Chapter 493 Shorting Argentina

Justice Kishimoto woke up from his nap and got up. He dressed up, walked out of his bedroom, and went downstairs. He saw that Sakai Rie and Sakai Meiling were the ones still sitting on top of the sofa in the large living room on the first floor.

The maid who was on duty last night came to his side with a haggard face and bowed ninety degrees, “I’m sorry, sir. I was up all night and only focused on watching Madame and Second Miss, forgetting to make you breakfast.”

“You worked hard. Last night, count it as one full day of overtime for you.” Masayoshi Kishimoto calmly said.

“Thank you.” The maid on duty once again bowed deeply towards towards him and said.

Kishimoto Masayoshi didn’t go over to persuade them and let them continue. He was sure that the two would get tired at some point. He himself left the door and took a taxi to work.

When Masayoshi Kishimoto arrived in Ueno, Taito District, he didn’t choose to go directly to the office, but instead went to the small restaurant he liked to go to for breakfast.

Not only did he eat a familiar flavor, but he also saw familiar people. Even if they were all extremely ordinary people one by one, they didn’t get in the way.

At nine o’clock, Masayoshi Kishimoto met Kiyoshi Kobayashi, who had come as promised, in his president’s office. The two were sitting face to face.

He also told the secretary on duty outside to tell anyone who had something to say to him to wait for him and not to let him in.

Masayoshi Kishimoto had called Kiyoshi Kobayashi here, naturally there was something important that needed to be explained face to face. This again involves a relevant business secret.

“What do you think about the economy of Argentina in South America?” Masayoshi Kishimoto asked in a targeted manner.

Of course, Kobayashi Kiyoshi knew that he had specifically called himself over here, and it definitely wouldn’t be for idle chit-chat. He sat up straight and replied in a serious manner, “From a comprehensive analysis of data and intelligence from all aspects, it is not optimistic.”

“Then you should immediately proceed to short the Argentine peso. I mean immediately, you should understand.” In his previous life, Masayoshi Kishimoto had known that Argentina would experience a financial crisis in this year.

In March, Argentina would see a small peak in debt service, and at this point the market was somewhat skeptical of the Argentine government’s ability to borrow new debt to pay off old debt.

However, the entire market’s skepticism about Argentina was not completely eliminated. To July 10, the Argentine capital of Buenos Aires, the exchange rate of the various exchange offices suddenly fluctuations, to July 12 reached a peak, when the peso has actually depreciated by about 5%.

After the July storm, thanks to the joint efforts of the Argentine government and the international community, the situation finally calmed down. on November 1, President de la R煤a announced that Argentina would implement a package of economic adjustment measures, such as renegotiating the foreign debt, adjusting tax revenues, supporting enterprises in difficulty, and issuing new bonds, in order to overcome the financial crisis. But these measures have not been positively received; instead, there has been the biggest turmoil since July.

On November 2, the Argentine stock market’s Melva stock index fell 284% from the previous trading day. Government public bond prices continued to fall.

At the same time, money market interest rates rose sharply, so that the overnight interbank lending rate was as high as 250% to 300%.

As a result, the Argentine Country Risk Index (CRI) assessed by JPMorgan Bank in New York once exceeded the 2,500-point mark, a record. So the Argentine government continued to urgently to the International Monetary Fund for help.

But by December 5, the International Monetary Fund refused to provide debt-ridden Argentina with a $1.3 billion emergency aid loan, thus leaving the country facing one of the largest debt crises in its history.

“Since you have made up your mind, it is only right that I should do the same. However, I still want to offer some personal opinions.” Kobayashi Kiyoshi knew better than to go against the chairman’s wishes and said.

“Go ahead.” The reason why Masayoshi Kishimoto had placed the other party in the position of Hard Gold Capital’s president was not because of his blind obedience to bowing down to his own ears, but rather because of his true talent in the field of finance, he said.

“Whether or not there will be a financial crisis in Argentina remains to be seen. Not only me, but also Marunouchi, as well as other financial institutions, there is a relatively unanimous view.

In terms of overall fundamentals, Argentina’s current economy is quite okay, even if there is a financial crisis, will it follow the same treatment as South Korea?

Moreover, even if Argentina can’t hold on any longer, it can still ask for help from the IMF (International Monetary Fund).” Kobayashi Kiyoshi had a point.

“Your misgivings are not unreasonable. However, you should also know a thing or two about what it means to strike first.

My aim is to get you to seize this beachhead position one step ahead of the others, so that the subsequent large force can land and attack.

The more we all feel that it is profitable, how much meat will we be able to share? Precisely because everyone is hesitant and thinking of observing some more, we should not hesitate to advance.

You don’t have to worry about a thing. If an accident occurs, I will take all the responsibility. You just need to mobilize the maximum amount of capital to short the Argentine peso. To be precise, short Argentina as a country.

In addition to the Argentine currency market, you also have to personally direct the attack on the country’s securities market and so on. I’ll sit in the base camp and coordinate the whole situation.

Let’s use ten times leverage! This time, I want Hard Gold Capital to make a name for itself and become famous overseas.” Masayoshi Kishimoto spoke eloquently.

By utilizing his uncanny foresight, not only was he absolutely sure to win, but he would also make a fortune once again. This time is different from the last time he followed in the wake of Soros to short the Korean currency, ruble, yen that kind of small fuss.

After all, at that time, they can mobilize the capital is too limited. This time, he is not followed in the back of who’s ass to eat the rest of the meat of others, but will be the first to directly pounce on the tear.

He will not only be able to scrape away a lot of the wealth that Argentina has accumulated over the decades, but he will also be able to grow his own power again from above the qualitative changes.

The IMF will not save Argentina, and Argentina will not be able to pay its foreign debt of more than 150 billion dollars. As a result, Argentina has become the world’s largest debtor in history.

In a way, the root cause of Argentina’s financial crisis is similar to that of South Korea’s 1997 Asian financial turmoil, in that the country took too big a step and tore itself apart.

That is to say, in order to develop the domestic economy, not hesitate to borrow heavily. After having money, a series of operations, and did not put a good amount of money on the edge of the knife.

Not only South Korea and Argentina, but also Greece after joining the European Union have the same problem. Suddenly they have more money, and they don’t know what to do with it, and they don’t have a clear plan.

This kind of “sudden wealth” is not the result of a treasure hunt, but borrowed money. Borrowed money, always have to pay back.

Not only to pay back the principal, but also have to add interest. Even if the interest rate is low, the principal base is large, it will kill. Not only that, but there will also be interest.