The Rebirth of the Financial Hegemon

The day before, Prime Minister Chavalit said in the media.

Thailand has tens of billions of dollars in foreign exchange reserves, Thailand's exports are still strong, and there is absolutely no basis for the devaluation of the baht.

In the eyes of foreign capital, all of this is a threat and intimidation by foreign powers and China's cadres.

In the past two weeks, domestic capital has tested many tentative attacks in the Thai baht forward and spot markets.

Although they are all on the verge of retreat, international capital has still tested the bottom line of the Bank of Thailand.

The Bank of Thailand will intervene whenever the forward market baht hits 25 against the dollar.

This intervention is to take all the selling in the forward and spot markets.

about four percent amplitude.

This means that the bottom line for the Bank of Thailand is between 24 and 25.

The purpose is to maintain the selling pressure in the spot market.

That is, after the international capital took turns to test, Prime Minister Chavalit delivered a speech.

There are no three hundred taels of silver here.

Everyone understands this.

Chavalit's speech made international capital more sure that the Bank of Thailand's foreign exchange reserves were insufficient.

In the eyes of Robinson and other international capitalists, the current central bank of Thailand has only one way to go.

Actively liberalize the fixed exchange rate of the Thai baht and implement a market liberalized floating exchange rate.

At that point, he could have made huge returns on the short positions he had previously established.

However, the slump in the Thai stock market and the sluggish real estate market made Robinson realize that the Bank of Thailand is ready to stick to the fixed exchange rate of the baht.

Such is the keen sense of smell of apex predators.

Ordinary investors in Thailand are completely unaware of what the bleak domestic stock market and real estate mean.

In Robinson's eyes, Thai investors have become leeks that take over for the country.

The stock market is evaporating huge amounts of Thai baht every day.

The fall in real estate prices has also locked some capital into real estate.

When these funds do not flow out, the depreciation pressure faced by the Thai baht can be suspended.

There is no secret to the actions of the Bank of Thailand in the eyes of people like Robinson.

After thinking for a long time.

Robinson gently stroked his bald head.

A cold smile appeared on his face.

He felt that the hunting feast should begin.

November 21, 1996.

The Global Financial Times published a piece of news.

Titled:

Crisis in Thailand.

This was the front page headline of the Global Financial Times that day.

The content is.

"Take a set of data to explain: From 1994 to 1996, Thailand's exports increased from $45.1 billion to $55.7 billion, and imports increased from $54.4 billion to $73.4 billion.

The growth rate of imports is much higher than that of exports.

In other words, Thailand's foreign trade deficit jumped rapidly from $9.3 billion to $17.7 billion.

In 1996, Thailand's balance of payments deficit accounted for 10.2% of its GDP, far exceeding the international warning line of 5%.

…”

A very professional analysis, pointing out the current predicament facing Thailand.

Under all kinds of reasonable data, it is impossible to make people believe it.

Quantum Fund headquarters.

Soros stood in front of the world map and thought.

He knows that his theory of "big ups and downs" has been chosen to fall on Southeast Asia, which has created the "world economic miracle" in the past few years.

The Bank of Thailand chose to continue to maintain a fixed exchange rate system, and he could only choose to target Thailand.

However, things are not that simple.

As one of the world's top financiers, Soros is well aware of what kind of financial crisis a country's currency will cause when it collapses.

Under the financial crisis, people's lives will not be guaranteed, and many people may not even be able to eat bread.

Unlike attacking European countries.

In European countries, people have better welfare benefits, and the per capita income gap of wealth is not so big.

Even if those countries suffer losses, it won't really affect people's lives.

But Southeast Asia is different.

In Southeast Asia, wealth is in the hands of the elite.

True commoners have no wealth in themselves.

Once the crisis breaks out, those people will bear great pain for the country.

Even, it may lead to war.

From 1929 to 1933, the global economic crisis severely damaged the capitalist countries.

Unemployment has risen sharply, and social conflicts have expanded.

In order to divert various domestic conflicts, governments of various countries launched a series of foreign wars, which led to the outbreak of World War II.

It can be said that the 1929-1933 economic crisis was the trigger for World War II.

At Soros's height, he has an unimaginable understanding of politics and economics.

So facing Southeast Asia, Soros has a rare embarrassment.

He hates war.

It was also because of World War II that his homeland was destroyed.

But the target has been chosen, and it is difficult for Soros to convince himself to retreat.

As the top head of a hedge fund, his job is to help clients and themselves build positions to make enough profits.

After thinking for a long time, Soros picked up the special line and wanted to chat with Druckenmiller.

"Bell...Bell"

Stanley Druckenmiller was awakened late at night.

He knew that only Soros would call him at this time in the world.

It's just that this kind of thing hasn't happened since 1992, so what's the big deal this time?

Druckenmiller gently raised the phone~www.readwn.com~ Soros only said one sentence: "Stanley, let's study Southeast Asia together tomorrow."

However, this sentence made Stanley Druckenmiller unable to sleep that night.

To be honest, sometimes Stanley can't help but admire Soros's extraordinary intuition about the market. Although from the years he took over the Quantum Fund, the annual growth rate has exceeded the growth rate when Soros took charge of the fund himself.

Yet Stanley often pursued Soros's philosophy of investing and speculation deep inside.

In Southeast Asia, the Quantum Fund has not been involved, but Stanley Druckenmiller also has his concerns.

Because there, he once had bad luck.

Speaking of which, that was in late 1995.

At the time, Stanley quietly built a baht position equivalent to several hundred million dollars, and then dumped the baht heavily in the market.

However, Druckenmiller did not succeed at the end of 1995.

Since the aftermath of the Mexican financial crisis from the end of 1994 to 1995 has not yet subsided, Thailand has also strengthened its vigilance, so the Bank of Thailand has long been prepared.

The interest rate was suddenly increased when Stanley just made his move, and has won the support of several other ASEAN countries.

In 8 days in November 1995, Stanley Druckenmiller finally returned without success. According to statistics, the Quantum Fund lost nearly 70 million US dollars in the attack on the Thai baht.

Druckenmiller has been brooding about this.

This time the boss is going to "focus" on Southeast Asia, which is also in the arms of Druckenmiller.

Druckenmiller is clearly aware that this time, he and Soros's quantum fund will be famous all over the world.

https://

Please remember this book's first domain name: . Miaoshuwu mobile version reading website: