Chapter 374 Strong
In the time and space of Long Zheng's previous life, late at night on December 19, 1994, the Mexican government suddenly announced that the national currency, the peso, would depreciate by 15%. Pen @ fun @ pavilion wWw. biqUgE。 infoThis decision caused a great deal of panic in the market. Foreign investors frantically sold pesos and snapped up dollars, and the peso exchange rate fell sharply. On December 20, the exchange rate fell sharply by 13% from the initial 3.47 pesos to the US dollar to 3.925 pesos to the US dollar. On the 21st, it fell another 15.3%. With the depreciation of the peso, foreign investors withdrew a large number of funds, and Mexico's foreign exchange reserves plummeted by nearly $4 billion in the two days from the 20th to the 21st. Mexico's entire financial markets are in turmoil. From the 20th to the 22nd, in just three days, the exchange rate of the Mexican peso against the US dollar plummeted by 42.17%, which is extremely rare in modern financial history.
About 70 per cent of Mexico's foreign investment is speculative short-term portfolio investment. Capital outflows have been a drain on the Mexican stock market, which has fallen. On December 30, Mexico's IPC index fell 6.26%. On January 10, 1995, it fell by 11%. By March 3, the IPC index of the Mexican stock market had fallen to 1,500 points, a cumulative drop of 47.94% from its peak before the 1994 financial crisis, and the decline in the stock market exceeded the depreciation of the peso.
In this time and space, because Long Zheng used a huge amount of money of up to 30 billion US dollars to short the Mexican currency peso and the Mexican stock market, the extra 30 billion US dollars became the last straw that overwhelmed the Mexican government. By now, the Mexican peso has plummeted by 49 percent against the dollar, and the stock market has plummeted by 52 percent. In the midst of the severe financial crisis, the Mexican government has entered the countdown to bankruptcy. In contrast to the huge losses of the Mexican government, Longzheng earned a huge income of 30 billion US dollars in 30 days, and the return on investment was 100%.
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Unable to wait for the huge loan assistance from the U.S. government and the International Monetary Fund and other international financial institutions, the Mexican government and the House of Representatives urgently decided to unite the Mexican government and Mexico's three major political parties, the Institutional Revolutionary Party, the National Action Party, and the Democratic Revolutionary Party, to directly find the dragon government to short the Mexican currency peso and the stock market in the name of the four.
The Mexican government signed an offensive and defensive alliance with Long Zheng to form a community of interests on the condition that it would open up Mexico's oil, natural gas, telecommunications, electric power and other monopoly fields to it and give it preferential policies that would not be lower than those of Mexican state-owned enterprises.
Paid, of course, needs to be reciprocated.
The Mexican government needs the Mexican government to immediately abandon speculation in shorting the Mexican currency and stock market, and invest a huge amount of no less than $80 billion to help the Mexican government quell the financial turmoil in the country.
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At this moment, the plenipotentiary delegation of the Mexican government stood in front of Ryumasa and Oda Hatsuno.
Seeing the offensive and defensive alliance treaty on the table, Long Zheng's face was solemn.
With regard to the treaty, signed by the Mexican government and Mexico's three major political parties, the Institutional Revolutionary Party, the National Action Party, and the Democratic Revolutionary Party, the Long government is convinced that its binding power is incomparable. Because if the Mexican government violates this treaty, its credibility in the international community will become negative, which is a worse situation than the bankruptcy of the government, because it will lose the credibility of the country.
Regarding the conditions proposed by the Mexican government, Ryumasa and Oda Hatsunori have completely opposite opinions. Ryumasa resolutely agreed, and Oda Hatsufan resolutely opposed.
The reason why Oda Hatsunori disagrees is very simple.
It has not invested in Mexico, and the Mexican government has no leverage at all.
Judging from the development trend of the Mexican financial crisis, it is not a problem to continue to short the Mexican currency and the stock market and make another profit of 20 billion US dollars.
However, once the Mexican government's conditions are agreed, not only will the huge income of 20 billion US dollars be lost, but Long Zheng will have to invest a huge amount of 80 billion US dollars into the mouth of the storm in Mexico.
Once the Mexican government can't hold on and declares bankruptcy, the $80 billion invested by Long Zheng will be in vain.
In this way, Long Zheng's move to sign an offensive and defensive alliance with the Mexican government and become a community of interests is completely a huge gamble with a stakes of up to 100 billion US dollars.
Won, of course, gratifying, Long Zheng has obtained the only access card to enter the Mexican monopoly field, and will definitely make a lot of money in the next ten years; However, once he loses, not only will the $30 billion he has earned and the $20 billion he will earn disappear, but Long Zheng himself will have to fill in $50 billion. At such a price, Oda Chufan shuddered when he thought about it.
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In "Warring States Policy: Qin Ce", there is a clip of the big businessman Lü Buwei talking with his father.
The background of the conversation is very similar to the situation faced by Ryumasa and Oda Hatsufan at this moment.
The gist of this conversation was this, Lü Buwei asked his father: "How many times can I get a profit by investing in agriculture and cultivating and harvesting?" The father replied, "Ten times." ”
Lü Buwei asked again: "How many times the profit can I get by investing in business and buying and selling jewelry?" The father replied, "A hundredfold." ”
Lü Buwei asked again: "How many times the profits can be obtained by running politics and supporting the monarch?" Hearing this, Lü Buwei's father stopped talking.
"Four words, strange goods can live!" Looking at Oda Hatsufan, Long Zheng said in a condensed voice: "Mexico's main economic sectors are all state-run, and corruption and backward management in them are already well-known. Once we are qualified to enter the market and enjoy no less than the treatment of Mexican state-owned enterprises, the oil industry alone will gain more than 100 billion dollars. ”
"Moreover, it is only a matter of time before the financial crisis in Mexico is quelled. Because the U.S. government itself has huge investments in Mexico, it cannot allow the Mexican financial crisis to continue to expand. After a pause, Long Zheng continued: "The reason why the Mexican government found us was not because of the grim situation in front of us. Therefore, the $80 billion invested will not only not be wasted, but will also have huge returns. ”
"Okay!" After thinking about it for a long time, Oda Hatsufan finally nodded in agreement.
An hour after Long Zheng signed the treaty, under the full operation of the Mexican government's propaganda department, the news that Long Zheng and the Mexican government had signed an offensive and defensive alliance and formed a community of interests spread all over the world.
At the same time, a huge amount of $80 billion of Longzheng's funds poured into the Mexican foreign exchange market and stock market, converging the power of the Mexican government to quickly stabilize Mexico's domestic financial market.
Two days later, the Mexican peso and the stock market stopped falling and began to recover.
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On January 15, 1995, his father Hatsufan Oda and his mother Momoeko stayed at the headquarters of the Panshi Group in Chicago, and Ryumasa took Jenny to Japan. (To be continued.) )