Chapter 10 Money Makes Money and Buys Stocks
In the twenties and thirties, the international banking syndicate was controlled by the Rothschilds.
Although compared with before the First World War, after the severe damage of the First World War, many consortia that were directly and indirectly controlled by the Rothschilds also took the opportunity to set up their own doors, resulting in the Rothschilds are not as good as before. But after all, the emaciated camel is bigger than the horse, and the Rothschilds' financial resources still influence the world economic pattern and political trends.
Zhang Meng is well aware of the huge power of this family, and the economic crisis is about to erupt, it is impossible for them not to smell the danger, let alone take no action.
The Tang Empire had just been established, and Datang Bank, as the only issuing bank of Tang Yuan, would naturally be targeted by international banking groups. Traditionally, newly issued currencies are bought, hoarded, and speculated on a large scale by banking groups in various countries, and then seek the middle price difference.
When these banking groups bought Tang Yuan on a large scale, Zhang Meng quickly established contact with them through Datang Bank, and exchanged the dollars and pounds he needed through transactions. In order to join the international banking syndicate, Zhang Meng had to take out fifty tons of gold as collateral in exchange for their trust in Datang Bank and Tang Yuan.
Of course, Zhang Meng knew very well in his heart that this group of banks who ate people and did not spit out bones wanted to squeeze out the fifty tons of gold from Datang Bank.
The international banking syndicate did not know Zhang Meng's true purpose, and they were blinded by the immediate interests, so they happily accepted the joining of Datang Bank, and Zhang Meng's purpose was also realized, and he could enter the U.S. stock market and financial market under the banner of the international banking syndicate.
Obviously, the international banking syndicate would love to see Datang Bank inject money into the U.S. stock market and the financial industry, because they all want to see Datang Bank trapped or even bankrupt so that they can swallow those fifty tons of gold.
The international banking group was not well-intentioned, Zhang Meng only laughed at them for being weasels to give New Year's greetings to tigers, and they would cry when the time came.
The main purpose of Datang Bank's participation in the International Bank Syndicate Alliance is to borrow $100 million in foreign currency from the international banking syndicate to invest in 50 large U.S. stock markets by using a large amount of currencies from various countries in the international banking syndicate reserves and using 50 tons of gold as collateral.
Zhang Meng didn't actually need this money, he mainly used this loan to block the international community's suspicion of the huge amount of money in his hands.
Zhang Meng's hard currency worth $1.1 billion and international loans worth $100 million plan to complete the printing of 3 billion Tang Yuan before the US stock market reaches its highest point; at present, the printing plant is working 24 hours a day to print banknotes, and more than 20 million Tang Yuan a day passes through the books of Datang Bank and then quietly flows into the US stock market and financial market through the major banks set up by international banking groups in the United States.
In order to cover up the capital chain of Datang Bank, Zhang Meng specially hired more than 200 international financial accountants and traders, and through the international settlement operations of 15 major foreign currencies of more than 500 banks, he used many borrowed names to change hands to cover up the international audio-visual situation, so that people could not inquire about the source of funds of Datang Bank, and they all thought that it was a loan from an international banking group.
In August 1929, the danger of the bursting of the bubble economy in the United States was already very great. During this period, the average annual income of Americans was less than $2,000, and 80% of the country's automobiles, houses, and small and medium-sized companies relied on bank loans to complete their operations. In fact, the US presidential think tank has already had a considerable understanding and advised President Hoover to immediately cool down the stock market and curb the economic growth model dominated by real estate. But Hoover had just taken office, and in order to make good on his campaign promises, he could not stop the U.S. economy at this time. Previous governments have owed huge amounts of foreign debt to banks through stimulus measures such as real estate and automobiles, and if they were stopped, the government would have to shut down immediately. The money-starved Hoover administration will not only fail to stop the US economy, but will have to introduce a bill to continue to stimulate real estate purchases, land purchases, and automobile consumption to make money to fill the government's foreign debt hole.
As a result, by August, there was a fourth wave of a new round of crazy economic growth with real estate as the main force, and 8 million units of urban commercial housing were approved by the government to start construction. As a result, the U.S. stock market ushered in the fourth largest gain.
Zhang Meng took advantage of this round of sharp rise in the U.S. stock market and used his huge amount of money to buy U.S. stocks, intending to make huge profits in the last ** rally before the U.S. stock market crash.
By 1 September, Datang Bank had injected 2.3 billion Tang dollars into the US market through various channels, of which the amount injected into underground US banks was as high as 1.2 billion Tang dollars.
In the presidential suite of the Morgan Hotel in New York, Zhang Meng drank grape wine and enjoyed Xiao Zhao's gentle massage, while listening to Zhang Wei and Zhang Zhong's work report.
"I knew that Tang Yuan, who should have issued a face price of 10,000 at the beginning!"
Zhang Meng planned to inject 3 billion Tang Yuan, but as a result, the printing factory was overloaded for two months, and one-third of the machinery and equipment were broken, and the new equipment could not arrive and put into production in time, and finally only 2.3 billion Tang Yuan was printed before Zhang Meng's scheduled date arrived.
Looking at Zhang Meng's face full of enjoyment, Zhang Wei suddenly rolled her eyes and said angrily: "Let's hurry up and sell the stocks!" ”
Zhang Zhong next to him saw Zhang Wei's eyes, and immediately said: "Yes, Your Highness, we have already made a lot of money, hurry up and stop it!" If the stock falls, even if it falls a little bit, we will lose a lot of money! ”
Since Zhang Meng began to print money on a large scale to invest in the US stock market, Zhang Wei, Zhang Fu, Zhang Zhong and others have been worried all day long, for fear that this astronomical huge amount of money will be lost all at once.
Because Zhang Xinhai experienced the storm in the Shanghai stock market, he almost lost a lot back then, and he still has palpitations to this day. Therefore, Zhang Wei, who knew the details, reminded Zhang Meng that she did not tell the old man about it, which intensified the worries of Zhang Fu and Zhang Zhong, who were servants of the Zhang family.
And Zhang Fu is old, and he has been worried for the past few months, and finally he can't hold on to falling ill in bed, Zhang Zhong is stubborn to hold on, he has not experienced so much money when he grows so big, fortunately, he is young and has received hellish training and is physically strong, otherwise he will be frightened.
"It's almost, the Dow Jones stock index will rise to its peak tomorrow morning, so we will sell all the stocks in our hands as soon as the market opens early tomorrow morning."
Hearing Zhang Meng's relief, Zhang Wei immediately patted her little liver, and finally breathed a sigh of relief, but these days Zhang Meng died of worry. Glancing at Zhang Zhong, he couldn't help but feel relieved.
Seeing the scared look of the two of them, Zhang Meng secretly begged in his heart, this is just the beginning, and the real big head is still to come.
Zhang Meng knew that the Dow Jones stock index would reach a peak of 363 points on September 3, so he had no fear.
Zhang Wei immediately called the representative offices of the banks in charge of the international banking syndicate, and ordered the sticking staff to immediately throw away all the stocks in their hands and cash out, and transfer the funds back to Datang Bank through the international banking syndicate channel. Zhang Zhong is responsible for the transaction of underground banks, through the major underground banks, all the shares are transferred, and then the funds are transferred back to the New York branch of Datang Bank through the channels of underground banks.
The New York Stock Exchange was unprecedentedly busy early on the morning of September 3, with trading volume exceeding 16 million shares on the day, and people still believed that the bull market in the United States would continue, and they continued to bet on stock appreciation, and even a considerable number of businessmen bought stocks at the expected price of 365 points.
Keep in mind that the average price of the Dow Jones is $100 per point, and buying a stock at a price two points higher is equivalent to spending $200 more per share. And there are so many businessmen who are willing to spend more money, and more than one-third of the stocks in Zhang Meng's hands are sold at this price.
Zhang Meng was shocked and sighed, surprised by the madness of the stock market, and sighed that this group of desperate gamblers soon had to lose all their money and jump off the building.
At the close of the day, Datang Bank sold off all its direct and indirect shares, cashing out a total of $3,296.18 million, making a profit of nearly $1 billion.
"If only I had bought stocks earlier, I only made 1 billion!"
Zhang Wei and Zhang Zhong no longer know what to use to describe Zhang Meng at this moment.
No man is content?
No! If the snake is big enough, the elephant can swallow drops!
Is this what money makes money?
Yes!
Zhang Meng told Zhang Wei this before, but Zhang Wei didn't believe it at all, and now she finally saw what it means to make money.
Looking at Zhang Meng's leisurely appearance, Zhang Wei couldn't help but be stunned, and her heart was full of emotion: Zhang Meng, what kind of person are you, why can't I see through you now?
"Your Highness, will you immediately exchange it for gold and silver and send it back to China?"
Zhang Meng had previously told Zhang Zhong that when they returned to China, most of the money they earned would be converted into gold and other hard freight to return to China as the gold reserve of the Tang Empire.
Zhang Wei also had this intention, but waiting for their answer was unexpected.
"Nope! And that's just the beginning! ”
Zhang Meng smiled slightly, revealing a semi-white tooth.
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