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Chapter seven hundred and ninety fifth exchange rate depreciation

Hu Wenhai did not consider the issue of Britain and Germany taking sides in this pound crisis for too long.

On the one hand, the British did this time, and they informed Mr. Hu in a roundabout way before Cia started. On the other hand, there were many cooperation projects between Xinke and the UK, but there was not much friendship with the Germans.

The British have strong financial advantages, or since World War II, the pillar industries of Britain have been dominated by the financial industry. Soros wants to short the pound because the members of hedge funds are all powerful figures in the United States and are not worried about the UK's overreaction.

But Hu Wenhai looked at the above meaning and even the national team did not dare to go out in person. Needless to say, he would have to be a human being with his tail in the next few years. It might be fine to expect the country to come forward to make trouble later. But at the beginning, there would be a domestic supporter, and I am afraid that it would be a bit better for China's current international situation.

In this case, it is obviously not appropriate to short the pound.

However, the root cause of the pound crisis is that the UK overestimates the value of the pound, which has caused the German Mark to put strong depreciation pressure on the pound after raising interest rates.

If you hope to cause trouble to the Germans, you will probably first solve this fundamental problem. As long as the overvalued pound is not solved, it can be foreseen that the financial crisis of pound will not disappear. Hu Wenhai wants to protect pound pound in this situation, which is simply a counter-trend operation unless his family can match the scale of the entire international hot money.

This is obviously an unlikely thing. How to solve this pound crisis is really a headache.

However, now Hu Wenhai is no longer the time to fight alone. Not to mention those who are famous in the international financial markets, Chen Fa and Fang Jiange, the players in Xinke International Investment Department are not hidden and crouching. It may not be a little worse than Soros' think tanks.

Soon, a plan with considerable feasibility was placed on his desk.

10 Downing Street, London, England.

As a top investment bank within a "square mile", Bravos Bank has a very dazzling resume. Not only did he graduate from Cambridge University, he also served as secretary of affairs for the Prime Minister. After retirement, he won the title of aristocratic jazz, and can be said to be a top upper-level figure in London.

And since October, Mr. Arnold has not let himself free. In fact, it is not just Mr. Arnold, but the whole of London, no, or at this time, the entire Western Europe is immersed in a sea of ​​joy.

The terrifying nightmare that has long been oppressing Western European countries - the Soviet Union, actually disintegrated after their own dazzling operations!

Since then, the banquet and celebrations have not stopped for a day. British Prime Minister John Major was once Mrs. Thatcher's foreign minister and wealth minister, and his policy is in line with Mrs. Thatcher. The collapse of the Soviet Union can be regarded as the greatest political achievement of the Conservative Party in the past decade.

Of course, as for whether the Soviet Union's play has something to do with the Conservative Party - is this important?

Anyway, it doesn’t matter whether it’s important or not, it doesn’t affect the night-long carnival at No. 10 Downing Street.

Arnold wore a formal outfit today, and the belt of the dress was tied to the top of his belly button, which made him feel a little difficult to breathe. However, at this time, the position of the waistband in the banquet hall was actually the small details that best reflect a person's social status.

After the banquet began, Arnold found an opportunity to quietly approach John Major. In the approaching general election, in order to avoid losing to Labour's Jinnock, the Prime Minister of the British Empire, has been changing his image significantly recently. He is wearing a white shirt and jeans today, and the low-waisted style is similar to the loading and unloading workers on the dock, which makes Arnold frown slightly.

"Mr. Prime Minister, you are a bit indecent enough to dress like this." Arnold raised his glass and looked up and down at John Major without hesitation.

As British Prime Minister, John Major is quite good. Even wearing "East Londoner" clothes, he looks more like a university professor and full of gentlemanliness.

"Oh, it's Mr. Arnold!" John Major breathed a sigh of relief and said with a smile: "The election is coming soon. You know, I have to compromise on my personal image to ensure that the Labor Party members are not allowed to come to power. That would be a disaster!"

Compared with Labor's Fabian socialism, the Conservative Party is indeed a natural ally of the financial industry. Both Mrs. Thatcher and John Major have always supported the financial industry greatly.

From this perspective, John Major is a little out of style in his dressing, so he can't say that he is a "semi-riba man". He can only say that the Prime Minister is indeed a dedicated professional.

"In fact, I think we'll have a big trouble before Labour comes to power!"

Arnold looked at John Major seriously and suggested: "If it is convenient, I hope to have a good talk with you Mr. Prime Minister."

John Major looked around, then put down his wine glass and nodded, turned around and walked towards a small room next to the banquet hall.

The magnificent No. 10 Downing Street has obviously taken into account all the needs of residents after hundreds of years of development.

When John Major closed the door, all the sounds in the banquet hall outside suddenly disappeared. In the quiet room, only the breathing of him and Arnold were left.

"Okay, Mr. Arnold." John Major looked at his watch and pointed to the sofa next to him: "I have activities in the future. If you have any questions, we will try our best to get straight to the point. What do you think?"

"I totally agree."

Arnold sat down opposite John Major and crossed his legs: "Mr. Prime Minister, the problem of pound can no longer be dragged down. The Germans are determined to establish their economic hegemony in Europe and prepare for their status after the establishment of the EU. We will continue to keep the pound high now, and in the end we will only fulfill the Germans' little thoughts."

"President Arnold, we have discussed this issue indirectly many times." John Major played with the wine glass in his hand and said absent-mindedly: "The relative exchange rate between the pound and Mark is guaranteed by agreement. If you want to terminate this relationship, 10 Downing Street does not have this power. You have to convince the gentlemen of the House of Commons."

"The members of the House of Commons are just a group of talk show actors, and you and I know very well." Arnold snorted dissatisfiedly, pointing out John Major's insincere attitude: "Because of the pound exchange rate issue, the UK's economic pressure is very high. Our export companies have lost their competitiveness, our financial security is vulnerable, and we may become the target of international hot money attacks at any time!"

"John, you are the Prime Minister of this country and you have an obligation to protect the national security and economic interests of Britain!"

John Major disagreed and retorted: "I think I have done a good job in this regard. Of course, the Conservatives and I protected Britain. During my term, the Soviet Union fell apart because of our efforts. No one can do it alone. As for financial security issues? Ha, Mr. Arnold, you probably forgot that the United Kingdom is one of the five major countries in the United Nations and a sovereign state! It is not a small country where finance is manipulated."

"Listen to Mr. Prime Minister, in the financial industry, even if you have a nuclear button, it will be of no help." Arnold took a deep breath and fought again: "Reducing the pound exchange rate will help increase the competitiveness of British industry and commerce, and it will be effective in increasing the employment rate. Reducing the pound to the mark by 5%, our financial system will be able to return to the safe zone, and the UK will have the strength to face possible crises."

"Um--"

John Major even thought for a moment and asked hesitantly: "President Arnold, are you sure this will be helpful for the increase in employment? It only takes 5% of the pound to depreciate the Mark?"

In the eyes of John Major, who is facing the election, there is really no other problem, it will be more important than the employment rate. Arnold obviously knows this, and the killer he threw out really touched him.

In the past two years, the economy of Britain and Italy is not very prosperous, with slow economic growth and increased unemployment. The Conservative Party has been attacked and questioned by Labor. The most direct method of exchange rate depreciation is to lower the central bank's guiding interest rate. Lower loan interest rates will help reduce corporate financing costs, which will lead to an increase in investment, which has a significant effect on expanding employment and increasing output.

"Of course, there is no doubt about this." Arnold nodded: "Currency depreciation helps commodity exports, which is the basic common sense of economics. Now we actively depreciate by 5%, and we can still maintain the associated exchange rate with Mark. If we depreciate because of being attacked by international hot money, we will have to leave the European monetary system at that time, and the depreciation ratio is not only 5%.

Although John Major still had some concerns in politics, everything was worth it in the face of the election's approval rating. He thought for a moment and finally nodded slowly. Moreover, as the representative of the Financial City, Arnold's voice as the prime minister could never be ignored. No. 10 Downing Street, after all, is still a working person.

"I will ask the foreign minister to negotiate with Germany and adjust the range of related exchange rates. As long as the German side can agree, I will do a good job in the House of Commons. Through the Bank of England's interest rate cut proposal, I believe that the exchange rate of the pound will gradually be lowered to a safe range."

Arnold couldn't help but breathe a sigh of relief when he heard this, and nodded with a smile: "Prime Minister, you can rest assured that the City of London is very confident in safeguarding the interests of Britain."
Chapter completed!
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