v3 Chapter 801： Pit dug for the Rohir family

Xia Yu said slowly: "Sir Carter, you should know that in the second half of the 1970s, due to the changes in the world economy, the international banking business had new developments. Therefore, since a few years ago, banks from various countries were fighting for opportunities. , Have begun to implement international strategies."

Duke Carter Howard nodded slightly to express his approval. This is true.

It is precisely because of this change that Lloyds Bank has made strategic adjustments and turned its attention from the UK to the international market, hoping to use the money of the local tyrants in the Middle East to rapidly grow Lloyd Bank.

It can be said that four years ago, Lloyds Bank basically operated in the United Kingdom. The business of the United Kingdom accounted for 90% of Lloyds Bank’s business, and the remaining 10% were basically the Commonwealth of Canada and Australia. As for the contribution of the member countries’ markets, there is almost no business in Asia, Latin America, and Africa.

Xia Yu continued: “Lloyds Bank’s entry into the international market is not wrong, because with the integration of the global economy, it will be difficult for Lloyd’s Bank to enter the global big bank camp by relying on its domestic business alone, and it will even be far away. Left behind."

"But the crux of the problem is that due to strategic mistakes, Lloyd’s Bank expanded arbitrarily without understanding the situation. It was only to compete for the market, but it relaxed risk control. Now Lloyd’s Bank has planted a big bomb. According to the current international economic situation, at most one and a half years, the bomb of Lloyds Bank will explode.

"There are two bombs, namely loans to Latin American countries and loans in the field of commercial real estate."

Duke Carter Howard condensed his eyes, frowned, and looked at Xia Yu seriously and asked, "Xia Yu, are you sure? Give me a reason!"

Xia Yu questioned the wrong strategy of Lloyd Bank. Duke Carter Howard did not immediately refute it because he knew Xia Yu's strength in the financial field. He did not care whether he was right or wrong, but he was absolutely qualified to say this.

He also knows that Lloyds Bank has indeed made great strides in recent years, and relying on the influence of the United Kingdom and major families on Latin American countries, Lloyds Bank has taken many shortcuts and grabbed a lot of business. This makes Lloyds Bank's total loan business in Latin American countries ranked second, second only to Barclays Bank.

As for commercial real estate loans, Lloyds Bank’s lending outlets are relatively large and loose due to physical mortgages. Commercial real estate loans are now an important business of Lloyds Bank.

It can be said that these two businesses are developed after strategic adjustments, and the growth rate is the most obvious. They are the two pillar businesses of Lloyds Bank and are very important.

But because it was so important, he had to pay more attention to Xia Yu's words.

Xia Yu nodded heavily and said with certainty: "Of course, this is the result of my research and my think tank. I judge that Latin American countries have already walked on the edge of a cliff without knowing it, and they are doomed to a sovereign debt crisis. !"

"Sovereign debt crisis!"

After the word came out of Xia Yu's mouth, Duke Carter Howard's expression instantly became solemn, and he asked: "How do you judge it?"

The sovereign debt crisis is no joke. If it does happen then one of them will count as one, and all the banks involved will be unlucky.

What is sovereign debt?

It refers to the debt that a country borrows from the International Monetary Fund, the World Bank, or other countries and banks with its own sovereignty as a guarantee.

The reason why Latin American sovereign debt attracts so many financial institutions is that all financial institutions believe that Latin American international sovereignty and credibility are sufficient, and they will not lose money when lending them.

Just like the chairman of Citibank, Reston once said: "The country will never go bankrupt!"

This sentence is regarded as a standard by major banks and financial institutions.

In this respect, it is somewhat similar to the purchase of US Treasury bonds by later generations, who believe that the United States will never go bankrupt.

There is another reason why major banks lend to Latin American countries because they deposit too much money and have to find a place to spend it. Latin America’s sovereign debt seems to be the most stable.

Because of the sharp rise in oil prices from 1973 to 1974, the income of oil exporting countries soared. These countries have deposited huge amounts of oil income in major European banks, and Europe and the United States have fallen into economic quagmire, which is not something that money can solve. The major banks invest their money in developing countries to make money.

In other words, if a sovereign debt crisis occurs, then the country’s credibility will go bankrupt, which will cause the country’s financial system to collapse, and even affect the international financial system. Lloyds Bank, which is in the international financial system, will naturally not run away. Drop.

Not to mention that Lloyds Bank also lends very hard.

Seeing that Sir Carter Howard took it seriously, Xia Yu paused and said slowly: "Sir Carter, we have compiled some statistics from Latin American countries. Let me tell you first."

"In 1971, Mexico’s debt was only 5 billion U.S. dollars, but by this year, Mexico’s debt has risen to 71 billion U.S. dollars."

"But last year, Mexico's GDP was only 112 billion U.S. dollars, which means that the debt balance accounted for 63.4% of Mexico's GDP!"

"Mexico's economic growth rate last year was only 8.3%, which is far below the growth rate of debt."

"According to this trend, the debt balance will account for an increasing proportion of Mexico's GDP, and leverage will increase!"

"Mexico occupies an important position in the Latin American economic system. This is the case even in Mexico. The situation in Brazil, Peru, Argentina and other countries is similar, or even more serious."

"However, due to the oil crisis last year and severe domestic inflation in the United States, the Federal Reserve began to implement a tight monetary policy, which forced a large amount of funds to flow out of Latin America, which prompted changes in the debt structure of Latin American countries, and the proportion of short-term debt was rising. The proportion has increased by 10% in just six months. Therefore, Mexico’s short-term debt repayment pressure is increasing."

"The Fed’s monetary tightening has also made the U.S. dollar stronger, forcing commodity prices to fall, while the exports of countries such as Latin America are extremely dependent on commodities. This means that the export income of countries such as Latin America is getting lower and lower, and the balance of payments is becoming more and more uneven. ."

"International capital flows have reversed, and the scale of short-term debt has increased rapidly. The balance of payments of American countries is not making ends meet, and debt default is inevitable. There is no thunderstorm yet because Latin America and other countries can still support it."

"But as long as the Fed's tightening monetary policy is not lifted, the situation in Latin America and other countries will become more and more serious, until the sovereign debt defaults."

...

"Sir Carter, do you think the Fed will give up? The United States is experiencing serious inflation. Paul Volcker will never give up tightening monetary policy before the United States is out of trouble for the United States' economic recovery. No one can interfere! The United States needs it. The blood of the world transports nutrients for it."

"Regardless of the major consortia in the United States or the Jews in the United States, what they need is a strong America to ensure their safety!"

The last sentence made Duke Carter Howard's face more serious.

He had already listened to Xia Yu's words, and the more he thought about it, the more he felt reasonable, and he knew that Xia Yu was right.

The interests of the United States are the interests of the Jews. The Jews have a pivotal power at the top of the United States. Only when the United States is strong can the Jews of the United States be able to use the strength of the United States to ensure the security of Israel and the security of the Jews around the world. This is Paul Volcker. German Jews are absolutely paramount in the interests of the United States and Jews, and will never care about the life and death of other countries.

Xia Yu is also aware of the influence of Jews on the US financial system, especially the Federal Reserve.

From 1951 until his rebirth, except for 1978-1979 when he was not a Jew as the chairman of the Federal Reserve for one and a half years, any other chairman of the Federal Reserve was Jewish!

"Sir Carter, now major banks and financial institutions only know to lend. Just like Lloyds Bank, they have been paralyzed by the days of lying down and making money. Now it is better to run as soon as possible. If you wait for another half a year, definitely There will be financial institutions looking back. It will be difficult to get away at that time Duke Carter Howard nodded solemnly, and suddenly asked: "What you said makes sense, I will keep it secret. Arrange people for targeted research, and then make a decision. "

"By the way, didn't you say you have a proposal? What is it?"

Xia Yu raised his mouth slightly and said with a faint smile: "Isn't Barclays still investing in Latin America on a large scale? I heard that Barclays has robbed Lloyds Bank of a lot of business in Latin America. A large bank, Barclays Bank is absolutely capable of taking over all the businesses of Lloyds Bank."

"With Barclays Bank's current actions, it is absolutely unaware of the crisis. As long as Lloyds Bank is willing to transfer its business, I believe Barclays Bank will be happy to take over."

Hearing this, Duke Carter Howard's eyes became deep, he took a deep look at Xia Yu, and his impression of Xia Yu changed dramatically.

I can't tell, Xia Yu is gentle on the surface, but he is very fierce, and he has a strong pharaoh and a strong vengeful heart. Whoever provokes him will be unlucky.

Even though the Roshir family had calculated for him, before showing his fangs, Xia Yu directly dug the Roshir family a big pit, or dig the kind of big pit that accidentally buried Barclays Bank completely.

Barclays Bank is the bank with the largest loan business volume in Latin America, and Lloyds Bank's business volume is the second.

If these two belong to Barclays Bank, then no bank in the UK or even Europe can match Barclays Bank.

But if there is a real explosion of thunder and a sovereign debt crisis occurs, then Barclays Bank will have to peel off if it is not dead, and the Rohill family must be greatly injured!

PS: I’m working overtime late, I didn’t finish writing until half past two, ask for votes!

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