This kind of fluctuation was not obvious at the beginning, until…
“The US Dollar 20 year treasury bond has matured and there has been a lot of selling orders in the market!”
When the news reached Soros, favonovel.com was taken aback. “National debt? Someone shorted the United States national debt?”
The hair on Soros’ body stood up and favonovel.com immediately pulled up the trading chart of US Dollar treasury bonds. As a wealth management product operating on national credit, treasury bonds also had a special market for trading.
It was very simple. If one used 100 US Dollars to buy the United States’ treasury bond, and the national debt was due in 10 years, the United States government promised to give them 120 US Dollars with principal and interest after maturity. So, the interest rate in 10 years would be 20%. However, many people might not be able to wait for the date of its redemption, so they could choose to sell the treasury bond at a lower price in the market.
There was a more esoteric economic factor too, which was the fluctuation of the US Dollar exchange rate. Once the US Dollar depreciated, a large number of selling orders would appear in the market, which would cause the value of the United States treasury bond to depreciate rapidly.
Once the treasury bond depreciated, it meant the decline of the country’s credit. This was a very serious matter.
“The subprime mortgage crisis broke out, the domestic financial market plummeted, and the US Dollar depreciated, but at this time, they chose to dump a large number of treasury bonds! They are blatantly sucking the United States’ blood!”
When Soros saw that the market had fallen by 5 percentage points, favonovel.com was furious. Immediately after, favonovel.com seemed to have thought of something and immediately asked his men to pull up the international gold futures trading chart.
Indeed, just as favonovel.com expected, gold was rising!
The US Dollar was depreciating while gold was appreciating!
This meant that the exchange rate between the US Dollar and gold would become larger and larger.
As an international settlement currency, this would put the dollar system into a dangerous situation and on the verge of collapse.
Soros was so angry that his lips were trembling.
“JW Capital, damn JW Capital! Are they going to start a world war?”
There was no time to think about it. Soros immediately asked to speak with Greenspaner, the chair of the Federal Reserve. However, favonovel.com was told that Mr. Greenspaner was negotiating with senior Washington officials.
He did not even need to think to know that this incident must have alarmed the highest authority of the United States government.
Time passed slowly. With every passing second and minute, the domestic financial market in the United States was falling. A large number of investors who were trapped and unable to sell watched as their accounts got liquidated.
The economic crisis brought about not only the evaporation of wealth, but also social unrest.
Racial rights issues, human rights issues, and wealth disparity that had always existed in the United States society were slowly unveiled under the intensifying subprime mortgage crisis.
At this moment, in the Nauritus City Command Center.
“Continue to sell US Dollar treasury bonds. Make sure the exchange rate of the US Dollar to gold falls by at least 0.8% before the market closes today.”
Standing in front of Jake, Jasper looked up at the massive amount of transaction data refreshing on the screen, narrowed his eyes slightly, and said, “Totally enrage this group of capitalists. They will only panic if we hurt them enough. When that happens, it‘ll be up to them whether they want to continue to target the domestic A-shares market or defend the US Dollar system.”
