nucmednet Chapter 378 Huge Loan
Chapter 378 Huge Loan
I stayed at home for three days with my parents, wife and children, and then stayed in a small town in the south of the Yangtze River for four nights.
I visited my parents-in-law and their family, and lived with my old master for a few days.
After a week's rest, Ye Xiaoyang started his work. Going back to San Francisco to visit relatives was just one of his purposes.
The most important thing is to borrow money from major banks in the United States, with an initial plan to borrow $700 million to $800 million.
After the loan is approved, go to London to see if there is any opportunity to borrow pounds from a bank in the British Empire.
He remembered clearly that the pound depreciated sharply in the year or two after World War II.
The exchange rate against the US dollar depreciated from 1:4 to 1:2.
The British pound is still very strong at the moment, but this strength will not last long.
With the strong rise of the United States, and the decline of the British Empire, known as the empire on which the sun never sets.
The appreciation of the US dollar and the depreciation of the British pound are inevitable trends that cannot be stopped by human power.
In Ye Xiaoyang's view, this is an excellent opportunity to make huge fortunes, and this opportunity is very rare.
When applying for such a large loan from a bank, the lending bank must require collateral of equal value.
However, he planned to use the investment agreement in the Japanese Empire as collateral for the loan.
A month passed in the blink of an eye.
Ye Xiaoyang visited the general managers of seven banks including Citibank, Morgan Stanley, and Mellon Bank.
A total of US$800 million was borrowed from these seven American banks, with a loan term of five years.
The annual loan interest rate is 4%.
Ye Xiaoyang used the $800 million loan to buy gold of equal value at the Standard Chartered Bank headquarters in London.
The $800 million worth of gold was not shipped away. He planned to wait until the construction in Hong Kong was completed before shipping it there.
It is not his idea to deposit money in the bank and earn interest, not to mention that the interest on deposits is far less than the interest on loans.
Since it cannot be transported away now, Ye Xiaoyang has a new idea: making money from money is the best way.
He took the information related to the storage of this batch of gold and went directly to another bank in London, HSBC.
At HSBC Bank in London, the gold was directly used as collateral for a mortgage of 200 million pounds.
The annual interest rate for the three-year loan is 3.0%.
Harris, the general manager of HSBC, learned of Ye Xiaoyang's intention to apply for a loan and hosted a banquet for Ye Xiaoyang at the Buckingham Palace Hotel.
Harris was a financier who had always wanted to invest in the German Empire.
At this time, the price of purchasing high-quality assets in the German Empire is definitely much lower than usual.
But he couldn't convince the bank's shareholders.
In addition, the U.S. military has been stationed in Germany, which is a natural advantage for U.S. businessmen.
Ye Xiaoyang made no secret of the fact that he was close to some high-ranking officials of the U.S. military.
This made Harris admire him even more that a young Asian could be so capable.
After staying in London for half a month, Ye Xiaoyang's work went very smoothly.
This was inseparable from the help of the Governor of Hong Kong, who was not familiar with the relationships related to the British Empire.
Before leaving London, Ye Xiaoyang exchanged 200 million pounds into 800 million US dollars at Barclays Bank and the Bank of London.
With $800 million, Ye Xiaoyang led his investment team on a special plane to Berlin.
The investment team was temporarily formed by Ye Xiaoyang, and the main person in charge was his sister Ye Yanhong.
Ye Yanhong graduated from Harvard University with a degree in finance.
After finishing all this, Ye Yanhong still couldn't believe what was happening before her eyes.
In just two months, her third brother borrowed $800 million and 200 million pounds.
In the Berlin Hotel, the capital of the German Empire, Ye Yanhong couldn't help but ask:
"Third brother, do you really want to invest $800 million in the German Empire?"
"Little sister, what's wrong?"
"I'm a little worried. I've never seen so much money before."
"Don't you believe in Third Brother's judgment?"
Ye Yanhong shook her head and said softly:
"I naturally trust your judgment, Third Brother, but I feel a little uneasy.
During this period, I followed you to more than a dozen banks and borrowed a total of US$1.6 billion from the banks.
The annual interest payments alone would be $6000 million.”
Ye Xiaoyang nodded and said:
“Now the total assets of our Gusu City Ye family should have exceeded 30 billion US dollars.
It’s just that the Ye family has other uses for their existing funds, so they turned to these foreign banks for loans.
$6000 million in interest a year may seem a bit much, but the Ye family can still afford it."
Having said that, Ye Xiaoyang paused intentionally. He wanted to give his younger sister time to digest it.
Seeing Ye Yanhong nod, Ye Xiaoyang continued:
"Third Brother has always believed that the British Empire has declined and that the British pound will depreciate significantly in the near future.
A loan of 200 million pounds is still a little too little. If there is a chance, we will borrow another 400 to 500 million pounds.
If the pound depreciates by 30% against the dollar, we will make 1.2 to 1.5 million pounds without doing anything.
Converted into US dollars, it is about 5 to 6 million, and it is reasonable to bear this interest.
In a few years, gold will appreciate against the US dollar. Even if it appreciates by 10-20%, we can make a profit again.
In addition, the $800 million worth of gold purchased in the British Empire needed to be shipped to Hong Kong.
Otherwise, how can the Ye family open a bank in Hong Kong?"
Ye Yanhong was a little stunned. She didn't expect her third brother to have such a far-sighted vision.
She understood that super-large investments must be based on an understanding of world development trends, especially changes in the international situation.
But she was still worried and asked softly:
"Third brother, now that the world war is over, can gold appreciate further?"
"Yes, you do. Don't you think that gold is the most valuable in troubled times and is considered hard currency?
In peacetime, gold is not conducive to circulation, so ordinary people don’t intend to hold gold? "
Ye Yanhong didn't look up and nodded directly.
"Indeed it is."
Ye Xiaoyang looked at his younger sister and said softly:
“This theory is correct, but it misses one point.
The world has entered a period of peace, and every country will vigorously develop its economy.
When the economy grows rapidly, a large amount of trade will be carried out between countries. This is the trend of economic development.
The exchange rate between currencies of different countries essentially depends on a country's gold reserves.
The reason is very simple. The gold reserves of each country are the basic foundation of its currency.
Without gold, paper money is not much different from paper. In your economic terms, gold is an anchor.
Another key point is that the US dollar may be issued more."
"Increasing the dollar? But I haven't heard that the United States has discovered new gold mines."
Ye Yanhong was surprised.
"I learned from the top leaders of the seven major banks that the United States intends to push the dollar around the world.
Let all countries in the world use the US dollar to settle international trade."
This news surprised her again.
"How many more dollars would the United States need to issue to push this to the whole world? How is that even possible?"
Ye Xiaoyang shook his head and said:
"How is that impossible? The United States is now the most powerful military country in the world.
After this world war, the British Empire was far inferior to the United States in all aspects.
Especially in the military, the industrial output value of the United States is several times higher than that of the British Empire.
It is simply not comparable to the British Empire. Even the industrial output value of the entire Europe is about the same as that of the United States.
What's more, the United States intends to use its military advantage to control the world's oil.
Oil is the lifeblood of modern industry. You must have heard this when you were in school, right?
Ye Yanhong suddenly seemed to understand something.
The United States may not intend to tie the dollar to gold, only in this way can the dollar be issued in large quantities.
"Third brother, does the United States intend to use oil as an anchor for the US dollar?"
After saying that, Ye Yanhong looked at Ye Xiaoyang.
Ye Xiaoyang didn't expect his little sister to think of this so quickly, and nodded quickly and said:
"Little sister, you are amazing, you really are."
“Gold is different from paper money, as it has extremely high use value.
If this is the case, gold would indeed appreciate significantly against the US dollar.
After two months of hard work, the Ye family in Gusu City can earn nearly 10 billion US dollars.
Third brother, you are truly a business genius."
Ye Yanhong showed an excited expression.
Ye Xiaoyang waved his hand and said:
"Don't praise Third Brother. He just has more information channels than others."
"Third brother, what industries do you plan to invest in when you come to Berlin this time?"
"Automotive manufacturing, heavy machinery industry, and high-precision machine tool industry, etc."
"Third brother, many of these industries overlap with the ones you invested in Tokyo!"
"Yes, making money from investing is one thing, but the most important thing is that he values the technology of the German Empire.
We Chinese will master these technologies sooner or later. The machinery industry is a country's basic industry.
Now there is a huge gap between China and Europe, the United States and the Japanese Empire in basic industries.
Even if China is unified, it is estimated that it will take decades to catch up with China's existing resources.
If you fall behind, you will be beaten. You and I both understand this principle."
Hearing this, Ye Yanhong's eyes lit up. She knew that her third brother loved her motherland the most.
She already knew that her second brother Ye Minghao was still in China helping the Communist Party to fight for the world with the Deep Blue Government.
When she applied for university, she wanted to study Western medicine, but her third brother disagreed. He felt that the Ye family needed someone who understood finance.
After living in San Francisco for so many years, she already knew that the Ye family in Gusu City was no longer what it used to be.
It takes a huge amount of money just to support so many orphans in the Jiangnan town that the family has invested in.
But she didn't expect that the Ye family's economic strength had far surpassed that of their ancestors.
With the current assets of the Ye family in Gusu City, they would already be the richest family in China.
I'm afraid it can be ranked among the best in the world.
……