Chapter 878: Want to Make Another Fortune?

Manhattan Island. Green Manor!

In the living room, Li Yi’s eyes were fixed intently on the television screen.

On the screen, the Iron Lady was speaking eloquently to a group of reporters: “…To enable the national economy to recover rapidly from the state of stagflation and recession, the government has decided to adjust existing economic policies. The state will withdraw from major enterprises, pushing them into the market, free from government intervention…”

Hearing these measures, Li Yi knew that the Iron Lady was about to begin implementing her privatization policy.

According to the economic restructuring plan formulated by the Iron Lady and her cabinet, they would, in the coming period, completely release a portion of the state-controlled enterprises with poor economic performance into the market, free from government intervention.

It must be said that this woman was indeed a visionary with a masterful grasp of strategy; she possessed the boldness to let enterprises survive and thrive through market competition according to the law of survival of the fittest, thereby enhancing corporate competitiveness and economic efficiency.

But that wasn’t all. She also implemented a consumption tax system nationwide, linking taxation to personal income to stimulate public enthusiasm and encourage people to start businesses and make investments, thereby driving the country’s economic development.

Li Yi, well-versed in history, listened to the voice coming from the television, his mind immediately drawn to the economic reforms the Iron Lady would implement a few years later—reforms that nearly upended the British Empire.

That reform began in 1985, and its core was what is now referred to as the privatization of state-owned enterprises. However, compared to the policy she had just announced, the 1985 economic reform was larger in scale and broader in scope, affecting virtually every aspect of the British Empire.

Of course, as this reform enjoyed widespread public support, the results were quite positive.

In just three years, the Gross National Product had reached 384.778 billion US dollars, inflation had dropped from 18.1% in 1978 to 4.4%, the number of unemployed had fallen below 2 million, labor productivity had increased by an average of 5.5% annually, and the annual growth rate of per capita income was approximately 3%—creating an economic miracle that astonished even the Iron Lady herself.

However, these economic measures were merely laying the groundwork for reforms to come a few years later.

However, none of this concerned Li Yi; what truly mattered to him was not these developments, but the Iron Lady’s policy adjustments in the financial sector.

Soon, the television broadcast what Li Yi had been waiting to hear: “…The government is implementing a policy of monetary tightening by strictly controlling the money supply and reducing currency issuance, with the aim of stabilizing market prices and lowering the inflation rate… Personal income tax will be reduced to stimulate the production incentives of both businesses and individuals…”

“Additionally, effective immediately, the government will raise the exchange rate of the pound, adjusting the pound-to-dollar rate from the current 1.54 to 2.45…”

Hearing this news, Li Yi breathed a sigh of relief, and the tension on his face completely melted away.

The announcement had finally been made; his previous strategic maneuvers had finally borne fruit.

Now, all he had to do was wait for the news to take effect and for exchange rates across the globe to stabilize before reaping the rewards.

As soon as the Iron Lady’s announcement was made public, it quickly sent shockwaves through the capital markets.

As the world’s second-largest reserve currency, fluctuations in the pound’s exchange rate, while not as influential as those of the U.S. dollar, still exert a significant impact on the global economy.

Some, like Li Yi, saw their assets surge by over 60% without warning, and were naturally overjoyed.

Others, however, had just converted their pounds into dollars, only to see their assets plummet by half in an instant, nearly causing them to lose their composure.

For a moment, it was truly a case of some rejoicing while others grieved…

………

Downtown. Green Brothers Company!

Reggie Green was busy in his office when his assistant rushed in, pushing the door open.

“What’s the matter? What’s going on?” Reggie Green asked, furrowing his brow.

“Boss, there’s news regarding the matter you asked me to monitor—the British government has adjusted the pound’s exchange rate…”

Upon hearing this, Reggie Green jumped right out of his seat and asked, with a hint of tension, “Has the pound appreciated or depreciated?”

It was no wonder he was so nervous. After all, he had not only converted the company’s entire $8.2 billion in reserves into pounds, but had also poured in the $5.5 billion the company had borrowed.

Furthermore, to ensure he didn’t miss this opportunity to make a fortune, Green Reggie had also invested his entire personal fortune.

If the pound depreciated, his losses would be substantial—though not enough to bankrupt him, they would likely deal a severe blow to his finances…

Fortunately, his assistant’s next words did not disappoint him. Upon hearing the word “risen,” he felt an immediate sense of relief.

“By how much?”

“According to the exchange rate announced by the British government, the pound has appreciated by 62% against the US dollar…”

Upon hearing that figure, Reggie Green was instantly stunned!

After the initial shock wore off, he immediately called Brian at the bank to inquire about the current exchange rate between the pound and the dollar.

Upon receiving confirmation of a 1:2.45 exchange rate, Green Reggie immediately had a car prepared and headed straight for his estate…

Back at the estate, Li Yi was in his study calculating the profits from this venture when a series of “knock-knock-knock” sounds suddenly came from outside the door.

Immediately afterward, Zhang Ziqiang walked in, pushing the door open with Green Reggie in tow.

As soon as they entered, Green Reggie exclaimed excitedly to Li Yi, “Li, you must be the favorite son of Lady Luck—this is absolutely incredible…”

Seeing how excited and incoherent Green Reggie had become, Li Yi smiled and said, “Green, it’s just a small profit. Is it really worth getting this worked up?”

“Li, you Chinese are just too modest. We made at least 8.5 billion pounds this time—that’s a massive windfall!” Reggie Green said.

Li Yi smiled and asked, “Want to make another killing?”

Green Reggie’s face lit up, and he hurriedly asked, “Yes, how do we do it?”

“When can we convert this money into US dollars?” Li Yi asked.

“Anytime!”

“Are you sure?”

“I specifically asked Brian about this before I came. He shouldn’t be wrong!” said Green Reggie.

“Alright, then. Exchange all the pounds into US dollars right now. We need at least 3 billion to be in the account by tomorrow morning. Can you do that?” Li Yi said.

“Yes, I can. What happens once the funds are in?”

Li Yi replied immediately, “As soon as the funds are in, buy shares in our company!”

Green Reggie was taken aback at first, but quickly caught on: “You want to go long on our own company’s stock?”

“Exactly. Not many people know that our Banbanhaobang Company has heavily bet on the pound, so the stock price hasn’t changed much yet. But as soon as we leak this news, the stock price is bound to rise, and we can make a huge profit!” Li Yi said.

Green Reggie thought for a moment and said, “I’m afraid it might be a bit too late to act tomorrow. After all, I’m using Brian’s channels to exchange pounds, and I’m worried…”

“Are you worried that Brian has already started moving?”

“Yes! I know Brian well. He has a unique and sharp eye for investment opportunities, and JPMorgan Chase has its own investment division. He wouldn’t miss this chance!” said Green Reggie.

“No problem. The stock market closes in about ten minutes. Even if they do take action, they won’t have much time to maneuver. We still have a chance.”

Li Yi continued, “Besides, when we’re trading our own company’s stock, making money is only one aspect—what’s more important is driving up the share price. If we handle this well, the company’s market cap might just break through the $20 billion mark in one go!”

Hearing this, Reggie Green was once again stunned by Li Yi’s vision.

Wow, he really had been too narrow-minded.

He had assumed Li Yi merely wanted to take advantage of the situation to line his own pockets, but he never expected the other party to be aiming to drive up the company’s stock price and market capitalization.

As an investor, Reggie Green was well aware of the benefits of a rising stock price and market capitalization. Setting aside the massive increase in shareholder wealth, the advantages for the company’s own development were obvious.

If the company’s market capitalization could break through $20 billion, Green Brothers would leap to become the fifth-largest investment firm in the world. At that point, whether in terms of raising capital or market standing, it would be in a completely different league compared to now.

With this in mind, Reggie Green could hardly sit still. He first called the company’s CFO, then exchanged a few brief words with Li Yi before hurrying out of the estate…

………