Almost at the beginning of each year, it is the busiest time for the ministries of finance in Western countries, because the new fiscal budget is about to be released.
The so-called budget is to estimate how much money the government will spend in the current fiscal year.
In Western countries, the ministry responsible for preparing the budget is usually the ministries of finance.
The Ministry of Finance prepares a detailed financial statement based on the budgets of various government departments, which is still only a plan.
Whether the plan can be successfully implemented depends on the cooperation of the other two important joints, the Congress, and the central bank.
In some Western countries, the central bank has a subordinate relationship between the treasury, but in the United States, the Federal Reserve exists independently of the treasury.
The Fed is not accountable to the government for any decision, but to the U.S. financial institutions, represented by the Federal Reserve.
The first hurdle to be overcome in the budget designated by the Ministry of Finance is the Diet.
Now Reagan's Republican Party firmly holds the majority of seats in Congress, and as long as there are no differences within the Republican Party, the budget will basically not encounter any setbacks in Congress.
On the contrary, the Fed has a bit of a tough time, in this series of processes, the Treasury only estimates how much money the government will spend, and Congress decides to disagree with the government to spend the money, and the Fed is here to help the government raise the money.
The U.S. government has the largest budget in the world, and the Fed has to find ways to raise it every year.
Most of this money comes from Wall Street's deep-pocketed investment banks and financial institutions.
The trade between the Fed and Wall Street was carried out primarily through US Treasuries.
Whenever the government needs to issue government bonds, it consults with various financial institutions through tenders to determine the interest rate of the excess and the size of the issuance.
If the U.S. national debt for the next fiscal year is not in good hands, it will be a major event that will affect the government's finances for the next fiscal year.
Just last year, due to the impact of the Plaza Accord.
Treasury yields have continued to fall.
But while inflation has stimulated exports, it has not improved the tax and fiscal spending position of each government.
The United States has always faced tremendous pressure from the Soviet Union, military spending will only increase, and the current high inflation rate has made the large financial institutions in the United States extremely dissatisfied.
Paul Walker, the current chairman of the Federal Reserve, is clearly on the side of Wall Street, and his aversion to inflation is well known in the US financial community.
He has more than once called inflation a public nuisance in the American economy, and Paul Walcker's actions have proved that he is a staunch opponent of the Plaza Plan.
It was against this background that the 1987 U.S. bond tender faced many difficulties.
And it was at this time that Seryosha was interested in entering the bond market.
Seryosha asked Mikhail to consult Bill Gross, who, unexpectedly, seemed confident in the yield of US Treasuries in the 1987 year.
"Sir, Fed Chairman Paul Walker is well known for his attitude towards inflation, and in this case, he will make full use of his rights to return excess funds in the market, so this year's Treasury bond issuance is likely to be unprecedentedly large, and the interest rate should be attractive," Bill Gross said confidently.
"But now the dollar is depreciating," Mikhail asked, still uneasy.
"Sir, Paul Walker was not obedient to President Reagan, he was a man of great conceit, and he had a reputation for being tough.
It is absolutely impossible for him to cooperate with the government's fiscal policy, and only the Ministry of Finance will cooperate with him, so I judge that it will not be long before the government has to intervene in the depreciation trend of the dollar.
The Treasury will certainly respond to Paul Walker's tightening of liquidity. ” After listening to Billgros's explanation, Mikhail relayed Billgros's argument to Seryosha as it was, and Seryosha listened to it and stood on Bilgros's side almost without thinking.
"Mikhail, we are not short of money now, what we lack is talent, it is a safe and stable channel of capital circulation, and what we lack is the means to keep and increase the value of this wealth, so we have to change our thinking, we need to participate in the treasury bonds with stable income, fast-moving consumer companies with stable cash flow are also what we need, and infrastructure investment like British Gas is also a good channel to preserve our wealth, so Mikhail, don't use suspicious people, don't doubt people, Let's go and support Bill Gross and the Blackstone Group."
With Seryosha's words, Mikhail was naturally relieved a lot.
Only a week or so later, Bill Gross's prophecy was fulfilled.
At a time when the world's money continues to chase the Japanese economy, the U.S.
Treasury Department finally can't sit still.
On February 22, 1987, the finance ministers and central bank governors of the United States, Great Britain, France, the Federal Republic of Germany, Japan, Canada, and Italy signed a new agreement at the Louvre in Paris.
According to the agreement, the seven countries will work together to intervene in the exchange rate market to prevent the continued depreciation of the dollar.
As soon as the news came out, the yen began to depreciate sharply due to the positive impact of the dollar.
And Seryosha, who had long since fled the Japanese market, successfully escaped this catastrophe and kept the fruits of his victory.
Bill Gross's bond investments have also paid off handsomely over the past few days.
The short-term treasury bonds in the hands of the Bank of Colombia have risen, although the increase is not large, but it is a signal for the treasury bond market, Bill Gross began to sell this part of the profitable short-term treasury bonds to the market, and after withdrawing some funds, once again entered the Japanese foreign exchange market.
Seryosha has been paying close attention to Bill Gross's trading methods, and although in Bill Gross's view, the Japanese market has begun to suffer under the dominance of the Louvre Accord, it is still an attractive investment target.
However, Seryosha's capital is too large, and if he makes a move, it will have a significant impact on the market, so this time Seryosha does not plan to follow Bill Gross to re-enter the Japanese market.
Seryosha, through Mikhail, made a new inquiry to Blackstone on how to buy Volkswagen from the Federal Government of the Federal Republic of Germany at minimal cost. t1706231537: