Easy Tycoon

Chapter 862 Unqualified!

Yang Jing looked at David Anderson, then shook his head and said, "David, you should know that the focus of our future development will be on the other side of the Pacific Ocean. If we also attack Hong Kong Island, do you think the other side will get stuck? Our necks?"

David nodded bluntly: "Boss, if I were on the opposite side, I promise to prohibit all things related to KY investment funds from entering my country. That's why I have been hesitant to agree to the request of Soros and Robertson. "

"That's right. David, you are an excellent investor. You have a strategic investment vision. Presumably you can also see the huge energy that is bursting out from the country across the Pacific Ocean. Yes, they are indeed still We are not rich, but we can't just look at the present, we have to look at the longer term, such as ten years or 20 years later!"

David smiled, "Boss, I just feel a little reconciled. If we take advantage of this opportunity to enlist the foreign exchange reserves on the opposite side, our profit from this battle must be at least 700 billion U.S. dollars above."

"Hehe, but this amount of money is nothing compared to the future layout across the ocean. David, at your age, you can see the country on the opposite side rise again, and that country will To grow into a nation of awe. Listen to me, don't mess with those guys this time, we don't need that money."

"Boss, can that country really grow to that point? Is it stronger than the Federation?"

"Yes!" Yang Jing nodded very positively, "I think that within 30 years, China's economic aggregate will surpass that of the Federation, and not only the economic aggregate, but also that country's military is not weaker than the Federation. And I I'm sure that Huaxia will have its own aircraft carrier formation within 20 years! So, don't underestimate that country, we must look at that country with awe."

"Can they develop so fast?" David asked in disbelief.

"Facts speak louder than words! What I say now, you will definitely not believe it until you see it with your own eyes, but I believe in that country. So, David, no matter from which aspect you consider it this time, Pacific Capital should not participate in the claim Ross’s plan. We only need to obtain our profits in those countries in Southeast Asia, as well as the markets of Japan and South Korea.”

After a pause, Yang Jing continued: "Even when necessary, arrange an agency fund to go out and help Hong Kong Island fight Soros and the others in the name of that fund."

"Ah? Why do you want to do this? If we do this, once the news leaks out, we will immediately become enemies of Soros and the others."

"Enemy? Haha, David, don't think they are so tall! Don't talk about KY investment funds, even if it is the power of Pacific Capital, do you think Soros or Robertson are qualified to be our enemies? You are too underestimated Let's go!"

Yang Jing's words are absolutely domineering, but they are definitely not exaggerating!
After Japan's continuous harvest of huge profits in the Japanese market, Pacific Capital has now grown into a behemoth.Although few outsiders know about this behemoth, as the CEO of Pacific Capital, David Anderson knows Pacific Capital best.

Now the cash controlled by Pacific Capital alone is as high as more than 3000 billion U.S. dollars. As for the assets controlled by Pacific Capital, it is even larger.

If you have to use an exact number to reflect the current overall capital of Pacific Capital, then this number has exceeded one trillion US dollars!

Such a behemoth, not to mention the Quantum Fund with a capital volume of 60 billion US dollars and the Tiger Fund with a capital volume of 110 billion US dollars, even if they are tied together, they will not be able to catch up with a little toe of Pacific Capital!
It is no exaggeration to say that if the current Pacific Capital surfaced, it would be a properly large consortium!Small Quantum Fund and Tiger Fund are not qualified to be enemies of Pacific Capital at all!

Quantum Fund and Tiger Fund are well-known, but in front of Pacific Capital, a prehistoric mammoth, they are just two well-known ants, and Pacific Capital can still easily crush them!
David froze for a moment, then scratched his head and smiled embarrassedly, "That's right, BOSS, they don't even have the qualifications to be our enemies, why should I care about them?"

"Haha, this is my good David!" Yang Jing smiled and applauded to express his encouragement. "Go ahead and reap our profits in East Asia. Don't pay attention to the clamor of those two guys, they can't do it! Also, who said that we can only follow them to make money? If Soros and the others have a crisis, We can turn around and eat their profits. Who are we? Don’t forget that we are Pacific Capital! We are the real masters of this gluttonous feast!"

"I understand the boss. But I will still be very careful. I will not let others know that we sent agents to deal with them. After all, one less enemy is better than one more enemy."

"Well, then you can do it as you see it! Find more layers of agents and don't expose us as the top. Also, pay more attention to South Korea and Russia. If necessary, you can talk to Niam Let's discuss it and see if we can scrape off another layer of grease from that furry bear."

"I understand the boss, I'll do it now."

Seeing David Anderson turn and walk out, Yang Jing nodded in satisfaction.

The financial crisis that broke out in the middle of 1997 and affected the entire East Asia and half of Eastern Europe was a feast for hot money all over the world.Under the leadership of Soros, these international hot money did earn a lot of profits in the early stage, but in addition to some sober international hot money, there are also a lot of international hot money that followed Soros on Hong Kong Island, not only bringing money from Southeast Asia All the profits earned by various countries have been vomited out, and their original funds have also suffered considerable losses.

No one would have imagined that the Quantum Fund and those international hot money would meet such an ending!

Therefore, the famous saying "never underestimate any opponent in the financial market" has been verified again in this financial crisis.

In fact, the financial crisis in Southeast Asia has already appeared a long time ago.As early as December 1994, after the Mexican financial crisis, some economists pointed out that a financial crisis may occur in Southeast Asia. Professor Krugman of the Massachusetts Institute of Technology once pointed out that the miracle of East Asia did not come from the growth of total production capacity, but It is due to excessive investment, excessive investment, excessive capital inflow, and excessive artificial capital output. The so-called "economic miracle" formed under this model will not last long.

In September 1995, Liu ZY, a professor at Stanford University in the United States, and Goldstein, an economist at the International Monetary Fund in August 9, both pointed out that financial crises may occur in Thailand, the Philippines, Malaysia, and Indonesia.

These financial experts can all see the signs of a financial crisis, not to mention guys like Soros and Roberts who are more experts than financial experts.

Of course they can see the hidden loopholes in the financial systems of Southeast Asian countries.

Especially in Thailand, such loopholes and signs of crisis are more obvious.

Although Thailand has a lot of foreign exchange reserves, it also has a lot of foreign debts.However, nearly 60% of Thailand's foreign debt is in Japanese yen, but Thailand pursues a financial policy in which the baht is linked to the US dollar.When the yen appreciated in the past, this contradiction in Thailand could not be highlighted, but after April 1995, when the yen appreciated to its peak and began to depreciate, this contradiction immediately became apparent.

Because the Thai baht is pegged to the U.S. dollar, the strength of the U.S. dollar means the strength of the Thai baht. However, more than half of Thailand's foreign debts are in Japanese yen. Once the Japanese yen depreciates, Thailand can't bear it immediately.

Under such circumstances, the international hot money headed by Soros immediately came to Thailand like a shark smelling blood.

In fact, the speculative actions against the Thai baht are the same as the method used by Rio Vantaa to empty out the legacy of the former Soviet Union.

Simply put, it is divided into three steps!

The first step is to borrow Thai baht at the prevailing Thai baht interest rate; the second step is to sell Thai baht in the spot exchange market and exchange it for U.S. dollars; the third step is to lend the exchanged U.S. dollars at the U.S. dollar interest rate.

After completing these three steps, once the Thai baht depreciates or the interest rate difference between the Thai baht and the US dollar widens, speculators will profit.

Among them, the most difficult thing to accomplish is how to minimize the exchange rate of the Thai baht, that is, how to depreciate the Thai baht.

It is obviously impossible for a single hedge fund to smash the Thai baht to the floor in front of the Thai government, which is sitting on US$300 billion in foreign exchange reserves, especially when Thailand is also joining forces with Singapore.

But when the capital of international hot money reaches a certain level, for example, exceeding Thailand's foreign exchange reserves, then the practice of smashing the Thai baht to the floor, which was originally impossible or difficult, immediately becomes easy.

In May 1997, international currency speculators, mainly hedge funds and multinational banks began to aggressively short-sell the Thai baht. Hedge funds shorted the forward exchange rate of the Thai baht in the futures market, while multinational banks sold the Thai baht in the spot market.Many hedge funds and multinational banks smashed the Thai baht together. Even though the Thai government and the Singapore government joined forces to fight against it, they still only resisted for a short period of time.

At the beginning, the central bank of Thailand and the central bank of Singapore jointly intervened in the market and adopted a series of measures, including using 120 billion US dollars of foreign exchange reserves to absorb Thai baht, prohibiting local banks from lending Thai baht to speculators, and substantially raising interest rates to increase the cost of borrowing funds for speculators.

But attacks on the baht came in a flood, with currency speculators selling the baht, sending the baht to record lows against the dollar. On June 1997, 6, the Minister of Finance, who firmly opposed the devaluation of the Thai baht, resigned.Due to concerns about the depreciation of the exchange rate, the interest rate of the Thai baht rose sharply, the stock market and the real estate market plummeted, and the whole Thailand was shrouded in panic.

On July 7, after depleting its foreign exchange reserves of 2 billion U.S. dollars, the Bank of Thailand announced that it would abandon the 300-year-old exchange rate system of the baht pegged to the U.S. dollar and implement a floating exchange rate system.The Thai baht tumbled 13 percent that day.Thus began the Asian financial crisis.

Starting from Thailand, the currencies of Malaysia, the Philippines, and Singapore all fell in response, especially when the Bay Island, which has foreign exchange reserves of 800 billion US dollars, also announced the devaluation of the New Taiwan dollar irresponsibly, the panic caused by this crisis was even greater.

Soros and others have tasted great sweetness in Southeast Asian countries, and then when they face the fat of Hong Kong Island, how can they hold back?
As a result, Soros underestimated China's determination to support Hong Kong Island.These international hot money giants came with strong confidence, but in the end they left in disgrace.

Of course, Yang Jing will not participate in the attack on Hong Kong Island. On the contrary, he will let David secretly find an agent to help Huaxia and Hong Kong Island when necessary, and then scrape the Soros and the others fiercely. The next layer of grease is coming!

PS: Bow and thank "Very Lazy Fish" for the 100 tip.

(End of this chapter)