This tactic is quite simple. The Rothschild family had abundant funds, so it was impossible for them to be liquidated. They can even allow themselves to suffer floating losses of more than 100% in the futures market, such as in the crude oil market at that time, when they pushed oil prices into negative territory. Ordinary people and tycoons would have been liquidated long ago in such market conditions, but the Rothschilds were not afraid at all. They have a lot of money to stabilize their position and then reap the rewards after everyone else has liquidated.
If someone uses five times leverage, then if the price of crude oil temporarily falls by 20%, that person will go bankrupt and be ruined.
This type of game is similar to carrying an oxygen cylinder and dragging everyone into the water together, then slowly floating up after everyone has drowned.
Therefore, if someone only knew that the Rothschilds would raise oil prices and then rashly used their investment to enter the futures market, they would likely not stay in the volatile market until things returned to normal.
The Rothschild family has always been a financial giant. Their strategy is always to take advantage of the big players and let the small players get away. If you want to make money with them in the futures market, you have to be very small, so small that it won’t attract their attention. Otherwise, once they find out that there are people in the market who want to ride on their popularity and make a lot of money, they will definitely find a way to prey on those who try to ride on said popularity.
Therefore, the third method is less practical; large investments carry high risk, while low-risk approaches do not offer much scale.
After careful consideration, Wu Yongzhen decided to use the second method.
In other words, as a precaution, one should not enter the futures market, but rather stockpile one’s own production capacity while using a little leverage to acquire more shares offline. Once the price rises, one can liquidate one’s entire stock to immediately profit from the price difference. This way, even if prices fluctuate, there is no risk of liquidation.
So Wu Yongzhen immediately summoned his confidant, Du Heng, Deputy Commander of the Left Army, and gave him instructions: “Du Heng, go to the Getty family and meet Rachel’s mother. You need to settle some things with her.”
Du Heng immediately said respectfully, “Grand Commander, please give your orders!”
Wu Yongzhen smiled with satisfaction and said, “First, have her tell her husband that the business of personally delivering goods to them will be suspended for the time being, and will resume after some time. Second, have her help our other shell companies to see if we can purchase some spot crude oil from her husband’s family. However, we need to explain to them that I can pay in full first, but we cannot take delivery for now. We need them to store it for us for ten days. I can pay some of the storage fees. I will take delivery after ten days.”
The situation in the Strait of Hormuz is changing very quickly; Today there is talk, tomorrow there is fighting, tomorrow there is fighting, and the day after tomorrow there is more talking. Therefore, if the Rothschilds wanted to increase oil prices, they would definitely achieve their goal within ten days.
Wu Yongzhen understood very well that although this was a war, there was no logic of victory or defeat in this kind of war. There is only the logic of manipulation. Manipulators never want to remove shares from the exchange. He just wants the shares to be his tool. He can make stock prices rise or fall, so he can engineer the stock to be a financial destroyer, crushing even the biggest rocks into smithereens.
Today, the Strait of Hormuz is a destructive machine that controls international oil prices. As long as this machine is in operation, retail investors’ money will fluctuate repeatedly in it, and in the end, there will be nothing left. In order to crush retail investors as much as possible, the frequency of market fluctuations will be very high, so that each market movement will peak in ten days at most.
Without hesitation, Du Heng replied, “Rest assured, Grand Commander, I will definitely convey your message.”
Wu Yongzhen then reminded him, “Oh, yes, there’s one more thing. You need to tell Rachel’s mother that the Getty family must not know about the news that Rachel brought. Once they know, I won’t have the chance to take advantage of it.”
Du Heng nodded: “Yes, Grand Commander, please don’t worry.”
Wu Yongkang waved his hand: “Well, go ahead, come back soon.”
“Okay sir!”
After Du Heng finished speaking, he was about to leave when Wu Yongkang suddenly noticed something and called Du Heng, “By the way, where did Second Elder go these past few days?”
FAQ Novel
Q: What is the primary activity of the Left Army Command mentioned in the text?
A: The Left Army Command, under Wu Yongzhen, is described as a regional warlord involved in increasingly illicit activities, particularly profiting from incorrectly reported energy production.
Q: How does Wu Yongzhen plan to capitalize on the rising oil prices?
A: He is strategizing various methods, including halting shale oil shipments to sell later, buying and quickly reselling spot orders, or investing in the futures market with leverage.
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