Chapter 217 Go cut their leeks(1/2)
Author: September Sauce
Chen Nian's plan was actually very simple. He knew that since some things were bound to happen, he might as well intervene and make it happen in advance.
Doing so is not without its disadvantages, but under the premise that sanctions have already begun to show their signs, Chen Nian believes that this is the only opportunity to create a window period.
It is true that detonating a financial crisis, especially when the financial environment in the United States is worse than in the previous life, will inevitably lead to more serious global inflation. In order to pass on domestic conflicts, the other side will definitely release water to maintain stability. A chain reaction will follow.
Next, the country will surely be hit by imported inflation.
However, the world that Chen Nian lives in now has an absolute advantage, that is, he has a trick on his hands.
As long as there is a guarantee, you can develop science and technology at a speed that exceeds the laws of economic and technological development, create scientific and technological achievements, and use these scientific and technological achievements to reversely increase productivity, expand demand, and absorb the negative effects caused by severe inflation.
In this way, even if the government responds to the crisis by "overdrafting potential" like in the previous life, the final result will be controllable.
Hot money will not flow into real estate, but into the new technologies and industries created by ourselves.
In particular, the long tail effect brought about by the development of the construction machinery field, the effect of rapid infrastructure construction will become more obvious.
By then, the typical depression in the steel industry during the 2008 financial crisis may not have happened at all.
Not to mention depression, in the context of massive infrastructure construction, there is still a question as to whether steel is enough.
After all, even now, with the increase in arms export orders, increase in aircraft production, and the influence of Deep Blue 16 and surrounding projects, the domestic steel market has shown obvious growth momentum.
At that time, how to get more mines and smelt more iron is probably the real issue that needs to be considered.
Thinking of this, Chen Nian breathed a sigh of relief.
The direction is basically clear, so the next thing I have to do is to export the technology as soon as possible and present all the key nodes required for engineering machinery in the form of documents.
Chen Nian said goodbye to Chen Guo, and after returning to his residence, he non-stop unfolded the white paper he had prepared long ago, and began to output the technical results one by one based on the knowledge in his mind.
I have to say, this is a difficult job.
There are two roads before him.
Or, just ignore whatever is in your mind and just write it all down and put it all on paper.
Or, you should refine it yourself first, straighten out the logic, clarify the key points, evaluate the difficulty of each module and link, and then write out the key positions.
The former requires a lot of highly repetitive work and is purely manual work.
The latter requires you to add your own thinking, which actually does not save much time.
After comprehensive consideration, Chen Nian chose the second path.
Although this path cannot bring about an increase in knowledge or source of income, at least it can exercise his logical thinking ability.
So, Chen Nian spent the whole night struggling with the first equipment of the Yishan project.
It wasn't until the sky got brighter and the sun began to rise that he finally completed the output of all key technologies of the heavy excavator WK-75.
This is an extremely simplified version.
But he believes that even with this version alone, XCMG should be able to perfectly reproduce this legendary heavy excavator.
After sorting out the thick stack of documents, Chen Nian finally breathed a sigh of relief.
He called Chen Guo and asked him to come over and pick up the documents, then threw himself on the bed and fell asleep.
At this moment, the preliminary preparations for the mountain-moving project have officially begun.
Shanghai.
After confirming the information provided by Chen Nian, Chen Feiyun could not calm down for a long time.
From those limited pieces of information, he saw major opportunities. It could even be said that he saw the legendary "national destiny."
The financial crisis is coming.
Moreover, once this financial crisis breaks out and we guide it properly, the people who will suffer the most damage will be the foundation of the entire economic system of the United States, that is, their middle class.
After all, whether it is speculative real estate or CDS, it is not something that the bottom people who are struggling on the so-called "average level" can play with, and most of the real top 1% rich people will not get involved in this kind of risk process.
High investment method.
Only those middle class people who have certain financial strength but seriously lack investment channels will participate in such a gambling game in order to get a chance to get rich overnight.
They never thought that they would lose - maybe they did, but they did overestimate their abilities.
Their shallow prediction of the consequences will teach them a painful lesson.
Chen Feiyun stared closely at the screen in front of him. On the screen was the latest data on CDS and US housing prices that he had collected from various channels.
From this data, he tried to analyze a key node that could be exploited.
Now, the entire financial market is like a city wall. It seems to be extremely strong, but as long as the "stress concentration point" is found, the entire wall can be knocked down at a very small cost.
In what direction do you start?
Chen Feiyun's brain was running rapidly, ruling out one possibility after another.
First of all, it is absolutely impossible to try to directly impact the CDS market. As of September this year, the nominal market holdings of CDS in the United States have reached an astonishing 49.2 trillion.
Under such a size, it is undoubtedly a foolish dream to rely on one's own funds to control the entire market.
According to this logic, all the purely financial methods that I am good at should be said to be ineffective.
Then, we can only start from the field of real economy.
The direction is clear, which is to lower overall price expectations in the U.S. real estate market.
As long as the price of "real estate futures" decreases, the spot price will also collapse.
The collapse of existing housing prices will immediately lead to an increase in default rates, and then trigger an avalanche effect, resulting in large-scale defaults.
But what to do?
Reduce demand?
impossible.
Due to the special nature of subprime loans, most home buyers have so-called "rigorous needs." It cannot be said that it is difficult to persuade them not to buy a house anymore. It should be said that it is almost impossible.
It is even more impossible for speculators. They originally participated in this market after seeing the trend of rising house prices. Now you tell them not to buy, lest house prices rise too fast. Isn't this trying to cover up the truth?
policy?
Stop making trouble. Now the US government is eager for housing prices to rise even higher to make up for the current fiscal gap. How could they cut off an arm at this time?
Demand cannot fall, and policies will not change. So what about reducing real estate developers’ costs?
No, the real estate industry is a special industry. Cost is not the main factor that determines the selling price. Even if the cost does drop, the only impact is just to make real estate developers earn more.
For a moment, Chen Feiyun fell into confusion.
This feeling is like seeing a gold mine on the top of a mountain but unable to find the way up the mountain.
The only solution he can see is to expand housing supply.
But the question is, who will do this action?
Chen Feiyun suddenly had a flash of inspiration, and he thought of a possibility.
Perhaps the time has indeed come for domestic real estate developers to go overseas.
Two days later, inside the R&F Real Estate headquarters building.
Zhang Lilun was sitting behind the boss's chair behind his desk, drinking tea worth tens of thousands of yuan from a cheap enamel teacup with a leisurely expression, and said to Chen Feiyun in front of him:
"Professor Chen, what you are talking about is not that I won't help you, but the problem is that there is really nothing we can do."
"You also know that the domestic real estate market is developing rapidly. Our company has made a lot of money every year relying on domestic investment."
"Now, you are asking us to allocate funds, abandon domestic projects, and invest in a market with higher risks, worse environment, and stranger to us. Aren't you making things difficult for us?"
"Besides, to take a step back, we have indeed considered the Americas strategy, but the problem is that we lack a suitable opportunity to enter the U.S. market."
"Similarly, we also lack a grip."
"If you want to carry a bowl to eat, then at least the bowl must have a handle, otherwise it will be easily burned."
Chen Feiyun had long expected that the other party would say such words. He smiled and did not answer directly, but asked:
"So in your opinion, what is the development path of R&F Group?"
"Continue to expand domestically, from residential to commercial real estate, and continue to drive up real estate prices. Just like Li Ka-shing did back then, he created all kinds of shared areas, all kinds of property fees, and all kinds of money to use it to cut off the common people?"
"Do you think this road can be continued?"
"Maybe in a short period of time, you guys can really make money."
"But I want to remind you that some people will not only be nailed to the pillar of shame, but will also be settled by future generations."
"If you are really a far-sighted businessman, you should think carefully about how to make your company survive healthily."
Hearing Chen Feiyun's words, Zhang Lilun couldn't help but frowned.
"Professor Chen, are you threatening me?"
"Isn't this a bit too much? I'm just a businessman, and everything I do is just to make some money. Are you so impatient?"
Chen Feiyun paid no attention to the provocation in his words, but answered directly:
To be continued...