Darkstone Code
Chapter 434 - 0432 Reserve Energy
CHAPTER 434: 0432 RESERVE ENERGY
"Later, there will be an upward trend in Nagariel... hmmm...," Lynch waved his hand and rolled down the window, allowing the smoke he exhaled to disperse.
He was indifferent to the outside world, focusing his attention on organizing his thoughts, while also instructing Lime to handle the next phase of work.
It’s not that Lynch trusted Lime too much, but rather he trusted human nature.
Human nature never undergoes significant changes; anyone living in this world, or any organism that is alive, will inevitably have needs.
Survival itself is a need, and there are also needs for satiety, physiological growth, mental needs... many things.
Humans are one of the most emotionally complex beings and have the most desires. No one can claim to fully understand another person; what people refer to as understanding often means discovering someone’s deepest desires.
People like Lime, who have been suddenly elevated from the bottom, find it difficult in a short period to want to break away and operate independently from Lynch. He might even see such thoughts as frightening betrayal.
Moreover, in order to gain more profits, he must help Lynch manage his financial accounts well, otherwise, he would have to return to the bottom of society, selling small things by deceiving customers to survive.
Having seen the scenery from the mountain top, why would he willingly return to the gutter?
So, Lynch trusts him in the short term, not because he trusts him as a person, but because he trusts Lime’s human nature and desires, which Lynch can see through at a glance.
Lime took out a notebook and pen, and earnestly began recording. Lynch’s every "prediction" seemed as if he could see the future, which was both admirable and somewhat daunting.
The best way to deal with fear is not to overcome it, but to maintain a reverent fear towards it.
His attitude was reverent towards Lynch’s mysterious "predictions," and to avoid the deceptive illusions memory can create, he specially prepared a notebook and pen.
"Pour a large number of orders; Nagariel is bound to rise, and I have a very confident assumption that this surge is actually speculative behavior."
He smoked, with thoughts becoming increasingly calm and senses more acute, and his eyes gleamed with wisdom that was hard to directly confront. "The major forces of large financial institutions are concentrating on recovering production and rebuilding, only the international hot money roams like stray dogs, constantly looking for opportunities."
This judgment by Lynch is not too problematic; people like him, like the consortium behind Mr. Wardrick, like the consortium behind Mr. Pato, these consortia currently don’t have their main focus on the financial sector but are making huge profits while the whole world suffers from horrific financial disasters.
They exert every effort to purchase land without affecting the operation of the group, annex factories and enterprises everywhere, and buy up laboratories.
No one would leave a large amount of money in the financial market for long-term holding. To ordinary people worldwide, this is indeed a disaster, but for these people, it’s a grand feast.
Only during stable times, when they cannot expand so recklessly and crazily, will they focus their energy on capital operation, but definitely not now.
Adding to that, Nagariel’s performance in the foreign exchange market has historically been poor, and linking diplomatic relations with the Federation and having a big contract won’t cause any earth-shattering change.
Only after completing the first phase of Nagariel’s construction and maintaining high enthusiasm and cohesion to continue moving to the second phase, Nagariel will see truly substantial growth.
"This surge will soon end; once the international hot money realizes there’s no one making crazy purchases for them, Nagariel’s price will gradually return to normal levels."
Lime earnestly recorded in his notebook, "Mr. Lynch, should we enter the market?" His thought was that since Lynch knows this surge will soon end, perhaps staying out of the market and observing is the best approach.
After all, once invested, there’s risk, and it’s a huge risk, although he clearly overlooked Lynch’s audacity.
Lynch nodded slightly, "Of course, this time we can’t take from the large institutions, but we can pick at the international hot money; their greed is their weakness, and it’s also our opportunity."
A few years ago when the Federation’s economy was growing rapidly, international hot money treated this place as a bed to incubate wealth.
But once the war ended, the post-war reconstruction and the interests of redefining market rules in various countries outweighed the profits the Federation could offer, they immediately fled.
The Federation’s financial tsunami, economic crisis, had direct relationships with these people.
Now, with the reconstruction contracts almost finalized globally, and them having eaten and drunk their fill, they begin poking around looking for opportunities internationally. This international hot money, accustomed to eating dirty money without responsibility, never considers ethics or morality; all they care about is money.
So create a visible opportunity for money, then swallow them whole.
"Tomorrow I’ll visit Nagariel and discuss with some Provincial Governors, including the United Kingdom Central Government, there might be some good news released at that time, and...," Lynch glanced at his watch; it had a calendar, "Before September 6, quietly enter the market, all in, buy."
Lime was momentarily stunned, "All of it, Mr. Lynch?"
He repeated the question, hoping for further confirmation from Lynch, for this "all in" did seem a bit excessive.
The financial leverage is always a magical existence, enabling you to earn tenfold or hundredfold.
Originally, you could only earn one dollar, but with financing leverage, you can easily earn a hundred, two hundred, and people only need to bear risks deemed "negligible" by the banks.
Last time, when sniping at Fla and trading copper ores, Lynch earned three million in total, and with the trading seats he held, some capable individuals already used various connections to entrust their financial accounts to the "Darkstone Fund" founded by Lynch for operation.
These entrusted accounts and Lynch sign an agreement wherein he will try his best to ensure profit for these individuals, but if they incur losses, when their accounts hit the warning line, the Foundation will notify these principals and provide an official "financial risk notification."
Then pass the choice to them, whether to cut losses before the stop-loss line or continue entrusting the Foundation with operations until the second stop-loss line.
Generally, if losses indeed occur, the people with these accounts won’t lose much, and even if the Foundation cannot contact them during losses, it will directly liquidate the positions per the stop-loss regulations.
This is why people dare to entrust accounts for operation, knowing they won’t lose everything at once, the most is just a small loss. However, if the Foundation can’t guarantee profit consistently, the loss won’t be just a small amount.
Funds in these accounts and Lynch’s accounts, over ten million dollars being put into the market, that would certainly be a significant move.
Yet again, the movement of million-level funds within the Federation can definitely stir up a storm, but on an international scale, it seems not quite enough hence requiring additional support.
"All of it, my relationship with the Golden Exchange Bank is really good, perhaps they’d be willing to offer us higher leverage..." Lynch frowned slightly, "Tomorrow morning before I leave, I’ll give you the result."
He then mentioned some detailed things, and soon the car stopped outside a splendid gate. A greeter by the roadside approached as the car stopped stably, opened the car door, bent over, extended his hand, and assisted Lynch out, addressing him as "Mr. Lynch."
This is the Golden Exchange Bank, Lynch came here to discuss with the head of the financial business department about financing; last time, he only got a tenfold financing opportunity otherwise he wouldn’t have earned just over two million.
Although banks make steady profits during the financing process, they also assess risks; no financial activity can be one hundred percent risk-free.
High-leverage financing, once problematic, could cause banks to lose everything. Despite managers daily proclaiming they can offer people up to hundredfold leverage, often this is mere gimmick.
Most times leverage indices range between twofold and fiftyfold, particularly now with poor financial circumstances, banks work conservatively regarding finance.
Lynch needs more leverage, hence he has to negotiate personally.
He had greeted Jogriman earlier, who contacted some relations at the Bupen headquarters, feeling amazed that Jogriman could be acquainted with an emerging figure like Lynch.
Alongside Lynch’s good reputation in this circle, this led to the upcoming negotiations between Lynch and the bank.
And here, it’s the Golden Exchange Bank’s headquarters located in Bupen, everything appeared vulgar; there was gold everywhere, but this vulgarity made people deeply indulged, thinking perhaps the world never had truly noble people.
Upon entering the hall, Lynch noticed the transparent floor tiles under his feet, beneath these tiles was surprisingly a clockwork mechanism!
Indeed, a golden mechanical movement is right beneath the floor, which probably isn’t glass, possibly another material, very translucent, well-maintained, without any wipe marks.
Huge gears the size of the hall slowly meshed, every subtle advance of the hour hand seemed to convey a special kind of power.
"The movement beneath your feet is all pure gold. Time is money, and this perfectly embodies that!" A very well-dressed gentleman with the demeanor of a successful person greeted Lynch with a smile, "Great to meet you, Mr. Lynch, I am Carl, head of the financial department."