Red Soviet Union

Chapter 1164: The pound will depreciate

London, England.

Once, this was the center of the world. Once, the empire on which the sun never sets, the people of Great Britain all miss it, but now, Britain is just an ordinary second-rate capitalist country. In the hands of the Americans, any national policy of the United Kingdom closely follows the United States.

Fortunately, the war against the Soviet Union did not pull Britain in.

Britain has been on the sidelines, watching the Middle East troops unleashing blood and rain in Israel, watching Alaska being torn apart from American soil, watching the southern states of the United States start to riot. At least, Britain is still very calm. of.

Isabella, an ordinary London girl, hurrying on the streets, she is slender, with a bulging front and back, with wavy hair set behind her, she is both **** and mature.

This is her daily schedule. After getting up at six o'clock, she eats some bread and milk at home, and then walks for half an hour to work.

Walking, you can exercise, keep a slim figure, and save on the fare.

Thinking of the pigeon-cage-like house she just bought, Isabella felt a little nervous. She had to make money quickly to be able to repay the high loan.

A light blue uniform was worn on her body, which further brought out her good figure. After walking for half an hour, she felt that her underwear was a little soaked.

Even so, she hurried a few steps and finally caught up with the elevator of the building. When she clocked in, it had just arrived.

Panting and holding a stack of documents, she sat down in a chair at the end of the conference room. Before work, a regular meeting of the day was a must.

"Recently, our economy is very special. As an investment company, we hold the funds of our investors. We must be cautious. We can only earn, not lose." It was the company manager John and Isabella who spoke. When he first entered the company, John was quite a confident person, but now, John's words are lacking in confidence.

All of this, of course, starts with the merger of the two Germanys.

After a reunification war, the two Germanys finally merged. East Germany invested a lot of money to help West Germany's economic recovery. At the same time, it was also improving West Germany's social welfare and social security. With continuous investment, the German government made the There is a large budget deficit, which fuels inflation, devaluing the currency and depreciating the mark against the dollar.

At the same time, a large number of dollars are returning to the United States. Of course, the United States does not allow this to happen, and the fall of the mark also makes the German conquest feel the pressure.

Therefore, the German conquest took a series of measures, such as greatly raising the interest rate of the central bank, to stimulate the rebound of the mark.

At the same time, other countries in Europe are in a period of economic recession, and they urgently need to cut interest rates to stimulate economic recovery. The combination of these things led to a flood of money into the mark and corresponding weakness in other currencies, most notably the Italian lira and the British pound.

At the same time, this is also the confidence of capital in Germany. With the strong support of the Soviet Union and the original industrial strength of Germany, it is conceivable that the take-off of the German economy is inevitable. Therefore, capital can only bring benefits if it flows into Germany.

For the UK, the outflow of a large amount of sterling has led to a sharp deterioration of the British economy, and the pound is also facing severe risks.

Right now, there are only two options, either Germany cuts interest rates to reduce the inflow of foreign capital, while Italy and the UK raise interest rates, or the German central bank intervenes in the currency market, selling marks and buying sterling. If both options fail, the pound will inevitably depreciate!

For investment companies, they must be able to clearly analyze the trend of the economy before they can determine the investment target. If they fail, the bankruptcy of the investment company is inevitable.

"Now, let's talk about what you think," John said.

Brainstorming, when John himself can't judge the trend, it's okay to listen to the opinions of his subordinates. After all, everyone here is an investment elite.

There were different opinions, and in the end, it was Isabella's turn.

"I think our government will definitely not be able to maintain a fixed exchange rate. As long as there is an influx of external capital, the devaluation of our pound is inevitable." Isabella said: "As long as we seize this opportunity, we can earn A lot of money."

The devaluation of the pound is inevitable! Isabella's words made everyone present stunned. How could it be possible?

As British people, they are still very confident in the British economy. How could the United Kingdom let the pound depreciate!

"Tell me your reasons." John's eyes lit up.

"First of all, it is impossible for the German government to cut interest rates. The Germans attach great importance to the stability of the currency. One of the main tasks of the German Central Bank is to fight inflation. As long as Germany still has a budget deficit, UU read www.uukanshu. com, they will never cut interest rates." Isabella said: "Now, Germany has joined the Soviet Union, and the strength of the German Mark will have a great impact on the Soviet ruble system, and it is even more impossible for the Germans to Save the British economy and buy sterling with marks. If the Germans make a move, it must be shorting the pound.”

Germany, a European country, is now in the Soviet camp! The United Kingdom has always been hostile to the red countries. Now, if Germany does anything, it will definitely not help the United Kingdom, but deceive the United Kingdom!

When they heard the words shorting the pound, everyone felt a buzz in their minds. Although they are operators of investment companies, they are also British after all. Thinking of someone maliciously manipulating the exchange rate of the pound and attacking the British economy, they Not shudder.

"Go on." John's eyes were still shining.

"Recently, I have been studying the trend of our sterling, and at the same time, I also found that there is a lot of money, financing in our market, a lot of sterling has been integrated, which has led to the stability and improvement of our current exchange rate of sterling, but , this is just a flashback." Isabella said: "Capital is profit-seeking, and this is the only creed of our investors. I can definitely infer that these funds will suddenly attack at some point. All the sterling is thrown out, the Deutsche mark is bought, and the central bank is forced to take over. If the central bank’s foreign exchange reserves are not enough, that is, if the amount of short-selling is too large, the central bank’s counterattack will fail, and the exchange rate of the pound will drop. Our current The linked exchange rate system would float freely. If we followed suit, we could earn a direct spread on the devaluation of the pound, and we could make a fortune on foreign exchange futures and stock index futures.”

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