The Rise of the Empire

Chapter 116 Currency War I

"That's right. Money, military power, and political power can combine to become king. From this perspective, I really can't compare with him." Thinking of this, Laura's eyebrows trembled slightly, and she lowered her head obediently.

"Is it time to stop your actions? Some people in your country's parliament have suggested easing relations with Japan, and your father seems to mean the same thing." Laura asked cautiously.

"But when will it be eased? One month, half a year? I don't care, can you?" At this point, Ruprecht glanced at his cousin, and the cheap dad's attitude must have been revealed by his cousin! Not many people in the Bavarian royal palace knew about this matter, and none dared to interrupt casually. The only person who could get the news and dare to speak out was his cousin, right?

"It depends on the needs! The Japanese money can indeed buy a group of people, but the decision of the Imperial Parliament cannot affect the Federal Parliament. The Kaiser's attitude is indifferent, and it is the Bavarian Blue Army that can directly control the progress of the Far East. We paid £700,000 for us, and the Kingdom decided to send another regiment of troops to maintain control of the situation in the Far East. Russia will also buy more weapons, and these equipment will be shipped directly to the Far East. If these actions hinder you, Then I can only say sorry." Ruprecht said with a smile!

"Before the war broke out, you saw the outcome of this war with a certain vision. Judging from the introduction of Her Royal Highness, your warships in the past few years are not bad. You have more than enough means, but your capital is very limited. Japanese national debt How old are you?" Ruprecht asked.

"Five million marks." Laura hesitated for a moment, but decided to tell the truth. Now that she wants to climb the big tree of Bavaria and get foreign aid, a princess without real power cannot support her plan, whether it is money or rights. His help is far from enough, but the prince in front of him is different!

"Cut, forget about your bonds, let's play a more fun game! More principal, more exciting transactions! It's so boring to take a share of the leftovers from the Japanese, and take the fruits of their victory It's interesting to steal it into your own hands!" Ruprecht said.

Ruprecht is very disgusted with the Japanese, whether it is the reason of his previous life, or the experience of being almost wiped out in the Toshima naval battle, or the Japanese invasion of the islands in the Pacific Ocean of Germany during the First World War in history. At the beginning of the trip to the United States, this Ruprecht has already considered how to get another vote from the Japanese! Get some cash along the way! Japanese bonds can't catch up now, but there are other opportunities!

In this era, there is already option trading. In fact, options are similar to gambling. It is also a matter of buying big and buying small. But there is a very special thing about option trading, that is, what is being bought and sold is a certain right! Great leverage can be achieved with very little money!

For example, the current market price is 1 yen and 1 tael of silver. The current trend is the decline of silver. Everyone predicts that the exchange rate of 1 yen may be exchanged for 2 taels of silver in the future. Then you can buy an option. At some point, you are willing to buy a batch of silver at the price of 1 yen and 1.5 taels of silver. Maybe this silver needs 1,000 yen, but in fact, you can get this right with 100 yen!

Well, after this option takes effect, depending on the market situation, if according to the public's prediction, the ratio of yen to silver becomes 1 to 2, then you will naturally lose money! 1,500 taels of silver, you spent 1,000 yen, but after arriving in your hands, it is only worth 750 yen. If it is officially delivered, then you have lost 350 yen (250 yen spread and 100 yen for the purchase option fee). Of course, at this time, you generally choose to refuse delivery and give up this option, then your loss is only 100 yen.

But what if the price of silver didn't fall but rose? For example, if 1 yen is exchanged for 0.5 taels of silver,

Then you will earn a fortune! After the option expires, you can buy 1,500 taels of silver with 1,000 yen! The market value of this silver is 3,000 yen! Then you have earned 1900 yen! (excluding principal and 100 yen cost)

Of course, in addition to being bullish, there is also bearishness! Buying can make money, selling can also make money, and the whole process can be reversed, the same example just now, the same setting, if everyone is bullish! If you think that 1 yen can only buy half taels of silver in the future, then you are willing to sell it at a price of 1.5 yen per tael. Silver, then you buy 1,000 taels of silver at 1 yen and 1 tael, and then buy options at 1.5 yen per tael. When the delivery date comes, once the delivery is made, the 1,000 taels can be exchanged for 1,500 days Yuan, instead of the current 500 yen!

Sometimes, in order to prevent misjudging the risk of ups and downs, people who generally play options will buy up and down at the same time. This is called hedging. In addition to this basic principle, there are some other means of amplification. Therefore, the financial market is a place where you can get rich overnight or become impoverished overnight. The competition is all about means, information and capital! And this time Ruprecht plans to speculate on Japanese silver!

Why speculate in silver? Willing is very simple! The compensation of the Qing Dynasty is silver! After the silver arrives in Japan, it has to be exchanged into Japanese yen or various other currencies! However, judging from the situation at the time, currencies and precious metals were freely convertible, and the exchange rate between currencies such as the pound sterling and silver was still rising.... From this, it can be imagined that if a large amount of silver flows into Japan as in history, the price of silver in Japan will definitely drop!

230 million taels of silver, if converted into British pounds, it would be 40 million pounds! 364.59 million yen! The funding for the Japanese Sino-Japanese War was about 230 million yen. Before the war, Japan reserved a large amount of war funding, but the actual vacancy was only 78.95 million yen. This amount of money is only one-fifth of the total compensation. And the money to be considered is drawn in three years, which will generate interest every year. In the end, after all the expenses are deducted by the Japanese, there will be about 300 million yen left! These silvers will eventually be exchanged for yen and other currencies, and the Japanese private and international silver markets will definitely fluctuate because of the inflow of these silvers!

If nothing else, the futures and options markets are priced bearish for silver! After all, both yen and silver are convertible, and the Japanese government must convert silver into yen before it can be used. Japanese folks will also consider selling silver as soon as possible to obtain yen. But the prince decided to do the opposite! Are you bearish on silver? Brother insists on making a call for you!

The second one is here~~, please ask for Sanjiang tickets, please collect, please recommend!

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