Chapter 932 - The Encirclement
Translator: EndlessFantasy Translation Editor: EndlessFantasy Translation
historical
With this question in mind, the entire world’s attention was focused on the American stock market.
Just as everyone was hesitating, someone gradually released the analysis of many financial experts.
These financial experts believe that companies related to the shale industry in America will be in dire straits in the future because of the impact of a sudden oil price war.
Coupled with the volatility of oil prices, which is itself a combination of aerospace, automobiles, machinery, and many other industries, the world’s economy is, for the time being, declining.
Once the world economy declines, the credit spreads in America will widen.
On top of that, OPEC’s allied countries used USD to trade in oil, so they held large amounts of USD and gold.
As long as the oil price war does not end within a short amount of time, these countries’ finances would become tight, and they were likely to sell their assets.
So the decline was expected.
This was just a refuge for assets.
These arguments and analysis were a combination of both genuine and fake information, but they still made people hesitate.
‘Could it be true that American stocks are really in danger?’
Therefore, under the brainwashing of information that was either genuine or fake, with large amounts of money being sold, many people who followed blindly started to sell as well.
The effect of this ended up being the fall of American stock prices.
Sometimes, a rise in the stock market can cover a lot of problems. But these problems are not non-existent. Once they fall, they become apparent.
Financial bubbles in America, leverage crises, ETFs continued expansion, stock-market wealth effects, and so on.
As the world’s overlord, America had been reaping the world’s wealth. In order to develop faster, 99% of the companies in America were in debt.
By the end of 19 years, the leverage ratio of all American companies reached a terrifying 77%.
This was not the most troublesome issue yet. The most troublesome is the continued expansion of ETC funds and the wealth effect of the stock market.
The wealth effects of America stocks are evident in a bull market that has been in America for 10 years. The world knows that American stocks will rise and make money.
Therefore, almost 99% of residents in each country, including America, invested their money in the stock market.
Every day, a large amount of money would rush into the stock market, boosting the stock prices.
This resulted in a huge amount of residents’ wealth and national wealth being deposited in the stock market.
The ETF was a trading open-ended index fund, and many people would end up buying the entire stock market rather than just a singular stock.
After all, the relative risk of such a fund was low: there was no need to analyze stocks, only to judge the trend of American stocks correctly, and they could make money.
Meanwhile, did the trend of American stocks need to be judged?
Since 2009, the Dow Jones index has averaged more than double digits per year.
In 17 years, it reached a terrifying 27% record high.
Over the past 10 years, American stocks have fallen, but the highest they have fallen is only 20%.
Therefore, buying the entire American stock market over the past 10 years was a risk-free investment.
Therefore, countless people and capital were all using leverage to buy the ETF fund so that they could increase their profits at low risk.
However, it had to be known that no matter which market’s funds were, once they added leverage, there would definitely be a supply line and a supply line. When they fell to a certain extent, they would be forced to sell.
In particular, this method of buying first, then using leverage to buy, and then stepping on one’s own feet to fly, made American stocks one of the worst global bubbles and one of the most feared stocks to fall.
The stock market plummeted, and the bubble burst.
Numerous funds were involved in the collateral and were forced to do so.
Initially, only a few small funds reached the cutoff line and started to close down. Then, they sold their stocks and ETF funds.
But soon, a chain reaction happened.
Wave after wave of fund companies and financial companies began to reach the breakoff line to stop their losses, automatically liquidate, and sell stocks.
This was the downfall of the stock market that had been caused by a mere ember.
The whole flint that started the fire was just over 100 billion USD, which was not worth mentioning against the huge volume of American stocks.
But because of the hundreds of billions of USD spent on the market, and because of the oil war and the hesitation of the public, they were coerced into selling through public trend.
Subsequently, small fund companies were forced to close their coffers, which caused large fund companies and financial firms were forced to close their coffers as well.
Thus, all Su Yang had to do was drive a teeny tiny wedge, and he flipped an entire behemoth, the American stock market!
What happened next was completely out of control.
On July 3rd, S&P 500 dropped by 15% within a day, directly leading to a stock market disaster.
The fear of the expected collapse of American stock market triggered a series of chain reactions. That day, and even the next day, global equities followed the emergence of “Black Wednesday.”
The Nikkei index closed more than 2.5 per cent, and stock markets in Australia, New Zealand, and Korea all fell more than 3%, with European markets opening up and falling rapidly below the 100-day limit.
The entire world was in mourning.
However, although the effect was very obvious, it was not to the extent of panic.
After all, everyone knew that the drop in the shares was just an accident.
After all, it was the Black Swan in the oil price war, and it had been attacked by accident.
America’s economy as a whole was fine, so American stocks will not keep on falling.
In fact, during the next day, everything had happened as they had expected, and American stocks began to rebound as a whole before Draenor even said anything.
However, as soon as the stocks rebounded, there was another massive sell-off.
Obviously, there were still forces who exist to empty out the entire stock market.
However, compared to the black swan incident yesterday and the sudden attack of this force,
The companies that came prepared that day did not give the forces who were emptying out stocks much time to react. They directly used large amounts of funds to bury them.
From the looks of it, they were probably trying to pull him to a high position and make him lose his job.
At the same time, Draenor also announced to the public that this incident was a premeditated act. He requested the major trading markets to investigate.
Given Draenor’s “status” in the world over the past few years, his words were very effective. So countries immediately began to review the sources of these funds.
The market was quite powerful, and someone soon found some clues.
However, when they found out, these people were shocked, but they did not dare to say anything. Instead, they quickly reported to the higher-ups to let them decide.
Soon, the markets and countries found out the source of the funds: Su Yang.
He was the richest man in the world for three consecutive years and the world’s largest conglomerate. He was involved in various industries such as information engineering, semiconductors, cars, and retail.
He had more cash in his hands than any country. The industries he controlled were enough to rebuild a country.
Even though Su Yang had been avoiding Draenor for the past two years, he did not disappear from people’s sight.
His voice, influence, and footprint covered the seven continents. He had invested and created countless companies.
Two years ago, Su Yang was just a rising tycoon. He had money but no foundation.
After two years of solidifying his foundation, he had become one of the top 10 capitalists in the world.
It was an existence that could shake the world with a single stomp.
Other than establishing his own career, Su Yang loved doing charity.
Furthermore, unlike other tycoons who did charity to avoid taxes, he was really doing charity: sponsoring the poor in various countries and helping patients with major illnesses.
Truth be told, the world did lack people like Su Yang who would perform practical acts. Hence, all Su Yang only did was do some practical acts, and it gave him a great reputation.
Even though Su Yang was doing charity work around the world, he was mainly doing it in regions, countries, such as China, Korea and Central Asia.
The former two were not a big problem, but the latter was the world’s gunpowder keg.
The recent stock market crash was caused by the latter.
No one thought too much about the oil price war in Central Asia. They just thought it was a coincidence.
But from the looks of it, this was probably Su Yang’s counterattack.
‘Over the past two years, Draenor’s actions against Su Yang have probably angered this young tycoon.
‘However, this young tycoon knew that it was not a good time to fight Draenor head-on, so he had been holding back and accumulating his strength. Now, he started to counterattack.’
Thinking back to the past few years, Su Yang was someone who could not be taken advantage of. All the countries were worried that if Su Yang’s matter was exposed, it would cause conflict.
‘If Draenor, the lunatic, and Su Yang really got into a fight, the consequences would be unimaginable.’
With this thought in mind, the people in Su Yang’s country and the market fell silent. They were no longer as eager to please Draenor as before.
However, there was no such thing as an impenetrable wall in the world. With so many countries investigating this matter, how could they not leak the news?
Soon, Draenor received news that Su Yang was behind this..
“...”
America, Washington, in a white house.
Draenor was discussing Su Yang with one of his advisors on the sofa.
Compared to the crazy person outside, Draenor was calmer in private, but his voice was still full of passion.
He said, “Locke, all the information we have right now are all pointing towards Su Yang. What do you think?”
The advisor known as Locke thought for a while before saying to Draenor, “Mr. President, I think this is a good thing.
“Jiadian Group has been developing too quickly these two years.
“Not only have they swallowed Samsung and Hyundai, they’ve also developed a software that’s popular all over the world called Point.
“This software is said to have been created by a company called Bytedance. Jiadian Group only bought the international copyright. However, to be honest, I don’t believe this excuse.
“Instead, I’m more inclined to believe that this software was developed by Jiadian Group. After all, they have the most sophisticated artificial intelligence system in the world. It’s very suitable for this video distribution algorithm.
“We can count the domains that Jiadian Group is currently dominating—cell phones, cars, batteries, Cloud, artificial intelligence, electronics, finance.
“They’re giants.
“Furthermore, there is no way to restrict this giant.”
At this point, Draenor nodded and agreed. “That’s true. In the past, when we sealed off the China’s businesses, we only blocked advanced technologies like engraving machines. Without high-precision engraving machines, they would not be able to make high-end chips. They would never be able to reach the world’s top level.
“However, who would have known that Jiadian Group would use Cloud to bypass the chip’s restrictions.
“Even though their technology is not particularly mature, their production of cell phones has not been very high. However, once 5G is popularized, it is very likely that they will experience a high explosive period.”
Draenor was still feeling indignant.
Obviously, he felt that all companies that could threaten the dominance of America should die.
The advisor nodded and said, “Yes, but because of this, Jiadian Group has always been coveted by the major corporations and the capital.
“Now he has exposed such a serious problem. As long as we negotiate with the corporations and the capital, we can work together to deal with this problem. I believe we can dismember it and take it for ourselves.”
Draenor was deep in thought. “Can you do that though? Su Yang is no ordinary person after all.”
He said worriedly, “His current Point software already has more than a billion users worldwide. It has a lot of influence. If we don’t deal with him, we might be counterattacked.
“It might even affect my next election.”
The advisor consoled him, “His users are all youngsters of the new generation. They don’t overlap with those who support you. The impact is limited at best.
“Furthermore, I suggest you talk to the big investors first and see what they think. They are people who have just gained the power to speak, and they have more public opinion and users than Jiadian Group.
“If we sacrifice our merits in exchange for their support, won’t your victory during the next election be guaranteed?”
Perhaps this was what moved Draenor.
Draenor rubbed the golden fur on his head and thought for a long time before agreeing.
After his advisor succeeded in persuading him, he listened to him carefully before the advisor left the white house and got into a taxi.
In the taxi, the advisor took out a glass phone and typed a few words on the text message page.. ‘It’s done.’
After a while, the word slowly disappeared from the page like it had never existed.
At the same time, back at Wall Street, there were several internet and technology companies led by Facebook. There were also different “lobbyists” or collaborators who brought up the issue with Jiadian Group indirectly.. They wanted to work together to deal with Su Yang.