XG people are not stupid, they are all very smart, Soros can't be targeted, he suddenly accepted an exclusive interview with Fortune magazine, and also pointed out by name in the interview that XG has economic problems, which clearly shows that he wants to start directly intimidating XG, and he wants to use his reputation to scare G coins into collapsing on their own!

All of a sudden, the entire XG elite was frightened, and some of the elites tried to sell the Hong Kong dollar at the first time, only to find that the exchange was not open.

Then the elites were even more frightened, this is to ZF to prevent them from running away!

In fact, it's not that they are not allowed to run, it is just that they are closed normally for rest because of holidays, and these people are really frightened.

On the other hand, it is impossible for the relevant departments of XG to sit still, in fact, they have long foreseen Soros's problem, and after studying it for more than half a year, they finally came up with a quite powerful solution.

They believe that as soon as this solution comes out, they can immediately drive Soros back.

So what's the magic solution?

That is to raise the exchange rate of G coin borrowing.

They studied a lot of Soros's cases and found that his short-selling routine is actually very fixed.

To put it simply, it is to lend the local currency from the bank, and then sell the currency as soon as possible and exchange it for dollars.

Next, they used various news and means to suppress the exchange rate of the currency, and finally when the exchange rate fell a lot, they re-exchanged the dollar into the local currency and returned it to the bank where they borrowed money.

In this way, you can earn a lot of dollars from it, as an intermediate profit.

So the relevant departments of XG were pleasantly surprised to find that they only need to raise the interest rate and make it unprofitable for Soros to borrow money, then it will work.

To briefly explain, let's say that before the interest rate adjustment, Soros wants to borrow from XG's bank for three months, a total of 1 billion GB, and needs to pay 5% interest as the income of the bank to borrow money, then when the three months expire, Soros needs to repay 10.5 billion GB to the bank when he repays the money.

In other words, Soros's profit from shorting XG must exceed 500 million GB in order to be profitable.

But after the relevant departments decided to raise the reception interest rate, for example, from 5% to 20%, then Soros will have to repay 12 billion GB to the bank, that is, he must earn at least 2 billion GB of profits in order to be profitable.

In this way, it will be much more difficult for Soros to make a profit, and the profit will be greatly reduced, and if you take into account various operating costs and labor costs, then the business will not be profitable.

So as long as Soros is smart enough to see that XG raises the lending rate, then he will give up on his own.

Not to mention that this time the relevant departments of XG can be said to be open-minded, directly increasing the interest rate from 5% to 30%, an increase of six times, in the eyes of people in these departments, Soros decided that it is impossible to engage in XG this time, and he is losing money!

Not to mention the result, the effect is really good, for a while, no one will go to the bank to borrow money, and if you can't borrow money, naturally there is no situation to suppress the exchange rate, everything is so perfect.

And the society and elites of XG are also a little relieved to see that the relevant institutions have responded so quickly, and it seems that the catastrophe of Soros has just passed.

But after a week or two of being happy, some people found that something was wrong, and XG's stock market began to decline a lot.

Then, there was the news that several companies had to declare bankruptcy because of financial problems.

This made XG, who had finally calmed down for a while, start to fill the smoke again.

XG's relevant agencies began to investigate nervously, wanting to see if this was Soros's handiwork, and then they breathed a sigh of relief, because there was no Soros problem here, and the decline of the stock market and the collapse of enterprises were normal business problems.

But the agencies don't laugh because the companies are going to shut down because they don't have the money.

This seems normal, and it is a matter of course that a business will go out of business when it runs out of money.

But these companies could have avoided going out of business.

You must know that not all companies in the world are like Boss Jia's Daqian, with such abundant cash flow.

In fact, more than 90% of the companies in the market need to rely on bank loans to operate, and the larger the enterprises, the more so, because these enterprises will choose to borrow from banks in order to pursue speed in the process of expansion.

It is unrealistic to earn back the loan in a short period of time, so the best way to fill the loan is to take out another loan, use the funds from the latter loan to make up for the cost of the previous loan, and then repeat the process again and again.

I believe that those readers who have a lot of credit cards, and loyal users of a series of APPs such as Huabei, Borrow, Micro Credit, Xiaomi Finance, Jingdong Baitiao, etc., must be very familiar with this routine.

These are normal for most enterprises, as long as the business can maintain its operation and have a certain profit, then there is no problem with these accounts, as long as it can borrow new loans from the bank in time and continue to maintain the capital circulation of this matryoshka doll.

That's how the vast majority of the world's largest corporations operate.

But these companies never dreamed that the interest rate on short-term bank loans would rise six times in an instant, from 5% to 30%, which really killed these companies that survived on loans.

Borrow money, the interest is too high, and you will definitely not be able to pay it back in the future, and you will owe more to the bank when the time comes.

If you don't borrow it, the last loan will not be repaid, the funds for the company's normal operations will be empty, and the company's account will become cleaner than a beggar's rice bowl.

In the face of such a situation, many enterprises can not bear it, they do not want to borrow money, but also cannot afford to pay back, so they can only declare the company bankrupt.

Of course, there are some smarter ones, they will choose to put all the company's current funds together, and then use the excuse of going abroad for an inspection, and return next week or something, and they will not return to XG in this life.

If there are only one or two such companies, it is nothing, but when more than 2% of XG's companies have the same similar problems, the stock market will inevitably fall.

Especially when the elites of the stock market know the reasons for the collapse of a large number of companies, and it is impossible for XG's relevant institutions to withdraw the policy in a short period of time, and more companies will have to run away as the funds expire but cannot borrow new loans, the stock market will usher in a sharp decline.

On December 28, 1997, in just three hours, G shares fell by 3,000 points, from a valuation of 15,000 points to 12,000 points.

And when the time entered January 98, in this new year, G shares also ushered in a new trough, G shares fell below 10,000 points, which is a record low in nearly 5 years, and the whole story was wailing for a while.

I believe you can see that like South Korea before, this time XG also pitted itself by itself.

What's even more terrifying is that when some people began to study the stock market carefully, they found that the stock market has had a lot of short orders since November, and all the short orders bought are Hong Kong stocks that will fall sharply, and these short orders together have a huge volume of nearly 20 billion US dollars, equivalent to one-twentieth of the market value of the entire Hong Kong stocks.

By the way, I will explain what is called a short order, in fact, the operation is the same as the exchange rate, that is, I first borrow a part of the shares from the institutions that hold the stocks, and agree to return the stocks after three months, and then give an interest of about 5%.

After that, they sell it in the market and exchange it for cash.

Then in the next three months, as long as the stock market falls, then the capital to buy the stock again after three months will also fall, and the 5% interest will be removed in the middle, and the rest will be all the profits of the short side.

And if the entire stock market can fall by about half, then a $20 billion short order can make a profit of $10 billion, which is a pure profit.