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XG people are not stupid. They are very smart. Soros is impossible. He suddenly accepted an interview with Fortune Magazine. In the interview, he pointed out XG’s economic problems by name and name. This shows that he has to start directly. Intimidate XG, use your own reputation to scare G coins to collapse on their own!

For a while, the entire XG elite was frightened. Some elites immediately tried to sell the Hong Kong dollar, but found that the exchange was not open.

Then the elites are even more frightened. This is because ZF will not let them run away!

In fact, it’s not that they are not allowed to run, it’s just that they are closed and rested normally because of holidays. These people are really frightened.

On the other hand, the relevant departments of XG are also impossible to wait and die. In fact, they have foreseen Soros’s problem a long time ago. After studying hard for more than half a year, they finally came up with a very powerful solution.

They believed that as soon as this method came out, Soros would be driven back immediately.

So what is this magic method?

That is to increase the exchange rate of G currency lending.

They studied many cases of Soros and found that his short-selling routine is actually very fixed.

To put it simply, first lend the local currency from the bank, and then immediately sell these currencies to US dollars.

Next, I used all kinds of news and methods to suppress the currency exchange rate. Finally, when the exchange rate dropped a lot, the U.S. dollar was exchanged for local currency again and returned to the bank where they borrowed the money.

In this way, you can earn a lot of dollars from it as an intermediate profit.

So the relevant departments of XG were surprised to find that they only need to raise interest rates and make Soros unprofitable to borrow money.

To briefly explain again, suppose that before the interest rate adjustment, Soros wants to borrow from XG’s bank for a period of three months, a total of 1 billion GB, and needs to pay 5% interest as the bank’s income from borrowing money, then When the three months expire, Soros needs to return 10.5 billion GB to the bank when he repays the money.

In other words, Soros’ short XG profit must exceed 500 million GB in order to be profitable.

However, after the relevant authorities have decided to increase the reception rate, for example from 5% to 20%, when the time comes, Soros will return 12 billion GB to the bank, which means that he must earn at least 2 billion GB. The above profits can be profitable.

As a result, Soros’s difficulty in making profits is greatly increased, and profits will be greatly reduced. If you add various operating costs and labor costs, then this business will be unprofitable.

So as long as Soros is smart enough to see XG increase the borrowing rate, he will give up.

Not to mention that the relevant departments of XG have been spared at this time. They directly increased the interest rate from 5% to 30%, which is a six-fold increase. In the eyes of people in these departments, Soros decided this time as impossible. Those who come to engage in XG will lose money!

Not to mention the results, the effect is really good, no one will go to the bank to borrow money for a while, and if you can’t borrow money, naturally there is no situation of suppressing the exchange rate, everything is so perfect.

And XG’s society and elites are a little relieved to see the response of relevant organizations so quickly, it seems that Soros’s catastrophe is over.

But after a week or two of being happy, some people found that something was wrong, and XG’s stock market began to experience a significant decline.

Then it was news that several companies had to declare bankruptcy due to funding problems.

This allowed XG, who had finally calmed down for a while, to begin to smoke again.

The relevant XG agencies began to investigate intensively, wanting to see if it was Soros’s handwriting, and then they relaxed, because there is no Soros’s problem, and the decline in the stock market and the closure of the company are normal. Business issues.

But the relevant organizations can’t laugh, because the reason these companies go bankrupt is because they ran out of money.

This seems normal. If the company has no money, it will go bankrupt. This is as it should be by rights.

But these companies shouldn’t have to go bankrupt.

Be aware that not all companies in the world are like Boss Jia’s Great-Thousand with such ample cash flow.

In fact, more than 90% of the companies on the market need to rely on bank loans to operate. The bigger the company, the more so, because in the process of expansion, in order to pursue speed, these companies will choose bank loan.

It is unrealistic to make all the loans back in a short period of time, so the best way to fill the loan is to take another loan and use the funds from the latter loan to make up for the cost of the previous loan. , And then repeat the process again and again.

I believe those readers who have a lot of credit cards, and loyal users of a series of APPs such as Huabei, Borbe, Microcredit, Xiaomi Finance, JD Baitiao, etc., must be very familiar with this routine.

These are normal for most companies. As long as the company can maintain operations and have a certain profit, there is no problem with these accounts. As long as it can borrow new loans from the bank in time, continue Just maintain the capital circulation of this Russian doll.

Most large companies in the world operate in this way.

But these companies never dreamed that the interest rate on short-term loans from banks would instantly rise 6 times, from 5% to 30%, which would really kill these companies that rely on loans to survive.

Let’s borrow money, the interest is too high, I will definitely not be able to pay it back later, when the time comes, I owe more to the bank.

If you don’t borrow it, the last loan will not be repaid, the company’s normal operating funds will be empty, and the company’s account will become cleaner than beggar’s job.

Faced with such a situation, many companies can’t handle it. They neither want to borrow money nor can they repay it, so they can only declare the company bankrupt.

Of course, there are some smarter ones. They will choose to put all the company’s current funds together, and then go abroad for inspection under the pretext of going back and so on next week, and not going back to XG in this life.

If there are only one or two such companies, it’s nothing, but when more than 2% of XG’s companies have similar problems, the stock market will inevitably start to fall.

Especially when the elites in the stock market know the reasons for the large number of company failures, and XG related institutions have an impossible recovery policy in a short time, there will be more companies as the funds mature, but they cannot borrow new loans. , And when you have to run away, the stock market will usher in a sharp drop.

On December 28, 1997, in just three hours, G shares fell by 3,000 points, from a valuation of 15,000 points to 12,000 points.

When time entered January of 1998, in this brand new year, G shares also ushered in a new trough. G shares fell below 10,000 points, a record low in nearly 5 years. , The whole story was wailing for a while.

I believe everyone understands that, like South Korea before, this time XG also pitted itself.

What’s even more frightening is that when some people began to study the stock market carefully, they found that the stock market has had a lot of short orders since November, and all of them bought from Hong Kong stocks will fall sharply. These short orders add up to nearly With a huge volume of US$20 billion, it is equivalent to 20% of the market value of the entire Hong Kong stock market.

I will explain by the way what is called a short order. In fact, the operation is the same as the exchange rate, that is, I first borrow a part of the stock from the institution holding the stock, agree to return these stocks 3 months later, and then give a sum of 5 % Interest.

After that, they sold it in the market and exchanged it for cash.

Then in the next three months, as long as the stock market falls, then the capital for repurchasing stocks 3 months later will also fall, and 5% of the interest will be removed in the middle, and the rest will be all empty Profit.

If joining the entire stock market can drop by about half, then a short order of 20 billion US dollars can make a profit of 10 billion US dollars, which is pure profit.


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