With the liberalization of the exchange rate, Soros began to act, and in just two days, Siam's exchange rate fell by 15 percent.

The currency exchange rate of a normal country fluctuates, at most, a few tens of percent, which is very small.

And in two days, it fell by 15 percent, which is not scary.

Seeing that the currency of Siam suddenly fell so much, it immediately caused quite a panic in the financial markets.

People are afraid that Siam's currency will fall further, so they are rushing to exchange their Siamese currency holdings for other more stable currencies to reduce losses.

But as we all know, money has been in circulation since it was issued.

The most typical is the bank.

The bank absorbs funds and deposits with interest, and after the money arrives at the bank, it will be released by the bank in the form of loans or investments, and after generating income, the bank will use part of the income as interest and return it to the depositor, and eat the difference in the middle to complete the closed loop.

Circularities like this are more common in society.

For example, the production workers produce goods in the factory, and after the goods are circulated in the market, they become money and return to the hands of the factory owner, who in turn uses part of the money as wages and sends it to the production workers, and when they get the money, the production workers go to the market to buy goods, completing a cycle.

Like currency exchange rates, normal currency circulation is a gradual process.

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Soros's approach is to gradually destroy the circulation of money.

The method is also very simple.

A large amount of money was transferred into Siam in advance, in the name of investment or other things.

Then, at a specific point in time, these funds are quickly withdrawn.

If the amount of funds is large enough, such a large withdrawal will inevitably trigger shocks, which will induce panic in the financial markets.

If it were in a country with strict regulations, such a situation would not have happened, but Siam has previously lifted financial restrictions for economic development, which has given Soros and other financial capital opportunities to take advantage of.

You can enter when you want, and you can go out when you want.

After their money enters the banks of Siam, it will naturally circulate in Siam to stimulate the economy of Siam.

The circulation is good, but suddenly it begins to withdraw a large amount of money, but it is easy to produce shocks.

In fact, this is all normal, it's not a big deal, it's nothing more than to pay you and let you leave.

But Soros is not a good man and a woman, so he will be sent away.

While withdrawing funds, he spread the news and deliberately caused panic in the financial markets.

People in the financial market, regardless of whether it is true or not, see so much foreign capital outflow, and if they want to say that they have no idea in their hearts, it is false, so they either escape or pay with it.

This is the same as the psychology of chasing the rise and killing the fall of stocks.

Seeing the rise, everyone wants a piece of the pie and then buys it aggressively.

Seeing the fall, everyone is afraid of losing more, and then sell quickly.

It is human instinct to seek advantages and avoid disadvantages, and this is also a natural weakness of human beings.

And Soros is a master of using human nature.

Led by him, the frequency of bank payments began to soar.

But the problem is that when money enters the bank, it starts to circulate and is released in the form of loans or investments.

And Siam Bank now, who is the largest loan user, it is none other than Soros!

If the bank wants to complete the payment, the first thing to do is to recover the loan first.

But the problem is that Soros's short-term loans are time-limited, and banks cannot collect them before the time limit expires.

Otherwise, it is a unilateral breach of contract by the bank, and Soros needs to be compensated for liquidated damages.

It's easy to say that the liquidated damages are less, but the problem is that the scale of the loan in Soros's hands is as high as 100 billion.

Liquidated damages are generally calculated according to the multiple of the agreed amount.

The bank couldn't get the money back from Soros, but it had to pay it to others normally, so it was stuck here.

The financial term is called a run.

It is not impossible to redeem it, that is, to print money, to print more money.

Print money to pay users.

However, this will lead to new problems, there is so much money on the market, and after the circulation of this money, the goods produced are also linked to the amount of money.

If you print money, you will have more money in the market but the same goods.

What was originally sold for one dollar may be sold for one dollar and five, which reflects that the money is worthless.

In layman's terms, it means that money has depreciated.

It's the same when it comes to the exchange rate, because you have more money, and the exchange rate will naturally fall.

But none of this is the worst.

Worst of all, after the currency depreciated as the money was printed, people who were not affected by panic in the financial markets began to panic.

In order not to incur greater losses, they also went to the bank to pay one after another.

As a result, the run will get worse and worse.

If the bank does not pay, it will inevitably go bankrupt and fail, and the problems caused will not be small.

Moreover, this will also directly affect the currency credibility of Siam, resulting in investors not daring to enter Siam, and those who have already invested will also try their best to withdraw their capital, which means that the economic foundation that Siam has built with great difficulty will be burned.

It is not difficult to see that in the use of financial capital, Soros is not not vicious.

Dare to leave him a hole, he can tear you alive.

As Soros made a move, Jiangshan also followed suit.

The large sum of money brought with it was converted into the currency of Siam.

The bank uses the money to make payments.

In this way, after a brief period of panic, the exchange rate of Siam's currency, which fell by 15 percent, quickly returned to normal levels.

People in the financial market, after finding that the redemption is normal, are no longer affected by panic and do not make a large number of redemptions.

In the first meeting, the two sides fought to a draw.

Soros is not at all surprised by such a result.

It's just a small test, if Jiang Shan can't even catch this kind of trick, it will be really strange.

"I'd like to see how much money he can have!"

"Keep fighting him!"

Soros said with great interest.

He was sure that the amount of money in the country would not exceed his.

And when the funds of the country can no longer support the bank to pay, it is the day when he wins.

When the time comes, the panic will spread again, and even worse.

And Siam and Jiangshan will suffer huge losses, coupled with the gambling agreement, he will sit back and wait for Jiangshan to lose.

With these funds absorbed, it will be easier for them to deal with the rest of Asia.

Moreover, after making enough money, taking advantage of the economic downturn in these countries and regions in Asia, they can also use low prices to acquire local high-quality enterprises and make another wave.

Soros is not good at other things, but Soros is very good at this kind of exploiting loopholes to take advantage.

Disrupt the economy, acquire local high-quality enterprises, and provide one-stop service.

His title as a financial giant is based on the blood and sweat of countless people.