Chapter 862: 862
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Yang Jing looked at David Anderson, then shook his head and said, "David, you should know that the focus of our future development will be on the other side of the Pacific Ocean. If we also attack Hong Kong Island, do you think the other side will get stuck in our neck?"
David nodded very simply: "boss, if I was opposite, I promised to prohibit everything related to KY investment fund from entering my country. That's why I hesitated and didn't agree to Soros and Robertson's request."
"That's right. David, you are an excellent investor. You have a strategic investment vision. You must also be able to see the huge energy that the country across the Pacific is now bursting out. Yes, they are not rich, but we can't just look at the present. We should look at the longer term, for example, ten or twenty years later!"
David smiled, "boss, I just feel a little unwilling. If we can take this opportunity to circle the foreign exchange reserves across the street, our profit in this battle will at least be more than $70 billion."
"Hehe, but this money and the future layout across the ocean are nothing. David, in terms of your age, you can see the country opposite rise again and that country will grow into an awesome country. Listen to me, don't get involved with those guys this time. We don't lack that money."
"Boss, can that country really grow to that point? Is it more powerful than the Federation?"
"Yes!" Yang Jing nodded very definitely, "I think in less than 30 years, China's total economy will surpass the Federation, and not only the total economy, but also that country is not weaker than the Federation in military. Moreover, I am sure that China will have its own aircraft carrier formation within 20 years! Therefore, we must not underestimate that country. We should look at that country with a state of awe."
"Can they grow so fast?" David asked incredulously.
"Facts speak louder than words! What can I say now? You won't believe it before you see it with your own eyes, but I believe in that country. Therefore, David, no matter what aspect you consider this time, Pacific Capital won't participate in Soros's plan. We just need to make our profits in the markets of Southeast Asian countries, Japan and South Korea."
After a pause, Yang Jing continued: "even when necessary, arrange an agent fund to go out and help Hong Kong Island fight against Soros in the name of that fund."
"Ah? Why do we do this? If we do this, once the news gets out, we will immediately become Soros' enemies."
"Enemy? Hehe... David, don't think they are so tall! Don't mention KY investment fund. Even if it is the power of Pacific Capital, do you think Soros or Robertson is qualified to be our enemy? You underestimate us!"
Yang Jing's words are absolutely domineering, but they are definitely not exaggerated!
After Japan continuously reaped huge profits in the Japanese market, Pacific Capital has now grown into a behemoth. Although outsiders rarely know about this behemoth, as the CEO of Pacific Capital, David Anderson knows Pacific Capital best.
Now, the cash controlled by Pacific Capital alone is as high as more than $300 billion. As for the assets controlled by Pacific Capital, it is even larger.
If we have to use an exact figure to reflect the current overall capital of Pacific Capital, then this figure has exceeded US $1 trillion!
Such a behemoth, not to mention the quantum fund with only $6 billion and the Tiger Fund with $11 billion, even if they are tied together, they can't catch up with a small toe of Pacific Capital!
To say it without exaggeration, if the current Pacific Capital surfaced, it would be a proper large consortium! Small quantum funds and tiger funds are not qualified to become the enemies of Pacific Capital at all!
Although quantum fund and Tiger Fund are well-known, they are only two famous ants in front of the prehistoric mammoth Pacific Capital. Pacific Capital can still easily crush them!
David was stunned, then scratched his head and smiled shyly, "yes, boss, they don't even have the qualification to be our enemy. Why should I care about them?"
"Ha ha, this is my good David!" Yang Jing smiled and applauded for encouragement. "Go ahead and reap our profits in East Asia. Ignore the clamor of those two guys. They can't do it! Besides, who says we can only make money behind them? If Soros and them have a crisis, we can turn around and swallow their profits. Who are we? Don't forget that we are Pacific Capital! We are the gluttonous feast The true master of the feast! "
"I see, boss. But I will still be very careful. I won't let others know that we send agents to deal with them. After all, one less enemy is better than one more."
"Well, you can do it as you see! Find more agents and don't expose us as the best. Also, pay more attention to South Korea and Russia. If necessary, you can discuss with NIAM and see if you can scrape a layer of grease from that hairy bear."
"I see, boss. I'll do it now."
Seeing that David Anderson turned and walked out, Yang Jing nodded with satisfaction.
The financial crisis that broke out in mid-1997 and affected the whole of East Asia and half of Eastern Europe is a feast for hot money all over the world. Under the leadership of Soros, these international hot money did make a lot of profits in the early stage. However, in addition to some sober international hot money, many international hot money followed Soros to die on Hong Kong Island. They not only spit out all the profits previously earned from Southeast Asian countries, but also suffered a lot of losses in their original funds.
No one could have imagined that the momentum of the quantum fund and those international hot money would encounter such an end!
Therefore, the famous saying "never underestimate any opponent in the financial market" has been verified again in the financial crisis.
In fact, the financial crisis in Southeast Asia had begun long ago. As early as after the Mexican financial crisis in December 1994, some economists pointed out that a financial crisis may occur in Southeast Asia. Professor Krugman of the Massachusetts Institute of technology once pointed out that the East Asian miracle does not come from the growth of total production capacity, but from excessive investment, excessive investment, excessive capital inflow and excessive artificial capital output, The so-called "economic miracle" formed under this model will not last long.
In September 1995, Professor Liu Zunyi of Stanford University in the United States and economist Goldstein of the International Monetary Fund in August 1996 pointed out that financial crises may occur in Thailand, the Philippines, Malaysia and Indonesia.
These financial experts can see the signs of the financial crisis, not to mention guys like Soros and Roberts who are more experts than financial experts.
Of course, they can see the loopholes hidden in the financial systems of Southeast Asian countries.
Especially in Thailand, such loopholes and signs of crisis are more obvious.
Although Thailand has a lot of foreign exchange reserves, it also has a lot of foreign debt. However, nearly 60% of Thailand's foreign debt is in yen, but Thailand pursues the financial policy of linking the Thai baht to the US dollar. In the past, when the yen appreciated, this contradiction in Thailand did not stand out, but since April 1995, when the yen appreciated to the peak and began to depreciate, this contradiction immediately stood out.
Because the Thai baht is linked to the US dollar, the strength of the US dollar represents the strength of the Thai baht. However, more than half of Thailand's foreign debt is Japanese yen. Thailand can't stand the devaluation of the yen at the beginning.
Under such circumstances, the international hot money led by Soros immediately came to Thailand like a shark smelling blood.
In fact, the speculation against the Thai baht is the same as that used by Leo vanta to empty out the heritage of the former Soviet Union.
In short, it is divided into three steps!
The first step is to borrow Thai baht at the Thai baht interest rate at that time; The second step is to sell Thai baht in the spot exchange market and exchange it for us dollars; The third step is to lend the converted US dollars at US dollar interest rate.
After completing these three steps, once the Thai baht depreciates or the interest rate difference between the Thai baht and the US dollar expands, speculators will make a profit.
Among them, the most difficult thing is how to minimize the exchange rate of the Thai baht, that is, how to devalue the Thai baht.
For a single hedge fund, it was obviously impossible to hit the Thai baht on the floor in front of the Thai government with $30 billion in foreign exchange reserves, especially when Thailand joined hands with Singapore.
However, when the capital amount of international hot money reaches a certain level, such as exceeding Thailand's foreign exchange reserves, the practice of smashing the Thai baht to the floor, which was impossible or difficult to achieve, immediately becomes easy.
In May 1997, international currency speculators, mainly hedge funds and multinational banks, began to sell short the Thai baht. Hedge funds sold short the forward exchange rate of the Thai baht in the futures market, while multinational banks sold the Thai baht in the spot market. Many hedge funds and multinational banks smashed the Thai baht together. Even if the Thai government and the Singapore government fought together at that time, they still resisted for only a short time.
At the beginning, the Central Bank of Thailand and the Central Bank of Singapore jointly intervened in the market and adopted a series of measures, including using US $12 billion of foreign exchange reserves to absorb the Thai baht, prohibiting local banks from lending the Thai baht to speculators, and sharply raising interest rates to raise the borrowing cost of speculators' funds.
However, the attack on the exchange rate of the Thai baht came in a flood, currency speculators sold the Thai baht, and the forward exchange rate of the Thai baht against the US dollar hit new lows. On June 19, 1997, the finance minister, alei willawan, who firmly opposed the devaluation of the Thai baht, resigned. Worried about the devaluation of the exchange rate, the interest rate of the Thai baht soared, and the stock market and real estate market plunged. Thailand was shrouded in panic.
On July 2, after exhausting US $30 billion of foreign exchange reserves, the Central Bank of Thailand announced that it would abandon the 13-year-old exchange rate system linking the Thai baht to the US dollar and implement a floating exchange rate system. On the same day, the Thai baht exchange rate fell by 20%. The Asian financial crisis officially began.
Starting from Thailand, the currencies of Malaysia, the Philippines and Singapore fell in response. Especially after the Gulf island, which has $80 billion in foreign exchange reserves, irresponsibly announced the depreciation of the new Taiwan dollar, the panic caused by the crisis became even greater.
Soros have tasted great sweetness in Southeast Asian countries, and how can they resist the fat meat of Hong Kong Island?
As a result, Soros underestimated China's determination to support Hong Kong Island. These international hot money giants came with strong confidence, but they finally left with a disheartened face.
Of course, Yang Jing will not participate in the attack on Hong Kong Island. On the contrary, he will let David secretly find an agent to assist China and Hong Kong Island when necessary, and then scrape a layer of ointment from Soros!
PS: bow and thank the "very lazy fish" for the reward of 100.
Please report us if you find any errors so we can fix it asap!
Yang Jing looked at David Anderson, then shook his head and said, "David, you should know that the focus of our future development will be on the other side of the Pacific Ocean. If we also attack Hong Kong Island, do you think the other side will get stuck in our neck?"
David nodded very simply: "boss, if I was opposite, I promised to prohibit everything related to KY investment fund from entering my country. That's why I hesitated and didn't agree to Soros and Robertson's request."
"That's right. David, you are an excellent investor. You have a strategic investment vision. You must also be able to see the huge energy that the country across the Pacific is now bursting out. Yes, they are not rich, but we can't just look at the present. We should look at the longer term, for example, ten or twenty years later!"
David smiled, "boss, I just feel a little unwilling. If we can take this opportunity to circle the foreign exchange reserves across the street, our profit in this battle will at least be more than $70 billion."
"Hehe, but this money and the future layout across the ocean are nothing. David, in terms of your age, you can see the country opposite rise again and that country will grow into an awesome country. Listen to me, don't get involved with those guys this time. We don't lack that money."
"Boss, can that country really grow to that point? Is it more powerful than the Federation?"
"Yes!" Yang Jing nodded very definitely, "I think in less than 30 years, China's total economy will surpass the Federation, and not only the total economy, but also that country is not weaker than the Federation in military. Moreover, I am sure that China will have its own aircraft carrier formation within 20 years! Therefore, we must not underestimate that country. We should look at that country with a state of awe."
"Can they grow so fast?" David asked incredulously.
"Facts speak louder than words! What can I say now? You won't believe it before you see it with your own eyes, but I believe in that country. Therefore, David, no matter what aspect you consider this time, Pacific Capital won't participate in Soros's plan. We just need to make our profits in the markets of Southeast Asian countries, Japan and South Korea."
After a pause, Yang Jing continued: "even when necessary, arrange an agent fund to go out and help Hong Kong Island fight against Soros in the name of that fund."
"Ah? Why do we do this? If we do this, once the news gets out, we will immediately become Soros' enemies."
"Enemy? Hehe... David, don't think they are so tall! Don't mention KY investment fund. Even if it is the power of Pacific Capital, do you think Soros or Robertson is qualified to be our enemy? You underestimate us!"
Yang Jing's words are absolutely domineering, but they are definitely not exaggerated!
After Japan continuously reaped huge profits in the Japanese market, Pacific Capital has now grown into a behemoth. Although outsiders rarely know about this behemoth, as the CEO of Pacific Capital, David Anderson knows Pacific Capital best.
Now, the cash controlled by Pacific Capital alone is as high as more than $300 billion. As for the assets controlled by Pacific Capital, it is even larger.
If we have to use an exact figure to reflect the current overall capital of Pacific Capital, then this figure has exceeded US $1 trillion!
Such a behemoth, not to mention the quantum fund with only $6 billion and the Tiger Fund with $11 billion, even if they are tied together, they can't catch up with a small toe of Pacific Capital!
To say it without exaggeration, if the current Pacific Capital surfaced, it would be a proper large consortium! Small quantum funds and tiger funds are not qualified to become the enemies of Pacific Capital at all!
Although quantum fund and Tiger Fund are well-known, they are only two famous ants in front of the prehistoric mammoth Pacific Capital. Pacific Capital can still easily crush them!
David was stunned, then scratched his head and smiled shyly, "yes, boss, they don't even have the qualification to be our enemy. Why should I care about them?"
"Ha ha, this is my good David!" Yang Jing smiled and applauded for encouragement. "Go ahead and reap our profits in East Asia. Ignore the clamor of those two guys. They can't do it! Besides, who says we can only make money behind them? If Soros and them have a crisis, we can turn around and swallow their profits. Who are we? Don't forget that we are Pacific Capital! We are the gluttonous feast The true master of the feast! "
"I see, boss. But I will still be very careful. I won't let others know that we send agents to deal with them. After all, one less enemy is better than one more."
"Well, you can do it as you see! Find more agents and don't expose us as the best. Also, pay more attention to South Korea and Russia. If necessary, you can discuss with NIAM and see if you can scrape a layer of grease from that hairy bear."
"I see, boss. I'll do it now."
Seeing that David Anderson turned and walked out, Yang Jing nodded with satisfaction.
The financial crisis that broke out in mid-1997 and affected the whole of East Asia and half of Eastern Europe is a feast for hot money all over the world. Under the leadership of Soros, these international hot money did make a lot of profits in the early stage. However, in addition to some sober international hot money, many international hot money followed Soros to die on Hong Kong Island. They not only spit out all the profits previously earned from Southeast Asian countries, but also suffered a lot of losses in their original funds.
No one could have imagined that the momentum of the quantum fund and those international hot money would encounter such an end!
Therefore, the famous saying "never underestimate any opponent in the financial market" has been verified again in the financial crisis.
In fact, the financial crisis in Southeast Asia had begun long ago. As early as after the Mexican financial crisis in December 1994, some economists pointed out that a financial crisis may occur in Southeast Asia. Professor Krugman of the Massachusetts Institute of technology once pointed out that the East Asian miracle does not come from the growth of total production capacity, but from excessive investment, excessive investment, excessive capital inflow and excessive artificial capital output, The so-called "economic miracle" formed under this model will not last long.
In September 1995, Professor Liu Zunyi of Stanford University in the United States and economist Goldstein of the International Monetary Fund in August 1996 pointed out that financial crises may occur in Thailand, the Philippines, Malaysia and Indonesia.
These financial experts can see the signs of the financial crisis, not to mention guys like Soros and Roberts who are more experts than financial experts.
Of course, they can see the loopholes hidden in the financial systems of Southeast Asian countries.
Especially in Thailand, such loopholes and signs of crisis are more obvious.
Although Thailand has a lot of foreign exchange reserves, it also has a lot of foreign debt. However, nearly 60% of Thailand's foreign debt is in yen, but Thailand pursues the financial policy of linking the Thai baht to the US dollar. In the past, when the yen appreciated, this contradiction in Thailand did not stand out, but since April 1995, when the yen appreciated to the peak and began to depreciate, this contradiction immediately stood out.
Because the Thai baht is linked to the US dollar, the strength of the US dollar represents the strength of the Thai baht. However, more than half of Thailand's foreign debt is Japanese yen. Thailand can't stand the devaluation of the yen at the beginning.
Under such circumstances, the international hot money led by Soros immediately came to Thailand like a shark smelling blood.
In fact, the speculation against the Thai baht is the same as that used by Leo vanta to empty out the heritage of the former Soviet Union.
In short, it is divided into three steps!
The first step is to borrow Thai baht at the Thai baht interest rate at that time; The second step is to sell Thai baht in the spot exchange market and exchange it for us dollars; The third step is to lend the converted US dollars at US dollar interest rate.
After completing these three steps, once the Thai baht depreciates or the interest rate difference between the Thai baht and the US dollar expands, speculators will make a profit.
Among them, the most difficult thing is how to minimize the exchange rate of the Thai baht, that is, how to devalue the Thai baht.
For a single hedge fund, it was obviously impossible to hit the Thai baht on the floor in front of the Thai government with $30 billion in foreign exchange reserves, especially when Thailand joined hands with Singapore.
However, when the capital amount of international hot money reaches a certain level, such as exceeding Thailand's foreign exchange reserves, the practice of smashing the Thai baht to the floor, which was impossible or difficult to achieve, immediately becomes easy.
In May 1997, international currency speculators, mainly hedge funds and multinational banks, began to sell short the Thai baht. Hedge funds sold short the forward exchange rate of the Thai baht in the futures market, while multinational banks sold the Thai baht in the spot market. Many hedge funds and multinational banks smashed the Thai baht together. Even if the Thai government and the Singapore government fought together at that time, they still resisted for only a short time.
At the beginning, the Central Bank of Thailand and the Central Bank of Singapore jointly intervened in the market and adopted a series of measures, including using US $12 billion of foreign exchange reserves to absorb the Thai baht, prohibiting local banks from lending the Thai baht to speculators, and sharply raising interest rates to raise the borrowing cost of speculators' funds.
However, the attack on the exchange rate of the Thai baht came in a flood, currency speculators sold the Thai baht, and the forward exchange rate of the Thai baht against the US dollar hit new lows. On June 19, 1997, the finance minister, alei willawan, who firmly opposed the devaluation of the Thai baht, resigned. Worried about the devaluation of the exchange rate, the interest rate of the Thai baht soared, and the stock market and real estate market plunged. Thailand was shrouded in panic.
On July 2, after exhausting US $30 billion of foreign exchange reserves, the Central Bank of Thailand announced that it would abandon the 13-year-old exchange rate system linking the Thai baht to the US dollar and implement a floating exchange rate system. On the same day, the Thai baht exchange rate fell by 20%. The Asian financial crisis officially began.
Starting from Thailand, the currencies of Malaysia, the Philippines and Singapore fell in response. Especially after the Gulf island, which has $80 billion in foreign exchange reserves, irresponsibly announced the depreciation of the new Taiwan dollar, the panic caused by the crisis became even greater.
Soros have tasted great sweetness in Southeast Asian countries, and how can they resist the fat meat of Hong Kong Island?
As a result, Soros underestimated China's determination to support Hong Kong Island. These international hot money giants came with strong confidence, but they finally left with a disheartened face.
Of course, Yang Jing will not participate in the attack on Hong Kong Island. On the contrary, he will let David secretly find an agent to assist China and Hong Kong Island when necessary, and then scrape a layer of ointment from Soros!
PS: bow and thank the "very lazy fish" for the reward of 100.
Yang Jing looked at David Anderson, then shook his head and said, "David, you should know that the focus of our future development will be on the other side of the Pacific Ocean. If we also attack Hong Kong Island, do you think the other side will get stuck in our neck?"David nodded very simply: "boss, if I was opposite, I promised to prohibit everything related to KY investment fund from entering my country. That's why I hesitated and didn't agree to Soros and Robertson's request.""That's right. David, you are an excellent investor. You have a strategic investment vision. You must also be able to see the huge energy that the country across the Pacific is now bursting out. Yes, they are not rich, but we can't just look at the present. We should look at the longer term, for example, ten or twenty years later!"David smiled, "boss, I just feel a little unwilling. If we can take this opportunity to circle the foreign exchange reserves across the street, our profit in this battle will at least be more than $70 billion.""Hehe, but this money and the future layout across the ocean are nothing. David, in terms of your age, you can see the country opposite rise again and that country will grow into an awesome country. Listen to me, don't get involved with those guys this time. We don't lack that money.""Boss, can that country really grow to that point? Is it more powerful than the Federation?""Yes!" Yang Jing nodded very definitely, "I think in less than 30 years, China's total economy will surpass the Federation, and not only the total economy, but also that country is not weaker than the Federation in military. Moreover, I am sure that China will have its own aircraft carrier formation within 20 years! Therefore, we must not underestimate that country. We should look at that country with a state of awe.""Can they grow so fast?" David asked incredulously."Facts speak louder than words! What can I say now? You won't believe it before you see it with your own eyes, but I believe in that country. Therefore, David, no matter what aspect you consider this time, Pacific Capital won't participate in Soros's plan. We just need to make our profits in the markets of Southeast Asian countries, Japan and South Korea."After a pause, Yang Jing continued: "even when necessary, arrange an agent fund to go out and help Hong Kong Island fight against Soros in the name of that fund.""Ah? Why do we do this? If we do this, once the news gets out, we will immediately become Soros' enemies.""Enemy? Hehe... David, don't think they are so tall! Don't mention KY investment fund. Even if it is the power of Pacific Capital, do you think Soros or Robertson is qualified to be our enemy? You underestimate us!"Yang Jing's words are absolutely domineering, but they are definitely not exaggerated!After Japan continuously reaped huge profits in the Japanese market, Pacific Capital has now grown into a behemoth. Although outsiders rarely know about this behemoth, as the CEO of Pacific Capital, David Anderson knows Pacific Capital best.Now, the cash controlled by Pacific Capital alone is as high as more than $300 billion. As for the assets controlled by Pacific Capital, it is even larger.If we have to use an exact figure to reflect the current overall capital of Pacific Capital, then this figure has exceeded US $1 trillion!Such a behemoth, not to mention the quantum fund with only $6 billion and the Tiger Fund with $11 billion, even if they are tied together, they can't catch up with a small toe of Pacific Capital!To say it without exaggeration, if the current Pacific Capital surfaced, it would be a proper large consortium! Small quantum funds and tiger funds are not qualified to become the enemies of Pacific Capital at all!Although quantum fund and Tiger Fund are well-known, they are only two famous ants in front of the prehistoric mammoth Pacific Capital. Pacific Capital can still easily crush them!David was stunned, then scratched his head and smiled shyly, "yes, boss, they don't even have the qualification to be our enemy. Why should I care about them?""Ha ha, this is my good David!" Yang Jing smiled and applauded for encouragement. "Go ahead and reap our profits in East Asia. Ignore the clamor of those two guys. They can't do it! Besides, who says we can only make money behind them? If Soros and them have a crisis, we can turn around and swallow their profits. Who are we? Don't forget that we are Pacific Capital! We are the gluttonous feast The true master of the feast! ""I see, boss. But I will still be very careful. I won't let others know that we send agents to deal with them. After all, one less enemy is better than one more.""Well, you can do it as you see! Find more agents and don't expose us as the best. Also, pay more attention to South Korea and Russia. If necessary, you can discuss with NIAM and see if you can scrape a layer of grease from that hairy bear.""I see, boss. I'll do it now."Seeing that David Anderson turned and walked out, Yang Jing nodded with satisfaction.The financial crisis that broke out in mid-1997 and affected the whole of East Asia and half of Eastern Europe is a feast for hot money all over the world. Under the leadership of Soros, these international hot money did make a lot of profits in the early stage. However, in addition to some sober international hot money, many international hot money followed Soros to die on Hong Kong Island. They not only spit out all the profits previously earned from Southeast Asian countries, but also suffered a lot of losses in their original funds.No one could have imagined that the momentum of the quantum fund and those international hot money would encounter such an end!Therefore, the famous saying "never underestimate any opponent in the financial market" has been verified again in the financial crisis.In fact, the financial crisis in Southeast Asia had begun long ago. As early as after the Mexican financial crisis in December 1994, some economists pointed out that a financial crisis may occur in Southeast Asia. Professor Krugman of the Massachusetts Institute of technology once pointed out that the East Asian miracle does not come from the growth of total production capacity, but from excessive investment, excessive investment, excessive capital inflow and excessive artificial capital output, The so-called "economic miracle" formed under this model will not last long.In September 1995, Professor Liu Zunyi of Stanford University in the United States and economist Goldstein of the International Monetary Fund in August 1996 pointed out that financial crises may occur in Thailand, the Philippines, Malaysia and Indonesia.These financial experts can see the signs of the financial crisis, not to mention guys like Soros and Roberts who are more experts than financial experts.Of course, they can see the loopholes hidden in the financial systems of Southeast Asian countries.Especially in Thailand, such loopholes and signs of crisis are more obvious.Although Thailand has a lot of foreign exchange reserves, it also has a lot of foreign debt. However, nearly 60% of Thailand's foreign debt is in yen, but Thailand pursues the financial policy of linking the Thai baht to the US dollar. In the past, when the yen appreciated, this contradiction in Thailand did not stand out, but since April 1995, when the yen appreciated to the peak and began to depreciate, this contradiction immediately stood out.Because the Thai baht is linked to the US dollar, the strength of the US dollar represents the strength of the Thai baht. However, more than half of Thailand's foreign debt is Japanese yen. Thailand can't stand the devaluation of the yen at the beginning.Under such circumstances, the international hot money led by Soros immediately came to Thailand like a shark smelling blood.In fact, the speculation against the Thai baht is the same as that used by Leo vanta to empty out the heritage of the former Soviet Union.In short, it is divided into three steps!The first step is to borrow Thai baht at the Thai baht interest rate at that time; The second step is to sell Thai baht in the spot exchange market and exchange it for us dollars; The third step is to lend the converted US dollars at US dollar interest rate.After completing these three steps, once the Thai baht depreciates or the interest rate difference between the Thai baht and the US dollar expands, speculators will make a profit.Among them, the most difficult thing is how to minimize the exchange rate of the Thai baht, that is, how to devalue the Thai baht.For a single hedge fund, it was obviously impossible to hit the Thai baht on the floor in front of the Thai government with $30 billion in foreign exchange reserves, especially when Thailand joined hands with Singapore.However, when the capital amount of international hot money reaches a certain level, such as exceeding Thailand's foreign exchange reserves, the practice of smashing the Thai baht to the floor, which was impossible or difficult to achieve, immediately becomes easy.In May 1997, international currency speculators, mainly hedge funds and multinational banks, began to sell short the Thai baht. Hedge funds sold short the forward exchange rate of the Thai baht in the futures market, while multinational banks sold the Thai baht in the spot market. Many hedge funds and multinational banks smashed the Thai baht together. Even if the Thai government and the Singapore government fought together at that time, they still resisted for only a short time.At the beginning, the Central Bank of Thailand and the Central Bank of Singapore jointly intervened in the market and adopted a series of measures, including using US $12 billion of foreign exchange reserves to absorb the Thai baht, prohibiting local banks from lending the Thai baht to speculators, and sharply raising interest rates to raise the borrowing cost of speculators' funds.However, the attack on the exchange rate of the Thai baht came in a flood, currency speculators sold the Thai baht, and the forward exchange rate of the Thai baht against the US dollar hit new lows. On June 19, 1997, the finance minister, alei willawan, who firmly opposed the devaluation of the Thai baht, resigned. Worried about the devaluation of the exchange rate, the interest rate of the Thai baht soared, and the stock market and real estate market plunged. Thailand was shrouded in panic.On July 2, after exhausting US $30 billion of foreign exchange reserves, the Central Bank of Thailand announced that it would abandon the 13-year-old exchange rate system linking the Thai baht to the US dollar and implement a floating exchange rate system. On the same day, the Thai baht exchange rate fell by 20%. The Asian financial crisis officially began.Starting from Thailand, the currencies of Malaysia, the Philippines and Singapore fell in response. Especially after the Gulf island, which has $80 billion in foreign exchange reserves, irresponsibly announced the depreciation of the new Taiwan dollar, the panic caused by the crisis became even greater.Soros have tasted great sweetness in Southeast Asian countries, and how can they resist the fat meat of Hong Kong Island?As a result, Soros underestimated China's determination to support Hong Kong Island. These international hot money giants came with strong confidence, but they finally left with a disheartened face.Of course, Yang Jing will not participate in the attack on Hong Kong Island. On the contrary, he will let David secretly find an agent to assist China and Hong Kong Island when necessary, and then scrape a layer of ointment from Soros!PS: bow and thank the "very lazy fish" for the reward of 100.
