Chapter 2727 Someone has to stand up
While Nohara Shintaro was still leisurely taking a flight back to China, Chen Mo had already decisively given the order:
"Target Sakura Coin, short position, smash it hard!!!"
Han Li and other traders were excited:
"receive!!!"
The sound of keyboard clacking rang out, and one after another sky-high short orders appeared in the foreign exchange market of the Sakura Country.
The Fed, like a scumbag who doesn’t recognize anyone once his pants are pulled up, once again released a big move, raising interest rates by 20 basis points at one time for the first time in more than 100 years!!!
The federal funds target rate was raised significantly to 4.5%-5%!!!
At the same time, it also announced a plan to reduce its balance sheet and tighten monetary policy starting this month.
You know, the Sakura Country is still in the era of negative interest rates!!!
Once the Federal Reserve really starts raising interest rates so crazily, capital will inevitably sell a large amount of Sakura coins and buy the hegemonic currency.
This selling and buying will cause the exchange rate of Sakura Coin to drop sharply!!!
The Central Bank of the Sakura Country.
President Ikeda Tsurunan was sweating profusely as he watched the numbers on the screen keep falling, his pants were almost wet with fear.
125!
130!
135!
140! !! !!
145! ! ! !
In just half a day, the exchange rate of Sakura Coin plummeted to 145!!!
And judging from this trend, the plunge will continue!!!
This is already an economic crisis!!!
You should know that Sakura Coin has only plummeted at two key points, both times when financial crises occurred.
And those two times, one time it dropped to 147, and another time it dropped to 152.
After that, the Sakura Country’s economy went into a major recession, followed by deflation! ! ! !
Now, in just half a day, the exchange rate of Sakura Coin to the national currency has fallen to 145 to 1!
This is definitely going to be a big deal!!!
Ikeda Tsurunan slammed the table and roared:
"Have you contacted Mr. Nohara?!!"
The assistant trembled and said, "Not yet. I couldn't get through to Mr. Nohara on the phone. I guess he's on his way back."
Ikeda Tsurunan gritted his teeth and looked at the news about Nohara Shintaro on the computer screen.
On the red carpet of the Imperial Palace, Nohara Shintaro's face was full of smiles. His visit to the hegemonic country made him full of hope, thinking that Solomon would give him some big gift.
But reality slapped him hard in the face.
Before Nohara Shintaro came back, the Federal Reserve announced an interest rate hike. The big short sellers arrived as expected, and the exchange rate of the Sakura Coin fell, and it was about to hit a new low in 34 years!
This operation is tantamount to the foundation using the "Sakura Coin" on the menu of the hegemonic currency to give Nohara Shintaro a "depreciation" meal.
If the currency continues to depreciate, the economy of the Sakura Country will definitely fall into turmoil!
Ikeda Tsurunan finally understood what the big short was.
The hegemonic country is the biggest short seller!!!
This method of raising interest rates is obviously aimed at the Sakura Coin market!!!
“Immediately convene a meeting of central bank governors from all regions!!!”
Ikeda Tsurunan roared.
Fortunately, the area of the Cherry Blossom Country is small, and the central bank governors from all regions can arrive in an emergency within 1 hour.
At this time, the exchange rate of Sakura Coin has fallen to 152, reaching the lowest level in 34 years!
Ikeda Tsurunan is a slow person. In meetings, he likes to talk about 80% useless information and then talk about the 20% key points at the end.
But the current situation forced him to get straight to the point:
“Mr. Shintaro Nohara has not returned yet.
The Fed is raising interest rates like a mad dog. The Sakura coin has fallen to its lowest point in 34 years. If we don’t find a way to raise it, there will definitely be a financial crisis!!!"
"I called you all here to let you express your opinions."
The governors of the major central banks looked at each other, and no one said anything.
It’s easy to raise the exchange rate!
One is to follow the interest rate hike and make the interest rate of Sakura Country equal to that of the hegemonic country, then capital will naturally stop selling Sakura coins.
The second is to sell off U.S. debt. The Sakura Country now holds 1.2 trillion U.S. dollars worth of U.S. debt, making it the largest overseas creditor.
In the case of a crazy depreciation of Sakura coins, you only need to sell US bonds and buy back Sakura coins to preserve the exchange rate.
But here is the problem.
rate hike?
Who has the guts to raise this interest rate?
Haven’t you seen that the top leaders of the Sakura Country who raised interest rates during the last economic crisis have committed seppuku to apologize?
Raising interest rates is like drinking poison to quench thirst. If it is really used, it is very likely to lead the Land of Cherry Blossoms into the "lost 100 years".
Selling off US debt?
Give me a break!
The most that would happen if interest rates were raised is economic problems. Anyway, they won’t starve to death, and there will be no personal safety problems.
But selling off US debt is not certain!
Now the hegemonic country is in a state of economic crisis. The subprime mortgage crisis and serious economic problems have caused the hegemonic country's debt to skyrocket.
This hungry wolf has gone red-eyed!
Selling off U.S. debt at this time is like throwing rocks at a hungry wolf, isn't it?
It’s not that Ikeda Tsurunan doesn’t have the ability to solve problems, but that he lacks the courage to solve them.
Asking them here now is nothing more than looking for someone to take the blame.
"Speak up, are you all mute? What should we do now?"
Ikeda Tsurunan asked angrily, spitting saliva.
Everyone was like an ostrich, bending over, wishing they could bury their heads in the ground.
Everyone can answer this question, but not everyone can answer it.
Only a younger local central bank governor raised his hand.
"Kishida Shigeru, you say!"
Ikeda Tsurunan responded immediately.
Kishida Shigeru nodded:
“Two points. First, we need to immediately ask banks across the country to follow suit and prevent capital flight.
The second is to sell off U.S. debt. We have a lot of U.S. debt now, and the money from selling it will definitely be useful to buy back Sakura coins.”
Ikeda Tsurunan touched his chin, thinking, and then nodded:
"Your idea is good, Shigeru Kishida, you are a talented person.
Well, you are fully responsible for these two things!
Everyone remember to cooperate with President Kishida, did you hear me? "
"Hi!!!"
All the bank presidents breathed a sigh of relief.
Wait until after the meeting.
Several bank presidents who knew Kishida Shigeru stopped him:
"Xiao Mao, why are you taking the lead?"
"That's right, you don't think that Ikeda doesn't know such a simple trick, do you?"
"Do you understand the meaning of full responsibility?"
"Listen to my advice. If the exchange rate drops, just let it drop. Just drag it out until Emperor Nohara comes back and let him make the decision. Don't be the scapegoat!"
"..."
Shigeru Kishida bowed deeply and said gratefully:
"Thank you all for thinking of me, but since I dared to stand up, I have decided to take responsibility for my words to the end."
"Someone has to stand up, someone has to do something for this country."
Everyone tried to persuade him for a while, but to no avail.
"Forget it, not everyone is willing to be with the light and dust. Like Xiao Mao said, someone will definitely make this decision, either him or us.
If everyone cooperates with Xiaomao's work, it will be the best help to him."
"Arigato! Mina-san!"
Kishida Shigeru bowed deeply again.
But everyone just kept nodding, their eyes revealing pity and regret...
