Chapter 66 The Silver War (3)
On the banks of the Thames, the huge and majestic British capital is located here, enjoying the lofty status of modern times and the reputation of the world's financial center.
However, since World War I, London's position as the world's financial leader has been challenged and replaced by Wall Street in New York, USA. With the outbreak of the world economic crisis in 1929, the throne of the world's number one financial center was replaced by the newly rising Tang Empire. Chang'an, the capital of the Tang Empire, became the global financial center. New York was forced to rank second in the world, and London was reduced to the third place in the world.
Despite this, the British are still confident in London, and they believe that sooner or later, London will regain the reputation and status of the world's number one financial center.
Early in the morning, the city of London was revived. Like people in other cities around the world, the British here had to get up early to find jobs. After all, an economic crisis caused millions of unemployed people in the UK, and London, as a financial center, was even worse.
Although the British, American and Tang governments formed the new world order g3 group in the financial field, the Tang Empire was the one who really had gold reserves. Whether Americans or British people, they had a feeling of unhappiness that they were strangled by others.
In order to offset the oppression caused by the Tang Empire to the United States, the Hoover administration chose to restore the gold-silver mixed standard. The United States bought global silver and broke the market in a big way to get rid of its dependence on the gold reserves of the Tang Empire.
But for the UK, the MacDonald administration was very careful. Britain did not have the huge economic foundation like the United States, but it did not dare to acquire global silver on a large scale like Hoover. However, the Hoover administration's large-scale acquisition of silver on the global scale and raised the price of silver has brought great benefits to the MacDonald administration.
Countries with silver as the main currency have been impacted, especially China and Mexico. Because the latter is too close to the United States, the Mexican government has succumbed to the US tyranny, and the newly reformed peso is directly pegged to the US dollar and joined the US dollar system.
China is very complicated. The government, local tyrants, warlords, Japanese-occupied areas, and red-occupied areas each have a set of government orders, which makes the National Government's ban on silver a piece of paper. In just six months, 650 million silver dollars circulating on the market flow out of China, causing the National Government's finances to collapse. On the other hand, the outflow of Chinese silver has increased its purchasing power, and a large number of cheap foreign goods have poured into China. In less than half a year, tens of thousands of factories in China have gone bankrupt. The huge population and consumer goods market have made countries around the world even more jealous. The Americans originally wanted to include China's silver dollars in the US dollar system, but the Japanese firmly opposed it and obstructed it. So the British, as a peace deal, mediated and planned to get a share of the pie.
Three days ago, the MacDonald government had reached an agreement with Chiang Kai-shek's National Government. The National Government handed over the domestic reserves of 180 million ounces of raw silver to the Bank of England at an international price, and the British government acquired them at a price of 19 pence per ounce, which was converted into pounds as the fiat reserve for the National Government, supporting the National Government to carry out monetary reforms.
Before the agreement was implemented, the MacDonald government made the announcement, with the purpose of boosting the morale of the British and adding some momentum to the recession economy. However, just when the British believed that incorporating Chinese fiat currency into the pound system could make a fortune, the Hoover administration was jealous. The Americans were unwilling to let the British eat this piece of fat meat in China, and immediately announced that they would stop purchasing silver. The intention was very obvious, which was to make the British ugly.
Before the Hoover administration announced that in order to make a big profit in the international exchange rate of silver, the British not only obtained 180 million ounces of raw silver from the Chinese government, but also acquired raw silver on a large scale international basis, preparing to sell it to the US government at a high price to obtain huge price difference profits.
Major British banks and financial firms acquired more than 2 billion ounces of raw silver under the encouragement of the MacDonald government, which suddenly increased the price of silver to 36.25 pence per ounce, and the price of silver rose by 81 in one year. During the same period, the price of silver in New York also rose from 45.4 cents per ounce to 81 cents per ounce, an increase of about 78. The price difference profit is still profitable.
Of course, at the beginning, major British banks and financial merchants did not dare to acquire silver in large quantities. After all, their leader, the Ross family, had been severely damaged. The leader of international financial tycoons became Zhang Meng. Zhang Meng's Datang Bank's actions were the focus of attention of all parties. If Zhang Meng did not move, the other little crocodiles naturally did not dare to move around.
However, they soon discovered that the Mira family began to acquire silver on a large scale. Industry insiders knew about Mira and Zhang Meng's relationship, so they followed the trend and began to acquire silver on a large scale. At the same time, silver prices in financial markets around the world were soaring, and financial merchants from all over the country began to speculate on silver. They acquired silver on a large scale, hoarded and prepared to sell for a good price.
However, what they never expected was that Zhang Meng was extremely cunning. This time he simply asked Mira as bait and deliberately let the international financial tycoons take the bait.
When everyone was eating raw silver on a large scale, Zhang Meng secretly ordered the shadow banks and the raw silver exchange companies of Datang Bank's major subordinates to start secretly selling silver.
From the day the United Kingdom, the United States and the Tang Dynasty signed the gold reserve agreement, Zhang Meng secretly ordered Datang Bank to start hoarding global raw silver. At that time, the silver price was very low, and the ratio to gold was as low as 1:38. The price of raw silver per ounce was only 31.5 cents. Now most of the more than 10 billion ounces of silver reserved in Datang were sold out at a high price of about 80.5 cents per ounce, with a price difference of as high as 49 cents per ounce, and Datang Bank made a profit of as high as 5 billion US dollars.
Originally, Mila deliberately guided everyone to buy silver as a bait, but when Datang Bank sold all the silver in its hand, Zhang Meng also secretly reselled the raw silver acquired by Mila. In this way, Mila made hundreds of millions of dollars, so she was naturally very happy.
The city of London, the center of the center of London, must still obtain permission to enter the city.
Since the Roman era, this London City area has been the center of economic activities and has unshakable strength. Therefore, it is natural for King William, who came to England from France to consider granting the privileges of the London City and winning him over as his own people. This is the money box for national politics. The amount of assistance the city of London will provide to the lords and nobles under the king also generally determines the national policy.
London City Financial Street, once the world's number one gold trading center. Now, as countries restrict gold outflows, gold transactions are becoming less and less, and silver trading has to be used to support the situation.
The trading hall was crowded with people, and nearly 10,000 merchants from all over the world gathered here, all of them coming for silver trading.
As a futures trader, Pitt has been here for many years. He is a mature person, has a unique vision, and knows big players in the industry.
"Mr. Howard, how much silver are you going to buy today?"
Howard is Pitt's big customer. In recent days, he has purchased hundreds of millions of ounces of silver futures from Pitt, and he has made a big move.
Howard smiled: "The price of silver has been rising all the way, but the price in London is still a bit low, and the price in New York has reached 81 cents per ounce."
"I have made £6 million this week. Today I am in a good mood and buy another £8 million."
"It's really a big deal!" Pete smiled and quickly handled the relevant futures procedures for Howard.
This futures are gambling, some people buy and some people short, and Pitt's role is equivalent to a dealer, and he offers different profit returns. Now the price of silver has been rising, and he lowers the profits of buying and increasing.
"I can't see short-selling silver prices recently!"
"The silver price in the world is soaring, and fools will not come to short at this time."
Just then, a young man suddenly came to the counter. Peter looked up and saw that it was an Asian pair, handsome man and smart woman.
Before, Pete would not look at Asians directly. Even though the Japanese have a relatively higher status, the Japanese have no money, so they are not welcome here.
But now it is different. The strong rise of the Tang Empire has brought a group of Asians from the Tang Empire in the white world. These people are rich and powerful, truly powerful, rich, and have no simple background.
"The two are Tang people?"
A pair of young people who came were named Liu Bin and Li Yun. They came to London by plane from Shanghai and came in to do a big deal on the trading day.
"Yes, we are from the Tang Empire!"
Liu Bin and Li Yun were quite proud when they talked about their motherland, and they had never had enough confidence. If they had been a few years ago, they would never dare to say it, and even pretended to be Japanese, because once they said that they were from China, they would inevitably be looked down upon and even kicked out.
"It's true that I'm a distinguished guest. What kind of business are you doing? I'm the best businessman here and I'm dedicated to serving you."
Peter looked flattering. When he heard that the two were from the Tang Empire, his eyes lit up immediately, and he tried his best to keep these two guests.
"We want to sell a batch of raw silver, I don't know if you can eat it here."
"Don't worry, you two can eat anything!"
"One hundred million ounces must be taken today, can you do it?"
One hundred million ounces?
The white people around him looked over in surprise, and Howard next to him looked even more shocked. He looked down on Asians. Now he saw that two ordinary young men in the Tang Dynasty actually had 100 million ounces of silver, so he couldn't help but pay attention.
Peter was so happy that he was very happy. As expected, Tangren was a big tyrant, and he only had 100 million ounces of silver when he took action. He was worried that he would lack silver in his hands.
"No problem! As long as the procedures are complete, the two distinguished customers will be given priority."
Liu Bin immediately took out the Bank of England's silver exchange notice and handed it to Pitt. After Pitt checked correctly, the procedures were immediately completed.
At this time, Li Yun suddenly said, "I want to short sell silver futures here. I wonder if it is feasible here?"
Pete was stunned for a moment, then smiled and said, "Of course there is no problem. I wonder how much this beautiful lady plans to short it?"
Liu Bin suddenly pulled Li Yun and whispered: "We can complete the task, don't be too troublesome."
Li Yun said: "I just joined the company. How can I be valued by senior management if I don't make great contributions? Don't worry, I won't do anything wrong."
Liu Bin is relatively conservative, Li Yun is very ambitious. After Liu Bin persuaded him for a long time, he couldn't convince Li Yun, so he had to agree.
Although Li Yun is ambitious, she is extremely smart and naturally will not act recklessly. She can feel that the silver price has reached its highest point, so she dares to short the silver price. As long as she makes a lot of money for the company, Li Yun's status will be truly stable. She doesn't want to be said to be through Liu Bin to go to the back door.
Li Yun shorted the silver price on a large scale, so Pitt was naturally happy because he did not think that the silver price would fall in a short period of time. Therefore, the larger the short seller, the more Pitt made.
Looking at Liu Bin and Li Yun's back as they left, Pete smiled smugly, while Howard next to him snorted coldly: "A pair of foolish birds are the second generation ancestors at first sight. They will probably vomit blood when they see the price of silver continues to soar tomorrow."
Pete thought about it, but didn't care too much. Soon Howard and some white people continued to buy silver, and just raised 100 million ounces. Everyone was ready to make a big profit tomorrow.
However, when Howard arrived happily a few days later, he found that Peter had a sad expression like his father was dead.
"Silver price plummeted!"
"What? How is it possible?"
"The Americans stopped buying the silver, and everyone was throwing it wildly."
"Then how much is the silver price now?"
“30.2 cents per ounce.”
After Pitt finished speaking, he fell down weakly, his face pale. He couldn't help but buy a large sum of money, and he spent all his life savings in it.
Howard was so angry that he vomited blood. If he had stopped seeing the good news a few days ago, he would have made millions of pounds. As a result, he was not satisfied with the people's hearts. Not only did he not make any money, he invested millions of pounds, which was the usury he borrowed.
"It's over, I either jumped off the building by myself or was hacked to death by the club."
At this time, Liu Bin and Li Yun came over again. They rushed over immediately when they learned that the silver price had plummeted.
Peter glared at Li Yun with envy and hatred, and reluctantly handled the procedures for her. Li Yun had made millions of pounds in short selling for net profit. She was extremely smart and knew that the futures company would probably go bankrupt soon, so she completed the procedures early and took the money away.
Looking at Liu Bin and Li Yun's back as they left happily, Peter and Howard looked at each other and saw the envy, jealousy and hatred in each other's eyes.
Ah puff!
The two beat their feet and stamped their chests, and sprayed blood again.
Soon, another group of people came over, all of whom were customers who had handled their business through Pitt's hands.
However, when Pete handled them, his futures company announced bankruptcy and closed.
Ah puff puff puff!
A group of people in the hall were so angry that they vomited blood, and the ghosts cried and howled.
In the office of the British Prime Minister on Downing Street, when MacDonald learned that the Hoover administration had stopped acquiring silver and the price of London silver plummeted, his expression was extremely dull.
"Hoover, you bastard!"
Ah puff!
McDonald was so angry that he vomited three liters of blood. He didn't breathe and immediately fainted on the ground.
Chapter completed!