Interest rate policy has made the stormy Thai economy worse, and in some sense it is the high interest rate policy that gave birth to the Thai financial crisis. High interest rate policy further suppressed investment and consumption, exacerbated the economic recession, and caused huge non-performing assets of commercial banks. High interest rates increased the debt burden of enterprises and forced enterprises to turn to the international financial market to seek low-cost financing, thus further expanding the scale of foreign debt.

This year, Thailand's foreign debt reached 90 billion US dollars, equivalent to 50% of GDP, of which short-term foreign debt accounts for 60%, and the foreign debt due from June this year to June next year alone is as high as 45 billion US dollars.

While listening to the economist's speech there, Fan Wubing said to Boss Zhu, "When the interest rate in the United States rises, profit-seeking capital will be exchanged for the US dollar and sell the local currency. Since there is no demand, the currency will depreciate. If the fixed exchange rate is maintained, the local government will use foreign exchange reserves to take over to maintain the stability of the exchange rate. This game depends on the amount of foreign exchange reserves in a country. When all foreign exchange reserves are exhausted, the local government has only two options. One is to seek help from the International Monetary Fund and other countries, and the other is to announce the abandonment of the fixed exchange rate and implement free exchange rate floating. The outbreak of the Thai financial crisis was operated according to the above principles of monetary economics. The result was that the Thai baht collapsed and the exchange rate floated freely, and I asked for emergency assistance from IF.

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Boss Zhu nodded and said, "Well, Imf is not an American who controls the right to speak? This financial crisis is probably caused by them."

"That's certain." Fan Wubing nodded, "It was the same in Japan at the time, but this time with Soros and others charging into battle, the Americans appeared with the help of IMF, and they looked like wolves in sheep's clothing."

Under the financial rights of the United States, the US-led IMF will of course put forward loan requirements that are beneficial to the United States, forcing foreign countries to accept it. The exception to such requirements is the economic colonization requirement of the US dollar, such as completely abandoning capital controls, abandoning the restrictions on foreign capital by banks, etc. These requirements are essentially abandoning monetary sovereignty and completely making the currencies of other countries the affiliated currencies of the US dollar, and the economy becomes the colonial economy of the US dollar.

South Korea is the most obvious example.

At that time, South Korea was the tenth largest economy in the world. Under the needs of the United States' geostrategic strategy, the United States has retained a large number of troops in South Korea. South Korea's development is regarded as a symbol of Asian growth, and South Korea has a foreign exchange reserve of 25 billion US dollars.

As the Japanese Bank decided not to postpone tens of billions of loans to South Korea, South Korea proposed rescue to IMF. To this end, the U.S. Treasury Department and IMF officials prepared the largest emergency financial aid in history of $55 billion, but the premise is that South Korea must commit to economic reforms.

These conditions are extremely harsh, so that the Korean people would rather sell gold jewelry to support the country's refusal to accept assistance from IF.

The reason is that the South Korean government could not withstand the pressure and finally decided to open up the financial industry to foreign capital, allowing foreign capital to enter the securities and banking industry, and implementing foreign exchange market liberalization.

The Indonesian president said that the Asian financial crisis was a conspiracy toward financial wars in the main United States.

Six years later, Thailand paid off the IMF's 12 billion US dollars loan in advance. However, in order to repay the money, the land losses caused by the depreciation of the Thai baht are immeasurable. Thai Prime Minister Thaksin stood solemnly under the Thai flag and swore that he would never ask these international bankers for a "aid" to encourage Thai companies to refuse to repay the debts they owed to these bankers.

The result was that three years later, a coup occurred in Thailand. Thaksin was kicked off and left the UK.

Whenever Fan Wubing thinks of these problems, he can't help but sigh that it is a weak country without diplomacy. A weak country without human rights that has made Hong Kong return to the motherland. With the full support of this powerful political economy, it is inevitable that he will follow the mistakes of Thailand. After being captured by Soros and others, he was defeated and forced to accept the American domination.

Of course, in fact, in history, Soros and others also succeeded, making the Hong Kong stock market a mess, and the Hang Seng Index was beaten from 18,000 points to 6,000 points.

This time, with its own help, although the Hang Seng Index has experienced a brief sharp drop, it has finally stabilized at around 12,000 points. This loss is still affordable. At least after the hot money leaves, the Hong Kong stock market can still return to normal.

Moreover, during this stock market crash, Chinese institutions are very beneficial to them by repurchasing shares to support the market. After all, they have picked up a lot of cheap chips, which not only takes care of the face but also takes care of the inner world. There are rarely such opportunities in normal times.

Fan Wubing told Boss Zhu, "Now the whole world is working for Americans. Americans use the depreciation and rise of the US dollar to export financial crisis to Asia. Through the US dollar, a country's wealth can be melted in an instant without any bloodshed, and even regime changes. The lessons and inspirations brought to us by the Asian financial crisis, which was triggered by the depreciation of Thailand's currency, should arouse our deep thinking and prevention."

It can be said that it was the over-issuance of the US dollar that created

The United States has taken advantage of its capital's nature of profit-seeking and used finance to implant economic colonialism into Southeast Asian countries, and also made the US dollar and knife weapons, through speculative capital such as Soros, as a medium, killing to any corner of the world.

Under the financial hegemony of the US dollar, if the current account surplus countries do not increase the foreign exchange reserves of US dollar assets, they may be attacked by speculative capital led by the US dollar and cause the local currency to collapse.

This is also the reason why American strategists try every means to force other countries to relax foreign exchange controls and allow free flow of capital. In other words, as long as the threat of speculative capital attacks exists under free flow of capital, non-dollar economies will have to continuously increase foreign exchange reserves and will not constantly invest foreign exchange reserves in the United States in exchange for assets in the form of US dollars.

This is also an important reason why China's foreign exchange reserves later exceeded the 2 trillion US dollar mark. For nothing else, it was because I saw Americans playing tricks during the Southeast Asian financial crisis that I became wary.

Although China is increasingly deepening its trade relations with countries around the world, it inevitably accepts the free flow of capital. Under such circumstances, the hot money flowing into China may exceed hundreds of billions of dollars at any time. Once they make trouble, the impact will be very great, so China needs enough foreign exchange reserves to cope with various crises.

Even though I know that this large foreign exchange reserve will only make Americans cheaper, I have no other idea. Unless I erase the Americans from the earth, it will be considered a complete failure.

Of course, there is also a possibility, which is to change the international financial system with the US dollar as the main body, but it is obviously very difficult to do so, because the interest factors involved are difficult to change.

Fan Wubing said to Zhu Ban, "From another perspective, any crisis, including the threat of war, will have such an effect, that the United States is a relatively safe investment paradise, and the US dollar is a safe haven for world savings. From past experience, the United States has never had a large-scale war with foreign countries on its homeland, and the economic situation has maintained a relatively stable growth trend, resulting in a relatively high risk-adjusted expected return rate, resulting in a disproportionate increase in global demand for US assets. Historical experience is also

This illusion for investors is strengthened. Therefore, the United States is keen to constantly create crises, constantly use crises, and continuously drive the US dollar to flow to the United States. This creates a situation where the United States, which firmly grasps the commanding heights of the financial market, continuously issues US dollars, and emerging economies such as Asia continue to produce goods and supply the United States in exchange for US dollar surplus, and then invest in the United States to finance the current account deficit. The United States has actually become the ultimate lender and the final consumer, which is the so-called phenomenon of poor countries feeding rich countries."

The boss nodded and agreed that he was a student of the economy and had a very profound understanding of this trick. This Southeast Asian financial crisis deepened his understanding of the United States' economic manipulation methods. Fan Wubing's statement at this time made him more clearly see the various difficulties that China may encounter in implementing a market economy.

Sub-countries, net oil exporters and emerging countries in Latin America, have all become blood transfusions for financing the United States, victims of the US dollar colonization strategy and sacrifices for the US dollar knife.

These countries, while holding huge US dollar foreign exchange reserves, have to bear the exploitation of the depreciation of the US dollar.

Faced with the increasing payment of foreign debt and interest, the United States is inherently inclined to issue additional US dollars, depreciate its value and reduce its foreign debt to reduce its debt repayment costs. This is a secret loss for reserve countries.

If the reserve countries sell US Treasury bonds on a large scale, it will cause them to depreciate, thus becoming an obvious loss.

This was the dilemma of the Chinese government, which later had the largest dollar reserves. The two trillion dollars of foreign exchange reserves became a hot potato. Regardless of the high-energy currency utility caused by the two trillion dollars of foreign exchange reserves, the excess liquidity and inflation expectations caused to the domestic market.

In short, the export of the US dollar to Asia and the return of the US dollar to the United States is essentially the process of the United States looting Asian wealth. The US dollar is a knife and a new colonial exploitation. The appreciation and depreciation of the US dollar have a huge impact on the economic development of Asian countries. The Asian economy is becoming increasingly a subsidiary economic characteristic of the United States and increasingly a colonial economy.

When Fan Wubing thought of this, he thought of some things that happened later.

The Asian financial crisis in 1997 did not spread to the United States, but the US financial crisis in 2008 was able to transmit to Asia through the circulation media function of the US dollar, the international currency. The output of the US dollar not only outputs inflation, but also outputs crisis.

"Oh, no matter how we deal with it, as long as we don't find a new currency that can replace the US dollar as a means of national trade payment, we will not be able to get rid of American exploitation." Fan Wubing said to Boss Zhu helplessly.

The second update today is to be continued,)
Chapter completed!