Extraordinary Genius

“We are still waiting, it is not appropriate to enter the market for the moment.” Fu Rongqi made a decision.

“Why?” Pays a good face.

“Because the Thai government hasn't intervened yet. When the Thai government ~ government takes the shot, it is bound to be another dragon fight, one government ~ government, there will be no way.” Fu Rongqi started paying Kwang to teach experience.

“So we wait now? ”

“That's right, wait. ”

This was more than a month later, during which the Thai Government ~ Government did intervene, and it fell some exchange rates and pulled them back. It was early May, and Feng Yu had returned to Xiangjiang, and naturally, Kirilenko had followed.

“Feng, how long will you wait?” Kirilenko's patience is limited, and it's been over a month, and they've lost hundreds of millions of dollars, and the conversion ratio of THB is only 25: 1, and the money they earn is not enough. Fortunately, Thailand's stock is slowly falling, and their stock index will fill most of the 22 deficits if the futures are delivered.

“When Soros can't help it, he will contact us. We can only suppress THB with thunderous thunderbolts if we sell THB on a massive scale at the same time.” Feng Yu was very calm. If it was as simple as Kirilenko thought, then the fund for foreign exchange would be more than that.

“But how did you start selling off Ringgit again?” Kirillianko couldn't figure it out. One country's currency didn't come down. Why did it start hunting other countries' markets again, so that the money could be spent?

“You certainly don't know that the country that deals most frequently with Thailand is Big Horse. The debt between the two countries was very large and complex, and the economy of Damascus would inevitably be affected when the Thai economy experienced serious problems. ”

Why history called this Asian financial turmoil was due to the fact that economic patterns among East Asian countries were similar at the time and that trade was frequent with each other, forming a complete chain.

When a link breaks, the whole chain breaks, and all these interconnected countries, to some extent, are damaged, and then it becomes much easier to repress them.

Kirilenko nodded knowingly. Anyway, he saw that he was losing money every day. Had it not been for the futures contract, he would have asked for the withdrawal of capital. Without Feng Yu, Kirilenko would not have attacked Thailand, even if Soros had invited him, and the country's economy looked very good.

How rich is Thailand now? GDP per capita is over $3,000, many times that of Huaxia, and it looks like there's a prototype of developed country, right?

Paradoxically, Thailand's per capita debt exceeds $1,500, which means that Thailand's overall debt ratio exceeds 50 per cent.

Thailand's economic development, which cannot be separated from foreign investment and domestic manufacturing exports, which account for more than 42 per cent of GDP, is a considerable share of the absolute pillar industry.

This proportion is reflected in several sea-dependent countries in South-East Asia, where maritime transport is, after all, the most mainstream mode of international transport.

The second point is that the real estate industry in Thailand is very thriving and is their second pillar. Foreign investment accounted for a large proportion of this, with luxury hotels, office buildings, resort villas and golf courses constantly being built.

In Bangkok alone, there are two international conference centres and four international conference centres under construction, hospitals with more than three times the number of beds actually needed, firehouses and fast insurance shortcuts.

But one of the great risks is that the vacancy rate is extremely high, more than 20 percent. That is, so many houses are built not for living, not for necessity, but for scrambling.

This model, very similar to the US and island economies of the late 1980s, with real estate and exports as the backbone, would quickly create a false prosperity, a real estate bubble.

It is worth mentioning that island countries account for a significant proportion of foreign investment in Thai scrambled houses, or that island countries account for a significant proportion of investment in Asia as a whole.

After the collapse of real estate in the United States, the disaster was transferred to the island country, and then the country was rapidly developing again through high-tech and real estate was restored. But the island's real estate has not been restored, but smart island businessmen have also found a good way to replicate the brilliant illusion of former real estate in other countries in South-East Asia, so that they can make money from it.

This time they learn to be good, just walk away at the peak of real estate, and you can make a lot of money, and then throw the mess away to the governments of those countries. In this way, they both made money and hit other economies, guaranteeing the position of Asian economic boss of the island countries, much more.

It was also interesting to note that Thailand's financial liberalization had led to the abolition of the securities transaction tax, the reduction of the corporate dividend tax and even the provision of financial support to securities companies in order to promote capital market development.

Interest rate restrictions were lifted, interest rates were marketed and the short-term lending market was growing rapidly. Foreign exchange is open to foreign exchange and the ceiling on foreign investors' remittances is US $500,000, which makes Thailand's foreign exchange reserves grossly inadequate.

Perhaps it has seen the benefits of the development of the financial sector in other countries, with Thailand opening its offshore financial operations and 50 commercial banks in Thailand, including 35 foreign banks, qualifying for deposits and borrowings from abroad, followed by loans in Thailand and foreign currencies.

This also makes it easy for Soros and Feng Woo to borrow to the baht.

It is also important, of course, that Thailand allow non-resident commercial banks in Thailand to open Thai Baht accounts, make deposits and borrowings and exchange them freely. Capital projects in Thailand have been largely liberalized.

In such a short period of time, large inflows of foreign investment would allow the country's economy to grow rapidly. But the financial crisis also buried a great deal of danger.

For example, they do not exercise external debt size control over financial institutions, and the regulation of financial institutions is virtually fictitious. Domestic stocks and bonds are completely open to the outside world, giving international scavengers a great opportunity.

And then there was their investment in foreign countries, completely unrestricted, even very welcome, as a boom to their own economies.

Enterprises can borrow externally, and external debt is huge. Their nationwide debt ratio exceeds 50 per cent of GDP, which is a good illustration. Looks like the company is developing well, the asset growth is very good, but I didn't think about it, and the money I owe others is still a loss!

Thailand, which owed the largest amount of external debt, was an island State, which also had the largest number of banks in Thailand and even in East Asia as a whole, which borrowed heavily from outside the country because it was seriously overfunded. The island nation's investment in Thailand was well over $10 billion.

In fact, even if Soros didn't attack Thailand, the Thai economy would not have survived the millennium. By withdrawing from the real estate and finance industries, island countries could bring economic collapse to Thailand.

……