Rebirth of the Financial Overlord

America, Wall Street.

Stanley Druckenmiller gently twirled the pen holder in his hand, his eyes focused on the computer on the table.

SEK 5.8135 sold 666

SEK 5.8145 sold 666

SEK 5.8148 sold 666

SEK 5.8235 sold 666

666?

What does it mean?

Druckenmiller was lost in thought.

Since negotiating with Soros and focusing on Europe, he has been paying attention to the financial markets of European countries. Recently, the Finnish market has suddenly changed. First, the stock market continued to plummet and skyrocket, and then the price of the Finnish mark was suppressed. These all made Druckenmiller very interested.

404!

4044444

666

Then to 66666666

Every time the market has a series of meaningless but identical numbers, the price of the Finnish mark will bleed.

Regarding the significance of the numbers, Druckenmiller just felt that it was interesting. Based on his experience and intuition, he could guess and see that someone had the same views as him and put them into action.

As for 404 or 666.

Maybe, that guy is a follower of the devil.

Is not it?

Otherwise, why would it be 666 instead of 999.

But that's not important. What really makes Druckenmiller ponder is how much profit can be made from it.

Markka, 4.5855 sold 666

In 20 minutes, the Finnish mark has fallen by 10%, but now, Quantum Fund's position in the Finnish mark is not very large. If it follows up at this time, God knows if it will make a wedding dress for others.

swedish krona

With his eyes closed, Druckenmiller pondered.

From 1870 to 1970, Sweden experienced a century of rapid economic growth, transforming from one of the poorest countries in Europe to the fourth wealthiest country in the world.

The reason is that during the golden age of European liberalism, Sweden implemented extensive market-oriented reforms, thus laying the institutional foundation for a lasting economic prosperity; and during the subsequent two world wars, Sweden remained aloof from this matter, and was in the middle of other European countries. While industrial facilities were severely damaged or even reduced to ruins, Sweden's industrial base remained unscathed.

Not only that, relying on military industry and advanced manufacturing industry, Sweden has made a lot of money when other countries are hurt.

After World War II, the establishment and expansion of the welfare state system in Sweden.

Especially at the end of the 1960s, the political wind changed significantly. Under the leadership of Keynesianism, the governments of various countries in the western world intervened in the economy and society.

From the 1950s to the 1970s, the Swedish model achieved world-renowned achievements. Its attractiveness lies not only in its remarkable economic performance, but also in its social performance, which is also the envy of other countries.

Thus, in the ensuing 1970s and 1980s, Sweden’s welfare state system began a period of almost crazy expansion. The coverage of social welfare provided by the government continued to expand. Almost all social welfare was provided to citizens equally “free of charge”. open.

Free medical care, free education, and even free pensions.

But the relationship between market economy, social welfare and government is a very complicated process, and the logic of law, economics, ethics and social psychology all require participation, not to mention the right to speak in politics and ideology.

As an empirical science, the focus of economics is the efficiency of institutional arrangements. Justice is mainly a topic of ethics and social psychology. When a society decides that it is necessary to sacrifice some efficiency for justice or other social value goals When, in principle, economics has no right to object.

However, the logic of economics cannot be ignored, because when economic efficiency is sacrificed too much, no matter how attractive the enshrined value ideals are, this system will eventually be unsustainable.

What is public is not fair, and what is not fair is public.

In the process of economic development, if free is not supported by sufficient resources, the balance will tilt.

When products or services that cover more and more social welfare are provided by the government almost free of charge as social welfare, on the one hand, the government needs to provide capital input to the production of these public services at an average tax rate of more than 50%. On the one hand, while bearing such a tax burden, since enjoying welfare has become a national right, the national demand for these services must be greatly encouraged.

As a result, the production of such services had to be expanded accordingly. While the financial pressure continued to increase, the efficiency of providing public services was bound to suffer due to the lack of an effective incentive mechanism, and the increase in the scale of the public service sector meant more and more scarcity Resources are transferred from private production to social welfare production, resulting in resource allocation distortions at the level of industrial structure.

Based on basic economic principles, it is conceivable that the long-term consequences of the Swedish-style welfare state system must be inefficient resource allocation, distortion and weakness of economic incentives, and the deteriorating government's financial situation.

Since resources, including people's time and energy, are scarce, competition and the principles of opportunity cost will always come into play.

There is no such thing as a free lunch.

Moreover, when social welfare is almost “free” and equally open to citizens, people who enjoy rights will pay another price, that is, the price of waiting in line. Many people who have power and relationship resources will definitely get the moon first , so the behavior of business relationship and rent-seeking must be encouraged.

The logic is simple and clear. You only need to grasp the principle of relative prices and understand the concepts of opportunity cost and economic rent, and it is not difficult to imagine the economic consequences of the welfare state model.

In the past two decades, the Swedish government's deficit has increased dramatically. In 1985 alone, the increase in national debt reached 10 times that in 1975.

At the same time, the inflation rate remains high, and in order to promote exports, the exchange rate of the Swedish krona has been depreciated repeatedly, making the inflation situation worse. Before and after the G10 signed the Washington Agreement, the exchange rate of the krona depreciated by 3% in 1976, 6% in 1977, 10% in 1981, 10% in 1981, and 16% in 1982.

Until 1991, the krone was unilaterally anchored to the ecu and implemented a fixed exchange rate system.

Druckenmiller, who had his eyes closed, opened them, and a gleam flashed across his brown pupils.

Also in Europe, Sweden and Finland are facing the same capital flow problem. After the reunification of Germany and Germany, Germany has continuously raised interest rates and the value of the mark has continued to rise.

Since Sweden is unilaterally attached to the ECU, and the core weight of the ECU is the Deutsche Mark, it is transmitted to Sweden through Sweden's fixed exchange rate, further raising the Swedish interest rate.

However, the long-term high welfare has overdrawn Sweden's potential, causing the Swedish economy to show signs of crisis. In order to prevent the crisis, the Swedish government proposed tax reform in early 1991.

At the same time, the central bank raised bank interest rates to implement a tightening monetary policy.

With the tightening of money, the stock market plummeted by 30 percent, and real estate prices fell by 25 percent.

SEK 5.8545 sold 666

Looking at the krone trend on the computer, Druckenmiller did not hesitate any longer and picked up the phone decisively.

beep -

The phone rang twice and was connected.

John. It's me, Stanley. I need you to take a position in Swedish krona.

Yes. Short sale. $500 million.

.

What is a fixed exchange rate?

A fixed exchange rate is an exchange rate in which the exchange rate between one country's currency and another country's currency is basically fixed, but in fact, a fixed exchange rate does not mean that the exchange rate is completely fixed, but fluctuates around a relatively fixed parity upper and lower limits.

The highest point of the range is called the upper limit and the lowest point is called the lower limit. When the exchange rate rises or falls to the upper or lower limit, the central bank will take measures to keep the exchange rate unchanged.

Finland, Helkissin.

Six tall, burly, and extremely sturdy women stood in the office of Geman Investment Management Company in a military posture.

If the Bank of Finland had cried out that the banker was there not long ago, he would have recognized one of the women.

There are no coincidences in the world, and under the general trend, there has never been a coincidence.

Still, when coincidences become coincidences, it's better to choose to make the coincidences a little more coincidental.

It's not a question of being afraid.

.Irina. Be careful on the road. If something goes wrong, safety comes first.

Don't worry, miss. Even if the Finns knew about it, they wouldn't dare to touch us if they had a hundred guts. We haven't committed a crime.

That's good. My plane has been arranged. When you get to the airport, someone will meet you.

Goodbye, miss.

After saluting, Irina Shayk silently cast a beseeching wink at Shen Jiannan, then turned around and left with a few people.

Only Qi Na and Shen Jiannan were left in the huge room. They knew each other well and didn't need any scruples anymore. Qi Na cheered and threw herself on Shen Jiannan.

Honey. What are we doing with Sweden now?

Lady. Lady. The word fuck is not allowed to come out of your mouth.

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