Reverse Rebirth 1990

Chapter 991 1007 [God's Blood] Part [-]
Chapter 1

July 1996, 10

Wall Street, Quantum Fund Headquarters——
In the president's office, Soros, the big boss of Quantum Fund and known as the "financial predator", was analyzing the report at hand with a serious expression.

Standing in front of him were two loyal men, one named Pete and the other named George.

After reading the report, Soros frowned, stroked his blond hair back with his hands, and then leaned back on the boss chair and stared at Pete and George with green eyes.

Pete and George felt as if they were being stared at by a wolf in the forest, they didn't dare to look at Soros, turned away, and lowered their heads.

Soros watched them, silent.

The office seemed very silent and eerie.

Soros moved at this time, he took out a large cigar from the humidor, and then easily cut off the top of the cigar with a small guillotine placed on the table...

Pete was more alert. Seeing this, he hurriedly took out the lighter and moved closer.

George took a slow step, feeling a little annoyed at himself.

Soros bit his big cigar and lit it next to the lighter.

Curling, mellow cigar smoke filled the office in an instant. "Do you know, dear Pete, why are Cuban cigars the best?" Soros asked suddenly.

Pete was taken aback for a moment, and quickly said: "Because Cuban cigars are produced in a good place and the craftsmanship is good."

"Yeah, I heard that when the cigars are rolled there, many beauties in the age of sixteen or seventeen..." George hurriedly flattered.

But before he finished speaking, Soros shook his head and interrupted him, saying: "Your stories are all legends, stories made up by some boring people-I tell you that there is only one reason why Cuban cigars are good. , that is, it is expensive."

Pete and George: "..."

You look at me, I look at you.

This answer is a bit too simple.

"Many things in this world need to be measured by money. In many people's perceptions, the most expensive is the best. That's why French red wine and Cuban cigars are so famous; but is this really the case?" Suo Ross asked with a smile.

Pete and George were silent.

Soros crossed his legs, sat on the boss chair, held a big cigar in his left hand, tapped the report on the table with his finger, and said: "In fact, the cigars in Thailand are very good, and the taste is as good as Cuba, but why do we Americans don't like smoking?"

"The reason is very simple, because Thai cigars are too cheap --- in the eyes of us noble Americans, cheap things are inferior and inferior products, so Thai cigars can only be popular in Chinatown and Thailand Street in the United States, but not Appearing in a high-profile place like Wall Street."

"But now, I am going to make a great reform, so that the price of high-quality Thai cigars will rise, even more expensive than Cuban cigars... What do you think should be done?" Soros asked with a smile.

Pete replied: "It's very simple, raise prices in Thailand!"

George replied: "Short the baht!"

"YES!" Soros slapped the table and stood up laughing, "After reading this report, I have the same impulse as you."

"Thailand is really the most beautiful place in Asia. It has beautiful Pattaya, coconuts, beaches, and cigars... Of course, the most important thing is the Thai baht, which has always been pegged to our dollar!"

"Nowadays, Thailand's overall economic bubble is serious, just like beautiful colorful soap bubbles, just wait for us to pierce this beautiful bubble with the tip of a needle - then, dear friends, I think it's time to do it, because I have heard It’s the sound of dollars calling to us!” Soros laughed loudly.

……

To be honest, Soros has never been this happy since he was defeated by Song Zhichao in Hong Kong last time.

The last time Soros lost to Song Zhichao, he almost lost his confidence.

As an international player and international financial speculator, confidence is the most important weapon. Without confidence, Soros would become a toothless tiger.

But now, Song Zhichao offended the Kang family in Hong Kong and was expelled from Hong Kong. He does not know where he is now.

And he, Soros, is going to aggressively attack Thailand, using the short baht to set off an unprecedented financial turmoil.

Soros is bound to use this battle to regain the confidence he lost; moreover, Soros has a bold plan. If he can, he will return to Hong Kong after defeating Thailand and get back his own everything.

"Song Zhichao, just wait! I will crush you Asians and Chinese monkeys to pieces!" Soros swears secretly, biting his cigar.

It was cloudy outside the window.

A thunderbolt illuminated the office, and also illuminated Soros' eyes——
Shady, cold!
……

In fact, the attack on the Thai baht was planned by Soros for a long time.Soros judged very early on that Thailand's economy was overheated, there was a serious asset bubble, and asset prices were seriously overvalued, including Thailand's exchange rate was also overvalued. In addition, Thailand's financial controls were the most relaxed among Southeast Asian countries. The hurdles are also minimal if you snipe the baht.

On October 1996, 10, the attack on the Thai baht began——
Soros first borrowed tens of billions of baht from the Bank of Thailand.Soros then exchanged these Thai bahts for US dollars, and these US dollars did not move.Because the Thai baht has maintained a fixed exchange rate of 1984:25 against the US dollar since 1, there is no problem of depreciation and appreciation.If Soros wants to make money by shorting, he must change Thailand's fixed exchange rate into a floating exchange rate and depreciate the Thai baht.

Soros sold all the money after borrowing it, bought US dollars from the Thai government in batches, and kept borrowing Thai baht to sell Thai baht, and repeated operations like this...

For a while, both banks and the market were selling Thai baht, and panic spread, so the herd effect appeared. Institutions and individuals holding Thai baht in the market began to sell frantically, and the Thai baht continued to depreciate.

In addition to selling Thai baht, Soros also sold stocks of Thai banks and financial companies, sold Thai baht futures and forward foreign exchange positions, and launched a large-scale short-selling operation in the market.

Soros moved quickly and fiercely, which caught Thailand by surprise.After the Thai government reacted, it poured all the power of the whole country and launched a counter-siege against Soros——
1. Thailand took out 50 billion U.S. dollars in foreign exchange reserves, and formed an "alliance" with Singapore, spending a total of about 120 billion U.S. dollars to buy Thai baht;
2. Directly use administrative orders to strictly prohibit local banks from lending Thai baht to the Soros army;
3. The interest rate has been greatly increased, and the overnight interest rate has been raised from 1% to 100% to 150%, which means that if you borrow 100, you will have to repay 200 or even 250 at that time, and the cost of borrowing will greatly increase.

The Bank of Thailand's three-pronged approach quickly stabilized the Thai baht exchange rate, and the situation was temporarily under control.

Soros failed in this battle and lost $3 million.


(End of this chapter)