"The second approach is to prioritize inflation control, that is, to first implement a contractionary fiscal and monetary policy to reduce inflation, but at the same time sacrifice more employment, and then implement an expansionary monetary policy, combined with supply policies such as tax cuts, privatization, and industrial upgrading, to jointly promote the expansion of total supply, and ultimately achieve the goal of increasing output and employment. This was the strategy chosen by Thatcher's cabinet from 1980 to 1984.
The advantage of this policy is that it makes controlling inflation the primary policy goal, which helps stabilize inflation expectations and turn real interest rates positive, thereby stabilizing the trend of people's declining liquidity preference. Due to the high unemployment rate, people will even increase their liquidity preference. At this time, implementing an expansionary monetary policy will not directly lead to an inflationary situation.
However, although excess liquidity can be temporarily absorbed by people's liquidity preferences, the liquidity created by expansionary monetary policy is excess after all. This excess liquidity will seek to be deposited in areas that can absorb it, and the asset market is a good place.
Therefore, in order to vigorously promote privatization reforms aimed at improving efficiency, Thatcher's cabinet launched financial liberalization reforms, prompting the asset market to absorb this liquidity, which was directly manifested in rising stock prices and real estate prices.
Judging from the data, the liquidity indicator measured by M2/GDP has shown significant growth from 1980 to this year, and the EM indicator has been positive for consecutive years. However, there has been no serious inflation since 1982, but there has been a significant increase in asset prices. During this period, the real interest rates have been significantly positive, which means that the liquidity preference has stabilized and can absorb all the liquidity released by the money supply without turning into inflation.
No matter which method is used to control stagflation, it will cause a state of excess liquidity. The difference between the two is that the employment-first strategy will cause excess liquidity to turn into inflation, while the inflation-first strategy will cause excess liquidity to flow into the asset market. Under the condition of improved financial efficiency, the latter strategy will greatly increase the level of investment, thereby providing good monetary support for economic transformation and upgrading.
In fact, excess liquidity itself is a reflection of the economy reaching a turning point. How to use excess liquidity for industrial upgrading and economic transformation is the fundamental way to deal with excess liquidity. Otherwise, without changing the original economic development model and financial system, and only attempting to maintain full employment through fiscal and monetary policies, the possibility of getting rid of stagflation is very small.
During the stagflation period of 1970-1980, the actual economic growth rate was 20.2%, the CPI rose by 260.3%, and the money plus quasi-money rose by 316.7%. Judging from the EM indicator, it was in a state of serious excess liquidity. From the 1980-2010 period, the actual economic growth rate was 29.8%, prices rose by 88.6%, and the money plus quasi-money rose by 599.4%. Judging from the EM indicator, it was also in a state of excess liquidity.
Furthermore, looking at the changes in the ratio of money plus quasi-money to GDP, the ratio dropped from 34.8% to 32.4% from 1970 to 1980, and then rose to 93.7% in 1980. This shows that liquidity in 1980-2010 was much looser than in 1970-1980.
However, stagflation occurred from 1970 to 1980, while economic growth from 1980 to this year was relatively healthy. This shows that excess liquidity is not an inevitable cause of stagflation, but may also be a good monetary condition for the economy during reform, transformation and upgrading.
Due to the serious stagflation, the macroeconomic policy in 1979-this year was mainly focused on combating stagflation. The authorities did not regard excess liquidity as a policy goal. On the contrary, in accordance with the theory of neoliberal economics, they took advantage of the situation of excess liquidity to implement policies to combat stagflation. Among them, the five most important ones in the economic field were: tight fiscal policy, privatization reform of large enterprises, financial liberalization reform, weak pound policy and expansionary monetary policy.
1. Implement a structurally tight fiscal policy aimed at improving industrial efficiency..."
"Okay, I'm not asking you to write an economic report. EM, GDP, M2, M4, etc. have no practical significance to us. You should also leave some room for economists. If you have nothing to do, write a paper titled "Exploring the British Economy from the Changes in Nan Ruojin's Milk Consumption". Simply put, do you think the British economy will develop well in the next 20 years?"
"Of course, I am very optimistic." Catherine replied affirmatively.
"If you have 2 billion pounds, how will you invest it?" Nan Yi said, and then added: "Suppose that 500 million of the 2 billion pounds belongs to our daughter."
"That's a big question. I have to think about it carefully and tell you the answer later."
"Take your time to think about it and go to bed now."
When you close your eyes it's dark, when you open your eyes it's day.
The next day, Nan Yi fed the little princess breakfast in a flattering and embarrassed manner, changed her clothes, and sat in the garden to eat breakfast elegantly and read the newspaper. Before eight o'clock, Huang Yingzi came to Boleyn Castle.
"Yingzi, have you had breakfast?"
"I've eaten. I had fried dough sticks, steamed buns, and a bowl of sweet soy milk. The boss just came from the mainland, and his breakfast has not been localized yet."
Nan Yi looked at the fried eggs, ham, bacon on his plate, as well as the cup of coffee and orange juice on the side, and always felt that his hospitality was completely unnecessary.
"It's better to drink salty soy milk in the morning." Nan Yi said stubbornly.
"Do we need to wait until you finish eating before we talk?"
"No, I don't have much appetite today." Nan Yi said, calling the maid Anna Robinson who was standing not far away to him, "Leave, let Matthew bring Miss Huang a cup of coffee."
"Yes, sir."
"What do you think about the London commercial real estate market in the next five years?" Nan Yi asked Huang Yingzi as soon as Anna left.
"It's not optimistic. Canary Wharf Group will continue to make losses."
"It's really not good news. We have already spent 500 to 600 million pounds and still have so much loan. What about the next ten years?" Nan Yi frowned.
“Before the new century, it would be hard to see the day when Canary Wharf could recoup its investment unless it cashed out part of it.”
"That's impossible. Everyone knows that Canary is a good project. We have invested nearly six years in it. It's not cost-effective to cash out now. We have to hold on until the day when we make a big profit."
Nan Yi found that he was a bit impulsive when investing in the Canary Wharf project. Although he only needed to invest 500 to 600 million pounds, there was a great chance that he would get back over 10 billion in the future. A return of more than 20 times sounded good, but it would take more than ten years, and taking into account compound interest and inflation, this business was actually not as good as the expected figures seemed.
If it weren't for the Nan family's financial support behind the scenes, this project would most likely have collapsed halfway. A billionaire with assets worth ten billion pounds running this project would either go bankrupt or have his shares diluted completely halfway through. Big projects are really not that easy to do.
"Then there is nothing we can do but wait for the market in London to improve."
"Don't talk about depressing things this early in the morning. Give me something to talk about that can cheer people up."
"I am happy that British Royal Capital is operating well. Most of our venture capital investments have yielded generous returns on paper. We have not missed any company in the UK that is worth investing in. We have invested in all of them."
"This news is very exciting. The little girl has done a good job." Nan Yi said happily: "If there is 2 billion pounds to be invested in the UK, how would you allocate it?"
"The specific proportions of coal, natural gas, water power, machinery, and tourism need to be further investigated and studied. Brother Nan, are you just asking casually, or do you have plans to increase investment in the UK?"
“There is a plan. In the next two years, Nan will mobilize more funds to come to the UK. You should be prepared. I agree with the first four of the five areas you mentioned. As for the tourism industry, it is greatly affected by politics, weather, and disease. There are too many uncontrollable factors. Don’t make long-term or ultra-long-term plans, only make medium-term investments.
In terms of return expectations , the investment needs to be recovered within ten years at most, and there must be at least a five-year period of high returns. Otherwise, there is no need to make a plan, even if you tell me that you may get a thousand or ten thousand times the return in thirty years.
Also, you can focus on the transportation sector, roads and inland waterways, and submit a detailed investigation and analysis report before the end of this year."
"Okay." Huang Yingzi nodded and said, "The English Football Association has plans to turn the First Division League into a Super League, and will increase investment to expand its influence. Perhaps they can invest a little in this area."
"Haven't we already invested in Chelsea? Damn, I've never paid attention to it, nor have I seen any reports related to this club. So, did Catherine just swallow up Nan's shares?"
"Haha, no, Chelsea's situation has just improved. In fact, Catherine and Secretary-General Ueto put a lot of money into it. It is stated in the Bolin Investment Report every six months. You probably missed it."
"hehe."
Huang Yingzi was right. Nan Yi just saw in the financial report that no more money was invested in Chelsea, so he didn't continue to pay attention to Chelsea's specific affairs. He never expected to make a profit from Chelsea. The original purpose of acquiring it was to create a persona for Catherine. It was good enough not to lose money. He really didn't care whether it made a profit or not. Even if it made a profit, it could not meet his expectations.
After talking with Huang Yingzi, Nan Yi went to Bolin Controls and had a conversation with Dunstone.
"Dunstone, what do you think of Britain joining the ERM?"
"I don't think this is a good thing for the UK."
"Tell me more specifically."
“UK’s joining the ERM [European Exchange Rate Mechanism] means that the pound will be pegged to the German mark and the exchange rate must be maintained in the range of 2.773-3.13, which will result in the UK’s monetary policy no longer being independent, but becoming a passive follower of Germany’s monetary policy.
The Federal Reserve's strategy to combat inflation is to tighten monetary policy. If Germany does this, the Bank of England must follow suit. Constrained by the exchange rate mechanism, Downing Street cannot stimulate the economy by printing money as it pleases.
Boss, I think tight monetary policy is not a good way to solve inflation. Although the central banks of various countries were enthusiastic about tight monetary policy in the past 1980s and effectively controlled inflation, the pace of regulation was simple and crude, which laid the seeds for economic recession.
First, with the end of the Cold War, all Warsaw Pact countries began to cut defense spending and reduced government fiscal spending; later, Iraq invaded Kuwait, causing a new round of oil crisis. Within two months, crude oil prices rose from US$17 to US$36 per barrel, which seriously affected the confidence of consumers and investors.
Monetary policy, consumer and government spending are all facing headwinds, and a recession is inevitable.
This year, East and West Germany were completely unified. East Germans happily threw themselves into the arms of the free and wealthy West Germany, expecting to work and enjoy social welfare in West Germany. The related expenses led to a large fiscal deficit for the German government.
Other things being equal, deficits will increase inflation.
In the United States, the Federal Reserve's monetary policy has two goals: to ensure low inflation and full employment; while the Federal Republic of Germany has only one goal: to combat inflation. The reunification of East and West Germany has exacerbated inflationary pressure, and the Federal Bank will definitely choose to raise interest rates.
But now is the time when other European economies are in recession, and everyone urgently needs to cut interest rates. Germany's high interest rates compared to other countries will cause a lot of money to buy Germany, resulting in the weakness of European currencies, especially the lira and the pound.
I have seen the data. The unemployment rate in the UK this year has risen compared to last year. Many of the unemployed people have mortgages. Home buyers who have lost their jobs are naturally unable to repay their mortgages. According to our British tradition, unemployment will lead to riots, and the spearhead will be directly directed at the banks. I believe that several small and medium-sized banks in the UK will go bankrupt in the next one or two years.
The collapse of the bank will cause a chain reaction and the British economy will fall into crisis.
If the UK had not joined the ERM, it could have stimulated investment and consumption by cutting interest rates in the face of an economic crisis. However, now that it has joined, if an economic crisis occurs in the UK while Germany is still in a cycle of raising interest rates, then a UK interest rate cut will cause the pound to depreciate and fall below the lower limit of the exchange rate agreed upon in the ERM.
In order to prevent the exchange rate from falling below the lower limit, the UK can also follow Germany in raising interest rates, but there is another problem here. The mortgage interest rates in the UK are usually floating. If the central bank raises interest rates, people will immediately face repayment pressure. The decline in consumption will make the UK, which is already in recession, worse. The path to raising interest rates is also blocked.
Unable to lower or raise the rate, the UK is in a passive position. At this time, if someone shorts the pound, bang..."
Dunstone gestured with his hand as if it were an explosion. "The pound will immediately depreciate significantly and fall out of the ERM exchange rate range."
Nan Yi nodded and said, "There is a problem with your speculation. Will the Federal Bank soften their stance due to political pressure?"
Dunstone denied it, saying, "It is unlikely. The Bundesbank is independent of the German government and has great autonomy. After the establishment of ERM in 1979, ECU [which can be understood as the predecessor of the euro] was proposed. If a European currency emerges, a European bank will need to be established. This bank will replace most of the functions of the current Bundesbank. Schlesinger, the president of the Bundesbank, may not want to see this day come."
"You think Schlesinger doesn't want a European currency?"
"Yes, I think so."
“So at some time in the past there was a good opportunity to go long the mark, and at some time in the future there will be a good opportunity to go short?”
"Yes, there is still room for profit by going long on the mark," said Dunstone.
"Um."
The two then stopped talking about ERM and started talking about Bolin Investment's business.
After leaving Bolin Controls, Nan Yi called Scarlett.
"Scarlett, how much money do we have at the Quantum Fund?"
"70 million."
“Who is in charge of the Quantum Fund now?”
"Stanley Druckenmiller, George's family has moved to London."
"Uh-huh, how much profit do we have on Mark?"
"Not too much. We spent $350 million and the profit was about 25%."
"I see."
"I'm busy. Give my regards to Catherine."
"I'll pass it on."
"Ahaha, bitch, bye."
…
Afterwards, after ensuring that the anthrax crisis on Gruina Island had disappeared, Nan Yi went to Nan Yi Island to inspect the research progress of the × file.
The person in charge of the ×-files is Roger Delgado. Since he has the same name as the first actor of "Doctor Who" and he happens to be a doctor, he likes people to call him "Doctor Who".
After walking around the laboratory and visiting the glass jars filled with all kinds of creepy things, Nan Yi finally found Roger.
"Doctor, do you have any good news for me?"
"Adam, we are studying a very complex subject. It is impossible to achieve great results in such a short time."
"There are no big achievements, so you mean there are small achievements?"
Roger's eyes left the microscope, turned back to look at Nan Yi and said, "I made a discovery accidentally. During an experiment, I accidentally synthesized a substance that is very effective in eliminating the hepatitis C virus. If I continue to study it, I should be able to produce a special medicine for hepatitis C."
"So?"
"I don't have time to continue my research. I'll prepare some research materials and samples. Please send someone to take them away."
Nan Yi really wanted to curse him. Hepatitis C is a market worth tens of billions of dollars, but in Roger's eyes, it is just a thing that delays his serious research. Damn it.
"OK, I will send someone to take over. If you develop a special medicine in the future, you need to discuss the distribution of patent benefits with the person who takes over the research."
"No, I'm not interested in money. I just need you to keep the funding for the × file." Roger said indifferently.
Nan Yi rubbed his temple and said, "If you want me to keep funding, you have to give me some hope to continue investing from time to time."
"You'll see it soon, as long as you don't waste my time." As he said this, Roger put his eyes close to the observation mirror of the microscope again.
Well, Nan Yi was sent away.
"OK, I'll leave right away." Nan Yi shrugged and said.
Nan Yi has always maintained enough respect for people who have real abilities and can make money for him. Now it seems that Roger not only has real abilities, but may also bring him hundreds of billions of dollars in profits soon. Therefore, Nan Yi doesn't care about Roger's neglect of him.
Before leaving the island, he called the Third Biopharmaceutical Company and asked them to contact him as soon as possible.
Leaving Gruina Island in a happy mood, Nan Yi showed his masculinity to Catherine again and again. As a result, he was out of breath during morning exercise the next day.
This is a big problem. Except for the time when he was not used to morning exercises at the beginning, when has Nan Yi ever been breathing heavily?
The Nan medical team in London immediately rushed over to check on him. After some hard work, they concluded that he was perfectly healthy, but had overworked. He needed to exercise some self-control and it would be best if he could rest for a while.
This was not bad news for Nan Yi. With the doctor's advice, he could just take a break. After all, he and Catherine had been together for almost seven years. If he continued to pay his dues without restraint, he would soon be in a period of laziness.
That night, Nan Yi slept in Nan Ruojin's room. When he woke up the next morning, Nan Ruojin was lying on Nan Yi's chest, leaving a pool of saliva on his pajamas.
With a smile, Nan Yi picked up the little guy and put him aside, then carefully lifted the quilt and got out of bed.
"Morning!"
After walking out of Nan Ruojin's room, Nan Yi met Catherine who just walked out of the master bedroom.
"Morning, let's go swimming?"
"Of course, swimming is the best way to exercise, together?"
"No, I'll continue to stick to my exercise regimen." Nan Yi waved his hand and walked towards the master bedroom. After taking two steps, he turned back and said, "By the way, I want to take Kate out for Chinese food for breakfast."
"I can't go with you. The team has a game today and I have to go to the club early." Catherine said regretfully.
"It's okay, just do your thing. I'll take Kate out for a walk today."
"OK."
Nan Yi didn't get to eat breakfast. When Nan Ruojin woke up, it was already 10:30 in the morning. After helping her wash up, the little girl immediately started to cry for food. Nan Yi's breakfast and lunch could only become oatmeal paste.
After eating, Nan Yi took Nan Ruojin to the street.
For three consecutive days, Nan Yi stayed with his daughter, and the journey to pay his taxes turned into a happy family life.
Sophie Marceau is willful and wild. She felt both pain and happiness the night Nan Yi first arrived in Paris.
Although he was severely tortured, Nan Yi still went to the building at 1117 Haussmann Avenue in the 9th district the next day. This building has become an asset of Sophie Holdings and was named Sophie Building.
"John, how have you been recently? Are you happy with your life?" Nan Yi asked casually after entering Jean Bader's office.
"Boss, that's great. France's paid vacation time has increased, so I have more time to take a vacation."
Jean Barde made a harmless joke. As the helmsman of Sophie Investment, Jean Barde would be busy when he is busy, but when he is not busy, he can take a vacation at any time without having to worry about the minimum vacation time stipulated by law, although the minimum limit in France is an upper limit that most other countries cannot reach.
"Ha, that's really good news." Nan Yi sat opposite Jean Bader and said casually, "I heard that the French people are in love with precautionary savings again?"
"Yes, it's really bad news. Foreign investment has fallen, exports are weak, most people's income has been affected, and many families have postponed the purchase of sustainable durable goods [goods that are used for more than three years, such as large electrical appliances, meaning major expenses], and the economic winter is coming."
"This is really bad news, John. Is there any good news amid the bad news?"
“Of course, the health services industry has developed into the most dynamic household consumption item because it does not depend on the economic situation but on social security and demographic changes.
Forty years ago, France lost too many male workers. According to the National Immigration Agency, a large number of foreign workers came to France, including white people from other European countries, and then black people from Africa.
Jean Bader spread his hands and said, "Since the Paris Commune, we have mastered the traditional skills of strikes. Now we have to display them every year to promote traditional culture. This makes the capitalists... We favor the hardworking African blacks.
After the economic slowdown in the 1960s, not only did we fail to get rid of the foreign workers who had already arrived, but we also had more black Africans come in. In the 1970s, damn, this was a big country, and before we even sent the workers away, we took back a large number of African refugees.
The elegant look on Jean Bard's face disappeared, replaced by ferocity and curses.
"People from outside work hard to get in every year, and people inside work hard to give birth. Damn the newborn subsidy. Many black people don't work and focus on giving birth at home. One baby a year, eleven years is a football team. In a good year, they can give birth to more. A few days ago, I saw in the newspaper that a black person gave birth to quintuplets."
"John, put aside your complaints for now. You can go out on your yacht or go to your vineyard and curse at the grapes during your free time."
"Okay, let me get to the point." Jean Bader paused and said, "Since most newborns are black and most of them come from sub-Saharan Africa, many newborns have sickle cell anemia, an epidemic disease in sub-Saharan Africa.
Not only do these blacks receive subsidies and will not starve to death even if they don't work, the government will also help them rent cheap apartments. Of course, medical subsidies are also indispensable. This has caused changes in social security and population structure, and stimulated the rapid development of the health services industry. Both the Paris Public Hospital Group and medical-related companies have developed well.
Sophie Investment Holdings will invest heavily in the health services sector in the coming year, and I will submit my proposal soon.”
"Hmm, what do you think of other service industries?"
"The increase in paid vacation time will lead to changes in people's living habits, the entertainment and tourism industries will develop rapidly, and as urbanization continues to deepen, the transportation industry will also rise.
The tourism industry now employs as many people as the auto industry, and retail employment outnumbers construction and public works employment.
Since the mid-1970s, the service sector has been creating jobs while the number of people employed in industry has fallen sharply. Without the support of the service sector, the unemployment rate would have at least doubled in the past few years.
In the future, no matter which party comes to power, they will have to face the issue of reducing the unemployment rate, and will naturally support the development of the service industry. Against this backdrop, companies in the service and retail sectors are good investment targets.
For example: Carrefour Retail Group, Promod Retail Group, Leclerc Supermarket Group, New Frontiers Travel Company, Sodexo Alliance, Capgemini Consulting Company;
There are also Publicis Groupe and Lingzhi Advertising in the advertising industry, or Kering Group, which wants to enter the retail field and focuses on wood business. They all have good prospects and are worth our investment. "
"It's a good idea. I personally agree with it. Write a report for the Intelligence Committee to evaluate."
"OK."
"joint……"
As soon as Nan Yi uttered a word, he felt his wrist feel heavy. He looked down and saw a baby monkey lying there, staring at him with its big bulging deep orange eyes.
"Girl or boy?" Nan Yi pointed at the baby monkey and said to Jean Bard.
"Girl, my daughter, Charlotte, come here."
As Jean Bard called out, the baby monkey Charlotte jumped into Jean Bard's hands in one, two, three jumps.
Jean Bader rubbed Charlotte's belly, looked up and said to Nan Yi: "Charlotte is very well behaved. I usually bring her to the office. Charlotte, go play."
" It's good to bring your daughter to work. It can relax your mind a little. But, is Charlotte Princess Mary Marie Therese Charlotte?"
"Yes, the French Rose, she is very beautiful and deserves the name." Jean Bard said, looking at Charlotte.
"As long as you are happy, do you have time tonight?"
"have."
"Okay then, Bel Canto tonight, the one on Commander Street, not the one at the City Hall Pier."
"OK."
"No need to send me off, I can go by myself."
Nan Yi persuaded Jean Bard who was about to get up and left Sophie's Building alone.
In the afternoon, Nan Yi and Sophie Marceau flew to Monaco. They flew leisurely and landed in Provence in less than an hour. Then they took helicopter No. 20 and landed at Monte Carlo Airport shortly afterwards.
Monaco is too small, with an area of ​​less than 1.7 square kilometers. In China, the planting area is even smaller than that of some production teams under the large production teams in the past. If you fart in the east, you can smell it in the west. There is simply not enough space to build an airport.
"We should come here in May, and then we can watch the Formula One Championship." After getting off the plane, Sophie Marceau took Nan Yi's arm and said with a smile.
"Didn't you come?"
"Of course I came, but unfortunately I'm the only one here. I told you that I was sunbathing on a yacht in May without any clothes on, and I'm not sure if anyone saw it." Sophie Marceau said with a smirk.
"Heh... Heh, when you took this as a joke, did you feel a chill at the back of your head? There's no doubt that there's a gun pointed at your head. As soon as I stop smiling, the trigger will be pulled."
Sophie Marceau stretched out her hand and grabbed Nan Yi's cheek, "Haha, then just keep laughing."
The two walked out of the airport laughing and joking. Instead of taking a car, they just walked and merged into the traffic on the street.
It is well known that Monaco is wealthy, but it is not the less than 5,000 local people who are wealthy. At this time, Monaco is severely polarized, with the rich spending money like crazy and the poor selling blood. Many people-friendly policies have not yet been implemented.
However, there are many wealthy people here, and the streets are full of luxury cars, mainly sports cars. There are also many people taking a leisurely walk or walking their dogs.
"Would you like to walk around the streets first, or go straight to the yacht?"
Sophie Marceau has a yacht, Flat Shoe No. 3, which is docked at the seaside in Monaco. Whenever she is unhappy or too happy, she will fly to Monaco and sunbathe on the yacht.
"No, let's go to the casino first."
"Can."
Sophie Marceau likes to go to the casino, but Nan Yi is uncharacteristically against her behavior. He neither supports nor opposes it, because Sophie Marceau only likes to play slot machines and doesn't care about winning or losing. She just wants to kill time and doesn't have too much gambling nature.
Nan Yi doesn't like gambling with people around him because he is afraid that the gambling habit will become too serious. He doesn't care about the money lost in small bets. Buying luxury goods means spending money, and eating delicious food also means spending money. Since playing slot machines can make Sophie Marceau happy and will not lead to gambling, why should he stop her?
After a while, Nan Yi and the other arrived at the Paris Café, and then walked a few steps to the Monte Carlo Casino.
This casino dates back 130 years and has two rules that are meant to make people feel embarrassed: visitors must wear formal attire to enter the casino and they must pay an entrance fee.
A small country with few people breaks the rules. Rich people, sons of officials, mercenaries, gambling gods, no matter what their identity is, can all be slapped in the face here.
Nan Yi knew that he was still a long way from becoming a wealthy man, so he stopped pretending and paid the entrance fee honestly. When he entered the casino, he exchanged two small baskets of coins, and then he and Sophie Marceau went straight to the slot machines.
There was no rush to start playing. Sophie Marceau first taught him how to play the slot machine, then told him which machine was about to explode and he should spit out. Finally, she helped Nan Yi choose a slot machine that was being played by someone and asked Nan Yi to wait for the man sitting in front of the slot machine to lose all his money.