The financial crisis has swept across Southeast Asian countries, and the currencies of various countries or regions have depreciated.
For a moment, the entire financial market was shocked!
Many companies and banks face the risk of bankruptcy and closure.
However, spokespersons from Southeast Asian countries and regions expressed their lack of panic, urging people to trust their governments' ability to salvage the situation. Some even issued statements declaring they would make international speculators regret their actions in attacking their currencies.
July 20th.
On this day, the head of Malaysia's financial regulatory department attended the ASEAN emergency summit and delivered a speech at the meeting.
"Everyone, we can't wait and see any longer. We must take action, otherwise, it will be too late! In the event of a critical situation, we can even apply for assistance from the International Monetary Fund."
However...
The leaders of various countries scoffed at the speech of the Malaysian representative.
Although they know that the financial crisis sweeping Southeast Asia is serious, they do not think that their country can survive the crisis.
The Singaporean representative said: "Our Singapore dollar is strong, and the turmoil in the foreign exchange market is temporary. I believe that we are capable of overcoming this crisis. Therefore, we do not need the involvement of the International Monetary Fund!"
The Philippine representative said: "We also oppose applying for assistance from the International Monetary Fund. We are a big country, not the foolish Thai authorities."
Indonesian representative: "That's right, don't forget the Asian miracle we achieved in the past few decades!"
The confident and arrogant words of representatives from various countries made the Thai representative furious!
It's so fucking bullying!
Is that true?
So my family is the most unlucky one right now, right?
That's right, representatives from various countries and regions are just here to watch the fun.
As for what you said about the devaluation of their own country's currency?
Oh, no problem. It's just a normal market turmoil.
Well, many of them think so!
...
At the same time.
Kyle, who was watching the news of the ASEAN meeting in Los Angeles, shook his head in disdain.
"The Asian Miracle? It's just a false illusion of prosperity driven by some policies. How dare you take it seriously?!"
The so-called Asian miracle refers to the rapid growth of GDP and the accelerated growth of government tax revenue in Southeast Asian countries and regions over the past decade, which has promoted the rapid growth of their own and regional economies.
In fact, over the past decade or so, the foreign exchange policies of some Asian countries and regions have been extremely inappropriate.
To attract foreign investment, they maintained fixed exchange rates while expanding financial liberalisation. For example, Thailand deregulated its capital markets in 1992, even before its financial system was fully operational. This allowed for the unimpeded flow of short-term funds and led to a boom in its financial capital markets.
This precisely provides conditions for foreign speculators to speculate on the Thai baht.
At the same time, to maintain a fixed exchange rate system, Asian countries and regions have long used their foreign exchange reserves to make up for deficits, leading to an increase in foreign debt.
"As we all know, when medium- and short-term debt is high, once foreign capital outflow exceeds inflow, and a country's foreign exchange reserves are insufficient to make up for the shortfall, currency devaluation is inevitable for that country or region."
Kyle shook his head.
"You are confident, but I believe it won't be long before you regret it."
....
The facts turned out to be just as Kyle expected.
It took a few days.
The currencies of countries throughout Southeast Asia continue to depreciate wildly, which has frightened the usually proud governments and regional authorities!
International speculators,
With their huge capital, accumulated wealth exceeding 7 trillion US dollars, they continue to impact the foreign exchange markets of Southeast Asian countries.
They plundered the wealth of various countries and regions crazily!
In just less than a week, countries and regions lost enormous amounts of wealth, with some losing billions of dollars, while others lost tens of billions!
"How is that possible?"
"Oh my God! These wealthy wolves are so cruel!"
"The situation is completely out of control!"
"The foreign exchange reserves of our countries and regions are completely unable to cope with these jackals, tigers and leopards!"
"It's over!"
"Our foreign exchange market is finished!"
....
Authorities in Southeast Asian countries and regions were stunned. The situation had spiralled out of control, catching them off guard.
July 31st.
On this day, the Malaysian government took the lead in speaking out!
"Due to insufficient foreign exchange reserves, we have decided to abandon our efforts to defend the ringgit (Malaysian currency).
That's right, the Malaysian government was scared when faced with the influx of international speculators.
Giving up on protecting the ringgit means they have surrendered completely!
On that day, the Malaysian ringgit (RM) fell 7.8% against the US dollar. International speculators, led by the five major Wall Street investment banks and Quantum Fund, made a killing.
"Boss, we made a lot of money!"
Henry Jugenburg, president of Gale Capital, excitedly told Kyle: "One day! In just one day, we made $30 million in the Malaysian foreign exchange market!"
Henry had reason to be excited!
A profit of $30 million in one day, although this figure cannot be compared with the five major investment banks on Wall Street, today's profit is also the highest single-day profit for Gale Capital since early July.
"Yeah!" Kyle nodded.
Kyle was so excited that he couldn't help but wave his fist vigorously.
Kyle was also proud of himself. Although he was a time traveller and knew something about the financial crisis, he didn't know much. After all, he was not engaged in the financial industry in his previous life, and the system was completely dead. How could he not feel proud and proud that he could make profits today?
The financial foreign exchange market is changing rapidly. A fluctuation of one or two percentage points can cause many people to lose their fortunes, let alone today's 7.8% drop in the ringgit.
200x leverage!
This was also the first time that Kyle used such huge leverage to manipulate the Asian financial crisis.
It turned out that Kyle made the right bet!
A profit of $30 million in a single day would be enough to make Kyle famous once the news got out.
"Although the result proves that I won, the risk is too great and it is unbearable for my heart. It is best to proceed steadily and cautiously."
Kyle murmured.
As August arrived, over the next dozen days, a group of international speculators frantically turned the tide and captured cities and strongholds in the foreign exchange markets of Southeast Asian countries.
Following the collapse of Malaysia's foreign exchange market, the foreign exchange markets of countries such as the Philippines, Indonesia, and Singapore, which mainly rely on "alternative export-oriented economies", have also collapsed.
The currency is depreciating rapidly!
Leaders of Southeast Asian countries and regions have all said: "The situation is completely out of control!"
It was not until the International Monetary Fund and the five permanent members of the United Nations urgently intervened that the out-of-control economic situation in Southeast Asia was eased.
But it's too late!
All that is left for all countries and regions is a mess and chaos!
In the 45 days since the Asian financial crisis broke out, financial institutions led by Soros's Quantum Fund had made profits of more than $2 billion.
The profits of several capital investment banks and international speculators on Wall Street are also very considerable, ranging from hundreds of millions of dollars to more than one billion dollars; of course, the five major Wall Street investment banks that have made a fortune quietly behind the Quantum Fund have made even greater profits, and each of them has earned more than the Quantum Fund.
Kyle's Gale Capital is a small fish among many international speculators.
But, who made Kyle a time traveller?!
Relying on his foresight, Kyle used high leverage at several key points and made a lot of profit in one fell swoop.
In 45 days, Gale Capital settled profits totalling US$260 million!
Looking at the financial report in his hand, Kyle smiled slightly: "This is just the first wave of the Asian financial crisis."
....
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