webnovelvip Chapter 289 The essence of financial warfare is cash and gold.
Chapter 289 The essence of financial warfare is cash and gold.
After a heavy rain, Shanghai should have been enjoying a refreshing morning breeze, but the atmosphere on the Bund Financial Street was a hundred times more scorching than in the height of summer!
A massive, dark mass of people surged toward the gates of the Shanghai headquarters of the Southeast Central Bank.
"Hurry up! Withdraw all the money from my fixed deposit account!"
"And these coastal defense bonds, I'll forgo the interest, just cash them out now!"
"The British warships are about to open fire; this money is about to become worthless!"
Panic spread rapidly among the crowd.
The guards linked arms and formed a riot control wall in front of the bank steps, but they couldn't stop the citizens who were desperately pushing forward.
On the second floor of the HSBC building across the street, in front of huge floor-to-ceiling windows.
HSBC tycoon Smith, holding a glass of French red wine worth a fortune, looked down at the chaotic scene opposite him with a smug, cold smile on his lips.
"Mr. Smith, Citibank, Mercantile Bank, and Russo-Chinese Bank have all followed suit."
The secretary excitedly reported from the side.
"We sold a full 30 million in coastal defense construction bonds on the market, and the price has fallen to less than 40% of the face value!"
"Furthermore, the news that the rear of Chen's army is about to be razed to the ground by the British Navy has made the front page of today's major newspapers!"
"The entire population of Shanghai has gone mad; they'll squeeze every last silver dollar from the Southeast Central Bank!"
Smith gently swirled the red wine in his glass and took a small sip.
"very good."
Smith's voice was brimming with arrogance.
"Does that young warlord named Chen Zijun think he can contend with the British Empire with just a few tanks and artillery batteries?"
"That's absolutely stupid!"
"The British Empire ruled the world not only with its powerful ships and cannons, but also with the financial scythe in our hands!"
"Without funds, his arsenal couldn't buy iron filings, his shipyard couldn't pay salaries, and his German-equipped divisions couldn't even afford a liter of gasoline!"
"Without the navy firing a shot, the Southeast Central Bank will declare bankruptcy before sunset today, and the Chen family army's credibility will be completely destroyed!"
"Without money, his troops will become highly sought-after assets!"
At this point, Smith couldn't help but burst into laughter.
"Hahaha, this is what happens when barbarians fight against civilization!"
However, just as the chaos in front of the Southeast Central Bank was about to spiral out of control and citizens were preparing to forcibly break down the door.
"Beep beep beep!"
A low, urgent military loudspeaker blared suddenly from the end of Financial Avenue!
With a screeching sound of brakes, a large number of Chen family military police, dressed in black uniforms and carrying German-made submachine guns, quickly got off their vehicles and forcibly cleared a passage in the square in front of the bank.
Then, to everyone's astonishment...
One after another, massive heavy military trucks formed a long line that seemed to stretch as far as the eye could see, roaring into the square!
There were fifty trucks in total!
The back of each truck was completely covered by a huge tarpaulin, but the deeply pressed-down shock absorber plates and tires all indicated that the trucks were carrying an astonishingly heavy load.
In the very center of the canal truck convoy, a black armored car slowly came to a stop.
The car door opened, and a slender foot wearing black high heels stepped out.
Mo Huixin, dressed in a dark black cheongsam with a subtle floral pattern, her long black hair styled into an elegant short bun, her face as cold as ice, walked up the red carpet, surrounded by dozens of black-clad guards, onto the bank's steps.
She stood at the top of the steps, coldly looking down at the noisy citizens below.
The panicked crowd fell silent for a moment.
"President Mo! Is your Southeast Bank going bankrupt?!"
Someone in the crowd mustered up the courage to shout.
"Will our customs bonds still be redeemable?! Don't try to fool us with a few nice words!"
"Yes! We want silver dollars! We want pounds! Not paper money!"
Faced with the citizens' questions, Mo Huixin's cold face showed no panic whatsoever, but instead revealed an extremely contemptuous, icy smile.
"collapse?"
Mo Huixin's clear voice was clearly transmitted throughout the entire Financial Street through the microphone.
"Our Southeast Central Bank, backed by Young Marshal Chen's multi-million dollar fortune, when have we ever lacked money?!"
"Since foreign banks say our government bonds are worthless paper, then today, we, Southeast Bank, will show you what real strength is!"
After saying that, Mo Huixin suddenly waved her hand and shouted sharply:
"Lift the cloth!"
"Splash!"
The uniformed military police nearby immediately took action and ripped the waterproof and tarpaulins off the fifty heavy trucks!
At that moment, the rays of the rising sun pierced through the clouds and shone on the truck bed.
"Buzz!"
The entire Financial Avenue fell into a deathly silence in an instant!
Deathly silence!
At that moment, everyone completely forgot to breathe, their eyes almost popping out of their sockets!
Golden light!
Those were dazzling, almost blinding golden rays!
Inside the truck bed, neatly stacked small mountains of standard 24K pure gold bars were piled up!
Under the sunlight, the reflected metallic luster was even more dazzling than the sun itself!
On the other twenty trucks were boxes of neatly stacked and bundled British pound banknotes!
The wooden crate was piled high with green British pound banknotes, stretching as far as the eye could see!
"My God..."
A merchant who was about to run a bank run dropped his passbook to the ground with a "thud," and was frozen in place as if he had been put on a tether.
"It's all gold...it's all gold bars!"
"And pounds! Those are British pounds in cash! Piled up like mountains!"
"How much money is that?! Millions? Or tens of millions?!"
The citizens went completely mad, but this time, not because of panic, but because of extreme shock and frenzy!
Meanwhile, inside the HSBC building across the street.
Smith's wine glass fell to the floor with a "clatter," splashing bright red wine everywhere, but he didn't care at all.
Smith pressed himself tightly against the floor-to-ceiling window, his eyes bloodshot, staring incredulously at the golden mountain across the street.
"No! This is impossible!"
"That's absolutely impossible!"
Smith roared furiously.
"Chen Zijun's overseas accounts have been frozen by our joint efforts. How could he possibly produce so much British pounds in cash out of thin air in Shanghai?!"
"And that gold! Those are standard London gold bars! Where did he get so much physical gold?!"
"This defies financial principles! This is absolutely illogical!"
The secretary was also terrified and stammered:
"Mr. Smith, what do we do now?!"
"The gold and British pound cash on the other side are roughly estimated to be worth over fifty million pounds!"
"This reserve fund exceeds the combined total liquidity of several foreign banks in the Far East!"
Smith felt a sudden dizziness, and cold sweat poured down his forehead.
He was, of course, unaware that Chen Zijun didn't need to use international banks for precious metals and cash transactions; he could simply exchange his remaining pounds for gold and banknotes directly within his own system.
As long as there are pounds in his system, he can directly materialize mountains of physical gold and cash in the vaults of the Southeast Central Bank at any time!
This method of directly using the system's balance to buy physical goods is nothing short of a dimensional reduction attack for the great powers that have not yet mastered the art of financial games in this era!
Mo Huixin stood on the steps, her voice high-pitched and icy:
"All counters at the Southeast Central Bank are open for exchange today!"
"Whether it's our construction bonds, defense bonds, or your time deposits, as long as you come, we will accept them all in physical gold or equivalent British pound cash!"
"We have no limit! No quantity limit!"
"Not only that, aren't foreign banks dumping 40% of our Haiphong government bonds on the market?!"
"Today, our Southeast Bank is issuing an unlimited redemption order for all coastal defense construction bonds and national defense construction bonds currently on the market!"
"We want as many as you have!"
This statement caused an uproar in Financial Street!
"Unlimited buyback?! My God, foreigners sell 40%, and Southeast Bank is making two and a half times the profit just by buying and selling?!"
"Then I'll buy it from the foreigners at 40% of the price, and then cash it out at the Southeast Bank without paying 100%, which is 50% or 60%, and I'll make a profit right away!"
"Quick! Go to HSBC and Citibank to buy government bonds!"
The citizens reacted instantly, their eyes red as they rushed toward the foreign bank's counter.
What was originally a panic run against the Southeast Central Bank turned into a frenzied arbitrage frenzy targeting foreign banks thanks to Mo Huixin's gold dumping!
Just one hour later.
The HSBC branch was packed with citizens with bloodshot eyes, and the queue stretched all the way to the main road.
"Sell me all the government bonds you have! I want as many as you have!"
"What? You're saying there's no stock left?! Weren't you just bragging in the newspapers about selling off 30 million worth?!"
Smith was in the manager's office, looking at the reports coming in like snowflakes. He slumped into his chair, his face ashen.
"Mr. Smith...it's all over, all over."
The adjutant had a mournful face and was trembling all over.
"We just sold too many short positions in an attempt to drive down bond prices."
"Now all the government bonds on the market have been bought up by citizens, who are then exchanging them for gold across the street."
"In order to fulfill the settlement agreement, we must buy back an equivalent amount of government bonds to close out our positions by 3 p.m. today."
"But... the Southeast Bank across the street has already driven the price back up to the original price, and has even started buying back shares at a premium!"
"If we were to buy it, not only would our foreign banks fail to recover the original 30 million pounds in cash flow, but we would also suffer a loss of 15 million pounds!"
"If we don't buy, our credit will fail, triggering a run on our own banks!"
"Furthermore... because the other side released too much British pound cash, the pound's exchange rate in the Shanghai market plummeted, and our British pound assets are shrinking rapidly!"
Upon hearing these devastating reports, Smith felt a wave of dizziness wash over him.
They originally wanted to use financial warfare to wean Chen Zijun off his financial support, but they ended up kicking a very thick, solid steel plate!
The financial hegemony of the British Empire was shattered in the face of absolute physical gold!
"Damn it! Damn barbarians!"
Smith stood up abruptly, a flash of hysterical madness in his eyes.
He grabbed the confidential telephone on his desk and frantically started spinning the dial.
The call connected, and the sounds of crashing waves and the roar of a steam engine came from the other end.
"I am HMS Royal Oak, the flagship of the Far East Fleet. Please speak."
Vice Admiral McDonald's arrogant voice came through the receiver.
Smith gripped the microphone, his face contorted, and roared at the top of his lungs:
"Commander MacDonald! This is Smith!"
"Our financial war has failed! The Chinese warlords on the other side possess unimaginable gold reserves!"
"You must fire! Now! Immediately!"
"Use your heavy artillery to blow the Jiangnan Shipyard, their coastal defense fortresses, and their banks to rubble!"
"Only physical destruction can stop their financial overtake!"
"The interests of the British Empire cannot be trampled upon! Fire! Fire now!"
On the other end of the phone, McDonald was silent for a moment, then let out a cold laugh.
"I understand, Mr. Smith."
"The Royal Navy will use the most industrial methods to help you solve this small problem."
hang up the phone.
The sea outside Wusongkou is turbulent.
On the twelve massive British heavy cruisers, piercing battle alarms suddenly blared!
"Attention all ships, load high-explosive shells into main guns!"
"Target: Shanghai's defensive fortress and the Jiangnan Shipyard!"
"Open fire freely!"
McDonnell stood atop the flagship's bridge and coldly issued the order to fire.
Giant cannons, as thick as telephone poles, slowly turned toward Shanghai under the power of steam.
In the unseen depths of the sea, Hans pressed his periscope, his eyes bloodshot with extreme excitement.
"The young marshal's counterattack order and kill order have both taken effect."
"You wolf cubs, torpedo room, beware!"
"The British cannons are firing; they're ready to send them to hell!"
"Three, two, one... Fire!"
"Whoosh! Whoosh! Whoosh!"
In the deep sea, several heavy magnetic torpedoes, trailing long contrails, headed straight for the giant ship with a deathly smile!
Naval battle erupted instantly!
The smoke of financial battles has not yet dissipated, but the real blood and fire have already exploded in the waves of the East China Sea!