Chapter 915: Unable to Cope
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No matter what you speculate, speculate on oil, speculate in futures, speculate in stocks, it is never as fast as directly speculating in currencies, and now, in order to respond to the call of the United States, the island countries have opened up their foreign exchange markets and are no longer intervened by zhèngfu, so that it is a paradise for international financial players!
The attacker was the Far East Trade and Investment Company, which invested in the first round of attacks and exchanged a large amount of dollars they held back into the RI dollar, so that in the foreign exchange market of the island country, in a short period of time, a large number of dollars were flooded, so that the dollar immediately depreciated, and the RI dollar finally appreciated!
If only the Far East Trade and Investment Corporation carried out the cāo, although it is absolutely necessary to promote the appreciation of the RI yuan, but there is absolutely no such a fast speed, everyone picks up firewood and the flame is high, as the RI yuan begins to appreciate, other international speculators who have heard the wind have begun to invest in this action of making a fortune together. Pen&Fun&Pavilion www.biquge.info{{}}
Needless to say, the United States has invested a total of $90 billion in the foreign exchange market, not to mention the $40 billion it had prepared at the beginning. Even now that they still have 100 billion dollars in their hands, they will definitely not be able to stop this fierce offensive. Unless administrative interference is used, the United States will not be able to stop this joyful action of international speculators around the world.
What's more, the United States has now invested $90 billion (including the investment of other countries), will they be able to come up with another $90 billion?
James, who rushed back to the office, looked at the numbers on the networked computer in front of him and felt that his heart was beating non-stop. {{}}
"We have to prepare a lot of money, when necessary. To save our forex market, this rapid decline has a detrimental effect on us. The Federal Reserve's Paul said.
They all saw that the action they planned this time was used by some people.
In the beginning, no matter how much money they put into it, the market was flat. This is because. Someone is secretly cāo, taking the money they have invested and absorbing it back.
And when the five countries want to depreciate the RI dollar. When they keep throwing out dollars in the hope that they can devalue them, they keep sucking them back. Resist the depreciation of the dollar. Only now, when they have run out of ammunition, have they begun to premeditate!
This is simply a financial crime, those investors, so lawless!
It's a pity that in the face of this situation, they have no choice, and it is impossible to find out the people behind the flow of funds from those complicated flows. In particular, these funds are divided into many shares in different accounts, and it is impossible for them to find the mastermind behind them, even if they do. What law do they use to pronounce sentences on each other?
James's face turned a little pale, because, in the half-hour that he was discussing with Paul, the dollar continued to fall, and soon, it fell by another three percent.
"Yes. We must immediately ask President Reagan to set aside a special fund to save the city quickly! James said.
The international market waits for no one, if they can't immediately invest a large amount of money to remedy, perhaps, the dollar will fall to the bottom, so that when they have not enjoyed the benefits of the depreciation of the dollar, they have to face a severe economic winter: if the dollar depreciates excessively, the dollar will not be worthless, and when the Americans take the dollar to the international market to buy raw materials, they will have to spend more money, that is, their production costs and living costs will rise sharply. It's pretty scary.
Now that this absolute situation has been formed in the international market, how much money do they need to invest in order to save? Five tens of billion? It is definitely not enough, if you want to reverse this situation, you have to confront all the international speculators, and conservative estimates have to come up with 300 billion US dollars! You have to have enough funds to resist all the investors!
Three hundred billion! James felt a headache when he thought about it, could President Reagan allocate him so much money? I'm afraid, three billion dollars would be good. {{}}
You know, the follow-up investment funds have already been borrowed from the Federal Reserve Bank. President Reagan, will he cut military spending, provide it to him? In that case, Weinberg would probably put a pistol to his head and accuse him of being sent by the KGB of the Soviet Union to reduce the military power of the United States.
By the time they rushed to the White House, it was already early in the morning, and a new day had already begun.
Reagan was a little sleepy-eyed, and when he looked at the two big stewards in charge of the United States' finances, they looked so uncertain, and he knew that something big must have happened.
"Is it our dollar that is still depreciating?" President Reagan asked.
"No, after our efforts, it finally began to depreciate." James said.
"That means that the foreign exchange reserves that we have printed out and are stored by island countries will be devalued, right? The products produced by our domestic enterprises will be more competitive to the outside world, right? President Reagan asked, lighting his cigar. {{}} This should be good news!
"Yes, but now our currency, the rate of depreciation is a bit fast, it's just unusual." Paul said.
Fast speed? Reagan immediately remembered the stupidity of his predecessor, President Carter's Treasury secretary, who had made several efforts to reverse the dollar's decline.
Now, you won't be in that situation again, will you?
"How fast?" President Reagan asked.
"Before we came, it had already depreciated by 15 percent, and it started in the evening, just in the morning in Tokyo." James said.
Hearing the news, Reagan suddenly felt that his eyes were going to go black.
If at this rate, by the time the day of trading ends in Tokyo, it will be the morning in the United States, and the Americans will wake up and find that the dollars they hold are no longer worth anything!
"Hasn't there been any movement? We've invested so much money, how did we grow so fast? Reagan asked. {{}}
"We suspect that someone is secretly trying to make a fortune in the shortest possible time through this means." Paul said.
Someone? This kind of person really has a heart! I actually want to make money from the United States and island countries!
"Now, it is very difficult for us to investigate who is secretly doing this, and what we need to do is to reverse this situation as soon as possible and put an end to this downward trend, otherwise we will face a serious economic crisis." James said.
"What do we need to do?" President Reagan asked.
"We need to put more money into the bailout, and we need more money to withstand this financial attack." James said.
"How much do you need?" Reagan asked.
"100 billion dollars." James felt that he had better say less to see if the president could accept it, and then increase it later, so that the president could bear it, and it would be better to say a little.
One hundred billion! Reagan's brow furrowed visibly, 100 billion dollars, what is this concept? This year's defense expenditure for the whole of this year is just over $500 billion.
Now, although it is only the end of September, defense spending is almost exhausted, and new spending will have to be added. In other words, this year's fiscal deficit is still very large. In this case, where to find a hundred billion dollars to come out?
If James had said that $300 billion would have been enough, Reagan would have been even more appalled.
"Mr. President, we must now come up with enough money to deal with this crisis, otherwise our economy will be very dangerous." Paul said.
Reagan didn't know. However, the problem now is that he can't come up with anything more money.
"We need to take this incident to Congress for discussion, and I hope Congress can agree that we can embezzle funds from other quarters and respond to emergencies first, and what I can mobilize now will not exceed $10 billion." Reagan said.
It is possible to postpone certain military projects and divert funds, but if you want to reduce other funds, such as spending on public affairs, you must need the approval of the National Assembly.
Brought to Congress? How long does that take? Even if it is a reduction of one percentage point, I am afraid that it will have to be discussed for ten days and half a month.
However, the United States is a minzhu country, and the president does not have so much power, otherwise it will cause strong dissatisfaction among the population.
"Mr. President, we don't have time, we have to deal with this issue as soon as possible." James said.
"We invested $20 billion in the original plan, and we added another $20 billion, how much more money can we come up with?" Reagan asked rhetorically.
The words are full of reproaches and doubts, and you have invested so much money, why haven't you done this well?
James didn't say anything anymore, he knew that the president had done his best.
But will the international investors who are waiting to make a lot of money in the changing investment market, give him time?
The international market, of course, will not give him a chance!
The next day, when the U.S. Congress began to discuss whether it was possible to provide more funds to the financial department for this incident, the curtain finally came down on the turbulent foreign exchange market in the first day of Tokyo.
On this day, the value of the RI yuan appreciated by 15 percent, and the ratio of the RI yuan to the US dollar has dropped to 218 RI yuan to one dollar.
In other words, if the US dollar is converted into RI yuan at the opening of the market today, the white wolf with empty gloves can already make a net profit of 15%.
Today, it is just the beginning, a large amount of international funds have been moved, all to the island country, the influx of these hot money, will make the island country's currency, further appreciation, appreciation!
The sharp fall of the dollar this time has made some financiers realize that something is going to be wrong with the US economy.