Chapter 438: Black Monday
What to do? While throwing out dollars, they began to ask the United States for help.
Now is not the posterity, the current Britain is still the main ally of the United States, a stable position against the Soviet Union, and if there are huge problems in the British economy, it will be equally unacceptable to the United States.
London can no longer control the problems in Hong Kong, and has even begun to regret the foreign exchange reserves that it had borrowed from the past, and if it had not touched those foreign exchange reserves, it would not have been seen by world capital.
Now, the only way to do this is to ask for the support of the Americans.
After receiving the help of the United Kingdom, the United States quickly stated that it could support about $20 billion to help stabilize the pound market.
However, the Americans did not know that an even bigger storm was playing out in the United States.
Friday, October 16.
On this day, as usual, the stock exchanges in the United States were crowded.
It is not only the Hong Kong stock market that is hot, but also the US stock market, which is ridiculously high.
Since August 1982, the U.S. stock market has risen for five consecutive years; By now, the New York Stock Exchange has nearly tripled, from $1.1 trillion to $2.8 trillion. One in three U.S. adults goes directly to the stock market, and millions more benefit from the stock market through retirement funds, IRAs, insurance and other plans. And Pakistan's money, a large part of it, also flowed into the US stock market, from which it received high returns, and of course, all Pakistani money has now slipped away.
A month ago, Hong Kong's stock market fluctuated, and it quickly turned into a stock market crash, and the stock market crash in Hong Kong also led to a downward trend in the U.S. stock market, however. The momentum was quickly curbed.
However, the high stock price is pregnant with danger at any time, and without the manipulation of external funds, the US stock market suddenly fell sharply.
When everyone watched the curve begin to decline, they all became as nervous as the people of Hong Kong. What to do? Keep holding the stock, or sell it out?
Many people's choices are the same, you can't smash these stocks in your own hands! Sell your stocks!
On this day, the Dow Jones Industrial Average closed down 108.35 points to 2,246.74, with an unprecedented 388.5 million shares traded. It's just that this is still a prelude to the big storm.
It is Friday, and the stock market can rest for two days, and on Monday. is the most terrifying.
In the face of changes in its own stock market, the US government is also anxious, and the collapse of the stock market in any country means that there will be problems in the economy and that the ruling party will attract public dissatisfaction.
How to save the American economy? For a strong America, every time it encounters a risk, it passes on the risk. Strong force is the foundation of the United States.
Thereupon. After urgent consultations, on the morning of Sunday, October 18, US Treasury Secretary Baker solemnly announced that "if the Federal Republic of Germany does not lower interest rates, the United States will consider allowing the dollar to continue to fall".
Now, only the German mark is the strongest. Their deposit rates are high, attracting a lot of money, and only if German interest rates come down will there be money flowing into the US stock market.
However, Germany is stubborn. Under pressure from the United States, it continued to maintain its own monetary policy. This is obviously bad news, and the impact is global,
Monday, October 19.
U.S. force continues to be used around the globe, with U.S. warships attacking an Iranian offshore oil platform in the volatile Persian Gulf. Recently, the situation in the Middle East has not been peaceful, and the sharp reduction in crude oil production has also been a reason for the deterioration of the US economy.
Phelan, the chairman of the New York Stock Exchange, entered the exchange with heavy steps, and he knew that what happened today would be quite troublesome.
In the exchange, there are not only ordinary employees, but also the police, in order to prevent possible riots in advance.
Seeing that their wealth is shrinking, no one will have a good temper, and they are likely to act against traders on the exchange, dislike traders for moving too slowly.
"Okay, let's get started. I hope you stay calm and maybe we can make it through this alive. Looking at the computer in front of him, Phelan plucked up his courage and said.
"Knock, move." At 9:30, the opening bell rang, and when the opening was over, there was a large-scale selling, and everyone expected it to fall at the end, but no one thought about how far it would fall.
The Dow Jones began to plummet, falling by 200 points in a matter of minutes.
All of them were selling stocks, but there was not a single buyer, which led to a further decline in the index, and the situation became out of control, exactly like what happened in Hong Kong.
The White House could not sit still, and White House Chief of Staff Baker had spoken on the phone with Wall Street to inquire about the stock market. He needed to report to the president everything that happened, but unfortunately, his report could not keep up with the changes in the stock market, and in the last half hour, the Dow Jones fell another 130 points.
At 4 p.m., the New York Stock Exchange closed. No one can face this reality, the stock market has collapsed.
The Dow Jones Industrial Average fell 23,508 percent to close at 1,738.74. All the losses combined, amounted to $560 billion, which is about the same as the French GDP!
This decline even surpassed that of 1929, when the Great Depression occurred, when it fell by 13 percent, and the total decline did not exceed 30 percent, and today, in just one day, it has fallen by more than 20 percent! It can be guessed that after the market opens tomorrow, the decline will be even more severe.
At this time, the United States can't even take care of its own economy, so how can it take care of its own little brother.
The pound continues to depreciate, and the British government hopes to borrow more dollars to exchange for the pound in order to maintain the exchange rate of the pound.
Moreover, the stock market crash in the United States began to spread to the whole world, and the British economy, which had already begun to be unstable, deteriorated even more, and the stock market crash also affected London, and the stock market began to shrink sharply.
At the same time, in the process of the depreciation of the pound, someone made a big profit, and the size of the quantum fund increased from $15 billion to $19 billion. It was later expanded to $22 billion. And Soros and his partners earned at least 20 percent of the $7 billion in appreciation, because the funds were raised, and he earned commissions, and for that alone, he earned more than $1 billion. This was Soros's biggest operation, and it was a complete success.
Of course, he also knows that this success is mainly the result of another huge amount of money, if only him, it will not be able to complete this sniping on the pound, this fund, which consortium is it?
Anyway, supervise the flow of these funds, and follow along with them to make money!
Islamabad.
"A march broke out in Britain against the ruling party's misguided economic policies, which led to economic turmoil in the UK." Lilith said to Mhammad: "This winter should be the saddest winter for the British. ”
"British, this is deserved, even the Quantum Fund will not let go of this opportunity." Mhammad said. If you dare to add blockage to Pakistan, then there should be such a result!
In later generations, there are fewer and fewer large-scale wars, and dealing with a country is mainly an economic war, and this time, Mhammad was able to launch an attack on the British economy, using a developing country against a developed country, or an old capitalist country, the main reason is that Mhammad has the knowledge of later generations, knows that there will be a stock market crash, knows the loopholes of the Hong Kong dollar, knows that the British foreign exchange reserves are insufficient, and of course, more importantly, after several years of speculation, Pakistan has moved huge sums of money abroad, and these funds can become a terrible weapon.
"We have earned another $20 billion in revenue this time through the operation of sniping the pound." Lilith said: "Now, all our funds have been transferred to the island country, and after a period of circulation in the island country, it can flow back to Pakistan. ”
Although these riches are very huge, Pakistan cannot use them immediately, it is still the Cold War period, the United States and Britain are brothers, and the pound is maliciously sniped.
It circulates in the market for a period of time before it can be secretly returned to Pakistan to support Pakistan's economic construction.
After several years of development, Pakistan has undergone earth-shaking changes, and it has almost become the industrial center of South Asia.
At the same time, after several years of education, a steady stream of highly educated people have entered Pakistan's jobs, driving Pakistan's economy to continue to develop healthily.
"Well, Lilith, good job." "Financial warfare is also a tool that we can wield," Mhammad said. ”
Mhammad could even think that it would be good to visit those small countries in Southeast Asia at the right time in the future.
Leaving Lilith's office, Mhammad returned to his room, where Musha'f was already waiting for him.
"President, there is two pieces of good news." Musha'f said to Mhammad.
"Speak." Mhammad also had a smile on his face.
"The first is the deal between India and the United Kingdom, and the contract for the forty Tornado fighters has been blown up." "We held a military exercise on the border to deter the Indians, and then our ambassador went to Rajiv to collect the debt and succeeded in recovering five million dollars," Musha'f said. (To be continued......)