Chapter 405 The Financial Giants Who Are Ready to Make a Move [Please Support with Monthly Tickets]

There was a reason why Wu Bing left Shanghai, because Kevin was causing trouble.

In 1992, Soros led the Quantum Fund to successfully attack the pound sterling and made profits of more than 2 billion US dollars. At that time, Fan Wubing followed suit and made even higher profits.

But because Soros is a representative figure who stands in public and snipes at the British pound, the British and Europeans hate him to the core, calling him the rebirth of Shylock.

In any case, Soros won the attack on the pound. He was known as the person who defeated the Bank of England. His statement even surpassed the heads of some countries and was called a leading figure in the financial world.

After cleaning up the Bank of England, Soros turned his gun. At the end of 1994, he made trouble in Mexico again, causing the Mexican peso to depreciate by half, triggering the Mexican financial crisis and almost destroying this large Latin American country. , the gains of decades of economic reform were destroyed in one fell swoop.

After taking care of Mexico, Soros did stay honest for a few years. This time coincided with the drastic changes in Eastern Europe and not long after the collapse of the Soviet Union. He was more concerned about the development of his homeland and invested heavily in helping the political and economic construction of Hungary, with Hungary as the center. , established a Soros fund network throughout Eastern Europe, mainly investing in the infrastructure construction of these countries.

It seems that Soros has been satisfied with his achievements and no longer makes a fortune by destroying a country's economy, but has turned into a great philanthropist.

Thanks to him, until 1996, that is, this year, the entire world economy had no major ups and downs, and it was basically a state of peace.

"I thought he would live his rich life somewhere, but I didn't expect him to go to Thailand." Kevin said to Fan Wubing in the video.

At this time, Fan Wubing was having a conversation with Kevin in Zhengzhou's own dedicated communication network. He was the only one in the huge office, and no other company personnel in Zhengzhou were at the level to participate in such a conversation.

Fan Wubing said casually. "How could a hungry wolf give up the opportunity to prey? He was just waiting quietly for the opportunity to prey.

"

Judging from the recent formation of Soros. Fan Wubing can be concluded. At this time he was preparing to attack targets in Southeast Asia.

There was a period. Southeast Asia was once the darling of the New World.

South Korea, Taiwan, Hong Kong, and Singapore were once known as the Four Tigers. It rose rapidly after World War II. After decades of struggle. Finally succeeded in joining the ranks of developed countries or developed regions.

After them. Thailand, Malaysia, the Philippines, Indonesia and other countries have also imitated the successful experience of the Four Tigers. Take advantage of the country's cheap labor costs. Vigorously develop labor-intensive processing and manufacturing industries. Such as textiles, leather shoes, bags, general machinery and its spare parts, etc. Export to developed countries at very low prices. At the same time, various preferential conditions are also available. Attract foreign capital to invest in Benlai. It became very popular for a while. Becoming the new focus of growth attracting world attention. Known as the Four Asian Tigers. There is great potential to recreate the glory of the Four Little Dragons.

But compared with the era in which the Four Little Tigers lived, great changes have taken place.

With the end of the Cold War and the development of information technology, the process of world economic integration has accelerated, and a unified global financial market has begun to take shape, generating an extremely large amount of global speculative funds.

With the help of modern information technology, these speculative funds can react extremely quickly. Once they discover any trouble, they can swarm in from all corners of the world between Israel and Russia, carry out a devastating blow to a country's economy, and quickly retreat after gaining violence, leaving behind A scene of economic collapse and people's livelihood in ruins.

Fan Wubing said to Kevin, "Compared with old foxes in the international financial world like Soros, the leadership and business circles of Southeast Asian countries are still very naive when it comes to financial issues."

After the end of the Cold War, democratic capitalism became the only surviving economic system, controlling everything it looked at. In the race to create wealth, it completely surpasses **. Globalization, the movement towards integration of national economies and corporate entities on a global basis through trade and cross-border investment, became the new watchword.

In a borderless world, national borders marked on maps become meaningless. The biggest function of governments is to persuade those who control companies in the world to invest money in their countries, and then walk away and stop interfering. . Regarding the path to the future, a view that became known as the "Washington Consensus" generally formed among authorities in the U.S. Treasury Department, the International Monetary Fund, the World Bank, and some well-known universities.

The idea spread widely after Tom Reedman dubbed it the "golden straitjacket." This plan calls for a balanced budget, lower taxes, free movement of capital, goods, and services, privatization, deregulation, protection of property rights, especially intellectual property, a smaller government, and relaxed restrictions on interest rates. It is believed that the implementation of the above measures will bring prosperity and narrow the gap between rich and poor, thereby bringing about democratization, which in turn will bring stability and peace. free

The main way to achieve all this, he explains, is through the "body," a group of treasure guardians who never show up in public, usually hiding in the silent nests of Wall Street in the United States, the stock exchange streets in Japan, the business district of London and other places, with their eyes fixed on the computer screen. But with just a click of the mouse, they can quickly make trillions of dollars travel around the world.

In the 1990s, the electronic group discovered Southeast Asia and took a special liking to Thailand.

What would later be regarded as the biggest financial bubble in history was also gathering strength in the United States. The flood of funds released by low interest rates and booming economies were looking for high profits. Investors in slow-growing countries such as Europe and Japan were also looking for greener pastures.

Southeast Asia looked like a banker's paradise with its high growth rates, high interest rates and low risk brought by the exchange rate pegged to the US dollar. In the first three years, European, Japanese and American banks lent more than $700 billion in the region. In those years, foreign short-term loans to Thailand alone amounted to nearly 10% of GDP each year.

Foreign direct investment has also poured in, with GM, Ford, Toyota and Chrysler all announcing new car plants in Thailand.

Meanwhile, new skyscrapers darken the sky.

The year before last, Asia-Pacific leaders met in Indonesia and embraced the theory of globalization, announcing the creation of the Asia-Pacific Economic Cooperation forum and the group's commitment to fully free trade by 20 years. At meetings of the world's leading lights in Singapore, Davos and Washington, erudite professors, hard-boiled bankers and seasoned political leaders have all seen Southeast Asia as the most dynamic part of the global economy, leading the way to an ideal society.

In late August, few noticed the collapse of Bangkok Commercial Bank. When Somprasom Land defaulted on its Eurobonds last year, sending the first signs that the real estate bubble might be about to burst, some raised their eyebrows. Later that month, First Financial, Thailand's largest financial company, suddenly began seeking a merger partner. The electronic swarm saw this and began to flee from the fence.

Foreign bankers began to demand repayment of their short-term loans. Speculative investment companies estimated that the fixed exchange rate between the Thai baht and the US dollar was difficult to maintain and would eventually depreciate, so they simply sold all the Thai baht. Thai companies that had borrowed heavily abroad were also afraid of this outcome and began to exchange large amounts of Thai baht for US dollars. In the process of doing everything they could to support the exchange rate, the Thai central bank threw a total of 26 billion US dollar reserves into the wave of crazy buying.

Imports greater than exports means that less is sold and more is bought.

Since the settlement currency for international trade is the US dollar, the trade deficit can only be filled with US dollars. The funds to fill this gap mainly come from two sources: the first is the US dollar reserves of the Thai central bank, and the second is foreign debt or foreign investment.

When foreign capital enters Thailand, it must first exchange US dollars for Thai baht, so that it can increase the US dollars in the hands of the Thai central bank.

However, these US dollars are not given away for free. Foreigners holding Thai baht can exchange them for US dollars at any time, so these US dollars can be regarded as debts borrowed by the Thai central bank from foreigners.

After all, foreign investors are neither philanthropists nor patriots. Once they feel that there is a problem with the Thai economy, they will withdraw immediately, and the Thai central bank must return the US dollars to foreign investors.

It was at this time that the Thai government was alert. In order to solve the trade deficit, they opened the door for foreign investment to enter Thailand.

In fact, just after the Mexican financial crisis ended, international speculative funds represented by Soros had already begun to enter Thailand quietly.

Their arrival was not to invest in long-term industrial development, but to flock to the Thai stock market and real estate, because these things can be quickly bought and sold, and there is no need to have a long capital turnover period like investing in manufacturing.

Under the impact of these funds, the Thai stock market and real estate prices skyrocketed, causing a false prosperity of the economy, thereby covering up the fact that Thailand's manufacturing industry was in decline and the competitiveness of its product exports was declining.

In the illusion of superficial prosperity, the Thai government failed to strengthen the supervision of financial institutions and carry out necessary financial system reforms in a timely manner, allowing foreign speculators to use the seriously overvalued stocks and real estate in their hands as collateral to obtain large loans from Thai financial institutions.

By June this year, the real estate bubble began to burst rapidly, causing the operating conditions of commercial banks and financial companies to deteriorate.

Now, it's Soros's turn to show his sword. If he doesn't move, he will kill with one strike, and he will win with determination. This is Soros' favorite style.

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