Rebirth

To be honest, Li Feng is still full of expectations for the layout of the financial crisis.In the previous life, I did not read novels at a certain point less. The protagonist achieved his goal of accumulating wealth through the financial crisis. Now he personally participates in it. Thinking about it, Li Feng is still very excited.

In response to this financial crisis, Li Feng did not read less books on finance, foreign exchange, and currency, such as the currency exchange rate system of countries, and so on. Combining the general memory of later generations, Li Feng clearly knew that the financial crisis was It started when the Thai baht gave up the fixed exchange rate with the US dollar.

I am deeply admired by industry elites like Li Shanquan about predicting financial crises, but at the same time I feel that there are traces to follow. This is also the meaning of the existence of people like Soros.

After World War II, after clarifying the "Bresenton System", two major international monetary cooperation institutions were established, namely the International Monetary Fund and the World Bank for Reconstruction and Development (the World Bank). Therefore, it can be said that The two major international monetary institutions are in fact all under the control of the US imperialism.

As the hegemony of the U.S. emperor was established after the war, a world currency exchange rate system centered on the US dollar was established.The monetary policies of all countries in the world implement a dual peg policy, that is, the U.S. dollar is pegged to gold, and the currencies of various countries are pegged to the U.S. dollar based on the gold content.It is stipulated that 1 ounce is equal to 35 US dollars, so that the currencies of all countries around the world are centered around the US dollar.

This is the "fixed exchange rate system under the Bretton Woods system", which is also the origin of what was later called "the dollar kidnapping the world", and this is also the origin of the dollar being called the "dollar".

With the recovery of the European economy and the rise of the Japanese economy in the 1960s and 1970s, the Bretton Woods system finally collapsed and the floating exchange rate system came into being.

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Naturally, all countries now have their own set of exchange rate systems for their currencies, and some major countries in the world have adopted independent monetary management policies for their currencies, mainly those industrialized countries.

In fact, most countries are actually following these industrial powers. For example, the British and British countries are dominated by the pound sterling, and European countries such as France and French countries are dominated by their national currencies.

As for the United States, it is the largest rogue country. The currencies of most countries in Southeast Asia are directly linked to the US dollar. This is why these countries listen to the United States.

No way, isn’t there a saying called “the economic base determines the superstructure”.Even your country’s currency follows the US dollar. You can’t listen to it.

Later generations also have a name called the world currency, a currency that can be used for international trade settlement, such as the US dollar, Japanese yen, and British pound.

The first world currency was the pound sterling. It was also the glory of the UK’s first empire that never sets in the sun. Unfortunately, it is no longer there. After that, it is the US dollar. The yen, the euro, and later the renminbi have all become world currencies. basis.

In fact, to put it bluntly, it is still related to the status of the country's strength. You have the final say when you are strong. It is as small as a person and a country.

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With the collapse of the Bressonton system, most mainstream countries in the world currently adopt independent floating exchange rate policies, such as the United States, Britain, France, Germany, Japan, etc. There are about 30 countries, thus forming a global Common "world currencies" in the market such as the US dollar, Japanese yen, and British pound.Of course, the US dollar has become the mainstream world currency due to the strong national strength of the US.

The vast majority of other countries in the world are linked to the currencies of these major countries. That is to say, their currencies will float with the currencies of major countries. This is called a "pegged floating" exchange rate system, which means that the national currencies of these countries follow these currencies. Changes in the currency exchange rates of major countries.

There is also a joint floating, that is, a consortium between countries, which implements a "fixed exchange rate" within each member state, and implements joint floating outside. The European Union is a typical example, and the euro was born in this way.

Of course, these are the mainstream exchange rate systems in the world, and some are related to the formulation of related policies. For example, Hong Kong implements a "linked exchange rate system", which can be said to be a variant of pegging. Floating exchange rate system, currency is issued based on foreign exchange reserves.

The Hong Kong Currency Issuing Bank uses a fixed exchange rate standard of 1 U.S. dollar to 7.8 Hong Kong dollars, and pays the corresponding U.S. dollar to the foreign exchange reserve fund in advance, and then issues currency. This is a variant "pegged dollar floating" exchange rate system, as long as there is enough foreign exchange. Can guarantee the stability of the currency.

In other words, if you want to issue 780 million Hong Kong dollars, you must first pay 100 million US dollars of foreign exchange reserves to the foreign exchange reserve fund before issuing additional Hong Kong dollars.In other words, the more foreign exchange reserves you have, the more stable your currency will be.

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Similarly, here also let Li Feng understand the importance of foreign exchange reserves for Hong Kong, thinking that in the financial crisis, Hong Kong would definitely not be able to withstand the attacks of international hot money if there was no support from the mainland. In the end, the exchange rate systems of Hong Kong, Thailand and other countries are essentially the same.

However, when supported by the mainland's strong foreign exchange reserves, Hong Kong can withstand external pressure. This is one of the reasons why foreign hot money led by Soros later failed in two attacks on Hong Kong. After all, the mainland foreign exchange reserves world First.

It can be said that in the subsequent financial crisis, Hong Kong's performance was definitely the result of the huge foreign exchange reserves supported by the Chinese government. It is estimated that it will be very difficult with Hong Kong itself.Just like Singapore, although it withstood the pressure, it suffered heavy losses.

Naturally, Li Feng also cares about China's monetary policy. China is different from other countries in the world due to special political, economic and financial reasons.The financial exchange control implemented by Huaxia does not allow free exchange of foreign currencies and other policies.

It is also because of this that outsiders always say that China has no foreign exchange financial market. European and American countries have repeatedly requested China to implement a floating exchange rate system in the early days.

The advantage of a financial exchange rate system like China is that China has almost the least impact on the financial crisis.However, as the world economy becomes more and more integrated, China Xia will sooner or later integrate into the world economy.

Perhaps this is also the reason why the renminbi continued to appreciate with the entry into the WTO, and perhaps the reason why the currency system was gradually reformed and gradually integrated into the world economy.

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Since the beginning of the 1990s, two major financial crises have occurred.The first is the British currency crisis of 1991-92 and the crisis of the European exchange rate mechanism; the second is the Mexican financial crisis of 94-95.

According to Li Feng's current eyes, the appearance of the two crises was caused by currency or exchange rate adjustments, and the situation in Southeast Asian countries is somewhat similar.

Combined with later history, it was precisely hot money that attacked the currencies of various countries, leading to currency depreciation and even eventually leading countries to abandon their own currency exchange rate systems, which ultimately triggered a financial crisis across Asia.

Of course, this is what Li Feng has summed up after looking at some financial exchange rate systems, combined with previous and previous history. Although it may not be comprehensive, it at least seems to be the case.

When participating in the financial crisis, Li Feng deliberately checked the previous two financial crises and related materials, including Soros's original case, and finally saw some signs.

In short, Li Feng also has a certain understanding of the Asian economic and financial crisis, and has his own insights in combination with history. Now he is no longer that financial novice.

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Next, in addition to Li Shanquan, the heads of the Asian offices of many other companies also came to report.