Chapter 2730 The Benefits of Short Selling
Han Li excitedly reported:
"Boss, the Sakura Coins have been reduced to 170 to 1!!! We are making a fortune!!!"
Jiang Pengyue looked at Chen Mo with admiration: "I don't think it's a big deal that you shorted it yourself.
Unexpectedly, this time you can actually get your opponent to help you short his ally.
Moreover, the targets of the short selling are also in a mess, and they are also short selling...
To be honest, I find it ridiculous. It's like something out of a fairy tale.
I have been working in intelligence for so long, and this is the first time I have seen such a situation."
From the moment Chen Mo and Solomon started shorting Sakura Country together, Jiang Pengyue had been watching the entire process.
Every step is ridiculous!
Including but not limited to: Solomon reaping his allies, the Sakura Kingdom sitting there with its neck held high waiting to be harvested, those who jumped out to resist short selling in the Sakura Kingdom being caught and killed, the Emperor of the Sakura Kingdom taking the lead in following up short selling, etc.
If any of these things didn’t really happen, they would be criticized for being too fake if they were written into a novel!!!
“Is it ridiculous? Once you understand the nature of these people and this country, you won’t find it ridiculous anymore.”
Chen Mo chuckled.
He had seen more magical and ridiculous operations in his previous life.
What you think are talented people are actually just a makeshift team.
"Boss, the Sakura Coin has stabilized now. Will it continue to fall?" Han Li asked.
If the short position can reach 200 to 1, then Sakura Coin will really usher in a lost 100 years!!!
By then, financial crisis, economic crisis and various crises will make the Sakura Country restless.
Chen Mo thought for a moment and said:
“The essence of currency is actually the economic strength of the country behind it.
Only when a country's macro-economy is strong enough and it can earn or rob real money, can a country's currency have sufficient physical backing to it.
Sometimes it is supported by gold reserves, sometimes it is supported by foreign exchange reserves, sometimes it is supported by physical resources, and sometimes it is supported by truth (number of aircraft carriers), and the main focus is on winning people over with virtue.
What do you think of the Sakura Country among the things I said?"
Han Li thought about it for a while and shook his head: "None."
Chen Mo shrugged: "So, you only saw that once the hegemony country raised interest rates, the exchange rate of Sakura Coin fell as soon as I entered the market.
In fact, the essence is that the macro-economy of Sakura Country has been declining in recent years, and there is nothing to support it, which is why the Sakura Coin has fallen.
The currency value may be shorted, but the extent to which it can be shorted must be linked to a country’s macroeconomics.”
“Look at the three most recent emperors, Abe Fumio, Sakurai Musashi, and Nohara Shintaro, how much have they done?
Quantitative easing, massive money supply, self-production and sales of government bonds, Abenomics, negative interest rates to stimulate consumption, etc., are all choices that the Sakura Country has to make when it is forced to do so. They are all policies that can only stimulate the economy temporarily but cannot solve practical problems. "
Han Li thought for a moment and said, "So, Sakura Country is willing to take huge risks to compete with us for Brother India's high-speed rail project and the cooperation with Bear Country?"
Chen Mo looked like a teachable kid and nodded with satisfaction:
"Bingo! In essence, they are not necessarily against us. They are just trying to save themselves, just to develop the macro economy and to provide sufficient support for the currency."
“Let me tell you, the success of the Sakura Coin short selling this time was not because of my amazing strategy, nor was it because of Solomon and the Federal Reserve, nor was it because of the reverse operation of the six major financial groups.
But because it is returning to the values it is supposed to represent.
And it is obvious that Sakura Coin is still overvalued.
Sakura coins shouldn't be this valuable, not even worth 170 to 1!!!
The short-term fluctuations of currencies are a result of the struggle between the big men of capital, but the long-term trend must return to the “real” value it represents, and no one can stop this! ”
Han Li's scalp tingled as he asked, "Isn't that the Sakura National Medicine Pill?"
Chen Mo shook his head: "It's not over yet, Sakura Country is not a country like Xi or Ke that has no industry.
Currently, it also has the automobile manufacturing industry and many high-tech industries as its pillar industries.
A single currency fluctuation will not directly destroy its entire economic system.
But in the future, whether it is the car manufacturing industry or the high-tech industry, they will all be controlled by Daxia. I bet on this!"
In peacetime, war is no longer a life-and-death fight on the battlefield.
Instead, it is a competition of who has better high-tech, who has a stronger industrial system and can monopolize a larger market share.
There is only one bowl of rice, and I can finish it all in advance, so you naturally have nothing to eat and will starve to death.
Han Li joked, “Actually, I’m pretty unlucky. More than a decade ago, when the exchange rate was close to 100 to 1, I went to study in Sakura Country.
If it were now, my study abroad costs would be reduced by 70%! How cool!
We can also benefit those people from Sakura Country."
Chen Mo smiled; "Sakura Country still has a lot of gold reserves, and its own US debt is ridiculously large.
Everyone is betting that it won't dare touch the money. But if it really comes to the point of national destruction, who can guarantee that it won't suffer the consequences?
Trillions of U.S. dollars worth of U.S. debt are a financial deterrent, telling the foundation that you can cut me off, but you can never kill me, because if you kill me, you will have to jump with me. "
Han Li raised his eyebrows: "Since the Sakura Country has such a terrifying financial deterrent weapon, why did a group of vultures circle around the Sakura Coin all day long? They come up from time to time to test it, causing the Sakura Coin exchange rate to fluctuate?
Don’t they know that this piece of meat is not easy to eat?”
Chen Mo: "Just nibble along the edge, slowly. It won't kill you all at once, but it will eat more and more.
The same goes for this short selling. It is impossible for the Foundation to kill Sakura Country all at once. It will definitely leave it a breath, continue to feed it, and continue to eat it after it gets fat.
Therefore, I dared to cooperate with Solomon with confidence, because I knew that even if I didn't ask, he would definitely come to short and reap the benefits.
The difference is, this time, I got a big bite of meat.”
“Oh, yes, there is one more thing that I am very satisfied with. This short selling will definitely make the service industry in Sakura Country reach an unprecedented level of prosperity.
In the future, it will be much cheaper for us Daxia people to travel to the Sakura Country, and I bet that the Sakura Country will never refuse to welcome Daxia people again.
Without money, there is no dignity, and the power to speak is also gone!!!"
Han Li smiled evilly and said, "After this short selling operation is over, I will take you to Sakura Country to experience the local special tourism projects and let you feel the benefits of your short selling."
