Eric Chou didn't know the specific reason. At this time, he could only choke Xu Yiyang: "Aren't you just a freshman studying English? You said it as if you are better than anyone else and know more about economics than anyone else. You said Come and listen!”
Xu Yiyang nodded: "Okay, then I'll tell you."
Saying that, Xu Yiyang continued: "To put it simply, Soros first raised a large amount of US dollars as collateral before the Thai baht collapsed, and borrowed the Thai baht from the bank. Although the US dollars were used as collateral, the specific process of the debt is : Soros borrowed it in Thai baht, so he will pay it back in Thai baht in the future. You must remember this key point clearly, and you will take the test later."
Eric Chou curled his lips: "What the hell are you doing? What's the big deal?"
Xu Yiyang smiled and said, "When I finish speaking, you will know what's so great about it."
Later, Xu Yiyang returned to the topic and said: "If the normal exchange rate between the U.S. dollar and the Thai baht at that time was 1:100, then Soros used 100 billion U.S. dollars as collateral and exchanged it for 10,000 billion baht;
Then, he went to the foreign exchange market and sold 10,000 billion baht.
The amount of 10,000 billion baht is too large. While he was selling, it caused the exchange rate to fall and the Thai baht to fall. When he sold all 10,000 billion baht, he might only have sold US$90 billion, including the loss;
At this time, it seemed that Soros had lost US$10 billion, but it didn't matter, this loss was just a floating loss, and he would actually make money later.
The sudden sell-off of 10,000 billion baht itself will trigger a decline in the exchange rate and market panic. In addition, Soros deliberately spreads rumors that the baht is about to collapse and increases market panic about the baht. Therefore, others who are eager to get rid of the baht will also follow him. If the Thai baht is sold, even ordinary people in Thailand will rush to the bank to exchange the depreciating baht in their hands for more stable U.S. dollars.
As a result, the whole society believes that the Thai baht is going to collapse. If the Thai baht collapses across the board, the exchange rate against the US dollar may suddenly drop from 1:100 to 1:150;
Then you have to remember the key point I just said. Soros still owes the bank 10,000 billion baht to repay, so he can re-buy baht at this time at an exchange rate of 1:150.
Under this collapsed exchange rate, Soros would only need to spend approximately US$66.6 billion to purchase 10 trillion baht.
At this time, if he returns the 10,000 billion baht he bought back to the bank, he will be able to get back his previous $100 billion mortgage, and his account with the bank will be settled.
But how much money does he have left now
Excluding the principal, when he originally sold 10,000 billion baht, he received US$90 billion. Subtracting the US$66.6 billion he spent to buy 10,000 billion baht and return it to the bank, he was left with a net US$23.4 billion! "
At this point, Xu Yiyang looked at Eric Chou and said with a smile: "This is how international speculators short the currencies of other countries. Let me summarize it for you. Short selling means first lending commodities and selling them at a high level, triggering market panic and triggering prices. Dive, then buy at a lower price, eventually close the position, and leave with the difference. Do you understand?"
Eric Chou was stunned for a while. He didn't know whether what Xu Yiyang said was true or false, but the key point was that he found that he actually understood Soros's money-making operations. This was really embarrassing...
Everyone in the audience was completely shocked by what Xu Yiyang said. In fact, most liberal arts students, and even most science students, may not really understand how Soros shorted the Thai baht. Many people even didn’t even understand what short selling meant. They didn’t even know what it meant, but now, they all understood it.
Seeing that he had nothing to say, Xu Yiyang added at this time: "So, where did Soros earn these 23.4 billion US dollars in profits? In fact, they were stolen from the entire Thai people. Think about it, you As a middle-class Thai, you have 10 million baht in the bank. You could buy two houses with this money. However, after Soros came to rob you, the baht collapsed, and the purchasing power of the baht plummeted. With tens of millions of baht, you can only buy one house. The total amount of money is the same, but the purchasing power is reduced by half. Where did this house go? Of course it went to Soros."
"So, let's go back to your stupid question just now, why can't the Thai government deal with Soros? This is mainly because the Thai government has too few foreign exchange reserves and cannot fully take over when Soros sells off the baht. Stabilizing the exchange rate, so this is the fundamental reason why Thailand’s economy was attacked by Soros and set back twenty years.”
At this time, Xu Yiyang said extremely seriously: "After Soros attacked the Thai baht and triggered the financial crisis in Southeast Asia, he used the same method to attack the Hong Kong dollar. This is what you said, the 1998 financial crisis."
"But the mainland and Hong Kong both have foreign exchange reserves that far exceed those of Thailand. At that time, the mainland government had the second largest foreign exchange reserves in the world, and Hong Kong had the third largest foreign exchange reserves in the world. In addition, the mainland government publicly expressed strong support and publicly stated that it would do whatever it takes to At the cost of protecting Hong Kong’s finance, the mainland government uses practical actions to make Soros understand that he is not just attacking Hong Kong, but the entire China!”
"Why did Soros lose and why are he afraid? Because the Hong Kong Special Administrative Region and the mainland government have joined forces to stabilize the exchange rate, stabilize the stock market, and stabilize people's hearts. Under such circumstances, it is almost impossible for Soros to trigger a collapse of the Hong Kong dollar by selling the Hong Kong dollar. , because it is supported by the strong foreign exchange reserves of the entire China, we can take as much as Soros throws, and we will never let the Hong Kong dollar exchange rate fall. It is precisely because of this that Soros returned from Hong Kong defeated!"
At this point, Xu Yiyang raised his voice a little, his tone became serious and sharp, and said coldly: "In the final analysis, the credit for driving away Soros and maintaining Hong Kong's financial stability is not all the work of the mainland, nor is it all the Hong Kong Special Administrative Region. It belongs to the entire Chinese people, so you just said that Hong Kong survived by relying on its own strength. This argument is completely wrong."
"The reason why you made such a mistake is simply because you are so ignorant that you don't even understand the working principles behind the whole thing, so you just talk nonsense, make random assumptions, and make random conclusions!"
"Your ignorance is just like me when I was three years old! At that time, I also naively thought that the driver stepped on the car to drive. I thought the driver was the most powerful person in the world, because he alone, If you step on it with two legs, you can pull a car and a car full of passengers;"
“However, when I was four years old, I knew that the reason why a car can run is not because of the driver’s power, but because its engine burns gasoline!”
"After all, you are in your 20s and a senior at a prestigious university. Why can't you understand such a simple truth? Isn't your IQ as good as a four-year-old child?"
"Furthermore, in my opinion, you are not only ignorant and naive, but also extremely arrogant and blindly arrogant! You only have a partial understanding of many things, and even don't understand nonsense, so you dare to open your mouth and talk irresponsibly. You have absolutely no sense of a college student." The basic qualities have simply refreshed my understanding of top students at HKU!"
Being attacked repeatedly by Xu Yiyang, and even unable to fight back at all, Eric Chou's expression was extremely ugly, his face turned frighteningly red, and his whole body began to tremble.
At this time, Xu Yiyang sighed and continued: "Actually, there is one thing I wanted to tell you from the beginning, and that is that in my opinion, your spoken English is really bad. I often get a headache when listening to you speak. "
"You said it yourself, you learned English in a more developed, prosperous, and open environment since childhood. Why is your English not as good as mine? In my eyes, your vocabulary is simply weak."
"Moreover, you keep saying that English is your second mother tongue. You have received bilingual education since childhood, and you have been studying in the English Department of the University of Hong Kong for four years. All classes were taught in English for four years. Why can't your spoken English be as good as mine? I can't. Living in such an excellent environment as you mentioned, and I'm only a freshman, why is my spoken English so much better than yours?"
When Xu Yiyang said this, Eric Chou was almost going crazy.
Xu Yiyang continued: "Look at you, your speaking and vocabulary are far inferior to mine, you don't know as much as me, and your logic is not as clear as mine. You just can't do what you want, eat what you want, and brag about what you want." You are an adult who is mentally retarded, but you still insist on talking to me to death, like a moth to a flame, and keep hitting my muzzle, what do you think you are if you are not stupid?"
Eric Chou was almost collapsed, and big beads of sweat kept dripping from his cheeks.
He has never suffered such a big blow in his life, and his whole body was completely trampled under Xu Yiyang's feet.
Xu Yiyang looked at him, sneered, and said: "Finally, I would like to advise you, ignorance is never a fatal problem, stupidity is!"
As soon as these words were spoken, the entire audience fell silent!
Xu Yiyang kept talking like a machine gun, without giving Eric Chou any chance to fight back. All the ammunition fell on him accurately, beating him like a sieve.
Many Hong Kong college students looked a bit embarrassed. Eric Chou was so embarrassed today that they all felt their faces burning.
The two students around Eric Chou, who were originally prepared to assist him and help him with his firepower output, are now pale with fear.
Fortunately, I didn't talk too much, otherwise, these powerful and suppressive firepower might eventually be poured on myself...
Eric Chou no longer knows how he will end up.
He had never been so embarrassed in his life. He, who was known as a sharp-tongued man, was as weak as a three-year-old child in front of Xu Yiyang.
Especially Xu Yiyang's mockery of his speaking and vocabulary were not only heartbreaking, but simply heartbreaking!
His whole body was tense for too long, and finally he felt a buzzing in his head. He suddenly stood up, slammed the microphone on the ground, stood up, and rushed out of the auditorium, leaving behind a large number of shocked audience and faces full of shock. Smiling Xu Yiyang...
(End of chapter)