Easy Tycoon

Chapter 276 More Aggressive Foreign Exchange Futures
Someone once ranked the major events that happened in the global financial world in the decade of the 80s. Among them, the finance ministers of the five countries, the United States, Japan, the Federal Republic of Germany, France and the United Kingdom, on September 1985, 9, in the The "Plaza Accord" signed by the Plaza Hotel in New York is recognized as the event that had the greatest impact on the global financial economy in the 22s.

From the perspective of the time, the signing of the "Plaza Accord" at that time really avoided the situation of overheating of the US economy and the over-strength of the US dollar, and temporarily restored the global economy to a reasonable state.But if we analyze the introduction of this agreement from the perspective of future generations, there are actually various drawbacks.

At that time, because of the economic stimulus policy of the Reagan administration, a large amount of international hot money flowed into the United States, which made the U.S. dollar continue to strengthen, the amount of the U.S. trade deficit continued to expand, and the fiscal deficit also increased day by day, which eventually made Japan the world's largest creditor's rights country.

The Japanese may have been the craziest people in the world in the 80s. The rapid economic growth and the yen that has been operating at a low level have allowed the Japanese to have a lot of wealth. They waved their checks and bought the Rockefeller Center. After getting off the Empire State Building and buying Columbia, the real estate in a small Tokyo is worth more than the real estate in the entire United States.

Under such circumstances, how can those vested interests in the United States still sit still?
Japan, a small country, is nothing more than a dog raised by our big America on the west coast of the Pacific Ocean.Now this dog is full of food and drink, why, dare to bite me, the master, in turn?

No, this situation is absolutely intolerable!
As a result, many large manufacturing business owners and members of Congress in the United States began to sit still. They lobbied the U.S. government and strongly urged the then Reagan administration to intervene in the foreign exchange market and devalue the U.S. dollar in order to save the increasingly depressed U.S. manufacturing industry.Many economists also joined the lobbying team to change the strong dollar stance.

As the godsons of the United States, when the Japanese saw that their godfather was about to get angry, they naturally didn't dare to confront their godfather. Therefore, the Japanese were persuaded. Their finance minister at the time, Akira Takeshita, even publicly declared on behalf of the Japanese government that they The Japanese are willing to cooperate with the depreciation of the dollar, and they are willing to appreciate the yen.

Since the godson is willing to cooperate, as a godfather, he has to give face no matter what.So, under such circumstances, the "Plaza Accord" was finally released.

It is estimated that the finance ministers of the G5 countries who participated in the formulation of the "Plaza Accord" did not expect that this agreement, which seemed to be very good for all countries at the time, was actually an out-and-out economic bomb.

Because of the signing of the "Plaza Accord", the US dollar plummeted by 20% and the yen appreciated by 20% in just 20 days.If at this time, people can restrain their greed a little bit, then this "Plaza Agreement" has indeed played a positive role.In fact, in the "Plaza Agreement", the ratio of yen appreciation negotiated by various countries is around [-]%.
However, the scary thing is that human greed is always endless.

The U.S. dollar plummeted and the yen appreciated, which made some vested interests see the huge benefits it brought. Therefore, under the joint promotion of many vested interests, the yen continued to appreciate wildly. Since the signing of the "Plaza Agreement" in September 1985 In the past, 9 dollar was exchanged for 1 yen. In just two years, in September 250, the exchange rate between the dollar and the yen reached a terrifying 1987 yen for 9 dollar. The appreciation of the yen in two years The range is as high as 1%!

This is really a bit of nonsense, you two are not some unknown small country in Africa, these are the two most important currencies in the world at that time!One is the U.S. dollar, the only settlement currency in the world, and the other is the yen, the Japanese currency whose economic aggregate was close to that of the United States at that time. How can the whole world bear it when you two play like this?

As a result, the Japanese economy fell into a decade-long economic stagnation, and later generations even called this decade "Japan's lost decade."

Japan is not good, but it is good for you to be the godfather of the United States?Do you enjoy being the other countries that follow the United States and fan the flames?They played too hard, and as a result, when the Japanese were in pain and other developed countries were laughing behind their backs, the stock market crash that spread to the world on October 1987, 10 immediately gave these countries a blow!
In the final analysis, the root cause of all this lies in the endless greed of those with vested interests.

It is no exaggeration to say that the "Plaza Agreement" signed in September 1985 and the "Louvre Agreement" signed in February 9 are tools for a group of vested interests to share Japan's fat, but However, they played too much, which resulted in the stock market crash that spread to the whole world, and the global economy suffered heavy losses.

Well, these are a bit far-fetched, no matter what the "Plaza Accord" will eventually cause, it is nothing to Yang Jing!

You guys just make a fuss about it, and we will follow behind obediently and secretly drink two mouthfuls of delicious soup.

Seeing that Yang Jing remained silent for a long time, Cesar coughed and asked, "Boss, how should we operate? Should we directly hold the yen or operate through foreign exchange futures?"

Cesar's words woke Yang Jing up from his contemplation. He looked around at the people who were looking at him, smiled slightly, and then said very calmly: "Since you want to invest, naturally you can't use long-term investments." There is a way of currency to operate, so the profit is too small. We use foreign exchange futures to operate this investment.”

Hearing what the mysterious boss said, Cesar asked his team members to shake their fists excitedly.Obviously, this more radical and daring way of operation is their favorite.

Foreign exchange futures were produced in 1972, and it has a history of 13 years, and the development of foreign exchange futures is relatively standardized.Therefore, it is still possible to use this method for foreign exchange speculation in this era.

However, compared to the speculative method of directly holding currency, the risk of foreign exchange futures is undoubtedly greater. Although foreign exchange futures can use the margin leverage trading policy to obtain huge profits, but also, once the grasp is not good, this operation method is also It will make investors lose everything or even be heavily in debt overnight.

It is much safer to hold currency directly. Although it also faces the possibility of loss, it is not as powerful as foreign exchange futures.

In short, these two methods have their own advantages and disadvantages, and it depends on how the operator chooses.

It seems that in this speculative action of depreciation of the dollar and appreciation of the yen, not only Yang Jing is staring at this, but also many financial predators are also gearing up.

For example, George Soros, who has just emerged in the international financial market.

Yang Jing, who is familiar with this investment operation, knows very well that in another twenty dollars, that is, in mid-August, Soros' Quantum Fund will obtain funds through mortgage margin credit, and hold a large amount of depreciating Japanese stocks. Yuan and West Deutsche Mark, as of September 1985, 9, the Quantum Fund held a combined value of nearly $5 million in these two currencies.Among them, holding Mark is worth 8 million U.S. dollars, and holding Japanese Yen is worth 4.91 million U.S. dollars.

At that time, Soros was not as aggressive as he was when he blocked the British pound and launched the Southeast Asian financial crisis. He took a relatively safe way of holding currency in this investment operation.

But Yang Jing is not Soros. Yang Jing, who is clear about this investment operation, is equivalent to having a golden finger. If he is not concerned about the possibility of triggering a space-time paradox, he will play more aggressively.

But even so, Yang Jing, who has decided to use foreign exchange futures for this operation, is far more aggressive than George Soros' Quantum Fund.

Before preparing to make this investment, Yang Jing asked Shengjie specifically, and Shengjie gave a very positive answer, "Thanks to your last investment in London Gold, the loss/gain of your investment this time The range will increase exponentially, that is to say, it doesn’t matter how much money you invest, but it’s best to control the loss and profit within 100 billion US dollars, if it exceeds this range, there is a possibility of triggering a space-time paradox!”

Yang Jing still has about 36 billion US dollars in his hand. He decided to invest 35 billion US dollars. Although the maximum profit is only 100 billion US dollars, the rate of return close to 300% is quite good.

"Today is July 7, Cesar, I ask you five to complete all the preparations within one month. , the Tokyo International Financial Futures Exchange, the French International Futures Exchange, the International Money Market of the Chicago Mercantile Exchange, and the Philadelphia Futures Exchange to establish no less than 28 accounts, and then distribute the funds I prepared evenly among these Of these accounts in the six foreign exchange markets, do you understand what my purpose is?"

Cesar smiled and said: "Don't worry, boss, with a month's preparation time, I guarantee that this investment operation will never let anyone touch our tail. 120 accounts, each account is less than 3000 million on average U.S. dollar funds, which are not noticeable in the huge foreign exchange futures market. However, BOSS, we can be responsible for ensuring the smooth escape of the final profit funds, but we cannot guarantee whether the flow of funds will be noticed. In this regard, I Think you'd better get Mr. Brad Jones here. His method of concealing the profits last time was great, and if it weren't for him, we wouldn't have escaped the investigation of those investigative agencies."

Yang Jing smiled slightly and said: "Don't worry about that. Since I have already summoned you all, how can I forget Mr. Brad Jones? But it is useless for him to come here now. After our profit-making funds escape smoothly, That's when Mr. Brad Jones started fighting. Mike, Mr. Jones will leave it to you, no problem?"

"Haha, don't worry, Brad, like Cesar, has been looking forward to your call again."

PS: Bow down and thank you for the 100 tip from "Frozen Octave", so what, brother, are your legs feeling better?

(End of this chapter)