novelhk Chapter 302
Chapter 302
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Hans’s national debt was issued to all citizens of the United States. After Hans sold the national debt, although the money had been taken by Hans, these bonds remained in the hands of the American people.
Therefore, there were transactions on these bonds in the market. For example, Zhang San bought 10,000 US dollars of Hans’ bonds. He was in urgent need of money now, so he decided to sell the bonds and bid 10,500. Li Si thought the price was not bad, so he bought it.
In this transaction, the price of Hans’s bonds rose by 5%. Zhang San recovered the principal and left the market with a profit of 500 US dollars. Li Si paid 10,500 and had bonds worth 10,000 US dollars.
Li Si has several options. He can choose to continue holding and wait until Hans repays the principal and interest of the bonds in the future. In that case, he can get about $18,000 in income in ten years. After deducting the principal, he will make a net profit of about $7,500 in ten years.
Li Si can of course sell it, just like buying stocks, making a speculative transaction. When they meet a buyer who offers more than $10,500, they can sell their bonds and earn the difference in the transaction.
Originally, such bond transactions were guaranteed by the state credit and were relatively safe investment and financial products with relatively fixed returns. Although the returns could not be as high as those of stocks, the risks were much smaller than those of stocks.
However, all this was based on the premise that Hans could repay the principal and interest of the bonds as agreed!
At this time, because the British Sun took out $500 million to maliciously short Hans’ bonds, the price of Hans’ bonds plunged all the way, falling by 55% in just half a month.
Originally, for investors, the decline in bond prices means that the cost of purchase has been reduced, and the returns from holding these bonds will be higher. For example, a bond originally worth 10,000 US dollars has now depreciated to 5,000 US dollars. Zhang San spent 5,000 US dollars to buy it. As long as Hans’s government repays the bond as agreed in the future, he can get 18,000 US dollars, a net profit of 13,000 US dollars.
Therefore, the decline in bond prices should have stimulated the purchase of bonds!
However, the situation in the bond market is exactly the opposite!
The decline in bond prices reflects investors’ concerns about the repayment ability of the country that issued the bonds. They believe that the country may default on its debts and be unable to repay its debts on time. If they cannot repay their debts, then the bonds in the hands of investors will become waste paper and worthless!
Therefore, when the market was in panic, everyone was not thinking about how to buy the bonds at a low price, but how to sell their bonds as much as possible and get back the locked-up money to avoid losing all their money!
This kind of selling will intensify the panic in the market, forming a stampede effect, and the price of bonds will fall even more!
This is the case with Hans’ bonds. The British government invested 500 million US dollars, and combined with their fishing reel propaganda, the market immediately began to panic.
Now some people have gathered and asked the Eagle Sauce government to come forward and let Hans cash in their bonds as soon as possible!
Faced with the surging public opinion, the Eagle Sauce government also feels very difficult.
According to the agreement, the issuance period of Hans’ bonds is ten years, which means that they will repay the principal and interest together ten years later. At this time, it is not the agreed time yet. Even if the Eagle Sauce government comes forward in person, Hans may not agree to repay in advance!
After all, this request of Eagle Sauce is not reasonable!
Now many countries are Eagle Sauce their own bonds. They choose to issue bonds in Eagle Sauce because they are interested in Eagle Sauce’s reputation and financial strength. If Eagle Sauce repays the loan in advance, it is equivalent to destroying Eagle Sauce’s reputation, which is a very bad impact on Eagle Sauce’s reputation.
Not to mention the damage to both Eagle Sauce and Hans. If Eagle Sauce really does this, Hans will probably hate Eagle Sauce for the rest of his life!
However, if the Eagle Sauce does not, the surging public opinion in the country will put great pressure on the government, and the angry people may rush into the White House to ask the president to eat bullets!
For a time, the Eagle Sauce government was in a dilemma and didn’t know what to do.
At this time, Vanelk began to quietly enter the scene!
“Prepare 1 billion US dollars and start to secretly acquire the bonds sold on the market. Remember, you can only acquire when the price is lower than 45%. If it is higher than this price, stop immediately!”
There are also skills to acquire the bonds sold on the market. Vanelke knows that the capitalists in the United States are all ruthless. As long as they get a little wind and know that someone is acquiring bonds, they will pounce on you with red eyes like sharks smelling blood, and bite off a piece of meat from you!
At that time, the price of bonds in the market will probably rise rapidly in a short period of time, and his acquisition costs will also rise rapidly, and the income will also fall rapidly!
So Vanelke must be extremely careful! Vanelke is ambitious. He knows that he can only gain a higher status when he returns to Hans in the future if he makes better achievements in North America!
Therefore, although the task given to him by Mainz is to acquire the bonds sold on the market, Vanelke not only has to complete this task, but also wants to maximize the benefits!
“Let all the major media start to expose all kinds of negative news in Hans and continue to increase the panic in the market!”
Vanelke, with one billion US dollars in cash in hand, is like a patiently waiting hunter, watching the prey enter his sight, but he did not act rashly.
Although the British had already shorted Hans’ bonds, their principal was too small, and the propaganda was not strong enough. The Times may have a great influence in Europe, but in North America, their influence is very limited.
On the contrary, the propaganda machine in Vanelke’s hands has a far greater influence in North America than those newspapers of the British!
When the newspapers and reporters under the Goldman Sachs Group began to expose the various problems in Hans, the panic in the market was further amplified.
The selling spree became even crazier, and in this situation, Vanelke quietly made a move, using a very covert way to establish tens of thousands of private accounts, using very small purchases, a little bit Eat up the bonds on the market point by point.
Although this method is very cumbersome and seems to be very inefficient, it is far inferior to direct large-scale purchases. However, this form of retail investors entering the market makes it difficult for those capitalists with a keen sense of smell to distinguish whether they are real retail investors or big capital entering the market.
In the endless revelations of the Eagle Sauce newspapers, the situation in Hans’s country has been completely hopeless in the hearts of the Eagle Sauce people. It is basically impossible to expect Hans to repay the bonds as promised and buy back the waste paper in their hands!
Therefore, some people with less courage began to continue selling. Taking advantage of the opportunity to sell now, they quickly got rid of them. If they sell at this time, 10,000 gold can at least recover the cost of 4,500 US dollars. If they don’t sell now, when the money of those fools who bought in is spent, the bonds in their hands will be The bonds will become waste paper!
With the publicity of the news media and the cooperation of a large number of retail investors who fled, the price of Hans’ bonds in the market is still steadily declining. Although the decline is not as large as before, the downward trend has been maintained.
Those big capitalists who were still watching the situation originally thought that other capital had entered the market to buy at the bottom, so they planned to wait and see for a while to see if there would be a turnaround.
Unexpectedly, while they were waiting and watching, the price of Hans’ bonds fell by another 10%!
This means that the wealth in their hands has shrunk by another 10%. This time, these capitalists can’t bear it!
In the absence of the possibility of Hans’ bonds rising, they had to sell off their bonds in large quantities!
And Vanelk has been waiting for this opportunity. When these big capitalists sell When the market was about to start, Vanelke immediately began to purchase large amounts of bonds. He ensured that the amount he bought every day was always less than the amount sold on the market, forming a continuous stampede.
As a result, in the month-long game, Hans’ bonds fell all the way to 25% of the issue price, and Vanelke basically bought all the bonds at a price of 6 billion.
Those who sold bonds didn’t know who bought their bonds until the end. They only felt exhausted after surviving a disaster!
In this tragic game, the 500 million US dollars of the British Sun finally shrank to 120 million US dollars.
They couldn’t bear it at the last moment when the bond price fell to the lowest point of 25%.
They sold all of them.
As a result, the original 500 million US dollars shrank by 75%.
In just one month, the British Sun lost half a year’s military expenditure.
When the news reached the Fog City, the high-level officials of the British Sun government wailed, and they were all dejected and dejected!
“If anyone dares to come up with such a bad idea again, I will never forgive him!” The Prime Minister of the British Empire, who had lost all his underwear, angrily scolded the Minister of Finance…