This is suppression by the short side, while suppression by the long side changes the role of the seller into a buyer.
Very simple reason.
The grander the game, the simpler its rules are.
Because only simple rules are universal.
Before seeing this set of data with his own eyes, Jack Chen could never imagine why the seemingly strong and strong Suncoin could be so weak?
Even short orders worth less than US$100 billion cannot be digested instantly.
In the same situation, if you lose it to US dollars or Chinese coins, you may be gone in the blink of an eye.
Is $100 billion a lot of money?
many!
But comparing the global monetary system, comparing the U.S. dollar monetary system, the Sun Coin, and the Chinese Coin monetary system, a wealth of 100 billion U.S. dollars is really no different than a glass of water in a vast river.
But the Sun Coin cannot hold this glass of water.
"You're surprised, aren't you?" Li Jin walked to Jack Chen and said with a smile.
Jack Chen nodded vigorously, with a lustful look in his eyes, "Mr. Li, this is not common sense."
"It's indeed unreasonable, but if you think about it carefully, it's normal."
Li Jin is determined to bring around Chen Jack, who can be said to be a financial wizard.
"Tell me, what are the factors that affect the exchange rate?"
Jack Chen answered without hesitation: "The country's comprehensive strength is its foreign exchange reserves, gold reserves and economic policies."
Nodding, Li Jin said: "It's barely a qualified answer."
"But this is just what is written in the textbook. A real currency war is much more complicated than this, and the requirements for details are also higher."
"Look at Neon. After the Plaza Accord, Neon's entire national economy was almost plundered by the United States. So what is the best way to stimulate economic recovery? It is the policy of monetary easing."
"Printing more Suncoin banknotes will increase the liquidity of society and increase the amount of cash that each citizen can use."
"Then, lower the loan interest rates and lending requirements so that companies and individuals can more easily obtain more loans, and then buy bonds on the open market to make citizens and capital believe that the government will take care of the situation."
"The direct result of this is that it seems that every company and individual has more money on hand. What should we do if we have more money?"
"Capital is profit-seeking, and they will instinctively seek opportunities for investment appreciation. The flow of this money will make the stock market prosper, and large companies will receive more financing, which can provide more jobs and R&D production."
"It looks wonderful, doesn't it? But the problem is that this kind of economic stimulus policy will bring an inevitable consequence, and that is debt."
“The per capita national debt and the total social debt will surge because the country issues more currency, which is released to the central bank, and the central bank distributes it to the banks. When the banks have money, they get the green light from the policy to lower interest rates and lower loan thresholds.
, so everyone and businesses can borrow money easily, and everyone is in debt."
"And in the world, no matter who it is, whether it is an individual, a company or even the entire official society, they all follow a common principle: debts must be repaid."
"If you, Jack Chen, are known to be burdened with hundreds of millions of dollars in debt, but your annual salary is only 1 million, then you will not have wealth trust in the eyes of the people around you."
"Neon is the debt-ridden person, and the other speculators and countries in the world are the people around him."
The more Jack Chen listened, the brighter his eyes became. He said excitedly: "So Mr. Li, your choice to snipe the Sun Coin is not simply for revenge?"
"Nonsense, who doesn't spend so much effort just to make money? Revenge? If I don't make money, I don't even have time to retaliate against them."
In fact, there is another important reason that Li Jin did not say about the current situation.
That is, Neon is now basically in a state without a top decision-maker.