Rebirth: The Financial Giant

Chapter 53: 【Long Talk (Part 1)】

On the weekend of May 30, the Splendid Overseas Chinese Garden.

Today, Lu Ming stayed at home alone. This weekend, he was spending the weekend with his native family. Lu Ming also had a rare time to recharge his batteries.

It was around 10:30 in the morning. Lu Ming was sitting alone on the sofa in the living room with a laptop on his lap. He was paying attention to the international foreign exchange market and some current international financial news.

Not being able to participate in the next thrilling financial defense battle and being a spectator makes Lu Ming a little regretful. Tiansheng Capital has developed fast enough, but he wants to participate in such high-level actions and play a role in it. Still far from enough.

At the end of this year, the Federal Reserve will definitely start raising interest rates for the first time in ten years, which means that the old and the United States will finally wave their scythes to harvest the world.

For the bloodthirsty Wall Street capital, the financial turmoil and the tsunami are the arrival of a gluttonous feast. Before the old American announced the interest rate hike, they had already smelled the strong smell of blood, and they began to sharpen their knives and rush to the terrified lamb. them.

Wall Street Financial Capital easily brought down the Argentine Peso next, and then slapped on the Basil Real, earning a lot of money, becoming complacent, gradually getting carried away, and being arrogant.

The insatiable Wall Street capital, with red eyes, then set its sights on the currency of the world's second largest economy.

Maybe at this time, most of Wall Street capital has already begun to formulate specific action plans how to eat this fat rabbit. Lu Ming will not be surprised by this.

Just as he was thinking about it, the sound of the villa's door bell suddenly broke his thinking.

Lu Ming thought it was the housekeeping staff who came to work, so he picked up his mobile phone and turned on a real-time monitor. There was a camera at the main entrance of the gate. At first glance, there were three or five strange men in strict formal clothes and leather shoes. They are all multiples of Lu Ming.

Immediately he got up and went to open the door.

"You are..."

"Hello, Mr. Lu, we are staff members of the State Administration of Foreign Exchange and the China Securities Regulatory Commission. This time, I came uninvited to talk to Mr. Lu about financial work."

Lu Ming was surprised.

The other party handed over the certificate, and it was true after reading it, and from the other party's temperament and conversation, he could also feel that he was a member of the system.

"Everyone, please come in!"

Lu Ming handed back the documents to the right person and asked everyone to enter the house.

The guests were seated. After the visitors introduced themselves to each other, Lu Ming immediately smiled and said, "All the leaders came to the door suddenly, and I was really unprepared. Please forgive me for the unprepared reception."

Bureau Wang of the State Administration of Foreign Exchange stopped and smiled and said, "We should say this, Mr. Lu, we are here to ask for advice."

Hearing this, Lu Ming immediately said politely and modestly: "Wang Ju's words are serious, how dare Lu Ming ask for advice in front of all the leaders."

Gradually getting to the point in the mutual modesty, Wang Ju said with a smile: "The so-called three-person line must have my teacher, Mr. Lu's ability in the capital market is indeed surprising, even shocking, we are very curious why you are here at this time. Nodes choose to withdraw from the capital market on a large scale, and switch from holding stocks to holding coins? If you think the market has major risks, what risks do you see?”

The real-time monitoring halls of the two major exchanges. As soon as the data is transferred, it can be seen that Lu Ming's Tiansheng Capital has recently cashed out tens of billions of stocks in a large-scale sell-off. Obviously, he believes that there is a risk in the market outlook.

Lu Ming was astonished. These words came from the mouth of Wang Ju, who worked in the foreign exchange bureau. The questions he raised seemed a bit redundant, but it was obviously not that simple.

I am afraid that this trip is definitely not a door-to-door question. Curiosity is so simple, how can there be so much leisure? Still at the crux of the day.

At the end, Lu Ming looked around the crowd and said, "Everyone, I'll be honest, from an investor's point of view, I think the market outlook is about to usher in major external-driven risks, so I have to avoid risks, but from the perspective of domestic financial practitioners and an investor. As a Chinese, seeing the recent situation in the international financial market, I am very worried about the savage invasion and plundering of international financial capital. To put it bluntly, Wall Street capital is wielding a reaping sickle at us. This has been since the birth of the financial tsunami in 2008. They are destined to have this cut."

Lu Ming continued: "Originally, the soaring domestic capital market can be traced back to the financial tsunami in 2008. My prediction is that the United States will definitely raise interest rates by the end of this year and next year at the latest. The whole world has to be reaped harshly."

Hearing these words, Wang Ju and others were very surprised. It was similar to the risk that the management sensed. The young financial practitioner really had a good idea, and he was looking forward to today's trip for a while.

"Mr. Lu, where did you get this news? Who told you?"

When Lu Ming heard this, he couldn't help laughing: "This is my own judgment on the market."

Everyone was surprised again, and Wang Ju immediately said: "Please tell me your opinion, we are all ears, including opinions or suggestions from all aspects, please know everything."

Lu Ming also heard some important information from the other party's words. It seems that the management has realized the potential risks, which is a good thing. He nodded and organized some words in his mind and said:

"The reason why I think I want to talk about the financial tsunami in 2008 is because the old and the United States allocated money to save Wall Street through the Ministry of Finance at that time. The market stabilized, but the sequelae remained. These money will not appear out of thin air. The money from the Ministry of Finance It is taxation, which means that ordinary people in the United States pay for Wall Street, and the biggest sequelae is that the risk originally borne by some Wall Street financial institutions was finally borne by the system.”

"If the system cannot get enough wealth from the outside to make up for this shortfall, the systemic risk will rise sharply. There is no doubt that Laomei must harvest wealth from the world to fill this hole, and here In the process, the U.S. stock market has assumed the function of a water release reservoir."

"A lot of dollars are idling in the financial system centered on U.S. stocks, and they are waiting for an opportunity to continuously raise the valuation of listed companies in the U.S. stock market, which is equivalent to the profitable business sector of old America in the world, as long as the wealth is harvested externally. The plan can be realized, and the inflated valuation can be realized by completing the acquisition of high-quality assets in other countries at a low price. Therefore, the U.S. stock market strengthened rapidly after the 2008 financial tsunami and continued to push up desperately, and the logic that it will continue to rise in the future right here."

Wang Ju and the others couldn't help but nodded silently. Everyone didn't say a word. Lu Ming obviously hadn't finished speaking yet, and they were all waiting for his next words.

After a while, Lu Ming continued:

"After the financial tsunami in 2008, the US dollar continued to cut interest rates to around 0, and there was no way to reduce it. From 2008 to 2014, the US dollar index had been fluctuating around 80, which was a weak period. Common sense in the financial world knew that a country's currency was determined. The exchange rate with the U.S. dollar then determines the international competitiveness of the country’s commodities, and our strategy has always been to follow the U.S. dollar and maintain a trend that is always weaker than the U.S. dollar but stronger than other countries’ currencies.”

"The advantage is that it can act as the shadow of the US dollar, and it can benefit from the pro-cyclicality of the US dollar, but the disadvantage is also obvious, that is, to take the risk of double monetary stimulus, we must also be forced to loosen and relax the US dollar. Bearing imported inflation is also the price that the country has to bear while benefiting from its rapid development."

"In the past few years, the flow of US dollars has been flowing into US stocks and emerging market countries, so our foreign exchange reserves have soared from less than 2 trillion US dollars to nearly 4 trillion last year after the financial tsunami. It is still not calculated. Influx from other illegal channels.”

"Excluding exchange rate changes, the newly added 2 trillion US dollars must be converted into 13 trillion yuan. These are real money and money funds. If these funds come in, if a conservative estimate is made, the market flow formed by leverage of 5 to 10 times. Sexuality, that is, leveraging the liquidity of more than one trillion scale, such a huge scale will form a huge influence in any country."

"With the continuous influx of these hot money, entering the civilian commodity market is a serious inflation, and entering the stock market is a super bull market. Now the Shanghai Stock Exchange has reached about 5,000 points, which is what is happening."

"Old America uses their stock market to undertake this amount of liquidity, because their market capacity is large enough, and our stock market has a total market value of less than 30 trillion before the start of this bull market, and the total market value as of now is also 70 trillion. Even if this round of bull market has inflated forty or five trillion to the limit, the capacity will still not be able to undertake the liquidity of one trillion billion.”

The more they listened to Wang Ju and the others, the more solemn they became. They found that what Lu Ming said happened to be what they were worried about at the moment. Obviously, they also saw Lao Mei's insidious intentions. No wonder he would evacuate at this time. The light outsider could see it so thoroughly, which surprised them.

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