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Chapter 295: Global finance exploded, and the island country’s stock market collapsed.

Following the Federal Reserve's announcement, financial institutions and securities investors who had not received inside information in advance panicked.

Dragon Kingdom Magic City.

In a certain luxury villa area.

Li Daxiao, an economist who has accurately predicted the direction of the stock market several times and is well-known in the financial circle of Longguo, is staring at the computer screen in disbelief, unable to calm down for a long time.

Will the US dollar deposit interest rate increase by 5%?

What do you want to do?
What does Lao Mi want to do?
Destroy global finance?

Maybe ordinary people have no idea about the US dollar interest rate hike, but who is Li Daxiao?
economist!

To put it bluntly, an economist predicts future financial trends. Does he have no idea about US dollar interest rate hikes?
This is obviously impossible!

After waiting for a full three minutes, Li Daxiao's dull eyes gradually recovered and murmured to himself: "The deposit interest rate has been raised from 0% to 5%. A large amount of foreign U.S. dollars will flow back to the United States, and the number of U.S. dollars in circulation will decrease. The entire world's The financial system will be affected."

It is clear.

The current "village chief" Xiao Gang looked solemn, rarely put on his glasses, glanced at the people in the conference room and said: "The Federal Reserve Bank of America announced an interest rate hike. This is an impact on the global financial system and our stock market."

In particular, Yang Delong was the top scorer in science in 99. He came from a privileged background and possesses a large amount of financial insider information.

"Why do you say that?"

Because the U.S. dollar is linked to the "gold standard," global foreign trade only recognizes the U.S. dollar. Without it as a trading medium, other countries would not be able to complete trade settlements at all.

Both of them predicted that as long as A-shares and Hong Kong stocks open normally tomorrow, it will definitely be an epic avalanche scene.

Interest rates are rising on U.S. dollar storage, and you can earn 5% every year. Who will still play venture capital with you?

For economists, money is really just a bunch of numbers that they can withdraw from the market at any time if they want.

If someone cuts the meat and runs away, the stock price will continue to fall. When it reaches 4 yuan, another group of people can't bear to cut the meat. The stock price reaches 3 yuan. After 3 yuan, another group of people will cut the meat. If this goes on and on, a financial stampede and stock market crash will come. .

While Li Daxiao and Yang Delong were discussing, the China Securities Regulatory Commission also got the news and held an emergency meeting.

As the video call was connected, Yang Delong spoke quickly and anxiously: "Did Mr. Da Xiao read the Fed announcement?"

Yang Delong asked.

"Buzz-"

But this is the general trend. Li Daxiao sees no hope of breaking the situation at all. He shook his head and said: "All we can do is remind investors, but I am very confused about whether to post a video."

Because Yang Delong and Li Daxiao have made accurate predictions on the stock market many times, they have gained a large number of fans.

Both of them are big Vs on Weibo and have certain social influence.

The phone in Li Daxiao's hand vibrated twice.

"This meeting is urgently convened tonight. Instead of talking about anything else, we just want to ask for your opinions. Is there any way to reduce the damage of this financial sickle?"

"Village" is a slang term in Longguo's financial industry, referring to the China Securities Regulatory Commission.

"No!" Li Daxiao shook his head, closed his eyes and said, "It depends on how the village responds. If there is no effective response, this will be the beginning of the stock market crash."

Take the Thai baht as an example. If transactions are conducted using the national currencies of both parties, if one party's currency suddenly depreciates significantly, it will be similar to the international giant's short selling of the Thai baht. Will the countries trading with Thailand lose money?
The 100 baht you just paid will depreciate to only 50 in the hands of others. Which country can accept this?
Therefore, the use of US dollars for settlement is recognized in world trade. This is the fundamental reason why the increase in the US dollar can indirectly affect the world.

He paused for half a second and then gave another example: "It's like a snowball. Everyone wants to escape, but no one can escape the harvest. In the end, the downward trend will get bigger and bigger."

"In this case, I won't issue any reminders and focus on cleaning up my own assets." Yang Delong agreed with Li Daxiao's statement. Now it depends on how the China Securities Regulatory Commission will respond.

If I use other currencies, such as Thai baht, rubles, and rupees, are there any financial risks for settlement in these currencies?
Obviously the risks are huge.

……

Yang Delong wanted to remind him.

The best way is to find a middleman, and this middleman has something that both parties agree on, such as gold, gems, etc.

If the China Securities Regulatory Commission takes action and expresses its specific attitude, Li Daxiao will know how to remind investors. If they rashly remind investors to run away, it will only lead to a financial "stampede".

The U.S. dollar acts as a middleman because it is linked to gold, a precious metal recognized around the world.

Someone will definitely cut the meat.

If you have played in finance or bought stocks, you will be familiar with this person.

This is like if you have a cow and Lao Wang next door has a pig. If you want to eat pork, you will obviously lose money by exchanging the cow directly.

Before he could check, a WeChat video call had already been called, and the name on it was "Yang Delong".

Take a stock with a price of 10 yuan, for example. One day it suddenly dropped to 5 yuan, and there was bad news about the flight of foreign capital. In addition, big V called for flight, saying there was no support. If you are a retail investor, can you run?

As an economist, he is very sensitive to financial trends.

Li Daxiao took a deep breath and sighed: "If investors are reminded, not only foreign capital will flee tomorrow, but domestic retail investors' funds will also withdraw from the stock market, creating panic selling pressure..."

"Then let's let it go like this?"

"As you know, I have always had the habit of paying attention to US financial news." Li Daxiao responded with a deep breath.

For a normal international trade, both parties need to have U.S. dollar reserves, or exchange them for U.S. dollars for transactions.

In his opinion, foreign capital will definitely withdraw wildly tomorrow. If they don't seize the opportunity to run away, retail investors will be trapped in it.

Seeing that Li Daxiao knew about the interest rate hike, Yang Delong also went straight to the topic and said: "The U.S. dollar's interest rate hike and the return of funds will affect the global financial market. If we cannot break the situation, we may fall into the Great Depression in the next ten years. Do you think we are going to do it?" Do something?”

The words fell.

The expressions of all the members in the conference room suddenly changed.

"Did I hear that right? Interest rate hike on U.S. dollar?"

"Has the United States forgotten the financial crisis in 1997? The root cause is U.S. dollar inflation. Now it is raising U.S. dollar interest rates, which will cause another financial crisis around the world!"

"What a stupid old rice!"

"Something may happen this time. If the U.S. dollar really raises interest rates, the stock market may collapse. First it will be leverage, then financing, and then the stocks pledged by major shareholders. If we don't stop it, it may really lead to financial risks."

"Not satisfied with using gold to harvest the world, now they are using their own currency. This damn Fed is really a piece of shit!"

Experts from the China Securities Regulatory Commission are whispering among themselves and discussing the US practices.

Because in the financial system, they know too much inside information. They know a little bit about the inside story of every financial crisis.

After a few minutes of discussion, a gentle man in his thirties stood up and suggested: "My suggestion is to suspend stock market trading to prevent foreign capital from stampeding out."

"no!"

As soon as the words fell, someone immediately retorted: "If stock market trading is suspended, it will only accumulate panic among investors."

"Once panic spreads and trading is opened, there will be an avalanche. We should not restrict trading now, but let market funds take over the withdrawn foreign funds."

In his view, the withdrawal of foreign funds will indeed have an impact on the stock market, but as long as the selling pressure is absorbed, the crisis can be overcome.

But some people didn't think so and retorted: "You want retail investors to take over foreign funds? This is a bit whimsical."

"Currently, our A-share foreign capital totals RMB 1700 billion. It is impossible to rely on retail investors alone to support it. Moreover, Hong Kong stocks are the hardest hit area. If Hong Kong stocks fall, it will also affect us. This is an unsolvable situation."

"Then we can't sit idly by."

"We can only intervene."

At the China Securities Regulatory Commission meeting, every expert expressed his or her own thoughts, and village chief Xiao Gang also listened to the opinions of all parties.

It was his first time to deal with the U.S. dollar's interest rate hike, which was a major global financial crisis, and he found it very difficult. Seeing that the discussion was still fruitless, he also called the "old village chief" Guo Qinglin under the pretense of going to the toilet.

The moment Guo Qinglin received the call, he fell into silence.

Fortunately, he resigned, otherwise he would have been responsible for handling this financial risk, which gave him a slight sigh of relief.

After understanding what happened, Guo Qinglin gave a hint: "The withdrawal of foreign capital may indeed cause a financial stampede, but as long as investors have enough confidence, they may not be able to turn danger into safety and make good use of the rights in their hands."

"Right in my hands."

Xiao Gang suddenly had a flash of inspiration.

Correct!
He is the village chief now!

In addition to restricting transactions, it can also reduce stamp duty collection.

Perhaps many people don’t know what stamp duty is.

This is actually a "stamping" fee, or an intermediary fee. When two people trade stocks, the China Securities Regulatory Commission and the exchange witness and stamp, making the transaction a legal effect.

At the same time, stamp duty, if you make a profit in the stock market, it is also equivalent to paying personal income tax, and you can withdraw money directly to your bank card.

"Think about it carefully." After Guo Qinglin reminded him, he added: "You'd better communicate with the bank so that more funds can flow into the stock market."

It is obvious to talk to the bank and let the funds flow into the stock market. That is to ask Xiao Gang to lobby the bank to lower the interest rate on deposits and release more funds.

An increase in interest rates on deposits can encourage depositors to save. If interest rates on deposits are reduced, some depositors will naturally invest their money.

This is like the interest rate of 3% suddenly dropped to 1.5% interest. There are definitely people who look down on this little money and take the money to invest.

Just like in the United States, with 0% deposit interest, who would put money in a bank? Basically they are put into the stock market.

"I understand."

Xiao Gang has found his direction.

……

And at the same time.

the other side.

Neon Island Securities Regulatory Commission next door.

After the Federal Reserve announced the US dollar interest rate hike, they only realized it later and did not receive any inside information at all.

"This is bad news. As soon as the stock market opens tomorrow, there will be an avalanche."

"Damn it, we've only had one collapse in the property market. The financial sector must not collapse. We need to stabilize foreign capital."

"It's unstable. Yesterday we just lent a large amount of stocks to Wall Street giants. They came prepared."

"Damn it! Are they going to harvest us?"

"It's obvious."

Until this moment, they didn't know why Wall Street's financial giants bought a large number of Japanese stocks and borrowed them regardless of cost.

You don’t need to think about it to know that those people will definitely smash the market when the stock market opens tomorrow, and then get a lot of profits from it.

What can they do now?
The United States has troops stationed in Neon Island Country.

Now, instead of condemning, we can only silently digest this crisis and help financial giants harvest the wealth of the people of Neon Island Country.

Less than two hours after the Federal Reserve announced a US dollar interest rate hike, panic has already appeared in global financial markets.

The little blue bird who spoke in "Freedom" has already been occupied by the US dollar interest rate hike on the hot search list, and the popularity has already taken the lead.

Because it is an international information platform, the entry of "USD Interest Rate Increase" reached the top of the list, which also made people around the world aware of this financial information.

Of course.

Entries can reach the top quickly without the help of "the mastermind behind the scenes".

In the third-in-command's office at the headquarters building of Bayley Group, Maria was sitting at her desk, quietly admiring this financial feast.

Against them?
Don’t even look at who is behind them!

……

at the same time.

Conference Hill, Washington.

Current Speaker Renato Marotta is also waiting for a financial feast that he swears to God is the craziest thing he has ever approved.

From raising the deposit interest rate from 0% to 5%, he can already foresee the tragic situation of the global financial system in the future, and the world may fall into a state of deflation in the next ten years.

In order to witness history, he decided to stay up late to process documents and wait until dawn to witness the opening trend of rice stocks in person.

Others who think the same as him include Apple CEO Pan Ke, Gaotong CEO Mollenkopf, Korean Star Group Chairman Lee Jae-yong, TSMC CEO Zhang Miu...

It is no exaggeration to say that the whole world has turned its attention to Migu.

This is because rice stocks will bear the brunt of the U.S. dollar interest rate hike. The high deposit interest will definitely make a group of conservatives put their money in the bank, which will never cause the stock price to fall.

maybe…

The meltdown of rice stocks will appear again.

However, as the time came to 9: a.m., a group of retail investors on the New York Stock Exchange did rush to flee the stock market.

But as soon as they sold the stocks, they immediately had funds to take over.

The index of rice stocks not only did not fall, but actually rose slightly, which left countless financial people scratching their heads.

Instead of falling, it’s rising?

What's happening here?
Many financial people in other countries still don’t know that if you want to get 5% deposit interest, you need to sign an investment agreement with a bank.

To put it simply, after the money is taken out of the stock market, it goes around in a circle and flows back into the rice stocks.

And because a large amount of funds began to flow back, banks also increased their investment in rice stocks, which caused the rise.

Many uninformed people have not yet breathed a sigh of relief. The Neon Island Country in Tokyo, located in the East 9th District, opened one hour earlier than the Longguo A shares in the East 8th District. As the Neon Island Country’s stock market opened, the power of the financial sickle gradually became apparent.

Sony, down.

Toshiba, down.

Panasonic, down.

Toyota, down.

Looking at the entire stock market, not a single stock is rising. Wall Street's financial giants had already raised their sickles three days ago and are now ruthlessly harvesting wealth.

On the Tokyo Stock Exchange, all the stockholders of the neon island country were stunned in place.

Did it drop 10% at the opening?

Is this a stock market crash?

Do not!
This is a disaster for the stock market!
I saw a well-mannered stock investor in a suit and leather shoes, kneeling on his knees and kowtowing crazily to the LED screen hanging in the trading hall, with the numbers constantly falling and beating: "Oh no! Don't fall, I beg you, don't fall!" !!”

(End of this chapter)