Chapter 431: Soros and the Quantum Fund

Quantum Fund, a terrorist organization in the international financial community in the 90s, was co-founded in 1970 by George Soros and Jim Rogers, two world-famous financial investors.

The Quantum Fund has become the focus of the international financial community due to several large-scale currency sniping wars launched by Soros in the nineties with the fund. During this period, the Quantum Fund, with its strong financial resources and ferocious style, made waves in the international currency market, launched attacks on weak-based currencies and repeatedly succeeded.

In Europe, in 1992, Soros successfully blocked the pound, causing the pound exchange rate to fall by 20%, and triggered a chain reaction, and the Italian lira was also hit hard, causing panic in the entire European society, the event is known as the European currency crisis.

In the Americas, in 1994, Soros took the lead in blocking the Mexican peso with the same success, and the attack on the peso launched by the Quantum Fund depleted Mexico's foreign exchange reserves in a short period of time, and it had to abandon the peg to the US dollar and implement free floating, which caused the collapse of the Mexican peso and the domestic stock market, and the Quantum Fund made a lot of money in this crisis.

In Asia, the Southeast Asian financial crisis that began in 1997. Southeast Asian economies are in almost identical conditions to Mexico in 1994, and the Quantum Fund has once again played the role of a sniper, starting with a massive short sale of the Thai baht, forcing Thailand to abandon its long-standing fixed exchange rate pegged to the dollar and move to free floating, triggering an unprecedented crisis in Thailand's financial markets.

The crisis soon spread to all Southeast Asian countries and regions with free currency convertibility, forcing all major Southeast Asian currencies to depreciate sharply in a short period of time, with the exception of the Hong Kong dollar. The collapse of the monetary system and stock market in Southeast Asia, as well as the resulting massive withdrawal of foreign capital and the enormous pressure of domestic inflation, have cast a shadow over the region's economic development.

At this time, Soros was in high spirits, and it is not an exaggeration to say that his sneezing can cause an earthquake in the financial world, and by the end of 1997, the Quantum Fund had grown into a giant fund with a total asset value of nearly $6 billion.

The assets of $6 billion may not seem like much, but because it can obtain the investment effect equivalent to tens of billions or even hundreds of billions of funds through leveraged financing and other means when needed, coupled with Soros's rising fame, it can attract idle international investors to follow, so it has become a decisive force in the international financial market.

"Stanley, do you think this mysterious Eastern force will be our favor?" Soros asked his military advisor, Stanley Druckenmiller, sitting on a couch in his office at the Quantum Fund headquarters on Wall Street.

Stanley Druckenmiller, who has been Soros's right-hand man since the 80s, is the tenth and most successful successor chosen by Soros for the "Quantum Fund", and is now the general manager of the Quantum Fund.

He assisted Soros in shorting the pound in the early 90s of the last century, and then successfully orchestrated the Southeast Asian financial turmoil with Soros that shocked the world.

Of course, he is best known for his huge amount of money in 1998 when he made a big gamble of the century with the Hong Kong SAR government, but because the mainland brazenly supported the Hong Kong SAR government, the SAR government intervened in the foreign exchange market, which made the quantum fund fail and lose Xiangjiang.

"Boss, I'm not sure about this, it depends on how vigilant the other party is. However, we have set up a trap in the Malaysian market, as long as the other party enters the Malaysian market, we will buy a large amount of ringgit, so that the ringgit will increase by 10% in one day, which can make them lose all their money.

When they lose all their money, our funds will still attack the Philippines as originally planned, and the Philippine peso will depreciate again, and we will be able to enjoy this feast on our own. Stanley replied respectfully.

"Very well, Stanley, you did a great job. In fact, this mysterious eastern force has already begun to show signs as early as last year when we began to block the Thai baht, and the amount of money they invest is often very small, so small that it is negligible, but its returns are higher than our quantum fund.

This is not right, our quantum fund has invested a lot of preparation work for this financial battle, but the result is that others eat meat, we drink soup, just like the old saying of the Chinese, we made wedding dresses for others!" Soros said a little angrily.

"Boss, what the Chinese are saying should be to make wedding clothes for others, not wedding dresses. Stanley, who is knowledgeable and somewhat obsessive-compulsive, reminded.

"No, no, Stanley, don't bother with these details, the meaning is the same anyway. But we've almost scraped the economic results of Southeast Asia, have you figured out what to do next?" Soros said, waving his hand.

"Boss, didn't you once say that you want to give the Chinese a little bit of power, in fact, our goal has never changed, that is, Xiangjiang, which is known as the international financial center, right?" Stanley said with a smile.

"Hehe, Stanley, you are indeed a roundworm in my stomach, you know what I am thinking. Soros laughed.

"Boss, Xiangjiang is a bigger super ATM than other Southeast Asian countries, if we can really capture Xiangjiang, then the benefits of our quantum fund will be beyond imagination. In addition, I suspect that the mysterious power of the East that the boss has always been haunting has its base camp in Xiangjiang!"

Stanley led the Quantum Fund to attack Xiangjiang once in October last year, but that attack was strongly blocked by the local tycoons in Xiangjiang, which made the Quantum Fund return in vain, causing both Soros and Stanley to be angry.

Now that Quantum Fund has won a big victory in the Southeast Asian financial market and obtained unimaginable wealth, they certainly hope to make a comeback with the momentum of a big victory and capture the Oriental Pearl of Xiangjiang.

In addition, although Soros has always claimed that he treats all races equally, in his heart, he is a white supremacist, and he has a certain prejudice about the return of Xiangjiang to China, so he hopes to tell the Chinese government that Xiangjiang is already the Xiangjiang of the world, and the Chinese government cannot be allowed to strictly control and interfere in Xiangjiang.

However, although Stanley and Soros have reached a consensus on attacking Xiangjiang, Stanley and Soros have a slight disagreement on the timing of the attack on Xiangjiang.

It should be said that in dealing with the differences between himself and his subordinates, Soros did show the greatest tolerance of a leader, although he couldn't wait to attack the Xiangjiang market, but he still listened to Stanley's opinion and decided to start with the yen in the next stage.