Chapter 30 Sweeping Southeast Asia Free-floating currencies have certain drawbacks because markets will always experience excessive deviations.

"Section 1: Unfortunate Prophecy About a year ago, International Monetary Fund economist Maurice Goltz predicted in the British magazine The Economist: "Danger signals in the Mexican financial crisis of December 1994."

According to estimates, in Southeast Asian countries, the currencies of various countries are experiencing impacts from all directions, which may lead to a Mexican-style economic catastrophe. Then, he admitted that Thailand has more signs of Mexico than other Asian countries. In other words, if financial turmoil occurs in Southeast Asia.

If such a crisis occurs, then Thailand will bear the brunt of it. But Goltz and the International Monetary Fund he represents are not so popular in Southeast Asian countries, because the former is regarded by Asia's rising stars as the spokesperson and decoration of Western developed countries.

In the eyes of the leaders of these former colonial countries, trusting them is tantamount to betraying their own national interests. This is a barrier woven by history, and human beings have lost the possibility of mutual trust and mutual assistance.

People's thinking is narrow and ignorant, and it makes it difficult for people to face reality. Mr. Goltz has not received the attention of Southeast Asian countries, especially in Thailand. The government and the public are intoxicated by a blueprint for the future. How can they accept it?

The future was uncertain. In this way, Goltz was driven away. However, the disaster he first predicted came as expected. On July 2, 1997, the Thai government and financial authorities announced in a hurry that they would give up long-term development.

The Thai baht, which had been pegged to the U.S. dollar for 13 years, implemented a floating exchange rate system. The Thai baht suddenly plummeted, leaving it in a miserable situation with no one to save it and no one dared to save it. It hit a record low, and the currency crisis finally came to an end.

It broke out overnight. Immediately afterwards, the financial markets of the Philippines, Malaysia, Indonesia, Singapore and other countries also began to undergo violent turmoil. The Philippine peso, Malaysian ringgit, Indonesian rupiah, Singapore dollar, and even the economically closed Myanmar currency also

One after another, people can't help but worry that Southeast Asian countries will repeat a financial crisis similar to that of Mexico, which was directed by Soros. Only at this moment did Thais and even the entire Southeast Asian countries realize that?

Mr. Goltzdan's prediction was so accurate. Of course, for Goltzdan himself, the Southeast Asian crisis was just an unfortunate prediction. Section 2 The six-colored light in the bubble entered the Southeast Asian financial market in 1997, which had been calm.

The foreign exchange market has been in turmoil since May. The Thai currency, the Philippine peso, and the Malaysian ringgit have continued to depreciate sharply. The Indonesian rupiah, Singapore dollar and other currencies have not escaped this disaster.

Although the central banks of the relevant countries have taken various emergency measures to crack down on currency speculation and tried every means to maintain the stability of their country's market value, they have backfired and cannot get out of trouble after repeated measures.

On July 2, Thailand was forced to implement a floating exchange rate system, and the Thai baht plummeted 20% in one day. At the same time, the Royal Thai government, which was about to go bankrupt, issued a letter to the International Monetary Fund, Japan, the United States and other major financial players.

With the application for emergency financial assistance, the Mexican-style financial crisis that had been brewing in Thailand finally surfaced, allowing the world to see its face.

In the early 1990s, when Western developed countries were suffering from recession and the fall of Western civilization seemed to be looming before their eyes, Southeast Asia's economic growth was unstoppable and invincible, astonishing the world, even those white people who had always looked down upon them.

The boss was also ashamed and filled with jealousy.

In the mid-1990s, Southeast Asian countries invariably embarked on a Great Leap Forward, accelerating the pace of financial liberalization in order to drive a new round of rapid economic growth. They took it for granted that the 21st century was Asia’s century, and Asia’s century was

This is the century of Southeast Asia, and the center of world power will shift to this emerging region from now on, and so on.

However, Southeast Asians, who have been top-heavy with imported wine, have ignored the most basic fact: the main driving force for economic development in Southeast Asia in the past few decades has been the increase in external input, rather than the increase in output per unit of input.

growth, so on the basis of such a limited growth model, it relaxes financial controls and competes with the world's top financial players to eat the "cake" of the large financial market. It is undoubtedly building a skyscraper on the beach, which is full of hidden dangers and can easily be broken by external forces.

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The wily George Soros has long seen this and kept it in mind.

Soros is a person who is accustomed to finding faults and finding faults. With such a huge financial loophole in Southeast Asia, it is natural that he cannot escape his grasp.

He has been waiting for the last chance to make a fortune and create another miracle similar to that of beating England.

In fact, as early as 1995, Singapore's Crosby Securities Company made a research report on the economic conditions of seven Asian countries, pointing out that the quality of labor in Southeast Asian countries was low.