Su Su smiled and said, "Anyway, after two years of fattening, I was ready to start killing. After the plunder of the Soviet Union, the International Financial Group's killing skills have become more sophisticated. It is a slight trial against Southeast Asia. The one who took charge this time was the famous financial tycoon Soros. This was the financial storm that swept Southeast Asia in 1997 but failed to break into Hong Kong. It was also a thrilling financial war that China had half a century after the 49-year Shanghai Financial War!"

Wang Qiang browsed wildly when he heard this: "Brother knows this person! What awesome hedge funds, can you understand?"

Su Su smiled and said, "I won't talk about the specific operation methods. Different lines are like different mountains. That's the business of the trader. I will talk about the basic principles, Brother Qiang will definitely understand."

Wang Qiang nodded repeatedly: "It must be not difficult for brother to understand!"

Su Su smiled and said, "Didn't we talk about the example of currency depreciation and debts? That is, 10 years ago, Brother Qiang had a friend who borrowed 1,000 yuan from you, and then 10 years later he would repay you 1,000 yuan..."

Wang Qiang nodded repeatedly: "Yes, as I said just now, he paid back the money as much as possible, but in fact, the money has been depreciating in the past 10 years. He actually made several thousand. This example is simple!"

Su Su smiled and said, "Then let me give you a more extreme example. For example, Brother Qiang traveled to the Republic of China in 1947. Your friend borrowed 1,000 fiat currency from you last week and bought a lot of rice. A week later, the fiat currency depreciated wildly and began to pick up the whole basket, and he returned 1,000 fiat currency."

Wang Qiang was amused and crying: "What's the difference between fiat currency and waste paper at this time? I asked him to use rice to pay it back!"

Su Su smiled and said, "He made money for nothing. This is Soros's technique. He borrowed and returned it, and made money for nothing!"

Wang Qiang suddenly realized: "So the key is to let the borrowed money devalue wildly?"

Su Su smiled and said, "By the way, the whole Soviet Union was the same. As I said just now, the Soviet Union accepted the warm redemption hand of the West and opened up finance to the West. Therefore, various high-end and atmospheric Western banks that can drink free coffee were opened to every city in the Soviet Union. These banks, which have high-quality services, are considerate and never have to queue up, not only absorbed a large amount of ruble deposits from the Soviet people, but also borrowed a lot of money from the state-owned banks of the Soviet Union at interest of more than 30% similar to private usury. This is the most critical step - borrow money under empty hands!"

Wang Qiang reviewed the old and learned the new, nodded repeatedly: "It turned out to be 30% usury. No wonder the Soviet Union took the bait, and he would borrow it if he changed it to a brother."

Su Su sighed: "But no matter what, although the Soviet Union collapsed and the ruble depreciated a lot, it is still a distance from waste paper. After all, these rubles borrowed from usury still have to be paid back, and the amount is actually amazing. But in the eyes of international financial groups, Russia is no different from a dead person. They are obviously unwilling to return the money to a dying person, so they have introduced a rescue strategy for the deceased Russia to the monetary reform, which is to issue new rubles, 1 new ruble = 1,000 old rubles... In short, this topic is too complicated. Anyway, after such trouble, the old ruble depreciated by 10,000 times, which is really no different from waste paper."

Wang Qiang felt something: "Yeah, I won't talk about the complicated ones. After saying this, I understand a little more about the Soviet Union."

Su Su smiled and said, "Anyway, the first one Soros was to take action was Thailand, because Thailand is the most open financial in Southeast Asia, and capital is free from entering and leaving! And Thailand's bubble is also very high."

Wang Qiang couldn't smile bitterly: "I feel like Thailand has stripped naked after hearing your tone..."

Su Su smiled and said, "What are the Thai characteristics of stripping naked? Just listen carefully and don't interrupt - in short, as long as there is bubble, there is room for price reduction. As long as the price can be reduced, Soros has room for mad depreciation. Soros borrowed Thai baht at the beginning, which is very incomprehensible. He was ridiculed by Thais as the "very rich fool". Then the Thai baht borrowed almost the same, and he began to distribute and sell a large amount of Thai baht to buy US dollars in the market. Then various media experts who bought were fueling the fire to deceive the public, and then triggered the decline of the stock market. Various small water army nurseries followed the trend and led the market panic. As expected, everyone sold Thai baht to buy US dollars, and the Thai baht depreciated like this!"

Wang Qiang said, "This trick is not difficult!"

Su Su smiled and said, "The specific operation is still complicated. For example, Soros can take advantage of the transition period of the mild depreciation of the Thai baht and use the US dollar to buy a part of the Thai baht at a low price. The difference between this is the profit, and he can also add a large amount of consumed Thai baht as ammunition. Then when the ammunition in his hand increases, the crazy depreciation of the Thai baht is inevitable. During this depreciation period, the US dollar he bought with the borrowed Thai baht is Thailand's foreign exchange reserves."

Wang Qiang sighed: "So that's it! When the Thai baht was depreciated to toilet paper, he would pay the Thai baht as much as possible. Even the usury was just a loan shark for toilet paper, and it didn't count. But he did buy all the foreign exchange in Thailand. This is just making money for nothing!"

Su Su smiled and said, "The principle is actually that simple, but the specific operation also involves breaking the fixed exchange rate problem of Thailand. So let's talk about a few key terms, fixed exchange rate, floating exchange rate, and a basket of currencies. Thailand and China used to have fixed exchange rates. For example, the US dollar was 1:8 to RMB, so when the United States appreciates, the RMB will rise, the United States depreciates, and the RMB will depreciate, and always maintains 1:8. Of course, there is a slight floating value in the middle, which is easy to understand?"

Wang Qiang nodded: "This is easy to understand."

Su Su smiled and said, "But Brother Qiang, have you found any problem?"

Wang Qiang browed: "Thailand is also a fixed exchange rate? Since it is a fixed exchange rate, no matter how Soros sells the Thai baht, the Thai baht should not depreciate!"

Su Su smiled and said, "Brother Qiang, when Soros sold the Thai baht, the Thai bank must buy it with the US dollar in foreign exchange reserves, but a small country like Thailand only has only US$30 billion. Compared with the huge amount of Thai baht issued during the Thai bubble economy, it is completely unbearable. When Thailand's foreign exchange is exhausted, what should we use to maintain a fixed exchange rate?"

Wang Qiang then understood: "What should I do?"

Su Su smiled and said, "Then the floating exchange rate, the market will give up resistance and let it be ravaged and depreciated to the end. That is, the fiat currency of the Republic of China! Therefore, a fixed exchange rate must have a large amount of foreign exchange as reserves. When Soros broke through Thailand's defense line, he made trouble and no one could stop him. Thailand's bubble collapsed like this, allowing him to make money and plunder the wealth of a country."

Wang Qiang immediately understood: "Where is that basket of currencies?"

Su Su replied: "The floating exchange rate is very scam, but the US dollar often depreciates and appreciates in order to cause trouble, and it is even more scammed when it is even scammed. The four Southeast Asian dragons have been keeping a close eye on the US dollar. In the past, they depreciate when the US dollar depreciates, and exports are very cool. However, when the RMB depreciates to 1:8, the US dollar began to appreciate strongly in order to buy at the bottom of the market, and the four dragons appreciated. The appreciation of the Taiwan dollar was shown in this context. The appreciation was originally not conducive to exports, and China depreciates wildly. With this drag and pulling, Southeast Asia's exports are enough."

"So, the safe way is to not stare at the US dollar, but also at the pound, euro, yen, etc., and then draw a comprehensive value based on the changes in various currencies. This is a basket of currencies, the object of the world's affiliation. The RMB was added to a basket of currencies on October 1, 2016, that is, the SDR. This is the late position that the RMB has become increasingly strong and has finally gained."

Wang Qiang said ignorantly: "So this is a basket."

Su Su sighed: "Anyway, let's not talk about baskets for now. Soros's method of sweeping Southeast Asia is to be sure that these small countries have insufficient foreign exchange reserves. Their bubble has been pushed up so much, and their exports are blocked. There is no possibility of a lot of foreign exchange. So I bet on these small countries that the fixed exchange rates cannot be held back, so I can only give up the resistance to the floating exchange rate. As long as it floats - that is the market economy, and that is the favorite of the big players!"

Wang Qiang still understood: "But Hong Kong has foreign exchange support from mainland China!"
Chapter completed!