Future chat group - Chapter 879 Easier said than done
The more things you have, the more constraints you have.
With the current development speed of Yajin Investment and the Thunder, Lei Hao is very clear that the chance of him getting a full-scale battle in the future is very small. What is more likely is that when the capital showdown comes, the one who takes the lead will not It was him, or maybe by that time, he would have accumulated enough chips to win without a duel.
However, maybe the situation in the world financial market has undergone major changes during this period? Maybe World War III has broken out? Maybe the future information is missing?
There may be too many possibilities. Why should I wait for the favor of time when I can still control everything?
Now the Thunder are about to rise, Yajin Investment is trusted by all shareholders, Yajin Investment’s board of directors has almost collectively delegated power, and its reputation in the financial circle has reached its peak. Why not seize the opportunity?
The Eastern dragon is raising its head, the European lion is licking its wounds and glaring at North America, Uncle Sam is crushing the world but already feeling the pressure, and the Asia-Pacific countries are thinking strangely. At this time, their plans have a successful political background, why not take a gamble?
If it continues to develop step by step, it will certainly be able to be taken to the world by China, and Thunder will definitely become the most successful private financial institution in the Asia-Pacific region, with a bright future.
But… is this enough?
If you don’t try some things in your life, you will regret it for the rest of your life. Sometimes if you don’t be arrogant, you will never have another chance in your life.
“Short the U.S. dollar!” Lei Hao felt something burning in his blood.
At the same time, all the top executives of Thunder were in a state of excitement, and no one could sleep, just because everyone knew that if Lei Hao finally made the decision, what the group would do would be a big move that would shake up the world’s financial market, and it would also be Thunder’s fire. The final step in making real gold.
If it succeeds, Thunder will in turn become the leader of China’s financial forces in the Asia-Pacific, at least a leader with a temporary status equal to that of the People’s Bank of China.
If he fails, Lei Hao may start over.
One reason why everyone is willing to follow is that Lei Hao is young, a 24-year-old financial giant. Everyone knows that he can make a comeback, but the biggest reason is… Lei Hao is undefeated.
In the past 30 months and dozens of large and small capital operations exceeding 100 million, Lei Hao has never had a failure. Thunder has its own corporate culture and its own soul, both of which are based on Lei Hao’s undefeated aura.
“The Fed is going to raise interest rates, and we’re going to sell short.”
“If we want to compete with North America, we must turn those losers over, otherwise, we will definitely lose.”
“What will the central bank think? Are they willing to take the gamble?”
“The prerequisite for combating the hegemony of the US dollar is that we have to get more US dollars, or in other words, only in this way can we get a greater say!”
“This is an opportunity, but will the opponent enter the game? If there is not enough capacity, there will not be enough positions, and there will not be enough influence!”
How could Thunder’s top executives sleep? They just had a day-long meeting with Lei Hao during the day.
The US dollar was weak in January and February, but recovered in March and April. The Federal Reserve began to anticipate raising interest rates and plundered the world again.
In this context, financial institutions should go along with the trend and swallow the profits generated by interest rate hikes together with North American institutions. As for the affected economies…who cares whether they live or die.
Sadly, the various economies in the Asia-Pacific are the targets that will be most affected. It can even be said that the US’s combined punches are aimed at the Asia-Pacific, and for the sake of national strategy, China “foolishly” went ahead.
It is foreseeable that if the Federal Reserve raises interest rates and the United States raises interest rates, the RMB exchange rate will inevitably fall. Then the currency exchange rates of Asia-Pacific countries will become unstable and funds will flow into North America. China’s strategy will be hit hard.
Various financial institutions may be able to use operating techniques to make up for their losses, but they can only watch the US dollar do whatever it wants.
Saying NO to the US dollar is not a simple matter.
Monday, April 23rd.
Financial institutions all start work earlier on Mondays. China has an advantage in that its local financial markets open later than those in Europe and the United States.
In other words, after the Asian financial market opens on Monday, normal trading will not resume in Europe and the United States until the afternoon, so Asians can take advantage of the morning time to hold a series of meetings first, while those in Europe and the United States often Pull an all-nighter on Sunday night.
But even so, the Asia-Pacific institutions that have little say are still very hurt.
Yanjing, the central bank, Wang Huachen, Yuan Jigong and other Chinese financial executives felt very depressed, and the atmosphere of the meeting was very solemn.
“In two months, foreign exchange reserves have decreased by more than 200 billion U.S. dollars.”
“After reducing the proportion of U.S. dollar assets, we cannot carry out excessive hedging, and it is impossible to completely close the exposure.”
“Excluding the exchange rate losses after the U.S. dollar returned to strength, the net outflow of local funds should exceed US$100 billion.”
“Expectations for the Federal Reserve to raise interest rates are gradually strengthening, and the RMB has a tendency to further depreciate.”
Before the Second World War, the world’s powerful countries relied on colonization to rule. Now, the only superpower is the United States, and the United States relies on the hegemony of the US dollar to financially colonize the world.
The US dollar was weak in January and February, and funds flowed out of North America and spread around the world. Although most of them entered safe-haven areas, some also entered various emerging economies, pushing up the economic data of these economies.
The U.S. dollar returned to strength in March and April, and funds from all over the world returned to North America. The global economy began to come under pressure. If the outflow of funds is too serious, the impact on the economy will be extremely serious.
For example, in China, after deducting the decrease in the proportion of U.S. dollar assets in foreign exchange reserves, the local market funds showed a net outflow, and the central bank estimated that there was a shortage of US$100 billion.
Decreasing foreign exchange reserves, a strong U.S. dollar, and a depreciating RMB seem to be a good thing for an export-oriented economy like China, but things must come to a certain level. Whether the U.S. dollar index breaks 100 is a key factor for China.
If it doesn’t exceed 100, Chinese financial executives such as Wang Huachen are sure to use foreign exchange reserves to offset this wave of impact, and even benefit from it.
If the U.S. dollar index exceeds 100, excessive inflation will occur, and excessive inflation will occur under the premise of a decline in economic growth rate. At that time, money will become worthless and the status of the currency in the international market will be reduced. Chain reactions such as this will occur.
However, keeping the U.S. dollar index from breaking 100 is easier said than done.
The only thing the People’s Bank of China can do is to do a good job for itself and use foreign exchange reserves to stabilize the RMB exchange rate. This is equivalent to converting outflows of US dollars into RMB and holding it in its own hands, and then injecting it into the market with financial instruments such as reverse repos at the appropriate time, so that the market can keep active.
As for other things, love so and so.