Chapter 504: 504

This year, the depreciation of the US dollar is particularly severe!

One proof is that the price of gold has risen again, reaching more than $300 an ounce.

You know, according to the Bretton Woods system, the US dollar is known as US dollar, and the US dollar is equivalent to gold, with a ratio of US $35 per ounce of gold.

During the period before and after the collapse of the Bretton Woods system in the early 1970s, the real ratio of gold to the US dollar was higher than US $35 per ounce; After the collapse of Bretton Woods system, the price of gold quickly broke through the $100 mark; In the first two years, the price of gold hovered around $200; By this summer, the price of gold had risen to $300.

Corresponding to the weak value of the US dollar, the West German mark has become the most powerful currency at this stage.

To this end, this year, US finance minister Blumenthal engaged in a series of operations to defend the international status of the US dollar. For example, under his auspices, the US finance ministry launched a US $4 billion West German mark loan and used the West German mark to buy US dollars in the international foreign exchange market.

As a result, the short-term fluctuation of the US dollar exchange rate not only helps speculators who accurately grasp the trend of the situation like Gao Xian make a lot of money, but also makes the indisputable fact that the US dollar depreciates recognized by more people. It can be said that the busier it is, the more chaotic it is, and the mess finally falls on the Federal Reserve.

The high string of profits in this process can be said to be deeply experienced. The larger the transaction, the greater the impact of such exchange rate changes. Even if IBM is rich and powerful, it is not suitable to completely use US dollar cash transactions. Otherwise, it will face the double-digit inflation rate in the United States or the rise of the exchange rate of currencies such as the West German mark against the US dollar in the international market, The pressure.

Gao Xian, who was constantly calculating in his heart, slowly said, "I can take care of the actual operation of IBM for the specific transaction plan."

"Sir Gao must know something about IBM's financial statement data. IBM's cash on the book is as high as $6 billion, which is a piece of cake to pay for the acquisition of Huanyu computer company." Frank Cary proudly showed off and changed the subject, "However, since Sir Gao is willing to take care of the actual operation of IBM, I am also willing to provide sincere suggestions. The combination scheme of half cash and half stock should maximize your interests."

Gao Xian was amused by Frank Cary's show off. In this era, large technology companies like IBM are much simpler in the management of cash reserves than apple, Microsoft and Google in the "old script" decades later.

As for Frank Cary's proposal, it is nothing new. It is just a small abacus that the dollar is printed by the Federal Reserve and the IBM stock is printed by IBM.

"How to convert the value of IBM stock?" Gao Xian asked leisurely: "as far as I know, although IBM's market value is still in the top ten of S & P, the prospect is not optimistic. In the final analysis, the risks caused by antitrust investigation are almost beyond your control."

Gao Xian is by no means alarmist. Antitrust pressure is the biggest threat to IBM at this stage.

In fact, in the decades of IBM's great success, there are a lot of articles on antitrust.

The outside world may have doubts about this. How can IBM always attract antitrust investigations by relying on technology? Others are not convinced and have the ability to develop more advanced technologies and products!

But the reality is far from so simple. An enterprise can't go long only by technology. In the face of fierce market competition, it must take some measures.

In an imprecise analogy, a printer with a high market share forces customers to use only their own printing paper in order to maintain their dominant position. In this case, is the printer manufacturer suspected of monopoly?

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In the old Watson era of IBM, similar things were done. When customers were asked to use their main product, electromechanical tabulator, they needed consumables such as paper tape, which could only be provided by IBM. As a result, two antitrust investigations and judgments were made in 1936 and 1956, and they were more and more severe

Fortunately, after entering the 1950s, IBM successfully developed mainframe computers, and its main business began to be ambitious. Naturally, it would not be limited by the antitrust judgment on the electromechanical tabulator product line.

However, after IBM ushered in greater glory in the little Watson era, it finally failed to escape the curse of antitrust.

First of all, those who are hard pressed by IBM are large-scale computer peers, such as the control data company. Its commercial large-scale computer product cdc-6600 is also very excellent, which reflects the brilliance of IBM's large-scale computer system360, but they have suffered a lot under IBM.

Therefore, in 1968, the control data company became the first large-scale computer company to sue IBM for monopoly. In the new year, the federal government of the United States also began to sue IBM for monopoly. At the same time, 18 other companies joined the army to sue IBM for monopoly.

In this era, there are two well-known monopoly investigations in the United States. One is for the leading American telephone and computer company in Telecom stocks, and the other is for the leading IBM in technology stocks.

A big reason why giant blue has been stagnant since the 1970s is that IBM executives have focused a lot of attention on how to deal with antitrust investigations.

After listening to Gao Xian's optimistic outlook on IBM's stock price, Frank Cary could not refute it, so he retreated and said, "so Sir Gao prefers all cash trading?"

Gao Xian laughed. "IBM has $6 billion in cash on its book, which is indeed a lot, but people who understand it all know that this money is for the rescue of IBM in case it is really disassembled by the antitrust judgment."

Frank Cary, who was run by the high string and had no reason to speak, looked unhappy: "Sir Gao, how to plan, you might as well tell him directly."

Gao Xian looked brightly at Frank Cary and said, "I can accept half cash and half stock trading, but I also suggest IBM to raise money by issuing bonds."

Frank Cary, who quickly assumed a sudden understanding attitude, exclaimed sarcastically: "Sir Gao is a good schemer and wants to exclusively contract IBM's financial services."

"No, I'm not as greedy as you think." Gao Xian waved his hand calmly. "I just want to participate in the way of joint underwriting and let me have more capital in the circle. In return, the part of the payment for IBM's acquisition of Huanyu computer company belongs to me. The payment time is easy to discuss."

"Joint underwriting is a popular way in today's capital circle. Compared with the previous time when IBM exclusively entrusted Morgan Stanley as the general underwriter, you can understand the benefits without me."

After feeling the sincerity in the high chord tone, Frank Cary said softly: "IBM hasn't issued bonds for years..."

Gao Xian shrugged, "I feel that IBM has been frightened by antitrust and acted too cautiously. In fact, from the perspective of investors, IBM's financing activities to support long-term development can boost investors' confidence in IBM."

……

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