Chapter 1352: Not sparing any piece of Australian turf
In this world, most of the most elite talent in the financial industry gathers on Wall Street.
This time, the short-sellers who attacked the Australian financial market include many experts who currently hold, and will continue to hold, the title of 'King of Wall Street'.
The Australian central bank's counterattack was effective, but it did not scare these big bears, but instead aroused their ferocity.
Many big shots have communicated with each other and have reached a common opinion: Australia has gone hysterical!
If this wave is beaten back, then we can start preparing to cut our losses!
The Australian central bank has issued a ban, preventing domestic banks from lending Australian dollars to international speculators, although this has blocked an important channel.
But the bears have plenty of ways around it!
Some speculators exchange at high interest rates from foreign trade companies, and there are always people who are not confident in the Australian dollar and are willing to exchange it for the US dollar.
Some speculators exchange Australian dollars through the branches of multinational banks in Australia. The US dollars go into the accounts of multinational banks, and the Australian dollars are given to international speculators.
Some speculators directly approach the central banks of various countries and apply for the exchange of Australian dollars held by the central banks of various countries using US dollars.
No matter which side it is, they are unwilling to work together with Australia and only want to protect their own interests.
The international speculators then sold all the Australian dollars they had exchanged, depleting the Australian central bank and the hands of other long positions of US dollars.
Through this model, although the international speculators suffered losses, as long as they could bankrupt the Australian central bank, all losses would be borne by Australia and the many long positions!
At the same time, the international speculators also built positions to buy forward foreign exchange contracts and short sell Australian dollars in the future, demonstrating their determination to short strongly and undermining the confidence of the bulls.
By attacking both the spot and forward markets, the RBA was horrified to discover that its US dollar foreign exchange reserves were being depleted at an even faster rate than before.
From 12th to 14th February, the Australian foreign exchange market was extremely fierce for three days.
Longs and shorts repeatedly fought for control.
Half an hour ago, a wave of long attacks pushed the Australian dollar exchange rate to a peak of 0.9054.
Half an hour later, the exchange rate fell to a low of 0.8914.
Then the bulls launched a collective counterattack, pushing the exchange rate back up to 0.9089.
...
It was a repeat of the same fierce fighting, with no one willing to give in until the very last moment.
The result of giving in is a position explosion, and no one can afford this loss!
The air force, led by two major short sellers, Bridgewater and Tiger, gradually reduced their stocks of spot and forward Australian dollars, but held more and more US dollars.
Using these US dollars, the short sellers went crazy looking for Australian dollars all over the world, while penetrating Australia in an all-pervasive manner to try to obtain more Australian dollars.
The short sellers were able to spend the US dollars again to buy new Australian dollar 'ammunition'.
But the bulls, led by the Reserve Bank of Australia, are having a hard time. They hold a large amount of Australian dollars, but dare not release them again. The 'dollar' ammunition is getting less and less, and it is much more difficult to obtain 'ammunition' than it is for the shorts.
There is no way around it. Who says the US dollar is the global currency and the Australian dollar isn't?
...
February 15, Wall Street, USA.
'Julian, it looks like the Reserve Bank of Australia can't hold out much longer!'
Ray Dalio and Julian Robertson met again and watched as the Australian dollar exchange rate was smashed to 0.8854 points in one fell swoop. Then, over the next hour, the bulls made several counterattacks, reaching a high of 0.8925 at one point. Ray Dalio beamed with a victor's smile and said to Julian Robertson:
'It's time to give the RBA its final shot!'
Julian Robertson laughed heartily.
'It's really time to land.'
'Come to think of it, the RBA has worked very hard, but unfortunately the bulls are too far ahead of us.'
'But thanks to the support of the Bright Fund's A$17.5 billion, otherwise we would have needed at least four to five days to fight to this level!'
Ray Dalio said, unable to help but feel emotional.
Just think, in recent days, Bridgewater and Tiger Management have sold all of the remaining 6.07 billion Australian dollars they held.
Then Bright Funds withdrew the 14.64 billion Australian dollars it had previously shorted Australian equities, and together with the funds raised by other companies, it raised 17.5 billion Australian dollars, which was exchanged for US dollars with Bridgewater and Tiger Management.
With this 17.5 billion Australian dollar arsenal, they also destroyed 10.4 billion Australian dollars, and now only have 7.1 billion Australian dollars left in their hands.
However, in the eyes of Julian Robertson and Ray Dalio, the combined 7.1 billion Australian dollars is enough to completely defeat the Reserve Bank of Australia!
After discussing, the two men separately informed other allies and then issued orders.
At 3:30 pm on February 15th, Sydney time.
Bridgewater Associates placed an order for 3.5 billion Australian dollars.
Tiger Management followed suit and also placed an order for 3.5 billion Australian dollars.
These two 'hydrogen bombs' dropped by the two strategic bombers directly detonated the Australian foreign exchange market.
At this time, Jack Stav was urgently on-site dispatching in the exchange rate department of the central bank.
The Australian central bank's US dollar foreign exchange reserves had only 1.97 billion US dollars left, and were running out of ammunition.
When he learned that these two orders, totalling 7 billion Australian dollars, had been placed, the director of the exchange rate department, Eric Alchi, whose bloodshot eyes were wide with panic, exclaimed, 'It's over!'
'No...'
The president of the central bank, Jack Staff, who had hardly slept for several days, reacted even more violently. He blacked out and fainted directly, and was quickly supported by the secretary behind him, who called for a doctor.
The Reserve Bank of Australia couldn't hold out any longer!
The Australian dollar bulls also ran out of ammunition.
The Australian dollar exchange rate completely collapsed!
By 4 pm Sydney time, the Australian dollar had fallen to 0.8349 against the US dollar.
Apart from the first 15 minutes of fluctuation, the next 15 minutes saw a straight decline without the slightest fluctuation.
The bulls were completely wiped out, losing all their money!
The Australian foreign exchange market became a carnival for short sellers, trampling everything in their path.
That evening, when the news broke that the head of the Reserve Bank of Australia, Jack Staw, had collapsed and been rushed to hospital, the Australian people were devastated, but they could hardly hide their panic.
Even the Australian Prime Minister, Bob Lake, calling on the nation to resist the financial bandits on television, was to no avail.
Capitalists at home and abroad knew full well that the Australian foreign exchange market had been penetrated by the short sellers led by Bridgewater and Tiger, and would collapse completely in the next few days.
The armour of the Australian financial market had been rendered useless.
The stock market and bond market are already exposed.
If we don't follow up, we won't even be able to drink the soup.
Capital from all over the world is rushing to Australia, brandishing their butcher's knives, intent on a full-scale bloodbath.
They chant 'Tiger Fund and Bridgewater are awesome!' while shouting the battle cry: 'Leave no turf unturned in Australia!'