Ten minutes later, the fund manager hurried back and reported while handing over a piece of information: "All of these funds come from Japanese consortiums such as the Central Bank of Japan and Sanryo Bank."
"It seems that the Japanese government finally couldn't bear it and started to intervene directly in the market!" Ren Xiaoyao thought to himself.
Turning on the computer and connecting to the satellite encrypted channel provided by Soros, Ren Xiaoyao exchanged opinions with Soros and Jin Zhengdao via video, and then asked Chavez to tell him: "Intensify the short selling immediately, and sell short for five more days before the market closes today."
One billion U.S. dollars must push the U.S. dollar-yen exchange rate below 1:112 and break through the 30-day moving average technical support level."
"Understood!" Chavez responded, turned around and began to instruct his traders to cooperate with the Americans and Koreans in selling Japanese yen in large quantities.
At the same time that the three parties began to sell Japanese yen in large quantities, the Japanese consortium headed by the Bank of Japan also began to buy Japanese yen crazily, with a strong and wealthy attitude that I will buy as much as you throw out. The exchange rate of the U.S. dollar against the Japanese yen
The fierce competition also started around 1:115.
When the market closed in the afternoon, the exchange rate of the U.S. dollar against the Japanese yen was finally fixed at 112.34 yen per U.S. dollar. The main forces of the long and short sides ended in a draw in the first confrontation.
Ren Xiaoyao looked at the time-sharing trend chart of the Japanese yen that had been fixed on the computer screen and murmured: "We can't continue to fight hard like this. We must immediately attract hot money that is still waiting on the sidelines to enter."
"If we can attract hot money that is still on the sidelines to enter the market, the situation will be determined! It is estimated that the total assets of global hedge funds reach about three trillion US dollars, plus the borrowing capacity (calculated as ten times), the funds can be mobilized
Reaching 30 trillion U.S. dollars (more than 3,000 trillion yen)," Chavez told Ren Xiaoyao.
It’s no wonder that during the financial turmoil in Southeast Asia in the last century, economists from various countries lamented: “Speculators have 30 trillion U.S. dollars of ammunition, and the foreign exchange reserves of various countries are generally only measured in tens of billions of U.S. dollars. How can they resist it?”
At this time, Soros, sitting at his desk in a luxurious villa on the outskirts of New York City, USA, was also thinking about this problem: how to attract external hot money into the market?
After a long time, Soros seemed to have finally made up his mind. He picked up the red intercom phone on his desk and dialed a number. He said: "I am Soros, President of Quantum Fund. Please pick up Secretary Reitz for me."
gentlemen.
The next day, both bulls and bears in the Japanese currency market still invested a large amount of money to fight around 1:113. The battle was unprecedentedly fierce, with a turnover of nearly 100 billion US dollars in one day.
At the same time, except for a small number of peripheral funds entering the market to fight, most of them still maintain a wait-and-see attitude.
On the morning of the third day, the U.S. government launched an anti-dumping investigation into 36 types of auto parts and electronic products originating in Japan, and announced that it would impose a 50% mandatory tariff on these imported goods originating in Japan during the investigation.
On the afternoon of the same day, the Chinese and South Korean governments also successively issued lists of goods for anti-dumping investigation against Japan, and announced that during the investigation period, these imported goods originating in Japan would be levied with a mandatory tariff of 37%.
While Japan's foreign trade exports were hit hard one after another, experienced hedge fund brokers also smelled something unusual and began to enter the market one after another to join the ranks of short-selling the yen.
As a large amount of hot money from the outside world entered the Japanese currency market and began to short the Japanese yen and buy the US dollar, the Japanese consortium headed by the Bank of Japan took the initiative to retreat after feeling the huge short-selling pressure.
Take the initiative to give up the technical support level of the 30-day moving average near 116 yen per US dollar, and move to the half-year line of 123.71 yen per US dollar to reset the defensive line.
Seeing that the Japanese consortium couldn't hold on any longer and began to take the initiative to retreat, the over-the-counter hot money that was still waiting on the sidelines no longer hesitated. They rushed in and began to short the Japanese yen and buy the U.S. dollar. This made the multinational speculators who were already on the strong side even more powerful.
In just two hours, the USD/JPY ratio reached around 1:118.
At this time, the Japanese chaebol could only watch as the large amount of money they invested in the foreign exchange market disappeared and melted like ice and snow in boiling water and was divided up by powerful international speculators. In desperation, they had no choice but to seek help from the Japanese government.
On May 24, the Japanese government decided to allocate 100 billion U.S. dollars from foreign exchange reserves into the foreign exchange market and sell a large amount of U.S. dollars to buy Japanese yen. The long and short sides once again started a fierce battle around 118.8 yen, causing a record high in the Tokyo foreign exchange market.
Set a new historical record of US$336.957 billion in single-day transactions.
However, in the face of these international speculators who have combined their ammunition to the tune of trillions of dollars, the US$100 billion that the Japanese government invested in the foreign exchange market can only stabilize the yen around 1:120, unable to recover the lost ground.
Around the exchange rate of 112 yen, a tug-of-war of attrition began that tested people's psychological endurance.
At this critical moment, HSBC Hong Kong first announced a reduction in the credit rating of the Japanese yen, and at the same time began to sell Japanese yen in large quantities, which aggravated the banking industry's concerns about the future trend of the Japanese yen. The domino effect caused a large number of banks to join in the Japanese yen.
Yuan selling ranks.
Japan's defense line set up around 1:120 was instantly breached, and the US$100 billion in chips transferred from the national treasury were basically shared by international speculators. They had to transfer a large amount of funds from foreign exchange reserves again and retreated to 130 days for 1 US dollar.
The country began to redeploy its defenses near the bottom of Yuan history, and Japan's foreign exchange reserves began to run low for the first time in thirty years.
On May 27, the world-famous financial magazine "Forbes" published an extremely pessimistic headline comment on the trend of the yen, which has recently hit record lows. The trend of the yen in the past week can be described in four words:
Jaw-dropping.
The huge drop of more than 600 points in four days in the foreign exchange market has even vaguely reminded people of the trend of the pound during George Soros's famous campaign "The Pound Blockade" in 1992.
From a technical point of view, the USD/JPY has broken through the pressure level of 1:126, and the next target is directly at the psychological integer price of 1:130. The current yen has fallen so that people are no longer interested in guessing its bottom.
, and the short side of the US dollar currency can be described as a scene of singing and dancing.
On the same day, Japanese Prime Minister Ichiro Kogu secretly summoned the presidents (chairmen) of major Japanese conglomerates such as Toyota, Sony, and Panasonic to lobby these well-funded consortiums to enter the foreign exchange market to join the defense war against the yen.
On May 30, 16 large Japanese conglomerates, led by Toyota, Sony, and Panasonic, joined forces to enter the market and began to buy large amounts of Japanese yen and sell US dollars. Finally, the Japanese yen stopped near the psychological level of 130 yen per US dollar and continued to fall.
footsteps.
At the same time, a large number of short sellers who had made huge profits in the early stage also began to gradually clear their positions and cash out. The hard-hit Japanese yen finally began to recover slightly due to the efforts of Japan's large chaebols, causing Japan to lose hundreds of billions of dollars in foreign exchange reserves.
The war against the Japanese yen has come to an end.
According to subsequent statistics, the ten-day yen blockade caused Japan to suffer heavy losses of US$397.196 billion, which was equivalent to international speculators taking US$3,298.76 from the pockets of every Japanese citizen. The prestige of the Japanese puppy government was ruined and it was declared
The general cabinet resigned and an early election was called, and the pace of re-arming the Self-Defense Forces had to be put on hold due to funding issues.
In this war against the yen, the most profitable ones were the fund companies led by Soroso, Ren Xiaoyao, and Jin Zhengdao who initiated this financial war. One-third of the US$300 billion that Japan lost
money flowed into their pockets.
A few days later, the world-famous financial magazine "Forbes" revised the ranking of the world's top ten richest people. Mr. Ren Xiaoyao, chairman of Longxiao Group and Longyunbi Fund, surpassed Microsoft President Bill for the first time with his total personal assets of US$89.394 billion.
• Gates ascends to the throne of the world's richest man.
A week later, the European Olympic Games torch relay event was held in Beijing, China, and the general election to determine Taiwan's future fate also quietly kicked off.
The pan-green camp represented by the Democratic Progressive Party, without the massive financial support provided by the Japanese government, received less than a quarter of the seats in the general election and suffered a complete defeat, while the pan-blue Kuomintang won a resounding victory.
Winning more than half of the seats in one fell swoop led to the final victory.
The next day, DPP chairwoman Annette Annette announced her resignation as chairperson of the DPP, and led her followers to withdraw from the DPP's self-formed political party en masse. The DPP, which was once the most prosperous in Taiwan's history, completely split and finally became a second-rate party.
Party was soon crushed by the huge wheel of history and became a term written in Taiwan history textbooks.
At this time, the Olympic torch being passed on in Europe had a discordant note.
When the torch was passed in France, because of the secret support of the French government, the pro-democracy elements continued to demonstrate under the snow-capped lion flag while the torch was being passed. In the end, they even started to snatch the Olympic torch!
What is even more incomprehensible is that the French government, where the torch relay passed through, did not act in dispatching police force, and even acquiesced in the evil deeds of the terrorist elements. In particular, the president of the country has repeatedly expressed support for the torch.
* comments made by anti-Japanese elements, and repeatedly proposed not to participate in the opening ceremony of the Olympic Games.
When Ren Xiaoyao and his girls were celebrating the victory of blocking the Japanese yen at Dream Villa, the encrypted mobile phone rang.
Ren Xiaoyao showed a helpless smile and said to everyone: "Everyone, continue, I will answer the phone."
"Uncle Ji, can't you let me and my family have a good meal? What other tasks do you have? Please give instructions." Ren Xiaoyao answered the phone.
"Xiao Ren, I don't have time to joke with you. Have you watched the news these two days? You still have time to gather with your family!" Ji Yunsheng's serious voice came from the phone.