Chapter 116: Currency War One
"That's right, money, military power, and political power can be king. From this perspective, I really can't compare with him." Thinking of this, Laura's eyebrows trembled slightly, and her head bowed obediently.
"Is it time for your actions to stop? Some people in your parliament have already suggested easing relations with Japan, and your father seems to mean that too." Laura asked cautiously.
"But when will it ease up? One month or half a year? I don't care, can you?" At this point, Ruprecht glanced at his cousin. The attitude of the cheap dad must have been revealed by his cousin! There are not many people in the Bavarian palace who know about this, and there are not those who dare to intervene. The only person who can get the news and dare to say it is his cousin?
"It depends! Japanese money can indeed buy a group of people, but the decision of the Reich Assembly cannot affect the Federal Assembly. The attitude of the Kaiser is indifferent, and the Bavarian Blue Legion that can directly control the process of the Far East. The Qing state just recently We paid 700,000 pounds in honoraria, and the kingdom decided to send another regiment to maintain control of the situation in the Far East. Russia will also purchase more weapons and these equipment will be shipped directly to the Far East. If these actions hinder you, Then I can only say sorry." Ruprecht said with a smile!
"Before the war broke out, you saw that the outcome of the war still had a certain perspective. Judging from the introduction of the princess, your warships in the past few years are still reasonable, with more means, but the capital is very limited. Japanese national debt How old are you?" Ruprecht asked.
"5 million marks." Laura hesitated for a moment, and decided to explain it honestly. Now she wants to climb the big tree of Bavaria and get foreign aid. A princess with no real power can't support her plan, whether it is money or power. The help is far from enough, but the prince in front of him is different!
"Cut, forget your bonds, let's play a more fun game! More principal, more exciting trading! It's boring to share a piece of leftovers from the Japanese people, and take their victory. It's interesting to steal it into your own hands!" Ruprecht said.
Ruprecht is quite disgusted with the Japanese, whether it is because of his previous life, or the experience of being almost destroyed in the Toshima naval battle, or the history of World War I, Japan’s invasion of German islands in the Pacific. At the beginning of the trip to the United States, this Ruprecht has already considered how to do the Japanese again! Make some money by the way! Japanese bonds can't catch up now, but there are other opportunities!
There have been options trading in this era, and options are actually similar to gambling. They are all about buying big and buying small. However, there is a very special aspect of option trading, that is, a certain right is bought and sold! With very little money and great leverage, you can play a great role!
For example, the current market price is 1 yen and 1 tael of silver. The current trend is the decline in silver. Everyone predicts that it may fall to 1 yen for 2 taels of silver in the future. Then you can buy an option and agree to At some point, I am willing to buy a batch of silver at the price of 1 yen and 1.5 taels of silver. Maybe this silver requires 1,000 yen, but in fact, you can get this right for 100 yen!
That’s great. After this option takes effect, depending on the market situation, if according to the prediction of the public, the price of the yen to silver becomes 1 to 2, then you are naturally losing! For 1,500 taels of silver, you spent 1,000 yen, but when you get it, it's only worth 750 yen. If it is officially delivered, then you have lost 350 yen (250 yen spread and 100 yen for the purchase option cost). Of course, at this time, you generally choose to refuse delivery and give up this option, so your loss is only 100 yen.
But what if the price of silver does not fall but rises? For example, if 1 yen is exchanged for 0.5 taels of silver, then you will make a profit! After the option expires, then you can buy 1,500 taels of silver for 1,000 yen! The market value of these silvers is 3,000 yen! Then you have earned 1,900 yen! (Excluding the principal and 100 yen cost)
Of course, in addition to bullish, there is also bearish! Buying can make money, and selling can also make money. The whole process can be reversed. The same is the example just now, the same setting, if everyone is bullish! If you think that you can only buy half a tael of silver for 1 yen in the future, then you are willing to sell it for 1.5 yen per tael. If the price of silver does not rise in the end, but instead falls, it becomes that 1 yen can sell 2 taels. Silver, then you buy 1,000 taels of silver at 1 yen and 1 tael, and then buy options for 1.5 yen per tael. When the delivery date is reached, once the delivery is reached, then 1,000 taels of silver can be exchanged for 1500 days Yuan instead of the current 500 yen!
Sometimes, in order to prevent the risk of misbehaving ups and downs, people who play options will buy up and down at the same time. This is the so-called hedge. UU reads www.ukanshu.com. In addition to this basic principle, there are some other amplification methods. Therefore, the financial market is a place where you can get rich overnight, or you can be extremely poor overnight. It is the means, information and capital! And this time Ruprecht intends to fry Japanese silver!
Why are you fried silver? It's easy to be willing! The indemnity of the Qing Dynasty is silver! When silver arrives in Japan, it must be exchanged for Japanese yen or various other currencies! However, according to the situation at the time, currencies and precious metals are freely convertible, and the price of the British pound against silver is still rising.... It can be imagined from this that if a large amount of silver flows into Japan as in history, then the price of silver in Japan will definitely drop!
230 million taels of silver, if you change it into British pounds, that would be 40 million pounds! 36459 million yen! Japan’s funding for the Sino-Japanese War of 1894-1895 was around 230 million yen. Before the war, Japan had a large reserve of war funding, and the actual vacancy was only 78.95 million yen. This money is only one-fifth of the total compensation. Moreover, the money to be considered is drawn in three years. Interest will be generated every year. In the end, the Japanese will have about 300 million yen left after all the expenses are eliminated! These silvers will eventually be exchanged for yen and other currencies. The Japanese private and international silver markets will definitely fluctuate because of the inflow of these silvers!
If nothing else, the price of the futures and options market will be bearish for silver! After all, both Japanese yen and silver can be exchanged, and the Japanese government must convert silver into Japanese yen before they can be used. Japanese folks will also consider selling silver as an arbitrage for yen. But the prince decided to do the opposite! Are you bearish on silver? Brother must make you a bullish!
The second is more~~, ask for Sanjiang ticket, ask for collection, ask for recommendation!
