Rebirth of India: Superior

After making preliminary preparations, Soros led Quantum Fund to sign a forward contract with the Central Bank of Thailand in February 1997, using the method of mortgaging local assets to borrow a large amount (estimated to be approximately US$15 billion) at an interest rate in Thai baht. The baht is then sold for U.S. dollars. ♦

In March 1997, the Thai government announced that nine financial companies and a housing loan company had insufficient liquidity (that is, they had no money). Soros took advantage of this opportunity to short-sell Thai stocks in large quantities.

Since Soros short-sold in batches and small batches, the Thai government did not notice it, and the local government was even very willing to lend him money, because Soros borrowed money to do business in Thailand, and he is an international financial giant and credit card holder. It's very good. There is no need to worry about him not being able to repay the money. The local bank can also earn interest on it.

Then Soros began to borrow Thai baht from the Bank of Thailand, then sell Thai baht, and finally bought US dollars. After repeating this several times, the people suddenly panicked, why were all banks and markets selling Thai baht; and the U.S. dollar suddenly became hot, so everyone went to buy U.S. dollars together. Because it is a fixed exchange rate, no matter how the Thai baht falls, it can always be exchanged for so many U.S. dollars. Fortunately, the Central Bank of Thailand used 2 billion U.S. dollars of foreign exchange reserves to intervene in the foreign exchange market and calmed the turmoil. Soros returned empty-handed.

Three months later, Soros made a comeback. On the one hand, he sold a large amount of the Thai baht. On the other hand, he united with international speculative capital to form expectations that the Thai baht would depreciate around the world. International capital has joined the ranks of selling the Thai baht. The baht once fell to 26.7 baht per US dollar. The Central Bank of Thailand, through the member states of the East Asia Central Bank Governors Conference, jointly intervened with Singapore in the foreign exchange market, investing US$12 billion. Then an executive order was used to strictly prohibit local banks from lending Thai baht to Soros and others. Finally, the overnight lending rate was significantly increased, and finally on May 20, the baht was maintained at 25.2 baht per US dollar.

Although Soros's first two waves of attacks ended in failure, they effectively reduced the US dollar reserves of the Central Bank of Thailand and created panic in the hearts of investors. Those short-term funds that had previously entered the Thai stock market and real estate market in a frantic retreat. The pressure on the Thai baht to depreciate further increased, and there was continuous panic selling in the foreign exchange market.

However, at this time, Soros believed that the Thai government's foreign exchange reserves were running low, so he sold the gold in his hands at a high price to raise funds to launch another attack on the Thai baht in late June. Coincidentally, at the same time, the former Thai Finance Minister, who had always opposed the devaluation of the Thai baht, announced his resignation, which cast a shadow on the confidence of the people. This led to a frenzy of selling Thai baht and buying US dollars. However, at this time, the Thai government's foreign exchange reserves had been used up. It was light, so it forced the Thai government to announce a devaluation of the US dollar, causing the Thai baht's exchange rate to drop by 17% that day. At this time, Shakru saw the opportunity, bought Thai baht, paid back the loan, and made a mad money of 20 million US dollars.

Next, Shakru once again participated in Soros' attacks on the Philippine peso, Indonesian rupiah, Malaysian ringgit and South Korean won. The most miserable of these was the Indonesian rupiah, which directly led to Indonesia's political and economic crisis. Although this time the attack was negative, It has a great influence, but Shakru has never had a good impression of the country of Indonesia, especially in 1998, which is about to come, and a large-scale massacre of Chinese people occurred in Indonesia, so copying the wealth of such a country Shakru feels no guilt at all.

However, when sniping the Hong Kong dollar, Shakru suddenly stopped. Not only that, he also specifically found Soros for this: "My dear Uncle George, I feel that sniping the Hong Kong dollar is not a wise choice. I hope you will You can think about it carefully before deciding whether to do it.”

Perhaps it was the consecutive winning streak for more than a year that made Soros' confidence excessive. He waved his hand nonchalantly and said: "Little Shakru, you are worrying too much. Thai baht, Philippine peso, Indonesian rupiah, Neither the Malaysian ringgit nor the Korean won can stop us. How can a small Hong Kong dollar be our opponent? Don’t worry, as long as we attack in two waves, it will definitely collapse. "

Seeing Soros's bursting with confidence, Shakru couldn't help but sigh in his heart. Sure enough, no matter how rational and calm a person is, it is easy to be dazzled by victory, but whether it is to help this person in his mind Financial master, in order to allow the Chinese government to pay less losses and invest more funds in future flood relief and state-owned enterprise reform, he should try his best to prevent this famous "Battle for Hong Kong Dollars" from happening.

So Shakru continued to persuade: "Uncle George, your view is not comprehensive. Yes, the small Hong Kong Island is just a small place. Even though it is an international financial port, its foreign exchange reserves and risk resistance Their capabilities are not as good as those of countries such as Thailand, Indonesia and South Korea, but don’t forget that behind Hong Kong is the behemoth of the Chinese government!

This year is the year of Hong Kong's return. The Chinese government will never watch the Hong Kong dollar be attacked at this critical moment, causing the entire economic and social situation to be similar to that of Thailand and Indonesia. If after Hong Kong's return, the standard of living in Hong Kong under socialist rule is not as high as that under capitalist rule, then where will the Chinese government's face be saved?

Uncle George, you may not know much about the Chinese, but I have built a factory in China and have long-term cooperative relations with several large Chinese factories, so I am familiar with China. The Chinese may be the race that values ​​face the most in the world. If you provoke them at this time, they will definitely mobilize the power of the whole country to fight back. If that time comes, our investment will be in trouble. "

Soros asked back in disbelief: "As far as I know, the current Chinese government funds are not very abundant, otherwise why would they attract investment, just invest directly. And China has only developed for a few years, and there should not be much reserves on hand. You know, we can now attract more than 100 billion US dollars in international hot money. This is not sniping the RMB. Is the Chinese government worth paying such a high price to deal with us? Is face so important to the Chinese? "

Shakru nodded and said: "Yes, it is so important. The Chinese are like this. It doesn't matter if they live a hard life at home, but they must never collapse outside! ”

ps: Congratulations to Wang Kaixuan, the fat guy in "Ghost Blows Out the Light", for winning the top spot in science in Heilongjiang Province, hahahaha!