Just when Zhong Shi made a lot of money, he had no idea how dangerous the financial crisis caused by him was hidden, and even almost drove him out of the American market.

When Mexico announced that the peso was free to float, the United States was still taking a wait-and-see attitude towards the situation in Mexico. While the peso's depreciation is a boon for U.S. imports, meaning more Mexican products can be purchased for $1, the devaluation is extremely bad news for the U.S. trade deficit.

Mexico was the third largest exporter of U.S. trade at the time, and the U.S. exported tens of billions of dollars of U.S. products to Mexico every year, and the devaluation of the peso in the context of the trade war with Japan dragged on, meant that the U.S. lost another important trading partner that could significantly balance the trade deficit.

As a result, the Clinton administration quickly reacted to the situation in Mexico, and in addition to directly supporting Mexico with $20 billion in foreign exchange reserves, it also made significant concessions on trade policy. And out of the cold reason, other South American countries also came to the rescue, and finally stabilized the situation in Mexico in March '95.

At this time, more than a month has passed since Bell Stone left, and the Mexican peso has also dropped sharply to 7.35 pesos per dollar.

As soon as the anxious situation on this side has stabilized, the United States will begin to investigate the culprits and speed up trade negotiations with Japan, for no other reason than because there is less than half a year left before the United States announces the implementation of Super 301 on Japanese exports, if the two sides cannot reach any agreement within this time. Then the super trade war between the two sides is really about to start.

Coincidentally, the crisis in the Mexican peso made the U.S. government realize for the first time that Japan is no longer the little brother of giving and taking. In particular, Japanese conglomerates have been selling off U.S. bonds this year, putting the U.S. market in danger of inflation.

The United States has been unable to find a way to deal with the financial war launched by the Japanese consortium. First, the U.S. government cannot stop the sell-off of Japanese consortia in the U.S. bond market, because this is normal business practice. They also can't limit the flow of money into the money circulation system, the same reason as above. They couldn't stop even the Japanese consortium from shorting the bond futures market.

All the United States can do is raise interest rates, raise interest rates, raise interest rates, raise interest rates again. The Fed started raising interest rates in February '94 and continued to raise rates until March '95. The one-year dollar interest rate reached a staggering 6%. The sharp increase in borrowing costs has dealt a heavy blow to the U.S. bond market.

Of course, the US side is not in vain, and the cause of inflation is not caused by the bond sell-off by the Japanese consortium. Rather, it is due to the continued growth of the US economy. This leads to extremely loose liquidity. That's what caused inflation. Moderate inflation is significant good news for economic growth, as the Fed's interest rate hikes have led to poor performance in the bond and equity markets. In addition to circulating overseas, more surplus funds have entered the circulation of the real economy.

As a consequence of this, in '94, the US economy grew by a staggering 4%, the highest in nearly six years, and this was achieved despite the Fed's constant interest rate hikes. And the entire shijie economy has benefited from the growth of the U.S. economy, and it is also showing signs of rapid growth.

Then in May 95, the protracted U.S.-Japan trade negotiations finally took a turn for the better, the U.S. side made some concessions, and the Japanese side also saw the good and accepted, the two sides finally reached an agreement on the negotiation of auto industry parts, the United States auto parts were allowed to enter the Japanese market, and the Japanese market held the share of other markets such as insurance. Both sides claim to have achieved their own extremely beneficial ends, but only they know the pros and cons.

The US side is quite satisfied with the agreement. First, the reason is that the United States is trapped in the financial crisis of Central and South America, and needs a stable rear. Second, the general election is about to start in '96, because the Federal Reserve continues to raise interest rates, Clinton and his staff have realized that the economic growth in '95 will no longer be as satisfactory as '94, and out of the need for re-election, they will not really start a trade war with Japan, because then Japan will also announce a high tariff on US imports, and then the US economy will face a double whammy. Obviously, under these circumstances, even if the Clinton administration makes impressive achievements in its first term, it is unlikely to be re-elected.

Japan, on the other hand, has different factors than the United States, but they will not really start a trade war. The main reason is also due to the needs of economic development, firstly, the yen has continued to appreciate this year, and it has approached the minimum limit acceptable to trade exporters; Second, if there is a trade war with the United States, Japanese products that are exported all over the world will face a continuous trade war on a global scale, which will undoubtedly add to the situation of the Japanese economy, which is already a bit difficult to return, and no matter which prime minister takes office, this will not be allowed to happen.

After the value of the peso stabilized, the US side began to investigate the institutions that shorted the peso. While these are normal business practices, the Clinton administration's dislike of these greedy banks is evident in the fact that the short-selling countries are the strongholds of the United States and are its most important trading partners.

Although most of the Democrats' campaign funding comes from these large conglomerates and banks, not all of them are loyal partners of the Democratic Party, and in fact many of the large banks are at odds with the Republicans. Under such circumstances, it became a matter of course that the Clinton administration wanted to give these people some color to see.

For legal reasons, the U.S. government cannot directly target these conglomerates, but don't forget that the U.S. prosecutorial system and law enforcement agencies such as the CIA are not only responsible for crimes and espionage, they also have a lot of authority over commercial crimes, and they are more ruthless. More ruthless.

In the history of the United States, for those cases of prosecution of large enterprises and consortia, the amount of penalties can often be hundreds of millions of dollars, or even billions of dollars, and even a lawsuit can lead to the bankruptcy of a company with an annual turnover of billions of dollars.

The speculative investigation into shorting the Mexican peso has quietly unfolded in the anger of the Clinton administration, and commercial banks that borrowed heavily in the peso in December have first come into the spotlight of the investigative department. Chase Bank, Bank of Chemistry, Bank of Texas and other institutions with branches in Mexico began receiving secret questioning.

Despite their reluctance to respond to such investigations, these banks are not innocent. In fact, these banks have branches in Mexico, and they have more or less contact with corrupt Mexican officials and even drug dealers, and some of them have laundered money for these criminals, so they have been pinched. The heads of these banks obediently reached an agreement with the US prosecutors. Betraying a customer's information in exchange for not being charged. Eventually, a number of companies incorporated in tax havens surfaced.

At this point, it is difficult to proceed with the investigation, although the United States can get the registration information of these companies and even the information behind the shili. But they can't make it public. Because it's about the reputation of these tax havens. To know. The vast majority of companies and consortia on Shijie have shell companies in tax havens such as the Cayman Islands and the Virgin Islands. Even if the U.S. government dares to punish these short-sellers of the peso, it will not dare to confront all the large corporations that control the lifeblood of the entire Shijie economy.

This is not the way to go, but there are still some companies or individuals that are regulated by U.S. law that have come into the eyes of investigators. This includes Zhongshi's Tianyu Fund.

Tianyu Fund is an asset management company registered in a tax haven, with unknown funds raised and many managers, which are divided into Japan, Europe and the United States, Hong Kong and commodities private equity funds, with its main office in Hong Kong. Private banks such as HSBC and Standard Chartered have invested in this fund, and the flagship fund of the private equity fund has doubled its net worth in a year. The fund, which earned about $600 million during the Mexican currency crisis, is a smaller speculator.

As the investigation progressed, the U.S. side was surprised to find that a consortium with a British background was seriously involved in the shorting of the Mexican peso, among which the British consortium led by HSBC and Standard Chartered was aggressively shorted after the Mexican peso was depreciated, thanks to the fact that they have branches in Mexico, it is extremely convenient to borrow pesos. And after the declaration of the free float of the peso, the branches of these banks even announced at the first time that they would stop lending and turn to the peso market to exchange dollars.

There is no doubt that these British banks are one of the main culprits behind the sharp drop in the peso, and it is not an exaggeration to say that they are behind it. Naturally, they selectively ignore the role that Bank of America plays in this.

Because of the involvement of the British side, it is difficult for the United States to continue the investigation, after all, the two sides are the most solid and reliable allies. In the end, the investigation was a situation of raising high and falling gently, but these financial institutions were remembered by the relevant U.S. institutions.

Although it is not easy to do at the moment, the financial war against these banks began to be planned, and it was vividly executed in 97 and 98. This is also the real reason why Weishenme Hong Kong has been attacked again and again in the financial crisis that has swept across Southeast Asia.

X-Spatial Fund was lucky to escape this catastrophe, but even so, the fund managers in charge of Europe and the United States were surprised to find that the supervision of their investment behavior in the US market has increased significantly, and even a few times they have been sniped for no reason, which has put their investment income in the US market in a very embarrassing situation.

After two or three such situations, Zhong Shi understood, and he ordered to reduce speculation in the American market and switch to long-term holding, which slowly made the situation better. (To be continued......)

PS: Thank you very much for the 2 monthly passes voted by the book friend tokihikari! Written to today, the third volume of this book has been completed, from tomorrow, the next volume will begin, the author will continue to improve the shortcomings of this book, strive for the new part to be more exciting, and hope that more book friends will pay attention to and support this book, xiexie everyone!