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Volume One New York Story Chapter 35 Waste Paper Can Be Turned into Dollars

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    Update time: 2012-06-17

    "Jack, I'm not crazy. Investments are bound to take risks, but I have full confidence and certainty. According to my judgment, if the Allied Powers' battlefield situation is unfavorable, then the price of Treasury bonds on Wall Street will fall, and if the Allied Powers' battlefield situation is unfavorable,  Then the price of Treasury bonds on Wall Street will rise, right?¡±

    Wang Geng calmly started teaching the head of the Morgan family with his fingers.

    "Although I'm pretty good, can you, a third-year student at West Point Military Academy, be able to influence the situation on the European battlefield? Or are you a messenger sent by God, with the ability to predict the future?" Jack Morgan said disapprovingly.  .

    "Jack, if there is an internal problem in one of the Allied Powers, then on the face of it, Wall Street's treasury bonds will fall in the short term, and the bonds of the country with the problem will fall even more, and they may be worthless.  Is this correct?" Wang Geng continued to settle the accounts with his fingers.

    "Are you saying that there will be problems with Britain and France? Well, although there was a period of instability within the French army, the British army later stabilized the war situation, but it did not affect the domestic political situation of the two countries. The severity of the situation is far from what you said.  To a certain extent, although the national debt of the Allied countries has been falling recently, the extent is limited!¡±

    Jack Morgan thought about it thoughtfully, but still came to a negative answer.

    "Jack, you know that I am a top student at West Point Military Academy. My ability to analyze and judge military intelligence is second to none among my classmates. According to my analysis and judgment, although there will be no major problems on the Western Front in the European battlefield, there will be no major problems on the Eastern Front.  The line may not be the same!¡±

    Wang Geng began to slowly guide the head of Morgan to follow the direction he pointed.

    ??Nima, of course I can¡¯t move the Treasury bond market on Wall Street with 20 million U.S. dollars, but if your Morgan consortium takes the lead, how can Rockefeller and Mellon not follow suit?  At that time, it will be a good opportunity for me to fish in troubled waters with 20 million US dollars of funds.

    Sure enough, Wang Geng mentioned the Eastern Front, which attracted the attention of Jack Morgan. The head of Morgan frowned.

    "As for the Eastern Front, is it Russia? Well, it seems that the situation in Russia is indeed not stable recently. The Tsar's life is really difficult!"

    "Jack, according to my analysis, there may be a revolution in Russia and the Tsarist government will be overthrown. In this case, the national debt issued by Tsarist Russia will become useless paper, and the price of the national debt of the Allied Powers will also fall significantly!"

    "What you said makes sense. No wonder Rockefeller and the others have been selling short Russian bonds. If you hadn't told me, I wouldn't have paid much attention to it. Now it seems that I was really careless."

    It turns out that the Morgan family has a very close cooperative relationship with the British Treasury and is the largest underwriter of British government bonds. The Morgan consortium holds the most British treasury bonds, followed by French treasury bonds. There are very few Russian treasury bonds, so it has little control over the domestic situation in Russia.  The level of attention is obviously not as high as that of the UK and France.

    ??The Rockefeller Group and the Mellon Group divided up the treasury bond issuance of other Allied countries except Britain and France, especially the Rockefeller family, which held the most Russian bonds!

    "Jack, according to my judgment, within the next month, the situation in Russia will deteriorate to an irreversible point. If you and your partners have Russian bonds in your hands, you should be the first to buy them regardless of the cost."  Time to throw!¡±

    "The Morgan consortium mainly holds the treasury bonds of Britain and France. The Russian bonds you mentioned are not held by the Morgan consortium. But you are right. I will inform them later and sell them all as soon as the market opens tomorrow! Be prepared.  ! If something happens in Russia, the Tsar¡¯s bonds may become useless!¡±

    "If there is a problem in Russia, the Allies can theoretically free up their hands from the Eastern Front to deal with the Western Front. This will strain the British and French fronts, and the bonds of the Allied Powers other than Russia will also face a turbulent decline, although they will not become waste paper.  But it will probably fall quite hard!¡±

    Wang Geng looked into Jack Morgan¡¯s eyes without blinking.

    "Hmmit's possible!" Jack Morgan sweated a little on his forehead. The Morgan consortium had so many British and French bonds in its hands, and the market didn't have enough liquidity to take over if they wanted to sell them.

    Wang Geng smiled and lowered his voice and said,

    "Before the incident in Russia has happened, sell all Russian bonds short when the market opens tomorrow. Since the Rockefeller Group is the largest holder of Russian bonds, they will definitely take action to protect the market. Only in this way can the stocks in their hands be maximized.  Russian bonds won¡¯t fall too much!¡±

    Jack Morgan doesn¡¯t know where the Chinese young man in front of him learned his financial speculation skills, but it¡¯s obvious that this guy has an innate acumen and talent for speculation!

    "Go on!" Head Morgan raised his hand.??Cigar.

    "Since there are no Allied bonds in the U.S. market to hedge risks, Jack, is it also the market's habitual choice for those funds that followed the trend and shorted Russian bonds to choose higher-quality British and French bonds as their cover?"

    Jack Morgan nodded slightly, and for the first time, he had the idea of ??recruiting the young man in front of him into the Morgan family. His daughter Vivian was already 23 years old. In the last century, she was the mother of three children.  Got it!

    "Of course, it is safer to choose U.S. bonds, but the United States has not yet entered the war, and war bonds have not started to be issued. The number of previously issued national bonds is limited, and most of them are still held by ordinary people, and are allocated in the hands of bank financial capital.  There isn¡¯t much, and there isn¡¯t enough liquidity on Wall Street!¡±

    While Wang Geng was talking eloquently, he felt that the way in which the head of Morgan opposite him looked at him had unknowingly changed. It seemed that there was something more than appreciation.  .  .  Tenderness?

    "So, while all Russian bonds are being sold short, the prices of British and French bonds may also rise with the entry of buyers, at least they will not fall too much. In this way, the Morgan consortium and your partners can quietly  Sell ??the bonds of Britain and France in batches! Try to withdraw as much money as possible!¡±

    Jack Morgan nodded and signaled Wang Geng to continue.

    "In this way, you and your partners will quietly continue to sell British and French bonds in batches. Of course, it is estimated that the market price will slowly drop at that time, because there are funds to short-sell Russian bonds, and the price will drop.  The trend will be relatively gentle!¡±

    "Of course, the skill of advancing, retreating and retreating during the selling process is the strength of your brokers and traders, especially raising the price before the market closes every day. Of course, in the media, we have to create the required image  Public opinion environment, ensure that every newspaper¡¯s news page of the day is the international news we need!¡±

    Wang Geng is betting on his reputation as a West Point student, an honorary citizen of New York and a hero of the Brooklyn Bridge. He believes that a financial czar like Jack Morgan will not have such high moral standards for him.

    "Once the news of the Russian incident is confirmed, I hereby suggest that we need to develop some of our friends in the major cities of Russia and in the front-line army to carry the necessary radio transmission equipment to ensure that even in Manhattan, we can know the latest news every day.  The progress of the situation!"

    Jack Morgan's pupils are shrinking. Bankers from various countries in Europe and the United States, as well as major financial groups, all have many of their informants stationed in hostile or friendly camps. Of course, they may not really reach the level that Wang Geng said.  !

    Wang Geng, however, kept to himself and continued,

    "Our intelligence eyes in the Allied Powers are as important as those in the Allied Powers. Of course, this is something that the US government and you should worry about. What I mean is to fully mobilize all spies and tentacles to ensure that we can  Keep abreast of the latest trends in various countries! ¡±

    "When the Russian incident breaks out, we will sell short the bonds of Britain and France as soon as possible. By then, the Russian bonds may have become useless paper. At this time, we have two choices before us!"

    "Which of the two options do you still dare to buy Russian bonds that are like waste paper?" Jack Morgan stared at Wang Geng suspiciously!

    "Since it is waste paper, even if you buy it at the bottom, you can't spend a lot of money, so why not do it? What's more, what if the situation in Russia repeats itself?!"

    Wang Geng also looked at Jack Morgan with a sly smile on his face!

    "This risk is too great. If the Tsarist government is completely destroyed, all your money will be lost! You can't do this with your 20 million US dollars! If you want to buy the bottom, you can also buy British and French bonds when the price of British and French bonds cannot fall.  country¡¯s bonds!¡±

    Jack Morgan waved his hand to stop Wang Geng¡¯s whimsical idea!

    ??????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????If the Tsarist government is really overthrown, can we expect some warrior Witness or the Bolshevik government to pay for the Tsarist government?  This is simply a fantasy!

    "Jack, if Russia's Tsarist bonds become a pile of waste paper, who is most anxious?" Wang Geng insisted and asked unmoved.

    "Thatshould be the Rockefeller family that holds the largest amount of Russian bonds, right?"

    "Then Jack, what are you worried about? When the time comes, I will collect a bunch of Russian waste paper, and then wait for Rockefeller to turn the waste paper into US dollars for me!" Wang Geng said with a smile.
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