"Siam?"

Duan Yongping shouted in surprise.

Because the Little Overlord's first stop was in Southeast Asia, and Siam is considered a relatively wealthy country in Southeast Asia. After all, it is also one of the Four Little Tigers, so he knows Siam quite well, and even made a special trip to Siam the year before last.

I went to the Xiaobawang branch in Siam.

In the past few years, Siam's economic growth rate has been hovering around 8% and 9%. It can be said that the economic performance is extremely good, and it is a proper emerging economy country.

He really couldn't see any place in such a country that could be exploited by Fang Chen.

"Actually, not only Siam, but also Star City, Malaysia, Java and other Southeast Asian countries are included in my plan." Fang Chen said calmly.

Before the 1997 financial crisis, because the East and Japan adopted the flying geese model, the economic development of both the Four Little Dragons and the Four Tigers, and even Asia as a whole, showed a trend of rapid growth.

What is the Flying Geese Model? This theory first appeared in the United States. The East Japanese highly appreciated it and tried to make it one of the important models of economic cooperation in the Asia-Pacific region.

The basic idea is: In the Western Pacific region, the economic development of various countries is as orderly as a flying geese formation.

The United States and Eastern Japan are the leading geese, the Four Asian Tigers are the second echelon, and the Four Little Tigers and other countries are the third echelon.

Specifically, since the 1960s, especially since the 1970s and 1980s, as the only economically developed country in East Asia, East Japan has gradually begun to make direct investment in East Asia and established itself as the core in East Asia.

East Asia Flying Geese international division of labor system, and on this basis the East Asia Flying Geese development model was formed.

Since the war, Japan and Japan, which took the lead in industrialization, have successively transferred their mature industries or industries with potential comparative disadvantages to the Four Asian Tigers, which in turn have transferred their mature industries to ASEAN countries. In the early 1980s, the eastern coast of China

The region has also begun to participate in the East Asian International Division of Labor.

It outlines a flying geese picture of East Asia's economic development with Dongbo as the leader, and a stepped industrial division system of technology-intensive and high value-added industries-capital technology-intensive industries-labor-intensive industries has been formed among them.

It can be said that the whole of East Asia, including China, has gained some development opportunities because of the flying geese model of the East Japan.

However, because Huaxia is too large and is at the end of the entire Flying Geese Model and the end of the entire echelon, relatively speaking, the impact of the Flying Geese Model on Huaxia is only partial.

But it is different for a medium-sized country like Siam.

Since Siam joined the East-Japan flying geese model in the 1970s, its GDP increased from US$30 billion in 1980 to US$150 billion in 1997, a five-fold increase in just seventeen years.

As the saying goes, success depends on failure. While Siam's economy is developing rapidly, it has also laid huge hidden dangers.

Because as we all know, rapid growth that exceeds the world's average growth level is definitely not something that can be sustained for a long time.

The duration will vary with the size of the country, its population, and its level of governance.

Generally speaking, smaller countries have shorter durations, and larger countries have longer durations.

In fact, the reason is very simple. Except for a few talented small countries such as Luxembourg and Qatar, the ceiling for economic growth in normal countries must be the United States.

And if a country can sustain rapid growth for a long time, then its per capita income will surpass that of the United States before too long.

This is obviously impossible. It can even be said that medium-sized countries and above have truly entered the ranks of developed countries from developing countries. In the past 50 or 60 years, only South Korea has been the only country.

So the problem arises.

Countries that are accustomed to rapid growth, when the conditions for rapid growth become insufficient, in order to continue to maintain the speed, these countries turn to borrowing foreign debt to maintain economic growth.

However, due to poor economic development, by the mid-1990s, some Asian countries no longer had the ability to repay their debts. In Southeast Asian countries, the real estate bubble only resulted in bad debts and bad debts from bank loans.

As for South Korea, because it is too easy for large companies to obtain funds from banks, non-performing assets immediately expand once the company is in poor condition. The large number of non-performing assets has in turn affected investor confidence.

Especially since 1995, the exchange rate between East and Japan has started to decline from the highest point of 80:1 US dollar, and a large amount of Japanese yen has flowed to Southeast Asia, South Korea, Hong Kong, and even all of Asia.

But relatively speaking, Central Asia, South Asia, and the Asian part of the Middle East are too far away from the East and Japan. In addition, it is not a good place for investment, and China is too big, and the per capita income is too low. There is no bubble.

, so even if a small amount of hot money comes in, the impact is not too big.

For Siam, Java, Star City, Luzon, and South Korea, in just two years from 1995 to 1997, housing prices and stock markets basically doubled or tripled, and a large number of bubbles were created.

, which is the basis for being targeted by international financial giants like Soros.

Well, that’s right, it’s still Soros.

It can be said that except for the Mexican financial crisis in 1995, which Soros did not have time to intervene in because he was imprisoned in Russia, the other financial crises around the world in the 1990s were all led by Soros.

So as early as four or five months ago, Zhu Changhong had noticed that Soros' people were secretly lending Japanese yen to buy Thai baht.

But it is unclear whether Soros discovered him.

But Fang Chen has a tendency.

Although the international financial market is a typical dark forest, no one can see anyone, and no one knows whether he is also the prey in the eyes of others when he is a hunter and treats others as prey.

But for a few financial geniuses, there are still exceptions.

And obviously Soros is one of those few financial geniuses. They master the laws and regulations of the financial world and are invincible in the financial world.

But the premise is that you don't meet someone like Fang Chen.

When he thought of the several losses Soros suffered at his hands, Fang Chen couldn't help but smile.

Briefly explain to Duan Yongping and others the existence of huge economic bubbles in Siam and other Southeast Asian countries.

Duan Yongping and others looked at each other, not knowing what to say for a moment.

For these people, they really don’t understand these financial things, even Berezovsky.

But judging from Fang Chen's sworn appearance, there should be nothing wrong.

After all, Fang Chen has not made any mistakes in such a major matter, and every time he makes a move, he brings huge benefits to Qingtian.

However, this is also the reason why he has been unwilling to accept Fang Chen's gift of 1% of Qingtian shares.

If all the development of Qingtian has his share of credit, then he will get the shares, but the reality is that Fang Chen can easily get a large amount of money from other places.

And after he takes Qingtian's shares, does it mean that even the money that Fang Chen got back by himself also has his share?

But he didn't do anything, which was obviously unfair.

Not to mention, every time Qingtian has the extra money, he starts to make great strides forward.

"However, the development of the Four Little Dragons and the Four Little Tigers began with the Eastern Japanese, and were ultimately defeated by the Eastern Japanese." Fang Chen sighed with a click of his tongue.

As I said just now, it was precisely because the Eastern Japanese began to engage in the flying geese model that the rapid economic development of the Four Little Dragons and Four Little Tigers was achieved.

Naturally, they could not avoid being affected by the economic decline of the East Japan.

It can even be said that domestic and foreign investors (including Eastern and Western banks and various hedge funds) used foreign exchange arbitrage transactions to make large inflows and outflows in Southeast Asian countries, which became an important inducement to the outbreak of the financial crisis.

In 1985, due to the Plaza Accord, the exchange rate of the Japanese yen against the U.S. dollar sharply appreciated. This resulted in two situations. First, the manufacturing industry in Japan and Japan became more expensive due to the increase in the exchange rate, which greatly reduced the demand for Japan and Japan.

competitiveness of manufacturing industry.

The second is the financial industry of Eastern Japan, but this change is benign for the financial industry of Eastern Japan, because the yen in their hands has become valuable.

These two situations have led to the Japanese financial industry lending a large amount of yen to Southeast Asia. After all, the country's manufacturing industry is not competitive and its development speed has declined. Therefore, as a financial industry, it is natural to lend money to areas with more profits.

.

Especially in 1987, because of the Louvre Conference, Japan and Japan were forced to lower interest rates to 2.5% within a year, while developing countries in the same period were all at 10% or even above 12%, and the United States and Europe still had interest rates above 7%.

interest rate.

At this time, the Japanese yen in the hands of the Japanese financial industry had no choice but to spread out, and there was a grand occasion of large-scale money scattering by Japanese companies around the world.

It has even reached a point where even if Japanese yen is invested in Japan, it will only be invested in real estate and the stock market, and will never be invested in manufacturing.

The substantial decline of the Eastern Japanese manufacturing industry also laid the foundation for the Eastern Japanese retreat for thirty or even forty years.

It can be said that unless Dongwa's manufacturing industry recovers, Dongwa will only decline forever.

However, judging from the current situation of Dongwa, its manufacturing industry will only continue to retreat, with almost no possibility of bottoming out and rebounding.

However, the most hateful thing is that after the Japanese released large-scale Japanese yen investment and stimulated a large number of bubbles in Southeast Asia, they did not find a way to curb this phenomenon.

Rather, in order to save Dongwa's own manufacturing industry, it promoted the depreciation of the Japanese yen in 1995. Fortunately, there were still some Japanese yen funds in Dongwa. However, seeing the depreciation of the Japanese yen, they also ran away.

Now the financial bubble in Southeast Asia is even more serious.

However, I have to say that Dongwa’s behavior is shameless, but in fact, as a manufacturing industry in Dongwa, it is quite helpless.

The yen appreciated, but Dongwa's manufacturing industry was not good and had little investment value, so the yen ran away.

But the yen has depreciated, and the financial industry has to run away in order to prevent the yen in their hands from devaluing.

Anyway, there was no way for the Japanese manufacturing industry to survive.

It can be said that it is entirely because of this series of financial policies of the East and Japan that today, financial giants from all walks of life are eyeing the Four Little Dragons and Four Tigers, and even the financial crisis of the East and Japan has occurred.

"We don't understand these messy things. Anyway, what you mean is that you will definitely make money this time, and you can make a lot of money?"

Ma Yun suddenly spoke, her small eyes rolling around.

"That's pretty much what it means. After all, this financial crisis is expected to sweep at least ten countries and last for at least a year. In terms of scale and scope, it will be much larger than the previous attack on the pound. What's wrong?"

After thinking about it, Fang Chen said casually.

For the United States, Europe is basically considered to be fellow travelers with the same clan, culture and beliefs, and there is some incestuous love. In addition, the United States has a lot of places that need help from Europe, so it is okay to hammer it out a little and let Europe know.

Even with the establishment of the European Union and the emergence of the euro, the United States is still the leader, and the status of the U.S. dollar as the world currency remains unshakable.

But when it comes to Asian countries, the United States is not so kind.

The last attack on the pound was so brutal that the exchange rate of the pound only dropped by 20%.
To be continued...