Chapter 456 The Dollar Conspiracy

Fortune Chapter 456: The Conspiracy of the Dollar

Interest rate policy has made the Thai economy even worse. In a way. It was the high interest rate policy that gave rise to Thailand's financial crisis. High interest rate policies further inhibit investment and consumption. exacerbating the economic recession. This resulted in huge insolvency of commercial banks. High interest rates increase corporate debt burdens. Enterprises turn to the international financial market for low-cost financing. This further expanded the scale of external liabilities.

This year Thailand’s external debt reached US$90 billion. Equivalent to 50% of GDP. in. Short-term foreign debt accounts for 60%. The foreign debt maturing from June this year to June next year alone is US$15 billion. Fan Wubing listened to what the economist was saying. Bian'er said to Boss Zhu, "When U.S. interest rates rise, profit-seeking capital will be exchanged for U.S. dollars. The local currency will be sold. Since there is no demand, the currency will depreciate. If the fixed exchange rate is maintained, the local government will use foreign exchange reserves to take over. To maintain The stability of the exchange rate depends on the amount of foreign exchange reserves. When all foreign exchange reserves are exhausted, the local government has only one option: to seek help from the International Monetary Fund and other countries. Abandon the fixed exchange rate and implement a free floating exchange rate. The outbreak of Thailand’s financial crisis was based on the above-mentioned monetary economics principle.

Boss Zhu nodded. Well. ImF, Americans are still in control of this golden opportunity. It was probably them who did it. "

"That's for sure." Fan Wubing nodded. "It was the same in Japan back then. But this time, Soros and others charged into the battle. The Chinese came out with the help of ImF. It was like a wolf in sheep's clothing."

Under the financial power of the United States. The U.S.-led ImF will of course put forward loan requirements that are beneficial to the United States. Forcing foreign countries to accept such demands is without exception the economic colonization demands of the US dollar. For example, completely lift capital controls. Abandoning bank restrictions on foreign investment and other requirements are essentially giving up currency sovereignty. This completely makes other countries' currencies become subsidiary currencies of the US dollar. The economy became a colonial economy of the dollar.

South Korea is the most obvious one.

At that time, South Korea was the eleventh largest economy in the world. Under the needs of U.S. geostrategy. The United States still maintains a large number of troops stationed in South Korea. South Korea's exhibition is seen as a symbol of Asia's growth. Moreover, South Korea has US$25 billion in foreign exchange reserves.

South Korea requested a bailout from the ImF under the threat of the Bank of Japan's decision not to extend South Korea's tens of billions of loans. to this end. Officials from the U.S. Treasury Department and ImF prepared $55 billion, the largest emergency financial aid package in history. But the prerequisite is that South Korea must commit to economic reforms.

certainly. These conditions are extremely harsh. As for Korean people, they would rather sell off their gold jewelry. We must also support the country’s refusal to accept assistance from the IMF.

As a result, the Korean government, unable to withstand the pressure, finally decided to fully open the financial industry to foreign investment. Allow foreign capital to enter the securities banking industry.

Implement foreign exchange market liberalization.

The Nigerian President said that the Asian financial crisis was a conspiracy led by the United States to launch a financial war against emerging countries.

Six years later. Thailand repaid its US$12 billion loan from the International Monetary Fund ahead of schedule. However, the losses caused by actively devaluing Thailand in order to repay the money are incalculable. Thai Prime Minister Thaksin Shinawatra stood solemnly under the Thai flag. We vowed that we would never ask for any more "aid" from these international bankers. Thai businesses were even encouraged to refuse to repay their debts to these bankers.

The result was a coup in Thailand three years later. Thaksin was ousted. Go to England.

Fan Wubing——When I thought about this problem. I can't help but sigh. It is true that a weak country has no diplomacy. A weak country has no one. If Hong Kong had not returned to the motherland. With the full support of this powerful political and economic body. I am afraid that it will inevitably follow the same fate as Thailand. It was captured by Soros and others and then completely defeated. Forced to accept the IMF dominance of the Americans.

Of course. In fact, in history, Soros and others also succeeded in messing up the Hong Kong stock market. The Hang Seng Index was hit from 18,000 points to 6,000 points.

This time, because of my own help, the index also experienced a short-term plunge. But now it is finally stable at around 12,000 points, which is still bearable. At least after the hot money leaves. The Hong Kong stock market can return to normal.

And among the stocks this time. Chinese-funded institutions support the market by buying back shares. It is also of great benefit to them. I actually picked up a lot of chips. For the sake of face. Take care of Riko again. This opportunity is rarely available.

Fan Wubing said to Boss Zhu. "Now the whole world is working for the Americans. The Americans are taking advantage of the dollar's depreciation and appreciation to export the financial crisis to Asia. Through the dollar, they can make a country's wealth disappear in an instant without bloodshed. It can even cause death. Regime change. The lessons and revelations brought to us by the Asian financial crisis, which was triggered by the devaluation of Thailand’s currency, should arouse our deep thinking and precautions.”

It can be said. It was the dollar’s ​​excess that created

The United States took advantage of the profit-seeking nature of capital. It used gold to implant economic colonialism in Southeast Asian countries. Also makes dollars. Knife weapon. Through the medium of speculative capital such as Soros. Kill to any corner of the world.

Under the financial hegemony of the US dollar, if a country with a current account surplus does not increase its foreign exchange reserves of US dollar assets. It is possible that the currency will collapse due to attacks by speculative capital based on the U.S. dollar.

This is why U.S. strategists are doing everything possible to force other countries to relax foreign exchange controls. The reason for allowing the free flow of capital. In other words. The threat of attacks by speculative capital exists only under the free flow of capital. Non-US dollar economies continue to increase their foreign exchange reserves. It can no longer continue to invest foreign exchange reserves in the United States. In exchange for assets in U.S. dollars.

This is also an important reason why China’s foreign exchange reserves later exceeded the two trillion US dollar mark. For nothing else. It was because of the financial crisis in Southeast Asia that we saw the tricks played by the Americans. That's why I was wary.

Although China is increasingly strengthening its business relations with other countries around the world. It is inevitable to accept the free flow of capital. Under this situation. The hot money flowing into China may exceed hundreds of billions of dollars at any time. Once they get into trouble. The impact is still very large, so China needs sufficient foreign exchange reserves to cope with various crises.

Even though they know that these large foreign exchange reserves will only make Americans cheaper. But there was no other idea to think of. Unless it's to wipe Americans off the face of the earth. This can be considered a complete solution.

Of course. Besides this there is also a capability. It is to change the international financial system with the US dollar as the main body. But there are certainly great difficulties in doing so. Because the interest factors involved are difficult to change.

Fan Wubing said to Boss Zhu. "From another perspective. Any crisis, including the threat of war, will have such an effect. That is, the United States is a relatively safe investment paradise. The U.S. dollar is a safe haven for the world's savings. Judging from past experience, the United States has never had a crisis in its own country. Large-scale competition with foreign countries has resulted in relatively high risk-adjusted expected returns, and historical experience has strengthened investor sentiment. This illusion. Therefore, the United States is keen to continuously use the crisis to continuously drive the US dollar to the financial high point. The U.S. continues to produce goods in exchange for US dollar surpluses to be reinvested in the U.S. to finance the U.S. current account deficit. This is the so-called phenomenon of poor countries feeding rich countries.

Boss Zhu nodded. Take it for granted. He is economical. He has very profound insights into this set of methods. This time, the Southeast Asian financial crisis has deepened his understanding of the United States' economic manipulation methods. Fan Wubing said this at this time. This enabled him to see more clearly the various difficulties that China might encounter in the implementation of a market economy.

Asian countries are net oil exporters and emerging countries in Latin America. Without exception, they have all become donors to financing the United States. Become a victim of the US dollar colonial strategy and a sacrifice to the US dollar knife.

some countries. On the one hand, it holds huge US dollar foreign exchange reserves. On the one hand, it can still bear the exploitation of the depreciation of the US dollar. Faced with growing foreign debt and interest payments. The United States is inherently inclined to increase the dollar. devalue it. Reduce its external debt to reduce debt servicing costs. This is a hidden loss for the reserve country.

If reserve countries sell U.S. Treasuries en masse. This will lead to its depreciation. Thus becoming a clear loss.

This was the dilemma faced by the Chinese government, which later had the largest U.S. dollar reserves. The two trillion U.S. dollars of foreign exchange reserves have become a hot spot. Let’s not ignore the high-power monetary effects caused by these two trillion U.S. dollars of foreign exchange reserves. The excess liquidity and inflation expectations caused to the country.

all in all. The export of U.S. dollars to Asia and the return of U.S. dollars to the United States. In essence, it is the process of the United States looting Asia's wealth. The dollar is the knife. It is the new colonial exploitation.

The appreciation and depreciation of the US dollar has a huge impact on the economic development of Asian countries. Asian economies are increasingly becoming a subsidiary economic feature of the United States. It increasingly became characterized by a colonial economy.

Fan Wubing thought of this. Just think of some things that happened later.

The 1997 Asian financial crisis did not spread to the United States. However, the US financial crisis in 2008 was transmitted to Asia through the intermediary function of the US dollar, an international currency. USD output. Not only does it export inflation. Also output, machine.

"Sigh. No matter how we deal with it. As long as we don't find a new currency that can replace the US dollar as the country's trade payment method, we will not be able to escape the exploitation of the Americans." Fan Wubing said to Boss Zhu helplessly.

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