The rise of a great power: starting with military industry

Chapter 966 Southeast Asian Financial Crisis

Bubbles themselves are not scary!
A proper bubble is always better than a stagnant pool of water. At least it shows vitality. The key is that the foreign debt is insolvent!
Thailand's foreign debt continued to rise over a 1970-year period from 1996 to 26. The s and s, when the economy was developing fastest, were also the period when foreign debt rose fastest.

In 1986, Thailand's total foreign debt stock was US$185 billion, and in 1996 it reached US$1128 billion, an increase of more than six times in ten years.

Although Thailand's foreign exchange reserves have been growing, they are far less than the size of its external debt, from US$1986 billion in 27 to US$1996 billion in 371.

Thailand's economic output grew from US$1986 billion in 431 to US$1996 billion in 1830. Thailand's economic growth is highly dependent on foreign debt, and it is precisely because of the massive borrowing that Thailand's rapid economic development was born.

However, Thailand was experiencing internal turmoil. In order to break the domestic political deadlock, Thailand turned to Europe, the United States and Japan, hoping to use their power to break the internal deadlock and achieve a new balance.

In this regard, Thailand needs to carry out financial reforms in accordance with the requirements of Europe and the United States.

This gave Soros an opportunity. As far as investment itself was concerned, Soros' judgment of the stock market and insight into human nature reached an incredible level, and he saw the opportunity.

Soros' short selling is not complicated. Simply put, it is to make money out of nothing, sell high and buy low, and make a profit from the price difference. International hot money led by Soros first borrowed a large amount of Thai baht from the Bank of Thailand, and the Bank of Thailand naturally welcomed it. You are interested in other people's high interest, while others are interested in your principal. Asset prices continued to rise and quickly reached a high level. International hot money led by Soros cashed out at a high level and sold a large amount of Thai baht.

The price plummeted, and when it hit the bottom, they bought it back at a low price to the Bank of Thailand. At this time, the Thai baht was already very cheap, and Thailand's foreign exchange had been exhausted, unable to take over the large amount of Thai baht being sold in the market. With this inflow and outflow, international hot money could make a huge fortune.

The hard-earned foreign exchange that Thailand earned from processing on behalf of others has vanished into thin air, and the accumulated social wealth has been wiped out.

At this time, European and American financial groups came to Thailand again in the image of saviors. They said that they could sacrifice themselves to help Thailand on the condition that the economic and financial fields were further liberalized. They also said that the reason why Thailand experienced an economic crisis was because its economy and finance were not liberalized enough.

In this way, they acquired a large number of high-quality assets in Thailand at bargain prices and took advantage of the situation to control the economic lifeline of Thailand.

Yes, the routine is that simple!
This trick always works!

If a sovereign state directly and forcefully controls finance, these international hot money will naturally suffer heavy losses.

But the prerequisite here is that it is a sovereign state that dares to compete with Europe and the United States!
But Thailand, Malaysia, Singapore, Indonesia and the Philippines are not among them!
Of course, Soros and his friends are celebrating now, but they don’t know that there is a hidden threat behind the scenes.

Liu Tao's approach was very simple. In the early stage, he followed the international hot money and made a fortune from Thailand, Malaysia, Singapore, Indonesia and the Philippines. After all, no matter who makes money, it is still money. It is better to make money by yourself than to let the international hot money make money.

In the middle and late stages, they lent money to Thailand, and then completely established the domestic situation in Thailand, with overseas Chinese playing a leading role. At the same time, they took advantage of the capital to acquire high-quality assets.

The practice is almost the same in Malaysia and Singapore, while it is much bloodier in Indonesia and the Philippines.

In these places, huge internal conflicts will erupt, and overseas Chinese will have to use force to safeguard their own interests. Only the barrel of a gun can bring about political power!

Since July 1997, 7, when Thailand abandoned its fixed exchange rate system and decoupled from the US dollar, the Thai baht has completely lost its value. The exchange rate of the Thai baht against the US dollar dropped from 2 baht to 25 US dollar to 1 baht to 50 US dollar, an immediate depreciation of 1%. Since then, the currencies of the Philippines, Indonesia, and Malaysia have also lost their value and have successively abandoned their fixed exchange rate systems.

到了现在，泰铢跌至56兑1美元，最惨的印尼卢比1.5万兑1美元，贬值近80%，菲律宾比索44兑1美元，马来西亚林吉特4.8兑1美元贬值近50%。

International hot money, smelling the blood, took advantage of the opportunity to reap the benefits of Southeast Asia. They opened their bloody mouths and bared their fangs, leaving no trace of corpses wherever they went.

Well, actually now he is also a member of the international hot money.

Liu Tao's eyes were calm and even indifferent. From last year to now, the number of mercenaries in Thailand has increased to 8000, in Malaysia to 5000, in Singapore to 2000, in Indonesia to 8000, and in the Philippines to 4000.

In these five countries alone, there are 27000 mercenaries!
The total number of guards of overseas Chinese families in Thailand is as high as 20, almost catching up with the number of the Thai army. They are equipped with tanks and armored vehicles, and have never stopped infiltrating the military. The total number of guards of overseas Chinese in Malaysia is also more than 5, which is almost half of the Malaysian army.

In Indonesia, there are currently 10 guards and 15 reserve forces for Chinese and overseas Chinese families.

In the Philippines, the Chinese and overseas Chinese families have a guard force of 5 and a reserve force of 3.

There are currently ships heading to Malaysia, Indonesia and the Philippines.

There are not many tanks and armored vehicles, but there are anti-tank missiles, "Vanguard" individual air defense missiles, and many heavy machine guns and general-purpose machine guns.

Bullets and artillery shells never stopped.

Even these weapons and bullets are sold at a half-price, and are almost not profitable.

The weapons may not be very advanced, but they are sufficient!
Liu Tao even delayed the delivery of the Type 001 light aircraft carrier to the Thai military to the second half of 1998.

It can be said that now everything is ready except for the east wind!

When Liu Tao walked out of the study, it was already 10 o'clock.

Zhu Lin is looking at two children. The two children are now 4 years old and are at an active age. Now they are fishing.

A very simple fishing rod, a pole, a fishing line and a fish hook.

Catching a shrimp made both of them extremely happy.

Catching a fish, even a small one, would make them cheer.

As for Liu Qing'an and Liu Manhua, they are already 14 years old and are more self-disciplined. Even though it is National Day, they only have one day off on October 10st and then go to the tennis court for training.

Liu Tao also picked up a fishing rod and went fishing with the child.

Normally, he would occasionally go to Dianchi Lake to fish, not really for fishing, but to give himself some quiet time, a rest, so that he could move forward better.

Compared with Dianchi Lake, the fish and shrimps here in Siheyuan are relatively small. After all, they are cleaned regularly and the fish and shrimps can only live for two years at most.

However, Liu Tao was lucky today and caught a 3-jin carp.

Because of water pollution, he has stopped drawing water from outside for a few years now. Instead, he collects fish water and replenishes it with tap water. The water quality is pretty good and the fish and shrimp he catches are edible.

The two children cheered and danced with joy.

(End of this chapter)