Font
Large
Medium
Small
Night
Prev Index    Favorite Next

Chapter 707 Inflation

Since the beginning of April, the world situation has suddenly become tense. Based on the Cold War, the entire world is like a powder keg about to be ignited. No one knows whether the Falklands War will become the trigger for the Third World War.

Neither the United Kingdom nor Argentina can compare with the small countries in the Middle East and Africa. One is a large European country and the other is a large South American country. Once the two countries really engage in a full-scale war, no one can guarantee what will happen next.

While countries around the world are keeping a close eye on Britain and Afghanistan, they are also secretly wary of each other.

The fuse of the First World War was that Archduke Ferdinand and his wife, the crown prince of the Austro-Hungarian Empire, were shot dead by Serbian youth Gavrilo Princip during an inspection in Sarajevo.

In the Sarajevo incident, a small assassination led to the outbreak of World War I. Now Argentina and Britain are directly fighting, which is much more intense than an assassination.

There were only twenty years between World War I and World War II. Now it has been more than thirty years, almost forty years, since the end of World War II. No one can guarantee whether the Third World War will break out completely.

In the early 1980s, the polar bears were at their peak, and there were still almost ten years before collapse. At this time, no country in the world would have thought that ten years later, the behemoth polar bears would fall without a word.

The First World War and the Second World War brought unprecedented catastrophe to mankind and huge disasters to all participating countries. The impact left over by the two wars has not been completely dissipated, and many people still remember it.

.

No one can guarantee whether the war between Britain and Afghanistan will involve the United States and the Soviet Union. If the two superpowers are involved, then World War III will not be fought even if they do not want to fight.

When people all over the world were panicking, Yang Chen signed an investment agreement with the Australian government while secretly directing Yuan Tianfan in London and He Hongtao in Argentina to start a money trap plan.

Over in London, Yang Chen was proceeding with great fanfare. As the Falklands War started, the London stock market was in complete chaos, with blood flowing across the board. Except for a few arms companies, the stocks of other companies fell to the point where they had no friends.

After experiencing two world wars, although the British were very angry about Argentina going to war, both the top leaders and the people at the bottom of society clamored to make Argentina look good.

However, verbal support is support, and stocks in the stock market should fall. The British were the first to figure out the stock market. Everyone knows that once a war breaks out, it will be out of control. Once the UK falls into the quagmire of war,

, no matter how valuable the stock is, it will eventually become a piece of blank paper.

Therefore, no matter how loud they are, when it's time to take action, the British are very straightforward and unambiguous.

Yang Chen knew that this war would not last long. Although the impact was great, it could not shake the foundation of Britain. This war would not involve a number of British companies. The drop in stock prices was only temporary. After the war, it would quickly rebound.

.

Therefore, Yang Chen allowed Yuan Tianfan to boldly acquire stocks of major British listed companies.

At this time, no matter how low the price is, you can receive the stocks you want. The principal plus leverage. In the eyes of outsiders, Yang Chen's play is very crazy, no different from a lunatic or a gambler.

Yang Chen didn't care about this. Whether he was a lunatic or a gambler, we would know after the war in Britain.

The British government was also quite surprised by Yang Chen's actions, especially the royal family. Originally, everyone thought that Yang Chen mobilized funds to enter the London stock market in order to take advantage of the instability of the pound to make a huge fortune. Who would have thought that the other party would actually

It is really shocking to buy shares of British listed companies on a large scale when everyone is not optimistic about it.

Different from making big moves in the UK, Yang Chen's moves in Argentina were very cautious.

Facing the unscrupulous Argentine military government, if he dares to make money in a big way, he may be directly attacked by others.

When a scholar encounters a soldier, he cannot explain why.

They even dare to attack Britain, so what else can they not dare to do?

Compared to the British, Yang Chen is more concerned about Argentina's gains, although Argentina cannot compare with the British in terms of military or economy.

However, no matter what, Argentina is one of the largest countries in South America.

Argentina is one of the earliest independent countries in South America, with a land area of ​​nearly three million square kilometers and a population of nearly 50 million. It is the largest country in South America after Brazil.

Since independence, Argentina's economy has developed rapidly. During World War I and World War II, it received a large number of European immigrants, and the domestic economy has since entered a fast lane.

After World War II, Argentina's domestic economic development was no weaker than that of developed European countries, and its national strength was booming.

However, it is a pity that, like other South American countries, Argentina was deeply mired in the Latin American debt crisis during this period and could not extricate itself.

Since the late 1970s, due to the outbreak of the second oil crisis, Argentina has immediately fallen into inflation, and economic and social contradictions have become increasingly acute. The inflation rate has exceeded 200%, causing Argentina's domestic unemployment population to continue to rise.

During the 1973 oil crisis, global oil prices soared, prompting the U.S. dollars reserved by European countries to spread rapidly around the world. Then oil-exporting countries deposited huge amounts of oil revenue into European international banks, and these banks in turn lent money to

Developing countries, Latin American countries are the biggest beneficiaries.

The oil crisis has greatly increased the international loans received by developing countries, and due to low loan interest rates and even negative real interest rates, countries such as Brazil, Argentina and Mexico believe that low interest rates and the growth in export earnings will have enough fiscal revenue to repay the loans they borrowed.

.

"A country will never go bankrupt"

During this period, everyone and the country thought so. Before the Latin American crisis broke out, no one or country in the world would think that a country would go bankrupt because of loans.

However, the facts slapped everyone hard, especially lending countries such as Latin America.

The oil crisis not only brought serious economic impact to other countries, but also severely damaged the U.S. economy. As a world-class power, the United States will certainly not sit still and wait for death. In order to stimulate the economy, after the first oil crisis ended, the federal funds rate quickly dropped to

pre-crisis levels.

Of course, this change has not yet had a major impact on liquidity in Latin America. Latin American countries are gritting their teeth and persevering.

However, with the outbreak of the second oil crisis in 1978, the Federal Reserve loan interest rate continued to increase, and the interest rate rose to the highest level in history, and the balance was finally broken.

The impact of the second oil crisis was far greater than that of the first oil crisis. A large amount of capital flowed out of Latin America. Debt pressure in Latin American countries increased sharply, and fiscal deficits continued to expand.
Chapter completed!
Prev Index    Favorite Next