Chapter 82: Sprinting to the Crisis (3)
Contini understood Francisco's opinion: he advocated the transfer of the big into the small, the whole into zero, and the method of moving ants, which was slower but safer, and he couldn't help asking: "How do these capillaries be transferred?" β
"Mainly through trade diversion." For example, Francisco said, "For example, if United Real Estate and United Construction go to the United States to contract projects, and then import raw materials from Italy, such as PVC pipes, in fact, one only costs $1, and we deliberately price $2, so that for every $10 of business, $5 is transferred through trade; Of course, the PVC trade is still too slow and too little, we can use a more violent method, register a shipping company in the United States, and then buy ships from the United Shipyard, each ship is millions of dollars, you can order it 50 ships in one go, and then part of the deal, part of the contract, the broken contract will naturally be in the account, and the part of the real purchase of the ship does not need to worry, when the shipping company orders the ship back to Italy, the thing is still controlled in the hands of the group - I believe this is not a waste, we must use the ship. β
"There are also some transfers through the private sector." Francisco smiled, "Since Union Bank has opened a branch in the United States, it can accept remittances from Italian descendants to the country, and there must be other European remittances such as French descendants and German descendants, and we can add them every time we make a remittance transfer, and the remitter remits 1,000 US dollars, and we can add this number to 3,000 or even 4,000, such a small transfer will not attract attention, but it can facilitate our operation, but there are some risks, and the employees who handle it need to be reliable, So it may be necessary to send people from here in Italy, and they will have to rotate regularly. β
Contini shook his head: "Forget it, the latter method is too dangerous, we are not a gangster money laundering after all, so it becomes very close, once it attracts an investigation, it will lead to burning." β
"Actually, I think the best way is to turn the capital back into physical goods." "Just $5 billion would cause an uproar, but if it's $4 billion in materials and technology, and the other $1 billion becomes money, I think it's good for Italy." Because the country's industrial strength itself is not strong and the productivity is too low, a rash increase of 5 billion yuan will not only not solve the problem, but will cause a sharp inflation of the currency, and eventually destroy the Italian economy, and the ultimate purpose of this 5 billion yuan is to develop the economy rather than engage in speculation. β
"It's not all about the economy, it's about national defense." Contini told about the idea of preparing to spend $50 million to build a battleship, and Francisco was also stunned when he heard it, there is still such a consortium leader in the world? But as soon as he remembered Contini's title, he was silent again, and this kind of thing seemed inevitable.
Contini didn't dare tell him the truth about the IdaβVivien was still on board.
After chatting for a long time, it was time for lunch break again, and as soon as Contini returned to his cabin, he was entangled by a soft body: "Honey, you stayed for a long time before you came back." β
"I'm going to discuss serious things with my father-in-law......
Hearing him shout "father-in-law" so loudly, Vivian couldn't help but snicker: "Okay, don't emphasize it so deliberately in front of me, just have me in your heart, I really don't care about the name or anything......"
Contini couldn't say anything, only a deep kiss in return.
"But what are you talking about? Tell me about it......"
"We're talking about how to transfer money from the United States to Italy."
"Do you have to worry about this? With cashier's checks and checks...... That's how I got those millions of dollars back last time. β
"But what if it's not millions?" Contini gently hugged Vivian's waist and said in his ear, "I have a few hundred million dollars to transfer back, and I don't want the Americans to find out the truth." β
"Uh......" Vivian was also stunned, she didn't expect Contini to say this, and after thinking for a long time, she said, "Then I can't think of it, I only have a stupid way, exchange the money for gold, jewelry, diamonds and other valuable things and then ship it back!" It's better to have gold, not to mention that this thing retains its value, and it is easy to value! Jewelry and diamonds are sometimes priceless. β
"Baby, you're so smart!" Contini was not overjoyed because Vivian reminded him that he could use gold and diamonds to transfer wealth, but he suddenly remembered that after the Great Depression began, Britain and the United States and other countries successively broke away from the gold standard, and the United States also implemented the "Silver Act".
"I hate it, people are stunned by you......"
"I'll check it for you." Vivian felt dizzy on his head, but the part that the domineering president "checked" was underneath, and in order to facilitate the "inspection", he also began to untie his clothes......
After spending the afternoon in the boundless spring, I continued to sit down at dinner time to ponder the question of how to maximize the benefits of capital. Now that the plan to ship the money back has been figured out, and even the idea of hoarding precious metals such as gold and silver has been approved by Francisco, the focus of the problem is how to harvest the stock - to sell the stock without causing a market crash, or at least not to let the stock market collapse until the stock is cleared.
"There are two ways: first, from next year onwards, such a large number of stocks to change hands, not a day or two, a week, two weeks or even a month or two months can be cleared, must last for a long time, so it is impossible for all stocks to be thrown at the highest point, must continue to retreat, each time using an opportunity to retreat or sell; Second, we set up a securities company to conduct formal over-the-counter trading ......"
Contini asked curiously: "What is a formal OTC transaction?" β
"The so-called over-the-counter transaction does not actually hold a real position, but the organizer takes advantage of the concentration advantage to match the bet before the investor, and if it cannot find a suitable counterparty, it will make a bet with the investor." Francisco smiled, "But you're different, you hold a lot of stocks, so if they want to buy, you can just cut out the stocks, so that you don't actually enter the market to carry out price locking and hedging, really when you sell, there is no problem with any price, anyway, it's already locked, of course, you have to trade the active part, inactive stocks can't......"
Francisco spoke with great interest for most of the night, telling all the routines of how to cut leeks: what is high and upside, distribution at high prices, good shipments, bad chips, following the trend of selling, creating concepts, and shaking the market, all of which are theories that Contini has heard of but never practiced, and Leo has also talked about these truths, but Leo is too awkward and too theoretical, and there is no vivid image of Francisco.
"Of course, I am also talking in generalities, after all, I also realized after observing that the real operation needs to hire a few good level traders, a good strategy is the premise, and the trader is a tactic, which must be cooperated." Francisco laughed, "But we are different from ordinary stock speculators, banks are a combination of finance, credit, interest rates and cash flow, so sometimes the approach is more conservative, not as aggressive as theirs, either get rich or bankrupt, the risk control of the bank makes it impossible for me to do this, so we usually don't bet on unilateral, basically with the foreign exchange, bond market and even the bill market, and if we do it in the United States, we don't have to think about it so much. So you need good traders. β
Contini smiled and nodded: "The trader is not in a hurry, I have the right candidate." β
When it comes to traders, is there a better candidate than Jesse Livermore, the most legendary big short in Wall Street history? Although Livermore is also considered the number one person on Wall Street, it is still not enough to see in front of the president of the rich country, and Contini feels that there is a way to control him. Of course, it's too early to talk to Livermore about this, it's only February 1927, and the market is still on the eve of a crazy rally, talk about a crash? It's too early!