Extraordinary Genius

“Feng Yu, how come that message you said isn't out yet?” Paying the light is a little anxious.

Feng Yu insisted that crude oil prices would definitely rise this time, not only because Iran would definitely cut crude oil production, but also because the Fed would cut interest rates again, according to Feng Yu's analysis.

It looks like the Fed cut interest rates, which has nothing to do with the crude oil rise, but it actually has a lot to do with it.

With the Fed cutting interest rates, the cost of using the dollar would be reduced, the dollar being the world's common reserve currency, and the foreign exchange reserves of all countries of the world, basically including the dollar, making the dollar almost as hard currency as gold.

As a universal reserve currency, the United States dollar is naturally freely convertible and the Fed cuts interest rates, so many people will swap the dollar in their hands for non-interest cutting convertible currencies or other large commodities.

What would that create, that is, selling the dollar and devaluing the dollar?

This is like the financial storm in Asia, where baht etc. are constantly sold and thus constantly depreciated.

You said the dollar was devalued, didn't the US side suffer?

Not necessarily. The United States dollar is not a foreign exchange reserve in the United States. The euro, the yen, whatever. And as can be seen from several interest rate cuts in Huaxia, it is a means of stimulating currency circulation and consumption, which can well stimulate the domestic economy.

Because that's when the US side saw their economic growth slowing down, with signs of recession. As the world's largest economy, how can we watch other countries grow much faster than them? Especially Huaxia, Russia, etc. which they have been trying to suppress, the economy is growing too fast, which is very disturbing to them.

And in this way, it can also hit countries with very large dollar foreign exchange reserves. Where are the main ones? The main ones are Asian countries, including Huaxia, island countries, etc., which are among the world's top two foreign-exchange reserves.

The depreciation of the dollar also means that their reserves are depreciated and their wealth evaporated.

This is a multitude of tools, so don't look at the Fed as a political axe unit, but it also represents the interests of the US and those of its investors.

Fed interest rate cuts, dollar depreciation, what would be the impact on crude oil futures?

Crude oil is linked to the United States dollar. All crude oil transactions are measured in United States dollars. Crude oil price volatility is also based on a centimeter. If so, what are the implications?

That is to strengthen the value of the United States dollar, which is the most important energy source in the world. Once linked to the United States dollar, the United States will be able to influence crude oil prices to a certain extent, guaranteeing their interests, while continuing to increase the dollar's influence.

So the fluctuations in dollar prices have a very important impact on crude oil. The depreciation of the United States dollar means that a barrel of crude oil of the same price has actually depreciated and its purchasing power has declined?

So how do we ensure that the real value of crude oil remains the same? Easy, raise the price.

Originally, $55 barrels of crude oil rose to $60 barrels, and purchasing power remained flat.

Feng Yu persuaded Rongqi to pay them, which means that the crude oil production will decrease and the dollar will depreciate, so the crude oil will inevitably increase the price.

But in the present case, only Iran has unilaterally announced a reduction in crude oil production, and the other OPEC members have not spoken out and, although they have no objection, have not supported it.

And the Fed didn't cut interest rates, and the dollar didn't continue to depreciate. How could the price of crude oil go up so sharply?

He Zhaoji told Soros that the cost of pulling up crude oil prices by a billion dollars each was actually used to suppress the dollar. Just like they were suppressing the baht, they kept borrowing from the bank and selling it at a low price.

There must be a loss on the spread. Both sides agreed to prepare to lose a billion dollars.

But this loss can be recovered from the increase in the price of crude oil. And the depreciation of the dollar is not too bad for the United States, and they can always reverse it through the Fed rate hike, which is also a means of manipulating the economy.

So Soros joined forces with Windstorm Consulting to suppress the dollar, and he didn't have any psychological burden, which is more in the interest of the U.S. anyway.

In the second quarter of last year, the Federal Reserve experienced a rate cut, which did give the US domestic economy a huge boost, when crude oil rose to nearly $80 barrels.

It then slowly fell back to its normal level of $560, also because of the Federal Reserve's constant rate hike.

Feng Yu firmly believed that the Fed would cut interest rates again, but no one else really believed it.

How is it possible to cut interest rates again in less than a year?

Feng Yu looked anxiously at Fu Guangzheng: “Wait a minute, this news is fast. If Soros hadn't joined us, we'd still be confused, but if Soros had joined us, then this would have happened. ”

Among quantum fund clients, there are many big bankers, and naturally the Fed's Federal Reserve Bank is included. And Soros' friends, as well as the Fed's executive committee, will certainly have a source of information in that regard.

Of course, one of the members of the executive committee is a friend of Ralph's, and that's not to mention how to make friends.

As these people can see, the Fed does intend to cut interest rates again, stimulate the economy, and allow people to spend money in banks.

“But how long do we have to wait?” Fu Guangzheng asked.

Feng Yu glanced at Fu Guangzheng: “Guangzheng, why are you so impatient? Although crude oil prices have been fluctuating over the past few days, they have also risen, and we are still profitable. ”

“But profits are far less than investing in stocks, and if we use that money to stock futures, we can certainly make more.” Pay the light and refute.

Professor Liang shook his head: “Guangzheng, things can't be seen that way. You think it's best if we buy stock index futures and wait for the Fed to hear about interest cuts and crude oil cuts? ”

“In that case, the price of crude oil must have risen a lot and our margin would have been much less. And there's another important point, so we're not wind signs anymore. ”

“Now that we're in earlier, many investment agencies and tourists are staring at us, taking our actions for the wind. In other words, we can already, to some extent, influence the price of crude oil. ”

“The biggest benefit is that when we sell short again, we can also drive others to follow the wind so that we can maximize our profits. ”

“There is a question of initiative, which is of the utmost importance and which minimizes our risk. ”

Feng Yu suddenly asked with a smile: "Guangzheng, did you borrow a lot of money? ”

……