The Rebirth of the Financial Hegemon

What is the easiest way to make money in the world?

Maybe everyone has their own opinion.

Depending on the level you are at, you will find the most profitable method based on your level.

For example, a vendor setting up a stall may think that setting up a stall from a rural town to New York is the most profitable way.

Or a banker, he may think that opening his own bank all over the world is the most profitable way.

In theory, the banker's way is the easiest way to make money.

This way is to use other people's money to make money.

As a super cheat, Zhao Jiangchuan is naturally very aware of this routine.

But he knows better that if he wants to make more money, he must have more capital.

From the perspective of the times, he knows exactly what kind of outcome Southeast Asian countries will face.

Under the financial crisis, currency devaluation, real estate crash, and stock market crash.

The four lively little tigers were beaten and turned into caterpillars.

In this case, short-selling the stock market, short-selling real estate, and short-selling the currencies of various countries are undoubtedly the most profitable ways.

But there is an almost irreconcilable problem.

When the economies of various countries collapse, their stock markets and real estate will fall across the board.

If you want to short-sell the assets of these countries, you have to convert them into your own currency.

Only after converting the circulating currency into domestic currency can the assets of these countries be shorted.

Take Thailand for example.

If you want to short the Thailand SET Index, you must convert the international currency into Thai Baht.

It’s just that the Thai baht will also depreciate in the overall economic collapse of various countries.

It is very likely that the discount of the Thai baht earned cannot make up for the discount of the original exchange for the US dollar.

Unless it is in the international foreign exchange market, short-selling forward foreign exchange contracts are in the form of positions.

However, this is equivalent to following the international capital and investing too much money, which is unrealistic.

The four major foreign exchange futures markets of Singapore, New York, London and Chicago combined, the single-day trading volume of Thai baht is only a few hundred million US dollars.

With this kind of trading volume, if Zhao Jiangchuan entered in advance, he would definitely be wiped out by the Thai government.

Currency Currency, as the name suggests, is actually a kind of commodity.

It is equivalent to the exchange symbol of a country's goods.

In the foreign exchange futures market, there are trading volume restrictions, but there are no such restrictions in the spot market.

You only need to borrow a large amount of Thai baht from the bank, short the stock index in the stock market, sell the Thai baht in the spot market, wait for the Thai baht to depreciate and then return it to the bank, and you can earn a large amount of Thai baht.

At that time, even if the Thai baht was worthless, it could still be exchanged for a lot of US dollars as long as the amount was large.

It is undoubtedly the most refreshing business to use other people's things to make other people's money.

However, if you exchange US dollars for Thai baht to short-sell the Thai baht or the Thai stock market, it will undoubtedly be suicide by a fool.

It is impossible for Zhao Jiangchuan to make such a mistake.

But Jushi Capital does not have any industry in Thailand, so it is a bit unrealistic to borrow money from banks.

All banks in the world are of the same virtue.

Help the rich but not the poor.

Without collateral, no one will lend you money.

But there is no solution.

With Zhao Jiangchuan's financial knowledge, no one in the world can surpass him.

They want to avoid losses due to exchange differences, but they also want to rob the Thai people of their wealth and wealth.

Just lock in the exchange difference gains.

U.S. Treasury bonds certainly fit this very well.

Due to the good reputation and good liquidity of U.S. Treasury bonds, the value of U.S. Treasury bonds is equivalent to the status of the U.S. dollar in any financial market around the world.

Coupled with the fixed return on U.S. Treasury bonds, any bank in the world can borrow the equivalent value of local currency from the face value of Treasury bonds.

What's more, Thailand's financial industry was at its most developed at this time.

Due to the economic slowdown in European countries and the United States, interest rates on various currencies have remained at a few percent.

But in Thailand, economic overheating has brought inflationary pressure. In order to alleviate inflation, Thailand's one-year interest rate is usually maintained at around 8% to 10%.

Banks are probably the greediest institutions.

Under the legal base interest rate, the actual interest rate is mostly around 12%.

The consequence of this interest rate difference is that it attracts a large amount of arbitrage funds.

Even Thailand's state-owned banks often borrow currencies from other countries with lower interest rates from overseas and sell them in the market.

The Thai baht converted is then used for lending to earn interest rates.

In this case, Thailand’s overall overseas borrowing amount is as high as one trillion US dollars.

Fixed exchange rates lead to the emergence of arbitrage.

In Zhao Jiangchuan's eyes, this was simply a living target.

A living target that can replenish bullets infinitely.

The wisdom of the Chinese people can never be underestimated.

Even in the game of capital, when the Chinese really play it, Wall Street, which has a century-old financial history, sometimes feels inferior.

For example, the later Wan Dian Dream, and the later Wenzhou Real Estate Speculation Group.

Archimedes once said.

"Give me a lever and I can move the earth"

The Wenzhou real estate speculators understand the meaning of this sentence deeply and perfectly apply it to the capital operation model.

In the words of Wenzhou people, investments without leverage are not good investments, and real estate speculators without leverage are not good real estate speculators.

As a result, a method of leveraging real estate came into being.

CCTV reported on a Shenzhen real estate speculator, "1 million turned into 50 million in two years." In this case, Shenzhen investor Mr. Li's secret to increasing leverage was.

Buy first and then pledge, pledge and then lend, borrow and then buy, and buy and then pledge.

So back and forth.

How to play it specifically?

Li Xiansen invested 1 million in his first home and found that house prices rose very quickly.

Then, he used all the houses in his parents' names as mortgage loans, and then borrowed all the relatives' quotas to buy houses. This operation was repeated 17 times in 2015 and 4 times in 2016.

Short oil, not bad~,

By continuously increasing the rolling operation of mortgage loans, in this super bull market of real estate, the market value of the real estate in Li Xiansen's hands reached the highest value, reaching 50 million. It was so much money that he couldn't even count it.

Is this great?

This can only be said to be the most basic rookie level.

Even more powerful, you can use this leverage indefinitely.

Theoretically, an investment in one property can buy one hundred or even one thousand properties.

They bet against short sellers, against banks, against policies, and almost used leverage to the extreme in the universe.

Look at the creativity of these real estate speculators.

You will be amazed, routines are all routines.

This time, what Zhao Jiangchuan wants to do is to copy the routine of the Wenzhou real estate speculators.

It is even simpler than the routine of the Wenzhou real estate speculator group.

Thailand’s monetary system implements a fixed exchange rate system.

Because the capital injection has allowed the Thai government to see the benefits, it has become a highly liberal capital market country after years of policy adjustments.

The Thai government has great ambitions.

They want to build Thailand into a CBD business country in Southeast Asia with the opening up of capital.

Therefore, the Thai government itself will not impose restrictions on capital inflows and outflows.

In this case, if you mortgage U.S. Treasury bonds to the bank, you can borrow Thai baht equivalent to the Treasury bonds.

So if Zhao Jiangchuan buys and holds treasury bonds worth one billion US dollars, how much Thai baht can he borrow based on the ratio of US dollars to Thai baht: 1:23?

23 billion baht?

NO.

is infinite.

Theoretically, it could be one trillion.