Chapter 179: Gold in Troubled Times
Because of Doris, Monet has been more careful when he reads the newspaper recently, and when he saw the second page of the New York Post that day, he suddenly saw a message that made him frown.
In fact, this news should be read in conjunction with a news story last month, when President Hoover asked Congress to make rules to reduce tariff rates, but just yesterday, Congress made a final decision, and they not only rejected Hoover's proposal, but also accepted a new bill proposed by Senator Reed Smoot of Utah to raise tariff rates.
In the new bill, known as the Smoot-Hawley Act, the U.S. government will raise tariff rates on 2,000 imported goods, including agricultural products, in hopes of increasing the market share of domestic companies.
This bill would have been reasonable if it weren't for God's perspective, but before it crossed over, it was seen as the trigger for the Great Depression in the United States. Because it was the promulgation and implementation of this bill that triggered the tariff trade war between the United States and the world, which caused the United States to lose almost all of its overseas markets.
Especially combined with the recent general strike of cattle farm workers in Kansas, which initially only had more than 1,000 participants, to everyone's surprise, it spread rapidly, and in just two days, it has spread to the entire state of Kansas, and began to spread to Oklahoma, Colorado, South Dakota and other states.
According to today's newspaper report, as of yesterday afternoon, nearly 200,000 livestock workers had participated in the strike, and countless ranches in Kansas were all affected.
In New York, the price of milk skyrocketed from 76 cents a gallon to $1.24 a gallon, nearly doubling in price in two days. At the same time, there are also meat products such as fresh beef and ham, but the price increase is not as exaggerated as milk.
The cause of the strike is actually very simple: the workers demanded a wage increase. Although recent years have been called an era of economic growth, the reality is that workers' wages have risen very limitedly, and prices have risen rapidly, making life increasingly difficult for workers.
And that's not all, many farms are now using state-of-the-art machinery, which has caused many workers to tie the grass, make feed and raise cattle out of work.
As a result, the current situation in the United States is that on the one hand, productivity has increased and products have increased dramatically, but overseas markets are about to be lost, and the internal market is not sellable because of the lack of spending power due to the layoffs of workers and the lack of wage increases. (Does this scene sound familiar?) )
On the other hand, the stock market is abnormally prosperous, with banks lending frantically and countless people speculating in the stock market with crazy leverage, thinking that the stock market will continue to rise like this forever.
The combination of these problems will inevitably lead to an economic crisis caused by overproduction. In other words, the U.S. economy, which seems to be good at the moment, is actually on the verge of collapse, but no one can detect it yet. Maybe someone has noticed it, but not only does they not want to stop it, but they even want to take the opportunity to make a fortune......
So Monet began to instruct Tang Yibo and Doris: "Let go of the stocks in your hand slowly, and then start buying gold!" ”
The reason why Monet said this is because the rule of "prosperous antiques, troubled gold" is applicable in the United States, and there is no "Emergency Banking Act" in 1933 and "Gold Reserve Act" in 1934, so gold in the market can still be bought and sold normally, and an ounce is only $20.67, and you can get the goods by paying in the bank. And when the stock market crashes, the trading volume of gold will climb sharply, and the price of gold will skyrocket.
Of course, you still have to be short, but this time the scale is not too big, because last time there were those consortiums to support the bottom, this time there is no more, and this economic crisis lasts too long, if you make too much money at this time, it is easy to become the target of public criticism, your own foundation is still in New York, and you don't want to flee to other countries so soon.
Tang Yibo is naturally the only one who obeys Monet's orders, after all, this is not his money, he is just a trader, but Doris is difficult to understand: "Tony, now that the stock market is so good, why do you sell them all?" ”
Monet sighed and replied, "Because the stock market is going to crash soon, so don't be trapped in it!" ”
Although Monet was telling the truth, Doris didn't believe it, so she only verbally promised him, but in fact she was secretly still buying stocks, and Monet didn't say anything after knowing it, because he felt that he had done his duty.
Then Monet adjusted the future circulation of several magazines under his control, reducing the printing of "Comet" and "Playboy", but increasing the printing of "Reader's Digest", because he remembered that "Reader's Digest" was originally popular during the economic crisis, after all, in this case, everyone could not afford to buy so many magazines, so a digest that encompassed the essence of all magazines could play a substitute role.
In addition, Monet kindly reminded all his familiar friends such as Chen Yuanqi, Albert, Michael, Sheriff Klein and others, reminding them to withdraw from the stock market as soon as possible, and would rather lose a little less now and must cut the meat and leave, after all, it will not be cutting meat until next month, but jumping off the building!
But it's a pity that everyone doesn't think so, because recently President Hoover also came out to give a speech "slums are about to disappear from the United States"!
To Monet's surprise, Jessica, who should not have understood finance, firmly supported Monet: "Tony, I think what you said is right, because the current situation is really abnormal, as if everyone has money, but in fact most people have no money at all, and they owe countless foreign debts."
I don't know what financial bubbles you said, but I observe these customers in cafes all day long, and almost all of them have borrowed a lot of money to speculate in stocks, but how can stocks always make money? ”
PS: Complain about the planning of "Tianxia 3", I welcome the new plot, because I am the plot party, but what does it mean that your plot is getting more and more complicated? You must know that you are a novice plot, there are few newcomers who have come to play MMORPG this year, and you know how much you dissuade you from making the novice plot so complicated? I doubt you're an undercover agent sent by the penguins!