Chapter 297 Be the King of Europe

City of London.

The top floor of the Forry Building.

Abel was lying on his boss's chair, with a huge floor-to-ceiling window behind him.

Outside the floor-to-ceiling windows, it was drizzling and looking a bit foggy in London.

Through the drizzle and fog, London Bridge can be seen in the distance.

At this time, Abel was holding a newspaper in his hand.

That's a copy of today's latest Daily Telegraph.

In the newspaper, there is a piece of news on page three.

The news headline is "Kingdom of Norway launches application to European Commission to join".

This news reported that in the past week, the Kingdom of Norway has twice submitted applications to the European Commission for membership.

【.The Kingdom of Norway and the Kingdom of Sweden are both in Scandinavia. But in terms of economy and resources, the Kingdom of Norway has always been stronger.】

[Europeans all know that Norway and Sweden are not members of the EU, and these two countries have also established a Nordic Monetary Union with Northern Europe. These countries are relatively independent from the EU]

[However, in recent times, Norway has frequently shown goodwill to the EU. Recently, it even wants to join the EU. What is the reason for this? 】

【Actually】

【.】

In fact, this time, Norway was finally cornered by international hot money represented by Soros.

So far, international hot money has attacked Norway's sovereign currency three times.

For the first time, the Kingdom of Norway relied on its own confidence to survive.

The second time, Norway showed weakness when it asked for help from the EU, and received limited help from the EU on some economic cooperation terms it signed.

In the previous two times, the Kingdom of Norway repelled international hot money led by Soros.

However, under the third attack of international hot money that had been accumulated for a long time, the Norwegian krone was once again in crisis.

This time the EU is not willing to help with real money.

Norway finally panicked and wanted to join the EU and use the power of the EU to help it fight off international hot money.

But how easy is it to join the EU?

Originally a country with few resources in Europe, when the EU was established, it invited Norway and other Nordic countries to join.

But Norway refused.

If you can live a good life selling oil and natural gas, why should you be a little brother to the EU?

Who doesn’t know that the EU sounds like the European Union, but in fact it is just an economic alliance controlled by Britain, France and Germany.

France and Germany are the core of this European Union.

The Kingdom of Norway does not want to be sucked, and Sweden is also unwilling to join.

The Kingdom of Norway is unlucky because its sovereign currency is treated as a bet in the international foreign exchange futures market.

Because too much money was accumulated above, it was finally fed back into reality.

It attracted international hot money represented by Soros, and was eventually targeted by international hot money, leading to today's disaster.

Before the incident, Norway, which did not want to be sucked up by Britain, France and Germany, mainly France and Germany, refused to join the EU.

Now that something is going to happen, I think of Britain, France and Germany.

Of course, the EU will not agree so easily.

During the second round of support, the EU put forward many conditions.

Of course, there are more conditions proposed this time, many of which Norway itself does not agree to.

So now we are in a stalemate.

This matter is also a hot topic in Europe recently.

"High-end newspapers" like the "Daily Telegraph" stare at these reports every day.

After reading the news, Abel threw the newspaper on his desk.

In front of him stood Alan Baker, general manager of Smithsonian.

and Jed, CEO of Smith Capital (UK).

"Soros has contacted me again. How many times has this happened?"

"This is the seventh time." Allen said.

"Jed, what's our current floating profit on USD/NOK?"

Jed immediately said: "It's probably floating around US$4 billion."

“What about the cost of capital?”

Smith Capital's investment in USD/NOK started more than two months ago.

For more than two months, such a large amount of money has been invested in this. Of course, it is impossible to have no capital costs.

Even among these funds, the actual funds provided by Smith Capital are only about 30 billion US dollars.

But the amount of funds is about 50 billion US dollars.

They exist there, and Smith Capital pays huge interest every day.

Fortunately, most of these funds come from Pacific Commercial Bank, and the interest is relatively small.

But no matter how small the interest is, you still need interest, not to mention that the other half comes from Wells Fargo and Citibank.

Banks never do charity.

With such a large amount of funds, the daily interest is a considerable capital cost.

After holding it for more than two months, the cost of maintaining the existence of these funds is exaggeratedly high.

"The current capital cost of holding positions totals US$1.36 billion," Jade said.

In other words, the position is 80 billion U.S. dollars and 800,000 lots of USD/NOK foreign exchange futures short contracts.

Smith Capital has paid $1.36 billion in capital costs.

Fortunately, after Soros entered the market.

The short side finally showed intention to retreat.

The US dollar/Norwegian krone began to rise, and Smith Capital's account began to make a profit.

It's just when the short side shows signs of retreat.

Because of the arrival of Soros, the Norwegian government also stepped forward and began to short USD/NOK.

Norway's actions have supported USD/NOK shorts.

While going long on the U.S. dollar, it was also short on the Norwegian krone currency pair, and the stalemate began again.

This is the situation where Smith Capital has profits, but given the huge costs, the profits do not appear to be high.

After hearing these data, Abel thought for a while and said softly:

"It's time for us to finish. Jade, notify the New York side that we will start closing our USD/NOK positions."

"I understand. What is the closing quantity?" Jed said excitedly.

"First close the position of 100,000 lots, and use the funds after closing the position to buy spot Norwegian krone." Abel said.

"What do you mean?" Jade asked uncertainly.

"What do I mean?"

Abel had a smile on his face and he said:

"It has reached a critical moment. If I join this battlefield at this time, no matter which side I stand on, I will be an oppressive presence to the other side."

"Jed, the next script will be the script of World War I and the early stages of World War II, and in this script, we are Americans."

What was the American playbook in the early years of World War I and World War II?

Jump left and right, selling arms on both sides!

Abel's current approach is to close his position in USD/NOK and at the same time seek to obtain a large amount of spot NOK.

He wants to stand between international hot money and the Kingdom of Norway, and be the "America" ​​between these two parties.

He wants to exploit the "war fortune" of this financial war.

In Abel Command Smith Capital (UK), there is also the headquarters in New York.

Together, both parties began to slowly close their USD/NOK positions.

Then I bought a large amount of spot Norwegian krone in the market.
To be continued...