The youngest son of the chaebol family, Hu Mou Xianmin

Chapter 109 Too busy to take care of himself, Bangziguo panicked
Affected by the collapse of the Thai baht, many Asian countries have fallen into panic. They know very well that the group of international speculators who have benefited will not let them "survivors" go!In particular, officials in Indonesia and the Philippines, which are very close to Taiguo, panicked.

Originally, their trade with Thailand was settled in their own currency.After the Thai baht collapsed and the exchange rate was lowered, even their domestic currencies became a little unstable. The two countries with small foreign exchange reserves fell into an embarrassing situation.In order to save themselves, they tried to ask for help from the surrounding "big dog" Xinjiapo. As "rich people" with foreign exchange reserves of more than 700 billion, they will definitely help them out of the predicament.However, their request was quickly rejected by the Singaporean authorities. There was only one reason, and that was that they were too busy to take care of themselves and were unable to rescue them.

It turns out that since independence, Singapore's economy has developed rapidly, and it is known as the "Four Asian Tigers" together with Xiangjiang and Baodao in Bangzi and Yanxia. In 1996, the Organization for Economic Cooperation and Development classified Singapore as a "relatively developed developing country".In 1997, Singapore's per capita GDP ranked eighth in the world, comparable to that of Western developed countries.

But behind Singapore's prosperous economy, there are also many serious hidden dangers.The economic policies implemented by Singapore have made the domestic economic system more fragile and the ability to resist risks has been reduced, which is mainly reflected in the real estate and financial fields.

In the early 80s, after the extraordinary achievements of Singapore’s economy, people were too optimistic about Singapore’s economy and wanted to buy new and bigger houses.Instead of taking measures to curb the development of the real estate market, Singapore has built a large number of new houses.By the 90s, the bubble in Singapore's real estate market was getting bigger and bigger.Secondly, Singapore implements an open financial policy in order to build an international financial center.By the 90s, Singapore had become one of the largest financial centers in the world, and its foreign exchange market ranked fourth in the world, second only to London and New York, and slightly behind Tokyo.

This time, the collapse of the Thai baht directly affected the domestic stock market in Singapore. The stock market plummeted, and even the real estate industry also ushered in a sharp drop.The officials in Singapore are busy saving their own mess, how can they care about the little brothers around them?A catastrophe is imminent, and a dead fellow Daoist will not die, right?
Officials in Indonesia and the Philippines, who have been seeking help to no avail, can only be impotent and furious, while praying silently, hoping that those international speculators will not look down on their "poor haha".It's just that their prayers were not successful. After just a few days, they noticed that international speculators had already targeted the Philippine peso and Indonesian rupiah, and began to sell them in large quantities in the market, impacting the currency exchange rate, and even In the foreign exchange market, a large amount of bearish futures contracts appeared.

……

Inside the country of Bangzi.

The officials of Bangzi Kingdom, who managed to stabilize the domestic situation with great difficulty, are also quite anxious at the moment.Yongsan, who is less than a year away from the end of his term, is extremely depressed.He still hasn't figured it out yet. It is obvious that the Thai baht of the Thai country has been shorted by international speculators. How did it suddenly affect them here?The advisers of the Blue House were also confused. Facing Mr. President's question, they faltered and couldn't speak.

In the end, experts from the financial circles were invited to help answer the question, and only then did I understand the situation.It turns out that the current domestic situation in Bangzi Kingdom is not much better than that in Taiguo. The economic development is overheated. Those large enterprises and chaebols are all borrowing money to expand production. Daying Group, Shunyang Group, Daewoo Group... are all in this situation.

Moreover, Bangziguo's debts are quite special, because since the former N president, Park Chung-hee, commercial banks have been taken over by the government, so the government is the guarantor of the debt.Back then, in order to develop the economy, Park Chung-hee asked the National Bank to give crazy loans to large enterprises to expand production. It was almost a compulsory loan, and it was impossible to do so. However, these enterprises have continued to expand and produce over the years, and they have repaid very few loans.

But the money of the Bangzi Country Bank is not blown by the wind. Most of it is borrowed by the government from overseas banks, mainly from the Sun Country, the Beautiful Country and some Western countries. "Chaebol-Bank of Korea-Korean government-Western banks", this is a chain of Bangzi Country's economy.

After the collapse of the Thai baht this time, not only Asian countries panicked, but Western countries also panicked. Before putting it aside, they can still earn interest safely.But this time the international speculators are aggressive, and if they are a little careless, the loan to Bangziguo will be in vain!Especially the Sun Country, as one of the countries with developed economies in Asia and a close relationship with the Beautiful Country, it has already foreseen the unprecedented scale and difficulty of this crisis, and it will be difficult to survive even if it is not careful.It has become one of its main measures to withdraw funds and survive the crisis that may erupt next.

……

"Assi, why should I deal with the mess left by Park Chung-hee!" Jin Yongsan roared angrily. Withdrawing capital at this time is simply trying to mess with him!

In the face of the furious Jin Yongsan, the officials did not dare to say anything, for fear that they would be directly held accountable by Yongsan if they said something wrong.It took a while for Yongsan to calm down. Now the problem is here. If there is no solution, the Sun Country, the Beautiful Country and the Western Countries may not let it go.

Confidant officials, you look at me, I look at you, hesitating for a long time and dare not speak up.In the end, it was the Minister of Finance who took the initiative to answer, "Mr. President, at present our foreign exchange reserves are still 3-400 billion, which can only meet part of the overseas loans. My suggestion is to negotiate with them first and try to get them not to withdraw their capital, or Withdraw the capital at a later time. At the same time, convene those domestic enterprises and let them raise funds to repay the loan.”

Several other officials could not put forward any better opinions, so they could only acquiesce in the current seemingly feasible method.Seeing this, Jin Yongsan could only pinch his nose and admit it.If they are given the notoriety of "not repaying the money owed", then they will have a sad life in the future of Bangziguo!

"Minister Cui, let's go ahead and call those chaebols and big companies together. Let them be ready to pay back the money. If you still can't, find a way yourself." Banks can't afford to repay their debts, so they can only use foreign exchange reserves.But now at this stall, once the foreign exchange reserves are used, those international speculators who are eyeing the tiger will inevitably rush to short the Bangziguo, and the consequences can be imagined.The miserable situation after the collapse of the Thai baht is still vivid in my mind!
(End of this chapter)