The US financial crisis had finally erupted earlier than Feng Yu's previous life, but it was not as severe as Feng Yu's previous life.
How can this be? If the financial crisis is not so severe, how can Feng Yu achieve his goal?
The simplest way is to make the US stock market crash, and the US financial market will crash. This way, the US will not be able to pull China back. This will affect the US economy and shorten the gap between China and the US.
To make the US stock market crash, other than releasing all sorts of negative news, someone must also short the US stocks and stock index futures. At the same time, the US dollar market and other financial markets must be targeted!
There is no need to short the Two Fannie and Freddie shares anymore. Now, the share prices had fallen to around 60 cents, and there is no way to borrow money.
But Feng Yu chose some companies' shares that no one else dares to short. For example, Morgan Stanley, one of the top 10 financial conglomerates in the US.
Feng Yu can borrow Morgan Stanley's shares from Goldman Sachs.
This is also a form of short-term borrowing, and the interest rates for short-term borrowing are rising. That's why most people will not borrow in large amounts as the cost is very high.
But this is nothing to Feng Yu. He has enough cash and still has the support of Kirilenko, the Fu Family, and the Li Family.
Fu Rongqi led his men to continue to dump USD and will not give the USD a chance to recover. Once USD rises, investors will have more confidence in the US. If Feng Yu leads his men to short sell, there will not be as many investors.
Feng Yu had also informed China to ask Zhang Ruiqiang to cancel all his gold contracts. During this period, the gold prices will fluctuate abnormally, and Feng Yu cannot keep an eye on it. That's why he cannot give the best advice.
Hua Xia also wants to invest in some of Hua Xia's provinces to stimulate China's economy. After all, Hua Xia's economy is also affected by the international financial market, and its economic growth had slowed down.
Two quarters ago, China's economic growth was almost 11%. But these two months, it had slowed down, and the third quarter of this year's economic growth is only slightly above 10%.
If it was any other country with such a high economic growth rate, they would be smiling even in their dreams. However, Hua Xia was still not satisfied. One reason was that Hua Xia's economy was still lacking compared to the top countries. Another reason was that Hua Xia's population was very large, and there were many areas that needed to be spent. The funds that were considered sufficient in other countries were not sufficient in Hua Xia.
Hua Xia was a big exporter. Even though there was Feng Yu in this life, and many industries had undergone earth-shattering changes, the proportion of exports was still very high. It was just that they were slowly transitioning from low-value-added products to high-value-added products.
But the recession of the US had triggered the recession of many European and Asian countries. The purchasing power of those regions had decreased, and their imports had also decreased. Hua Xia's exports had also been affected.
It was also because of this that Hua Xia's economic growth slowed down. However, it was still developing rapidly.
If exports were blocked, they would stimulate domestic demand to ensure economic development. Coincidentally, Hua Xia wanted to reorganize the retail and other industries, and these industries required a lot of investment.
As for Hua Xia's foreign exchange to short crude oil futures, this was not possible. Hua Xia would be blamed for the decline of crude oil, and it will affect Hua Xia's relationship with the Middle East. This was not cost-effective in the long run.
But Feng Yu also told Zhang Ruiqiang that crude oil prices had fallen to close to 80 USD. They could sign a long-term contract with OPEC countries. They just need to pay a deposit first and sign the contract at the current price.
By the end of this year, crude oil prices will definitely fall. But from next year onwards, crude oil prices will rebound and reach more than 100 USD again.
Feng Yu's reason was that those OPEC countries will suffer a lot from this financial crisis, and their debts will increase significantly. They need money to ease their financial pressure.
The US will start to produce shale oil to achieve self-sufficiency. But because of these, crude oil prices will continue to rise, and it will be in the interest of those oil giants.
After Zhang Ruiqiang heard Feng Yu's analysis, he held a meeting with China's economic experts to discuss this. Those experts felt Feng Yu's analysis has a high chance of happening, especially when the US economy is worsening.
After hearing what the experts said, Zhang Ruiqiang decided to follow Feng Yu's suggestion and consider the long term. But Feng Yu could not cancel all of the gold contracts. He could only cancel some contracts with higher leverage and continue to hold on to those with lower leverage.
Feng Yu had also mentioned that gold prices will return to normal at the end of the year, and funds from the stock market and other financial markets will flow into the gold market. This was the most normal situation during a financial crisis.
China also cannot be accused of manipulating gold prices. That's why it's better to reduce the multiple and break even. Those foreign reserves must also be retained. Although Feng Yu had listened to Feng Yu's suggestion and made some reductions, he cannot reduce it by too much.
If not, even if Feng Yu had promised Feng Yu that he will do his best to help Feng Yu, Feng Yu might still fall into a crisis. Hua Xia cannot take any risks at this time.
Hua Xia's withdrawal of a large amount of funds had caused a commotion in the gold market. After that, some consortiums also withdraw their investments. The financial crisis had happened, and they must take care of their own interests first.
Gold prices started to fall. Some consortiums and investors also saw this opportunity and started to short gold contracts, hoping to get high profits.
The number of short selling contracts in the crude oil market had increased, and crude oil prices fell faster. Although OPEC and other member countries had taken out a large sum of money to hold down crude oil prices, it was useless.
The amount of short selling funds was too much, and they could not compete with OPEC. These OPEC members are wealthy, but that is on a per capita basis. In terms of total output, they could only be considered average. Especially their foreign reserves, which are not considered high.
Feng Yu and the rest had used high leverage to increase their positions and reduce their risk reserves. Now, a lot of funds are short selling, and the risk of crude oil rising is very low.
Furthermore, even if the oil price rises, they can cancel some of their contracts and hedge against it.
Feng Yu had also asked his men to announce to the media that the US stock market is finished, and a crash is inevitable. If you don't believe me, take a look. Morgan Stanley's shares had fallen by 12% in 2 days, and it is still falling rapidly!
The US financial crisis is more severe than Feng Yu's previous life!
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