"Feng Yu, why is the news you mentioned not out yet?" Fu Guangzheng is anxious.
Feng Yu confidently said crude oil prices will rise, not only because Iran will cut crude oil production, but also because Feng Yu predicted the Federal Reserve will cut interest rates again.
It might seem that the Federal Reserve's interest rate cut has nothing to do with crude oil prices, but it has a lot to do with it.
The Federal Reserve's interest rate cut will lower the cost of using USD. USD is the world's reserve currency, and almost all the countries in the world have USD in their foreign reserves. This makes USD a hard currency like gold.
USD is the world's reserve currency, and it can be exchanged freely. When the Federal Reserve cuts interest rates, many people will exchange their USD for other convertible currencies or other commodities.
This will create a situation where the USD will depreciate and dump their USD.
This will be like the Asian financial crisis. Thai Baht, etc. was dumped continuously and depreciated.
Won't the US suffer losses if the USD depreciates?
Not necessarily. USD is not the US's foreign reserves. It's the Euro, Yen, etc. Also, from Hua Xia's interest rate cuts, this is a way to stimulate currency circulation and consumption. This will stimulate China's economy.
Because at this time, the US had already seen that their economic growth had slowed down and there were signs of recession. As the world's biggest economy, how can the US watch other countries grow faster than them? Especially Hua Xia, Russia, etc. which the US had been trying to suppress. Their economies are growing too fast, and the US is worried.
Also, the US can attack those countries with a lot of USD reserves. What are the main reasons for this? The main reason is the Asian countries, including Hua Xia, Japan, etc., which are the top countries in the world with the most USD reserves.
When the USD depreciates, it means their wealth will depreciate and evaporate.
This was a method that killed many birds with one stone. Although the Federal Reserve was not a government unit, it still represented the interests of the US and the interests of the US investors.
If the Federal Reserve cuts interest rates and depreciates USD, what will be the impact on crude oil futures?
Crude oil is linked to USD, and all the crude oil transactions are based on USD. The fluctuation of crude oil price is also based on 1 US cent. What will happen if it is linked to USD?
That is to strengthen the value of the US dollar. Crude oil is the world's most common energy source. After it is linked to the US dollar, the US can use the US dollar to influence the price of crude oil to a certain extent. This will ensure their interests, and at the same time, expand the influence of the US dollar.
Therefore, the fluctuation of the US dollar price has a significant impact on crude oil. The depreciation of the US dollar means that a barrel of crude oil at the same price will also depreciate, and the purchasing power will decrease.
So how could the actual value of the crude oil not change? Very simple, raise the price.
Crude oil, which was originally priced at 55 USD per barrel, rose to 60 USD per barrel, and the purchasing power would be the same.
Feng Yu had convinced Fu Rongqi and the rest that the production of crude oil will decrease, and the USD will depreciate.
But in the current situation, only Iran unilaterally announced a crude oil reduction, and the other OPEC members did not say anything. Although they did not oppose it, they did not support it either.
Furthermore, the Federal Reserve did not cut interest rates, and the US dollar did not continue to depreciate. How could the price of crude oil rise so quickly?
He Zhaoji had told Soros that the 1 billion USD cost to push up crude oil prices is to suppress the US dollar. It will be the same as when they suppressed Thai Baht in the past. They will borrow from the banks and sell it at a lower price.
The difference in price will be a loss. Both parties agreed to be prepared to lose 1 billion USD.
But this loss can be recovered by the increase in crude oil prices. Also, the depreciation of USD will not affect the US badly. The US can use the Federal Reserve to raise interest rates anytime to reverse this effect. This is also a way for the US to control the economy.
That's why Soros and Wind & Rain Consulting are working together to suppress the US dollar. Anyway, this is in line with the US's interests.
In the second quarter of last year, the Federal Reserve had cut interest rates, and it had stimulated the US economy. At that time, the price of crude oil had risen to almost 80 USD per barrel.
After that, the price of crude oil fell back to 50 to 60 USD, and this is also because the Federal Reserve kept raising interest rates.
Feng Yu is confident that the Federal Reserve will cut interest rates again, but the rest does not believe him.
How is it possible for the Federal Reserve to cut interest rates again in less than a year?
Feng Yu looks at the anxious Fu Guangzheng. "Let's wait for a while more. We will get the news soon. If Soros had not joined in, we might still be suspicious. But since he is in, this will happen. "
Among the Quantum Fund's clients, there are many big bankers, and the Federal Reserve Bank is one of them. Some of Soros's friends are the Executive Committee members of the Federal Reserve, and they must have access to this information.
Of course, one of the Executive Committee members is Ralph's friend, but there is no need to mention how they got to know each other.
Through these people, Feng Yu will know the Federal Reserve is going to cut interest rates again to stimulate the economy and get people to take out their money.
"But how long do we have to wait?" Fu Guangzheng asked.
Feng Yu glanced at Fu Guangzheng. "Guangzheng, why are you so impatient? Although crude oil prices had been fluctuating for the past few days, it is still rising, and we are still making profits. "
"But the profits are not as high as investing in stocks. If we use our money to buy stock index futures, we will make more profits." Fu Guangzheng retorted.
Professor Liang shook his head. "Guangzheng, you cannot look at it this way. Do you think we need to buy stock index futures now and wait for the Federal Reserve to cut interest rates and reduce crude oil production before entering the market? "
"If that is the case, crude oil prices will have increased by a lot, and our profits will be lesser. More importantly, we will no longer be the wind vane. "
"Now that we have entered earlier, many investment institutions and hot money are watching us, using our operations as a wind vane. That means we can influence the crude oil prices to a certain extent. "
"The biggest advantage is when we short the market, we can also get others to follow us. This way, we can get the most profits."
"We need to take the initiative, and this is the most important. This will lower our risk."
Feng Yu suddenly laughed and asked. "Guangzheng, you have borrowed a lot of money, right?"
… …
You've already exceeded your reading limit for today. If you want to read more, please log in.
Login
Select text and click 'Report' to let us know about any bad translation.
