After learning that Germany was unwilling to lower bank interest rates for other countries, the British Chancellor of the Exchequer, Norman, did an extraordinary thing.

He actually let the media know that the president of the Bundesbank, Schlesinger, had agreed to cut interest rates!

Thinking of using public opinion to force Schlesinger to agree to cut interest rates.

The dignified British Chancellor of the Exchequer has no face at all and is even willing to do such shameless things as spreading rumors.

But who knew that Schlesinger immediately started holding a press conference, denying the German central bank's interest rate cut, and arrogantly pointed out: "Only through currency devaluation can the instability of the European exchange rate mechanism be eliminated. If investors believe that the European Monetary Unit

It’s a basket of fixed currencies, that’s wrong!”

And specifically the Italian lira is not a very sound currency.

The Italian god is lying down!

But who knows that Italy is also a member of the Mayo Treaty, and its economic performance is the worst and most unstable.

And what’s interesting is that both Soros and Zhu Changhong specifically participated in that meeting.

Soros also specifically asked Schlesinger whether he would like the European currency to become a currency?

Schlesinger said he liked the concept but not the name of the currency, but he would definitely like it if it was called the Mark.

In Fang Chen's view, it was Schlesinger's answer that drove the final nail into the coffin of the pound and the lira.

From then on, unless Jesus is resurrected again, no one can save the fate of the pound and the lira!

He seemed to have seen the sharp fangs hidden under Soros's smile after receiving such an answer!

Early the next morning, Soros and other financial giants frantically attacked the lira, instantly pouring the lira borrowed from major banks in the past few months into the Italian foreign exchange market.

Zhu Changhong, who had been keeping a close eye on Soros's movements, threw out the lira in his hand without hesitation after asking Fang Chen for instructions.

The lira's exchange rate fell by a full 10% in just fifteen minutes.

The Bank of Italy issued an emergency bailout and announced that it would invest three billion German marks to absorb these lira to maintain the exchange rate of the lira against the German mark so that Italy could remain in the European exchange rate system.

But how does Italy know how many lira short orders and how much ammunition financial giants like Soros and Fang Chen hold?

The huge amount of short orders for the lira dropped again, swallowing up three billion German marks in an instant, and the exchange rate dropped by 10% again. At the most extreme moment, the lira's exchange rate had dropped by 15% compared to yesterday.

After a full day of fierce fighting, the lira's exchange rate was locked down to 7%, closing the market with a staged victory for financial giants such as Soros and Fang Chen.

But in any case, the lira's lower exchange rate has not yet touched the warning line of the European exchange rate system, and the lira can still stay in the European exchange rate system. This is a barely acceptable outcome for the lira.

And that evening, the Italian Prime Minister personally called the German Prime Minister, hoping that the German Prime Minister could lower the deposit interest rate of German banks, making the Deutsche Mark less attractive, thereby reducing the number of lira exchangeable for Deutsche Marks.

However, the German Prime Minister once again rejected the Italian Prime Minister's request out of consideration for Germany's overheated economy.

Forced into desperation, before the market opened the next day, Italy announced that it would raise the interest rate on one-year bank deposits from 11% to 13% and use one-third of all remaining foreign exchange reserves.

Nearly 20 billion US dollars of foreign exchange reserves have been invested in the foreign exchange market to defend the lira to the death!

Sure enough, after the market opened, the Italian lira exchange rate bucked the trend and grew, not only successfully regaining lost ground, but also rising by nearly 5% from the initial interest rate the day before yesterday.

But obviously, Italians' happiness often cannot last too long.

In other words, Italy has probably been providing jokes for others since its birth.

Near noon, the huge number of short orders dropped again, driving the lira's exchange rate down by 10%.

Are you kidding me? Soros and Fang Chen alone hold nearly 13 billion US dollars in short lira orders. If other financial giants are included, it will be at least 80 billion US dollars.

80 billion U.S. dollars, how can Italy's foreign exchange reserves of less than 20 billion U.S. dollars be able to withstand it.

Before Italy exhausted its last-minute ammunition, the situation on the second day was finally maintained, and the Italian lira did not withdraw from the European exchange rate system.

But everyone knows that the real massacre is about to begin.

On the third day, not long after the market opened, the lira exchange rate fell sharply again. The Italian government urgently announced that Italy would withdraw from the European exchange rate system, adopt a floating exchange rate system, and would not carry out any rescue actions to preserve the few remaining foreign exchange.

To put it simply, if I don’t save you, just let your love fall.

After Italy completely gave up its resistance, the lira's exchange rate was like a wild horse running wildly downwards!

At the close of the third day, the lira's exchange rate ended with a 30% drop.

Soros probably earned nearly one billion U.S. dollars, while Fang Chen earned less, only 300 million U.S. dollars, which is almost 100 million U.S. dollars a day.

After all, this is just the appetizer, the main course is yet to come.

At this time, he didn't want to attract so much attention.

Such achievements, although not small among many financial giants, are only average.

Italy was in a mess, having lost a total of 20 billion US dollars, and became the second victim of the claws of financial giants such as Soros and Fang Chen.

However, the most important thing is that this year, because the exchange rate did not fall until September 15th, Italy's gross national product, or GDP, in U.S. dollars, is still as high as 1.3 trillion.

This figure is more than 140 billion US dollars higher than the UK's GDP in 1992.

Yes, that’s right. Between 1986 and 1992, Italy’s economic strength was stronger than that of the United Kingdom.

Among the GDP rankings of countries in the world, Italy ranks fifth, the United Kingdom ranks sixth, and China ranks tenth.

However, in 1993, the second year after the exchange rate fell, Italy's GDP dropped to US$1.06 billion.

In other words, more than a year has passed since Lira was sniped, but Italy still has not recovered and has paid a huge price.

Instead of developing, the economy dropped by another 250 billion U.S. dollars, and the GDP growth rate was over -20%.

Even in 2002, Italy's GDP in U.S. dollars was still only 1.26 trillion U.S. dollars, which had not yet reached the height of 1992. It could be said that it had gone back ten years.

This shows the horror of this exchange rate war, a true tragedy for Italy.

Of course, the most critical reason is that the Italian lira exchange rate is seriously inflated, and the lira exchange rate is seriously inconsistent with the actual value. This gives Soros and other financial giants the opportunity to take advantage of the situation.

As mentioned above, in fact, the exchange rate of China's currency at this time was even more artificially high than that of the Italian lira. However, thanks to the backward financial system, China had no short-selling position that Soros and other financial giants could take advantage of.

tool.

Otherwise, China will end up worse than Italy.

"In the final analysis, this German guy is nothing. If Germany was willing to save Italy, the lira would never have fallen so miserably." Chen Shaoxuan said angrily.

We agreed to advance together and retreat together, not to be born in the same year, the same month and the same day, but to die in the same year, the same month and the same day, but when death was about to happen, you just ran away and ran away. What a joke!

"German Chancellor, you must always consider Germany. The German economy has been overheated to this point and inflation may occur at any time. How could Germany sacrifice itself for a pig teammate like Italy? During World War II, if it had not been to save Italy

, Germany will not..."

Speaking of this, Fang Chen shook his head sadly. As far as Germany was concerned, Italy was a sixth man who was holding back.

"The most important thing is that Italy has its own problems. For its own benefit, it has to set the exchange rate so high. If it is in danger, it can only count on others to save it."

"Furthermore, didn't the Bundesbank announce today that it will lower German bank deposit interest rates by 0.5%?" Fang Chen said with a smile.

"0.5% is useless. Now the one-year interest rate in Germany has reached 12%. If it is reduced to 2% or 3%, it may still have some effect." Chen Shaoxuan said angrily.

Fang Chen chuckled in disbelief.

Like everyone, the impression of developed European countries such as Britain, France, and Germany is that GDP growth is slow, only around 1% or 2% in the long term. If it can reach 3% in a year, it will jump with joy. Bank interest rates are even zero interest rates, or even negative interest rates.

different.

In the 1990s, these developed countries, including the United States, South Korea, Dongwa, etc., had a long-term GDP growth rate of around 7% or 8%, and bank deposit interest rates were often maintained at around 10%.

Properly high growth and high interest rates are also the happiest times for these developed countries.

As soon as his thoughts changed, Fang Chen suddenly said: "0.5% is already good. If it is lowered any further, it will hurt Germany itself. And if Germany really lowers its interest rate by 2% or even 3%, there will be no possibility for us to eat meat.

?”

Fang Chen's lips curled up slightly, revealing a strange and inexplicable smile.

Chen Shaoxuan was stunned for a moment, then nodded repeatedly.

If Germany really lowers the interest rate on bank deposits to this point, then they will attack the British pound with a hammer. The current interest rate on one-year deposits in the UK is 11%. If the German mark drops to 10% or even 9%.

Not to mention attacking the pound and driving down the exchange rate of the pound, I am afraid that people who have just exchanged German marks into pounds from German banks will fill the English Channel in an instant.

It is not the pound that needs to lower its exchange rate, but the German mark.

An idea flashed in his mind, and Chen Shaoxuan said: "Then we can turn our guns and snipe Mark. Wouldn't touching the butt of the world's third largest economic power be more interesting than touching the butt of the United Kingdom? Not to mention that Germany is equivalent to a

Ordered six Italians.”
Chapter completed!