Chapter 53 Zhang Yuntian's Economic Sanctions
The rising exchange rate has caused a large wave of speculators to join, as long as a person with a normal IQ, even if he does not understand the economy, but just look at the chart, he can see the peso rising as quickly as climbing a staircase. Pen & Fun & Pavilion www.biquge.info
This is a strong signal to make money, and they don't care who is messing up the market, they only care about how to fish in troubled waters and take advantage of the opportunity to get a piece of the pie.
In the same way, these people are also very aware of the truth that the extreme must be reversed, and the price of pesos will not continue to rise indefinitely, because no matter which financial consortium is behind this matter, it will never be so kind as helping Xiaofei increase the national output value, and will definitely sell pesos sharply at a certain point in time to make huge profits.
The reason is very simple, everyone knows it, but no one knows when this inflection point will appear, even if some people make a small profit, they immediately throw out the peso in their hand, but just after the sale, someone immediately holds in, and no matter how many people sell, the price of the peso has been steadily rising.
Such a strong trend has attracted more investors to join, and investors who have sold off before saw this and hurriedly bought at a higher price and held pesos, which is the heart of gamblers, those who have won hope to continue to win, and those who have lost believe that they can return their capital next time, so the army of pesos has gradually rolled into a tool for tens of thousands of investors to pursue profits from the initial Maoqiu Central Financial Group.
In this process, Zhang Yuntian secretly sold one-third of the pesos in his hand in stages and batches, even so he has earned back the 100 billion US dollars he originally sat in the bank, and the rest of the money is completely paid by other investors, Zhang Yuntian has no loss if he wins or loses, and what he plans now is how to deal a fatal blow to Xiaofei's economy.
How can a country that is too busy to take care of itself, a president who doesn't even have to bring his own people, instigate the South China Sea incident? If there is really a war at this time, I am afraid that Xiao Fei will not even be able to guarantee the logistics supply of the army.
Of course, this sensational event has also attracted the attention of the local government, but the government's little fiscal revenue, which is only billions of dollars a year, is not Zhang Yuntian's opponent at all, even if it is all invested to resist the sharp rise in the peso, not to mention that the latter has countless followers and speculators on the side.
So they have to do their part in a hurry, watching the appreciation of the peso deal a devastating blow to the country's tourism and export trade.
Take the Chinese people traveling to Xiaofei as an example, they originally only spent 5,000 soft sister coins, and they could exchange for 35,000 pesos locally, and they could enjoy seven days and six nights, but after the appreciation of the pesos, if they want to enjoy the tourism service of 35,000 pesos, they must spend more than 20,000 soft sister coins, which is equivalent to increasing the cost of tourism by as much as five or six times.
The same is tourism, there are countless countries with tropical islands, in contrast, how can anyone want to choose such a high cost of small Filipino countries, not only Chinese, tourists from all over the world are declining sharply, once shoulder to shoulder on the coast, only sparse figures remain, most of them are still local fishermen, the bleak scene can be seen.
The decline of tourism has led to a large number of hotels, cruise ships and attractions struggling to make ends meet, a large number of locals have been laid off, and the unemployment rate has skyrocketed.
Not to mention export trade, in the same way, due to the appreciation of the currency, which has invisibly increased the price of exported fruits, many countries that import fruits have abandoned Xiaofei and chose other tropical countries.
If the fruit cannot be sold, the local fruit farmers and large farmers are directly on the verge of bankruptcy, because this not only means that this year's fruit cannot be sold, and the fruit will only rot in the ground as long as the exchange rate does not fall for a day.
In such a harsh and severe economic situation, foreign investment companies have also begun to take advantage of the good market of the peso to withdraw their investment, one by one, regardless of how well the business operates, the appreciation of the peso alone has made a lot of money.
Other foreign businessmen who were willing to come to Xiaofei to invest and build factories were scared back.
Xiaofei belongs to a developing country, and most of the foreign investment is due to the local cheap labor and comes to invest in building factories, but the appreciation of the peso has directly increased the cost of materials and personnel expenses by five or six times, which is even higher than that of any other developing country.
Moreover, Xiaofei's production technology level is not superior to that of other countries, so naturally no foreign businessmen are willing to come.
In just a few months, Xiaofei's national output has advanced by more than 100 in the world, but the entire country's economy has reached a critical point of collapse.
A large number of laid-off workers demonstrated in the streets, the crime rate doubled, and even in the capital Manila, riots broke out more than once, and there was even a vicious incident in which tens of thousands of people marched to besiege the presidential palace.
Faced with such a situation, Xiaofei's president has only two ways to go, either to print a large amount of money to balance the losses caused by the exchange rate; Either you can only ask the United States for foreign help, or buy back the peso through loans, or ask the U.S. government for financial assistance.
The risk of the former is extremely high, because the circulation of the peso is constant, once the amount of currency issued increases, it means that the total circulation of the peso increases, and under the condition that the output value remains the same, the increase in the total circulation will definitely bring inflation, depreciate the currency, and in the short term, it can indeed reduce the value of the peso.
But this decline is only superficial, because there are still countless peso holders who are waiting and watching, and once they think that the wind is not right, and the money in their hands is about to depreciate, they will inevitably sell a large number of pesos, on one side of the printing and on the other hand, the peso can easily become miserable.
Therefore, after careful consideration, Xiaofei's president finally decided to borrow $50 billion from the United States to exchange pesos for wealthy businessmen in China, and then reinvest these pesos in the international market, through such means, to cool down the hot pesos.
However, he took this step too slowly, if he did it when the peso was just beginning to heat up, then 50 billion US dollars could really play a vital role, but at this time, the price of the peso had already flown to the sky, and the 50 billion US dollars smashed into it was only equivalent to the role of billions of US dollars at the beginning, compared to the vast financial sea in the international market, it was completely a drop in the bucket, and it did not even make a splash.
However, he made a lot of money for the local tycoons, and the international status of the dollar was naturally much stronger than that of the peso, and the president's behavior indirectly reminded these wealthy businessmen, who began to try to exchange all the pesos in their hands for dollars to withstand the imminent economic shock.
From a personal point of view, they are absolutely maximizing their interests, and even if the domestic economy collapses, they are no longer afraid, because with the dollar, they can go on vacation to any country, enjoy a good time, and wait until the domestic financial turmoil sweeps away, and then Shi Shiran will come back.
By that time, the peso will definitely have depreciated into a dog, and they can exchange the dollars in their hands for a large amount of assets, and no matter what, they will not have anything to lose.
The selfish actions of these tycoons have led to a large outflow of pesos from the country, which not only exacerbated the appreciation of the peso, but also became the last straw that crushed the camel of Xiaofei's economy.
With the massive outflow of pesos from the country, the increase in unemployment, the closure of enterprises, and the shortage of supplies, domestic prices skyrocketed, and the lunch that was originally 100 pesos soared to 300 pesos.
On the one hand, the people have no money in their hands, and on the other hand, prices are soaring, Xiaofei's president finally knows what it means to sit on pins and needles, looking at the fiscal deficit and the monthly reports of local governments, the whole person has aged ten years overnight, and there is a little more gray hair in his sideburns.
At this time of crisis, there was bad news from the United States, and Congress decided to stop providing economic assistance to Xiaofei.
The United States is not stupid, and the reason why they take a fancy to Xiaofei and let it provoke and clamor at China is because they take a fancy to its unique geographical location.
South Korea, Japan, Taiwan and the Philippines have a long coastal defense line just east of China, and South Korea, Japan and Xiaofei all have US troops stationed, which is actually a military containment of China by the United States.
From another point of view, it can also be understood that these regions have become the front lines of the US war, and if there is a war, the United States only needs to stand behind and watch, and by the way, stir up the emotions of the Asian people, and then use the knife to kill people and use other countries to restrain China.
Moreover, no matter whether this war is won or lost, it will not hurt the United States, and the unlucky ones are only those small countries that rush to the front line as bullets, and their minds can not be described as insignificant and vicious.
In addition, the United States has another intention in doing this, that is, to sell arms.
If the Asian region is harmonious and tranquil, countries respect and love each other, and there is no friction at all, then what else do you need the US troops to do? The same countries are even less likely to buy American warships and missiles.
In this case, what will happen to the outdated weapons and equipment of the United States, which are tasteless and discarded? For example, this time, by provoking Xiaofei and Huaguo, the United States successfully sold three warships that had been in service for 49 years, almost catching up with the founding time of China.
At the same time, he threatened South Korea with North Korea and deployed the theater anti-missile system THAAD, in fact, he was taking advantage of the contradictions between countries to make profits, a common trick that can be traced back to World War II.
At that time, the entire Asian, African and European continents were shrouded in war, and a large number of scientific and technical personnel and well-known scholars all went to the United States for refuge.
Because the war did not burn to the United States, the biggest loss was the battle with Japan at Pearl Harbor, but at that time Japan was already at the end of the crossbow, did not cause substantial damage to the United States, after this world war, the United States suddenly jumped to the highest pole in the world, that is, at this time, self-confidence was too inflated, and its self-proclaimed world policeman, in fact, was a world arms dealer.
Therefore, the United States is not a die-hard fan of Xiaofei's attitude, he hopes to make Xiaofei have a sense of crisis, so as to reap the benefits of it, and he definitely does not want to really help Xiaofei expand her territory.
Now that Xiaofei's economy is on the verge of collapse, the US Congress can't help but worry about Xiaofei's future, many people think that Xiaofei is a bottomless pit, and then using a loan strategy at this time will not only fail to alleviate the internal and external contradictions of his country, but also is likely to make the money he spent a bad debt that cannot be recovered!
With Xiaofei's financial level at the peak, the capital of 50 billion US dollars needs to be repaid for about 20 years, if there is an additional loan, even the principal with interest will be changed for 180 years, at that time, Xiaofei will fall into a dilemma of repaying the loan with loans, in the face of such a poor ghost, how to sell weapons? Aren't you using the money you lend to sell for yourself?
At the same time, the U.S. Congress has another worry, once Xiaofei does not survive this crisis and leads to the collapse of the government, who will ask for this money? If the new government is a scoundrel, will it still send troops to recruit it? If it really comes to this point, the military expenditure is huge, not to mention, it is likely to push Xiaofei into the arms of Huaguo, and in the end, he will lose his wife and soldiers!
Therefore, after repeated discussions, the US Congress unanimously decided to stop providing any financial assistance to Xiaofei.
Breaking the line of the United States, Xiaofei's president can only take the last killer move, issuing more currency.
In fact, Zhang Yuntian had expected this for a long time, he knew that the United States was just a good buddy on the surface, but in fact it only focused on its own interests, so when he learned that the United States refused to provide Xiaofei with any economic assistance, he knew that the time to break down Xiaofei's economy had finally come.
He didn't plan to make any money through this incident, but in order to really achieve the purpose of putting Xiaofei in trouble, so before looking at the pesos, he deliberately revealed the information that the dealer was about to clear the position.
Speculating in currencies is different from speculating in stocks, the latter must be taken over by someone before the holder can sell the stocks in his hand, in the same way, if no one sells the stocks, even if you want to buy them, you can't buy them.
But no matter how the currency is sold, the sovereign state of the currency must be followed, so Zhang Yuntian is not afraid of leaking the news, but is afraid that these speculators will make money and make red eyes, and he will not let go.
So on the afternoon of the day the news was released, Zhang Yuntian directly threw out a third of the peso in his hand in one go, and only this time, the peso that was red all the way fell for the first time.
With the emergence of such an obvious signal, cautious investors began to clear their positions one after another, and taking advantage of this shareholder wind, Zhang Yuntian directly threw out all the remaining pesos in his hand the next day, and immediately appeared a diving downward curve.
Other investors don't know the depths, so they hurriedly follow the trend and sell, for fear that they will leave late and be trapped in it, because they know very well that once they are trapped this time, they are afraid that they may not be able to return to their original capital in their lifetime! (To be continued.) )