The abnormal spike in foodstuff prices
attracted the attention of Somergrain,
who was already closely monitoring the
prices of foodstuffs.
Almost immediately, Somergrain
contacted Jasper.
Then, a large number of sell orders
immediately appeared in the market.
The price of foodstuff was locked firmly
within 5% to 8% of the price increase
before the opening. Although there were
fluctuations, no matter how much Soros
devoured in the future, Somergrain could
still hedge these orders by selling them..
Narrowing his eyes slightly, Jasper said,
We’re going to enter a tug of war.”
”
In the domestic futures market, the
trading volume of the foodstuff sector
was exponential, and the largest trading
parties were the buyers led by Quantum
Fund and the sellers led by Somergrain.
Just ten minutes after the opening, the
trading volume of both parties exceeded 1
billion Somer Dollars.
This trading volume was already
comparable to the sum of other trading
varieties at the same time.
One had to know that this was only more
than ten minutes after the opening and it
was equivalent to a turnover rate of 100
million Somer Dollars per minute.
Baz was overwhelmed by emotion. He
whispered, “Mr. Laine, once the situation i
s in a tug of war, it is actually not good for
“Yes, if foreign institutions continue to
long domestic foodstuffs, it will cause
panic in the market. If there are people
who want to stir public opinions to trigger
citizens to stock up on foodstuff, then it is
likely to cause social unrest.”
Jasper agreed with what Baz said, and at
the same time, he began to think about
what happened when Somerland was
facing the foodstuff war in his previous
life.
He could not remember the details, but at
that time, he remembered that several
places had issued administrative orders
restricting the purchase of foodstuff and cooking oil.
Because of this, the people who were already panicked at the time became even
more panicked.
Had it not been for the trust of the people of Somerland in the government, something terribly wrong might have happened at that time.
“This is easy to solve.”
Celine, who had been silent for a long time, said suddenly, “If the price of foodstuff has fallen, we should fully open up the inventory so that the people can see that the government has enough food for everyone.”
These words caught the attention of both Jasper and Baz.
Celine went on to explain, “It’s the same with bank runs. Usually, the run occurs because people start to lose their trust in the bank, and they believe that the bank is losing money and is facing bankruptcy. They’re worried about losing their assets i n the bank, so they will be anxious to withdraw their deposits from the bank.
“But if there is sufficient persuasive
evidence to tell everyone that this bank
has sufficient capital and everyone’s
welcome to withdraw money at any time
they want, no one will believe that the
bank will go bankrupt.
“But if you limit the amount and
frequency of withdrawals for everyone,
then this bad news will intensify, and
eventually the it will become a self
fulfilling prophecy and the bank will
really go bankrupt.
“The key to the question is, does the bank
really have that much money?”
Celine looked at Jasper with blazing eyes
and said with a smile.
Jasper sighed softly and smiled. ”
Unfortunately, this bank has a lot of
money.”
“Then you don’t need to worry-let them
continue this tug of war. This kind of
transaction in which you buy what I sell is
based on how deep the pockets of both
parties are anyway. One fight for foodstuff
stock and the other for the abundance of
funds. Whoever empties his pocket first loses.”
Jasper thought for a while and finally
decided that he should not interfere too
much in the foodstuff trade war.
The higher-ups would know what to do.
with this.
He already had a lot on his plate and if he
said or did more, he was likely to burn
himself.
Now that the financial war had reached
this point, Jasper had to start to consider
the situation of himself and JW after the
financial war.
What the higher-ups needed was a
positive benchmark to face society, so this
was his golden opportunity. However,
there were risks behind the opportunity,
which was, the higher-ups were
absolutely unwilling to see a political
businessman who would criticize the
actions of the government.
“Mr. Laine, the press conference has
begun.”
Baz’s reminder made Jasper turn his
attention to another screen.
Currently, the news was showing the
scene of the press conference of the
chairman of the Somerland Securities
Regulatory Commission and several
leading state-owned enterprises.
At eight o’clock, the quiet and solemn
official press conference immediately
announced to all of society the news of
the centralized listing of state-owned
enterprises.
This news could be said to have caught
everyone by surprise.
Even foreigners knew that under the
special social system of Somerland, state
owned enterprises were truly behemoths.
Especially after undergoing the reform of
state-owned enterprises and the
stripping of most of the rotten assets that
had been rendered ineffective, the
remaining state-owned enterprises were
supergiants that had monopoly positions i
n special industries where they had no
competitors at all.
The influence it brought was absolutely
beyond ordinary people’s imagination.
What determined the stock price of a listed company?
Some say it could be determined by capital, but it was only needed for speculation. Capital acted as a promoter to suppress or push up a company’s stock price, so it would always only be temporary and could not last forever.
Only the profitability and business ability of the company could really determine its price.
If the company’s prospects were good enough and it was profitable, it would naturally be welcomed by the market, while the stock value would also match its true market value.
As for state-owned enterprises, their state -owned nature made them destined to never fail, and their monopoly of the market determined that their profitability always exceeded that of private enterprises and that there was no fear of them not making money at all.
For example, Somerland Petroleum,
PetroSomer, and the not-so-well-known Offshore Oil Corporation were monopolists in the domestic oil Industry.
Even the oil from the private gas stations that ordinary people saw on the side of the road were purchased from the two
major oil companies. Aside from Somerland Petroleum, PetroSomer, and Offshore Oil Corporation, no other industries were allowed to set foot in the private oil industry in Somerland.
The communications industry was even more extreme.
With this premise in mind, the news immediately caused an uproar around the globe when it was announced at the press conference.
Soros, who got the news right after that, was furious.
“It’s here! Somerland’s countermeasures are finally here!
“Promoting the listing of state-owned enterprises and driving market funds into the stock market to maintain the stability of the market? This has your name all over it, Jasper!”
