had already inspected Jaguar cars and other industries in the UK to ask about the latest developments there.

You know, the European countries are now in a lot of noise, and if Britain, which is in a similar situation to Italy, suddenly takes decisive measures, then all the preparations will be in vain.

Tang Huan laughed heartily, "Don't worry, the British Prime Minister is as immovable as a mountain, and the British Chancellor of the Exchequer is as if nothing has happened, as if nothing has happened, and he is also leisurely and elegant, according to his schedule, he attended a concert and sang the British Navy anthem with great interest." ”

"After all, the Conservative Party, which had a remarkable economic record in power in the 1980s, is confident that it can handle the current financial turmoil. And I guess there is no shortage of opinions among the British, how can Italy, the sick man of Europe, be compared with themselves. ”

"No, the British media still have the time to hype up the hatred between me and John Major."

Some of the operations of Qinhe Strategy in the London financial markets have been noticed by some well-intentioned people and described as wanting to take advantage of the fire.

Tang Huan faced the reporters who came to ask for verification, and said frankly, "It's good that you know, there are naturally some obvious motives here." For example, Heung Kong Telecom, a subsidiary of Qinhe Group, always has to find a way to expand its revenue sources after losing its franchise. (To be continued.) )