In February 1997, Soros led the Quantum Fund to sign a forward contract with the Bank of Thailand, pledging local assets to borrow a large amount of Thai baht (estimated at about $15 billion) at the interest rate of Thai baht and sell it for US dollars.

In March 1997, when the Thai government announced that nine finance companies and one housing loan company were illiquid (that is, out of money), Soros took advantage of the opportunity to sell a large amount of Thai stocks.

Because Soros is short in batches and small batches, the Thai government did not find out, and even the local government is very willing to lend him money, because Soros borrowed money to do business in Thailand, and he is an international financial giant, with very good credit, there is no need to worry about not paying back the money, and the local bank can also borrow it to earn interest.

Then Soros began to borrow Thai baht from the Bank of Thailand, then throw Thai baht, and finally buy US dollars. After repeating it several times, the people panicked all at once, why are various banks and markets selling baht; And the dollar suddenly became popular, so everyone went to buy dollars together. Because it is a fixed exchange rate, no matter how the Thai baht falls, it can always be exchanged for so many dollars, but fortunately, the Bank of Thailand used 2 billion US dollars of foreign exchange reserves to intervene in the foreign exchange market, calming the turmoil, and Soros returned empty-handed.

Three months later, Soros made a comeback, on the one hand, selling a large amount of Thai baht, and on the other hand, uniting with international speculative capital, forming an expectation that the Thai baht would depreciate around the world, and international capital joined the ranks of selling Thai baht. The Thai baht fell to 26.7 baht per dollar at one point. The Bank of Thailand, through the members of the "East Asian Central Bank Governors' Meeting", jointly intervened in the foreign exchange market with Singapore, investing US$12 billion. Then use an executive order to strictly prohibit local banks from lending Thai baht to Soros and so on. In the end, the overnight interest rate was significantly raised, and finally on May 20, the baht was maintained at 25.2 baht per US dollar.

Although Soros's first two waves of attacks ended in failure, they effectively reduced the Bank of Thailand's dollar reserves and created panic in the minds of investors, with short-term funds that had previously entered the Thai stock and real estate market in large quantities frantically retreating, further increasing pressure on the Thai baht to depreciate, and a continuous panic sell-off in the foreign exchange market.

However, at this time, Soros believed that the Thai government's foreign exchange reserves were running out, so he sold his gold at a high price to raise funds to attack the Thai baht again in late June. Coincidentally, at the same time, the former Thai finance minister, who has always insisted on opposing the depreciation of the Thai baht, announced his resignation, which cast a shadow on the confidence of the people, so he sold the Thai baht to buy dollars to form a frenzy, but at this moment the Thai government's reserves of foreign exchange have been used up, so the Thai government was forced to announce a depreciation against the dollar, resulting in a 17% drop in the exchange rate of the Thai baht on the same day. At this time, Shakru saw the opportunity, bought Thai baht, returned the loan, and swept up 20 million US dollars.

Next, Shakru once again participated in Soros's sniping of the Philippine peso, Indonesian rupiah, Malaysian ringgit and South Korean won, the most miserable of which is the Indonesian guilder, which directly led to the political and economic crisis in Indonesia, although the sniping had a great negative impact, but for the Indonesian country Shakuru has always had no good impression, especially in the upcoming 1998, Indonesia is a large-scale massacre of China, So Shakru doesn't feel guilty at all about copying such a country.

However, when sniping at the Hong Kong dollar, Shakru suddenly stopped, not only that, but he also found Soros specifically for this: "My dear Uncle George, I don't think sniping at the Hong Kong dollar is a wise choice, I hope you can think about it before deciding whether to do it." ”

It may be that the consecutive victories in more than a year have made Soros's confidence over-inflated, and I saw him wave his hand indifferently and said: "Little Shaklu, you are too worried, the Thai baht, Philippine peso, Indonesian guildah, Malaysian ringgit and South Korean won can't stop us, how can a small Hong Kong dollar be our opponent, you can rest assured, as long as we hit two waves, he will definitely collapse." ”

Seeing Soros's confident look, Sha Keru couldn't help but sigh in his heart, sure enough, no matter how rational and calm people are, they are easily carried away by victory, but whether it is to help the financial master in his mind, or to let the Chinese government pay less losses and be able to invest more funds in future flood relief and state-owned enterprise reform, he should try his best to prevent this famous "Hong Kong dollar battle" from happening.

So Shakru continued to persuade: "Uncle George, your view is not comprehensive, yes, the small Hong Kong Island is just a small place, even if he is an international financial port, but his foreign exchange reserves and ability to resist risks are not as good as Thailand, Indonesia and South Korea, but don't forget, behind Hong Kong is the Chinese government behemoth!"

This year is the year of Hong Kong's return to the motherland, and the Chinese government will never see the Hong Kong dollar being sniped at this critical moment, resulting in the entire economic and social situation similar to that of Thailand and Indonesia. If after Hong Kong's return to the motherland, the standard of living in Hong Kong under socialist rule is not as high as that in Hong Kong under capitalist rule, then where will the Chinese government put its face?

Uncle George may not know the Chinese very well, but I have built factories in China, and I also have long-term cooperative relations with several large factories in China, so I am more familiar with China, the Chinese may be the most face-oriented race in the world, you provoke them at this time, they will definitely use the power of the whole country to fight back, really at that time, then our investment will be troublesome. ”

Soros asked in disbelief: "As far as I know, the current Chinese government is not very rich in funds, otherwise why would they want to attract investment, just invest it themselves." And China has only been developing for a few years, there should not be much reserves in hand, you must know that the international travel capital that we can drive now is enough to hundreds of billions of dollars, this is not sniping at the yuan, the Chinese government can pay such a big price to deal with us? Is face so important to the Chinese? ”

Shakru nodded and said, "That's right, it's so important, the nature of the Chinese is that it doesn't matter if you have a hard life at home, but you must not collapse outside!" ”

PS: I wish Wang Fatzi Wang Kaixuan in "Ghost Blowing the Lantern" to win the top prize in Heilongjiang Science, hahaha! (To be continued.) )