Chapter 518 The Dollar Tide
In addition, DS Capital’s Mars Fund will also participate in short selling of some U.S. stocks.
As for the European market, short selling is mainly carried out by funds under the DS Group. You must know that after the subprime mortgage crisis broke out, the European market was the most affected in the world.
After all, many European banks and investors are also involved in claims related to subprime mortgages.
Funds under the DS Group have also begun large-scale short selling of the entire European stock market and related bond markets.
They have invested more than 100 billion US dollars in this.
In addition, the stocks of some listed companies held by DS Group and related funds have been reducing their holdings in a rhythmic manner earlier as those companies were listed one after another. Through this, they also withdrawn a large amount of money. funds were invested in this short sale.
It is also worth mentioning that Catherine Neville, the former Mrs. Hall, still holds 8% of the shares of Northrock Bank. This part of the shares will be quite useful to Barron in the future.
But he also knew that in the subprime mortgage crisis, Northen Rock Bank would be deeply affected and eventually lead to bankruptcy...
Therefore, these shares will naturally depreciate significantly.
In order to compensate Catherine, Barron directed her to use the $5000 million from the sale of Hall Bank to the Hall family to purchase Nvidia stock.
It is the United States that uses the method of "raising and lowering interest rates" to control the flow of dollars, just like the rising and falling tide of the sea, to harvest wealth around the world.
This can also be regarded as a risk hedging strategy for her shares in Northrock Bank.
In fact, the subprime mortgage crisis will have disastrous consequences for the global economy.
However, the monetary expansion and low federal funds interest rates at this time caused the dollar to depreciate, causing currency to flow out of the United States.
At this time, many American capitals carried dollars and entered other countries for investment.
In addition, also recently, under his instruction, Catherine used her Nvidia shares as collateral to obtain a loan from Standard Chartered Bank, and used this to short-sell the shares of Northrock Bank...
The so-called "rising tide" means that the United States has implemented loose monetary policy and quantitative easing (QE) through balance sheet expansion to increase domestic market liquidity, lower interest rates while injecting strong liquidity into the market, and increase money supply on a large scale to ease the The country's economy is declining rapidly and the financial market is stable.
Finally, there is the Asian market, mainly short selling in the Japanese and South Korean markets, dominated by Rich23 Capital. These two markets were also hardest hit by the subprime mortgage crisis.
It's just that this time the subprime mortgage crisis was caused by their own fault.
What is a “dollar tide”?
Barron has no compunction about profit expansion through this subprime mortgage crisis, because in essence, the United States and its capital are accustomed to using the "dollar tide" to harvest the world again and again.
But for Barron's, it is not only the ability to earn funds through this economic crisis, but more importantly, after the subprime mortgage crisis, the global economy has fallen into the recovery period after the bottom. Many companies are facing bankruptcy, and some high-quality companies are facing bankruptcy. The price of assets is also very low, which is the best time for him to make acquisitions and expansion.
These investments are mainly invested in the capital market and real estate market, causing stock and real estate prices to rise and forming asset bubbles.
After those asset bubbles form, it's time to "ebb"...
The United States began to tighten monetary policy and implement balance sheet reduction measures such as raising interest rates, causing the dollar to appreciate and capital to flow back.
Therefore, the U.S. dollar capital invested in other countries began to be sold on a large scale after their asset bubbles were blown up, and the huge funds obtained returned to the United States.
As for those invested countries, due to the withdrawal of foreign capital, their asset bubbles burst, economic crises broke out, and then they fell into social chaos.
After this cycle of "dollar tide" is completed and a round of harvesting is carried out, the next round of "dollar tide" can continue...
In this way, the global wealth will be harvested by American capital in rounds...
Economies in South America, Europe, and Asia cannot escape this kind of cyclical acquisitions by the United States, but occasionally if they mess up, they will also damage the U.S. economy.
But for capital as a whole, even if the United States is affected, capital will not have a big problem - just like during the subprime mortgage crisis, some investment banks went bankrupt, but those were those who went too far. Most banks received government bailouts and eventually survived the crisis.
As for ordinary people...
You can only wish for yourself. Anyway, the media is under control. The most they can do is complain and it will not cause too big a crisis.
In the final analysis, the reason why the "dollar tide" has been able to plunder the world one after another is that after World War II, an international monetary system based on the U.S. dollar standard was formed. Banks and currency settlement-related institutions were all controlled by the United States. Therefore, the US dollar is the de facto global currency, so it can be harvested through this tool.
This entire system is actually completed through the global military layout of the United States.
Of course, this has also led to the gradual shrinking of America's basic industrial capabilities, while military industry and finance have become their mainstay.
After all, if you can make money easily through finance, who is willing to go through the hard work of developing manufacturing? Wouldn’t it be nice to print money to buy the “fruits of labor” of others?
And as long as the United States' control continues, even if there is an economic crisis in the country, they can pass some tough measures to pass on their losses to other countries. This kind of thing they are familiar with.
……
In January 2007, News of the World editor Clive Goodman and private investigator Glen Marshall were arrested by the British police and interrogated for their role in eavesdropping and obstructing royal telephone communications.
In fact, as early as 2005, the "News of the World" revealed in a report that Prince William suffered a knee injury.
At that time, the royal family discovered that many of their phone calls had strange noises and protested that their phone communications were being bugged and hindered.
The British police began to investigate this.
When Barron returned to London, he learned through some information that during the interrogation, both the editor of the News of the World, Clive Goodman, and the private investigator he hired, Grant Marshall, denied this. There are other people involved in the matter, but they just claim to be doing it to get "big news"...
Obviously, they are preparing to take this matter on their own. After all, if more people are involved, it will have a great impact on the News of the World and the News Corporation to which they belong. Under such circumstances, If they were "wise" enough, they would know what to do.
And during the police investigation, News Corporation also did a lot of work on this. According to Barron's legal counsel, under the most optimistic scenario, the two people involved in the case will only get a few months in prison.