Chapter 1541 [Dealing with US debt in hand is on the agenda]

There is a 5% price difference in the middle, which means there is huge room for arbitrage, which is equivalent to giving non-magnesium Western customers the opportunity to make money by hedging the price difference as middlemen, and even make some profits after hedging.

If you are bolder and more flexible, you can still make money by using some financial tools to amplify your investment.

Fang Hong knew that after the price increase was officially confirmed, Ah Mei would definitely not come directly to place an order.

On the one hand, it is more expensive. On the other hand, it is too embarrassing. Losing face is the big deal.

If Ah Mei really accepts the price increase obediently and continues to purchase and place orders, then his majesty in front of the world will be destroyed, especially if the younger brothers see that their elder brother seems to be unable to handle Dongda, their hearts will be shaken. Ah Mei will definitely not let this happen. When something happened, even if I knew I couldn't handle Dongda, I must not let my little brother know the truth.

And this just gives opportunities to other non-Western magnesium customers. A smart person will definitely purchase large-scale goods from Dongda at a price increase of 20% at this time. Originally, he only needs to purchase 100 million US dollars. As a result, an order of US$1.1 billion was placed in one go.

Then the extra purchase order of US$1 billion was sold to Ah Mei. The purchase price increased by 20%. When it was sold to Ah Mei, it was 23%, and a 3% interest margin could be earned from it.

And Ah Mei would definitely buy it. On the one hand, he could barely keep his dignity, and on the other hand, it was 2% cheaper than going directly to Dongda to place the order, so there was no reason not to accept the order.

In this case, a picture like this will appear.

Ah Meiming was very tough on his face. He publicly announced that I would not buy if the price increased. As soon as he finished speaking, he secretly went to the middleman to purchase goods. The middleman then went to Dongda University to purchase goods and then came back. Just sell it to Ah Magnesium and earn a 3% interest rate difference.

The data on the surface will show that Dongda's trade volume with Ah Magnesium has declined, but Dongda's export trade volume with other countries or regions has increased significantly.

Some countries have inexplicably increased their imports from Dongda University. Even though their own size cannot digest so many products, the demand has skyrocketed. That's because Ah Mei secretly came in at night to purchase goods in a low-key manner!

In this wave of price increases, the companies in Qunxingxing took away 20% of the profits from the price increase, leaving a maximum arbitrage space of 5% for the second-tier middlemen, allowing them to arbitrage from the Omei people. As for how much profit they can actually make How large the spread is, whether it is 1% or a maximum of 5%, is up to them.

But if you want to get the maximum interest rate of 5% and act as a second-tier middleman, you still need to have a good relationship with Galaxy Enterprises. This is giving them a bite to eat.

If they raise their prices by 20%, instead of scolding them, they will be grateful. The only ones who are really scolding us are the West, especially Amnesia.

…

Finally, Fang Hong thought for a while and said slowly: "Taking advantage of the price increase window for export products, Qunxing Group should also start to deal with the U.S. debt in its hands. How many US dollar debts does Qunxing currently have in total? "

In a few years, the global trend away from the US dollar will be overwhelming, and the US dollar will become useless paper.

Not surprisingly, after this week, Ah Magnesium will turn on the unlimited QE mode and start printing money like crazy to boost magnesium stocks. In just two or three years, Ah Magnesium will wildly expand its debt scale to 35 trillion US dollars. The interest alone exceeds $1 trillion.

It was impossible to repay this debt. Fang Hong calculated the time and considered the current global situation. The US debt in his hand had to be processed and put into operation as soon as possible, which in turn would give the US dollar a blow.

Tian Jiayi replied: "There are more than 550 billion U.S. dollars in total. In addition, the state holds 657.4 billion U.S. dollars. In general, the total is 41.2 trillion U.S. dollars."

Hearing this, Fang Hong couldn't help but ask: "Together, we are the world's largest holder of U.S. debt?"

Tian Jiayi immediately shook his head and said: "No, not even when calculated together. Japan is the world's largest holder of U.S. debt. The latest data shows that the holdings reached 1.3878 billion U.S. dollars, followed by the United States holding 728.1 billion U.S. dollars. With the U.S. dollar, our country has fallen to third place, and of course it is definitely second if we include the stars.”

After a moment of pause, the beautiful assistant added: "Currently, the top ten holders of U.S. dollar bonds in the world total more than 5 trillion U.S. dollars, accounting for more than 60%."

When Fang Hong heard these data, he thought for a moment and couldn't help but nod to himself. He remembered that at this time in his previous life, Xiaoli was the largest holder of U.S. debt, but the scale was US$1.18 trillion, while Eastern University ranked more than US$760 billion. in the second.

Obviously, these are some variables caused by the emergence of Qunxing Group. Ah Mei squeezes Xiaoli to death, and Ah Mei cuts him to death. Xiaoli's future is absolutely certain.

But Fang Hongke didn't care about this at all.

After a while, Tian Jiayi turned his head and looked at Fang Hong and asked: "Are we going to sell U.S. bonds?"

Fang Hong shook his head: "No, you definitely can't sell it directly. This is a big weapon against the 'tidal circulation of the U.S. dollar'. If used properly, it can backfire on the U.S. dollar and pave the way for the internationalization of the RMB."

Tian Jiayi looked at him curiously.

Fang Hong smiled faintly and said: "Old magnesium cannot cut off our country now. One side is still evil, and the other side is harvesting crazily all over the world to make up for it. This time they definitely want to hedge against the impact of the black swan by harvesting the world's wealth. But how can I do what I want?"

"If it wants to harvest those third world emerging markets, especially the countries and regions along the Belt and Road Initiative, I will make it unable to harvest them, and the U.S. debt in its hands is the key to making its 'USD Tidal Circulation' operation more efficient." Hair declines or even fails.”

In the past, Ah Mei used the "dollar tidal circulation" method to harvest the world, which has been tried and tested repeatedly, that is, through the cyclical operation of raising and lowering interest rates in the US dollar, a "dollar tidal" cycle was created.

When interest rates are raised, the U.S. dollar flows back, and asset prices in emerging market regions are sold and exchanged for U.S. dollars. This also takes away local wealth, causing local asset prices to plummet and even triggering an economic collapse.

Then when the harvesters almost collapsed, the U.S. dollar entered the interest rate cut cycle again, and a large amount of U.S. dollars that returned to the mainland of Beizhou flooded into high-quality assets around the world that were crazy about bargain hunting prices, completing a harvesting cycle.

Those third world countries or emerging market countries have accumulated high debts due to the "dollar tide". They do not have that many dollar reserves at all, so they can only borrow new ones to repay old ones, which often ends up being depleted.

Fang Hong said methodically: "Next, we will lend US dollar debt to third world countries or emerging market countries that have business dealings with cluster companies, especially those countries along the One Belt and One Road routes that have insufficient US dollar reserves. They don’t need to pay back US dollars when they need money, just pay back RMB. This way they can avoid being harvested and exhausted when the ‘dollar tide’ hits because they don’t have enough US dollar reserves.”

Many third world countries or emerging market countries around the world have been suffering from the U.S. dollar for a long time. It can be said that they are trapped in a debt quagmire. This is because after borrowing in U.S. dollars, once the U.S. dollar interest rates increase, they will fall into a debt crisis, triggering Financial crisis leads to economic decline and even economic collapse leading to national bankruptcy.

A large number of third world countries and emerging market countries are trapped in this trap. The most important point of the trap here is that they are burdened with loans that will take several lifetimes to repay.

Suppose Basi now has a loan of 50 billion US dollars that is due to be repaid, but Basi does not have so much US dollars in foreign exchange. Now the stars of Dongda University come over and lend them 50 billion US dollars in debt to repay the money. He also said that when the time comes to repay the money, you don’t have to pay back US dollars, you can just convert it into RMB according to the corresponding exchange rate and pay it back to me.

In this way, the U.S. dollar debt in Qunxing's hands was released, and the country's urgent need was solved. It was not forced to borrow new U.S. dollars to repay old U.S. dollars, and avoided being harvested by U.S. dollars, thereby avoiding economic turmoil or even economic collapse.

This country used the money borrowed from Qunxing to repay the expired US dollar loan, and then exported agricultural products, minerals and other resources to the East through ever-expanding bilateral trade to obtain RMB, and then used the earned RMB to repay the previous loan from Qunxing. Borrowed money.

…