Chapter 8: Confronting the Fed (3)

Compared with the invincible Fed during the Contini period, the current Fed has only been established for 16 years, and its voice is not strong enough to matter. Due to the failure of the first and second banks of the United States to perform the functions of the central government in history, the Federal Reserve, which was established for the third time, was very cautious in fulfilling its central bank duties, and was mainly composed of the Federal Reserve Bureau in Washington and 12 Federal Reserve Banks in various regions of the United States. The Fed's main monetary policy is set by the members of the Federal Reserve Board and the chairman of the Federal Reserve Bank to avoid excessive concentration of policy decision-making power in a few regions (such as Washington and New York).

Among them, the Federal Reserve is a standard government agency, and the Federal Reserve Bank is a non-profit private institution, the purpose of this strategy is to avoid the full concentration of monetary policy in the hands of the federal government, if necessary, the Federal Reserve and the President of the United States, Congress can be contradictory, but on the other hand, the Federal Reserve can not directly rely on administrative power to exert greater pressure on the market, when Contini with the anger of the banking group and played a disobedient Wang Ba punch, the Fed bureaucrats were stunned for a while- They did not know how to deal with the situation, let alone consider administrative means to exert further pressure.

They have taken three countermeasures: the first is to shout at journalists, the media, and the market, asking them to recognize the Fed's determination; The second is communication, communicating with Hoover and the federal government to clarify the current problems; The third is coordination, preparing for a meeting so that these big banks do not contradict the Fed.

Even Contini's new administrative secretary, Aquilani, could not stand this weakness, and ridiculed the weakness of the Federal Reserve: What did the president of Sienna Bank do when Italy faced a foreign exchange crisis and lend money in violation of regulations? - directly the airborne troops will be killed, and if they are not obedient, they will use Browning machine guns to break through, and the situation will be contained immediately, they are good, not to mention the army, the police, and even the administrative means - the superiority and competitiveness of Italian national politics are really extraordinary, so the president wants to shout "Be rich and strong, not free!" ”

On April 8, the five major banks that had completed lending sat down to hold another coordination meeting, and Giannini, on behalf of the Bank of America, said: "We have experienced the mood of the Fed and the misunderstanding related to the Fed's policy, but now that the market has initially stabilized, it is not appropriate for us to speak again to shock the market, and we cannot rush to recover past loans...... However, we can commit not to issue short-term loans at a rate lower than the Fed's rediscount rate......"

This seems to have given the Fed face, but in fact, the $100 million loan has been snatched up, and there is no ammunition to prepare in the future, and then they start to pretend to be good people, and just empty words will strengthen communication with the Fed to cover up the whole thing, and the Fed's bureaucrats have no choice.

Finally someone asked the president's question, and everyone said that he had visited the major arsenals, and while selecting equipment for the Blackwater Security Company, he was also considering selecting weapons for Italy. The Federal Reserve also breathed a sigh of relief, and although it was eager to send this plague god away as soon as possible, it expressed its hope to further strengthen friendly exchanges and cooperation between the two countries.

In fact, Contini's expedition to the arsenal was all cover, and he used this time to carry out secret room manipulation: on the one hand, he used the Roman warriors and Blackwater security guards who were transferred to quickly transfer gold, and the Union Bank successively hoarded nearly 500 million US dollars of gold, all of which were ready to be shipped to Italy; On the other hand, it is to continue to sell stocks in the market to repay the debts due to the banks owed by the United Group, because now that interest rates in the United States are generally rising, if the debt owed by the United Group wants to apply for refinancing, it must jump from a low interest rate of 4.5% to more than 15% at once, although everyone knows that it is temporary, but Contini just does not want to bear such a high debt, he would rather slowly throw it off and pay it back.

On April 14, Contini issued a third and most important directive: the Union Bank used all means to recover the loans it had lent as soon as possible, to refrain from relending as much as possible when due, and to transfer all the surplus funds to the European market – through the financial centers of London, Paris, Frankfurt, Madrid, Lisbon, Amsterdam, Vienna, Rome, etc., and then back to Italy like a capillary.

This process is also the process of the stock market rebounding again, because the five major banks have joined hands to support the market and the stock market selling pressure is relatively small, so the market confidence is still very sufficient, and everyone is reluctant to sell their stocks - because many people have used bank loans for leveraged trading, if the reduction means that the loan will be automatically returned, and then to lend out will not only increase the difficulty, but also the interest rate will be much higher.

By the end of April, the stock market was still stable at around 340-350 points on the Dow Jones, and the first batch of gold and dollar notes was almost ready, so Contini instructed Adriana and others to return home first.

"Honey, I don't want to leave, I want to stay with you......"

"I want to, too, but I have important things to do, and I need your help." Contini stroked the stunner in his arms and said softly, "Among the few of you, you have the clearest and most organized view of the situation and the general affairs, so you must hurry back and help me......

If Monica is the master of the house, then Adriana is the head of the house, she can maneuver around all kinds of political leaders and all kinds of figures, whether it is politics, economy or diplomacy, she has her own unique understanding - the position of Italy's chief intellectual hostess is not held out by the president, but has two brushes.

"What do you want me to do?"

"First, tell me that the situation in the United States is complicated, the Federal Reserve is unstable, and I must stay in the United States to continue to deal with affairs - I had told the leader that I would return home in late April, and he is still waiting for me to be appointed secretary of education."

"Doesn't you seem to want to hear that?"

"It's not that I don't want to, I have a good candidate for this position - the former president of the University of Rome Capello, he is our man, and he has expressed his closeness to me, as long as I operate successfully."

Adriana was shocked at this time: Contini, who was still studying at the University of Rome a few years ago, could now run a rector to be the Minister of Education? It's incredible!

"So I can't go back now, I've got to get Capello to take this seat first." Contini smiled, "As for the position I want, it's the Minister of Transport. ”

"That's not ......," Adriana was about to say to His Excellency the Count, but the words suddenly became on her lips, "Isn't that our father's position?" ”

"After I got engaged, my father was a little flustered, his work was not as attentive as before, and his mentality changed subtly......" Contini sighed, "I know that I shouldn't have given my mother the 10 million last time, and my mother must have stimulated him with this when she went back, so he is now focused on money, and has found several companies with insufficient qualifications or poor level to contract business, in order to get more consulting fees, he thinks I don't know, how can I not know?" Every company engaged in the construction of engineering projects in Italy is filed with me! According to the rebate they gave and the price of the contracted project, there is a ghost who can complete the task with quality and quantity, and he must cut corners, so I let people warn them and make up the money for them. ”

Adriana covered her mouth and laughed: "After doing it for a long time, the money our dad got turned out to be from you......"

"The point is that he doesn't want my money, he wants face...... Well, give him a bigger face. "Director of the Grand Fascist Council!" I'm ready to run him in this position. ”

Theoretically, the Grand Fascist Council is equivalent to the president of a unicameral parliament, and its status is very high, almost as Mussolini's deputy, but in reality, because all power is in the hands of the executive and the legislature is useless, so the old Ciano will get a high and powerful position.

"Can he agree?"

"Why not? He likes money more than power now, so it would be nice if I arranged for a few more people to give gifts...... Anyway, from the left pocket to the right pocket, although our father has 4 daughters-in-law, but after all, there is only one son, and my mother is in charge outside, and he can't move at all. ”

"Nasty! People are still single, and they have never even been married......"

Contini slapped Adriana on the buttocks and joked: "I don't know if the marriage certificate is or not, it's my person anyway, and my son is also my ......"

Adriana "giggled" and said, "Well, it seems that you are stalling for time and waiting for other appointments, so when exactly will you come back?" ”

"I don't know......," Contini looked up at the ceiling, "it could be July, it could be August, it could be October – as soon as the crash hits, I'm ready to go back." ”

"Is there really going to be a stock market crash? Isn't market volatility suppressed? Adriana was taken aback, "When will it break out?" ”

"I can't say it, if it's fast, it's possible next month, and if it's slow, it's at least half a year." "I'd like to be a little bit slower, because I still have $800 million in shares on hand and 400 million ...... here at Union Bank," Contini explained.

"I still have more than 7 million here."

"Leave the account, if the reduction is less than 10 million, I will be responsible for making up for it, and you will go back and do a good job in Italy!"

"Do you need me to promote the inevitability of the economic crisis or the stock crisis in Italy?"

"Let's just say it in vague terms, let's just say it's my point of view - Italy has developed relatively rapidly in the past two years, and some industries are very dependent on the external market, so we need to be vigilant......"

"Can I add a little bit of personal analysis? I interviewed in the United States for 2 months, and I vaguely saw the frenzy and the irrationality behind it. ”

"Of course you can, you are the chief intellectual female anchor in Italy, of course you must have your own voice and logic system."

"Love me well again...... Not when I go back. ”

Soon the bedroom was filled with frenzied weeping......