"If this distrust cannot be improved, then they are just placing their hopes on another bubble."
"The other bubble is gold."
Afang still didn't understand, staring at him with her big, round eyes.
Chen Dong smiled helplessly and explained, "Think about it, why don't people in Southeast Asia trust their own currencies these days?"
“Because their currency has depreciated,” Afang replied.
Chen Dong then asked, "Think again, why would they believe in gold now?"
"The answer is obvious, because gold is currently very valuable and can also retain its value, even being more stable than their own currencies."
After listening, Chen Dong gently tapped Afang's head and said, "Value is value, and price is price. They cannot be confused."
"It should be said that the price of gold is high right now, rather than its value."
"The price of gold has remained between $400 and $500 per ounce for many years, and it can drop to $300 per ounce in bad years."
"But look at it now, the price of gold in Southeast Asia has already been driven up to $1,700 per ounce."
"What does this mean? It means that the current price of gold is too high."
Chen Dong said with a sullen face, "This is just a bubble that's been blown up by someone."
The bald diner was chatting with his companion when he turned his head and heard Chen Dong's remarks. He felt that Chen Dong's words coincided with his own.
The bald man casually picked up a paper cup from the table, poured Chen Dong a cup of Longjing tea, and handed it to him, then said, "Brother, I think you know a lot about the stock market."
"Go on, tell me, will the Soros Group actually profit off the bulls?!"
Upon hearing the bald man ask this question, the diners at the next table immediately mocked him, saying, "You just confidently said that Soros would reap the benefits from the bulls, and now you're asking this question to this young man. It turns out you don't even know the answer yourself."
Someone chuckled, "This bald guy, what does he know about the financial markets? He's just guessing!"
Afang asked again in a low voice, "What is 'harvesting long positions'?"
Chen Dong put down the brine and was about to explain when the bald man enthusiastically explained, "It's about reaping profits from the bulls, which means... for example, international speculative capital taking a liking to a currency in a certain market."
"Then he took his team to the currency market, released positive news about the currency market, promoted the local economic development strategy, and invited other overseas investment capital to enter the market."
"At this time, local stock investors, retail investors, as well as third-party institutions, investment banks, and investment companies will develop an optimistic sentiment towards the local stock market."
"Then retail investors followed suit and entered the market, buying more shares. Securities companies and funds simultaneously bought large amounts of shares and then distributed them to retail investors, collecting margin and handling fees from them."
"When everyone thought that the local currency would definitely rise steadily, international speculative capital quickly pushed the currency to a peak, and then quickly sold off its holdings and exited the market!"
This is a common tactic used by international speculative capital to profit at the expense of long positions.
Afang thought for a moment, then said with some disbelief, "The gold rush in Southeast Asia shouldn't be like this, right?"
She looked at Chen Dong and asked, "Southeast Asia not only has the Soros Group, but also the promises made by the Federal Reserve to the governments of Southeast Asian countries."
The bald man chuckled dismissively and looked at Afang helplessly, saying, "What the Federal Reserve says is one thing, what they do is another."
“Look, a month ago the Federal Reserve said that they would explore new markets in Southeast Asia, and would encourage domestic companies to invest in Southeast Asia, and provided Southeast Asia with a whole set of economic growth strategies.”
"But what have they done in the past month besides providing financial assistance? They haven't done anything at all."
Baldy can talk a good game of theory, but when it comes to actually looking at the market and making judgments, he's completely lost. That's why he asked Chen Dong to confirm if there was anything wrong with his thinking.
"Hey buddy, tell me, isn't Soros in cahoots with the Federal Reserve?"
Chen Dong thought for a moment and said cautiously, "The Federal Reserve is the central banking system of the United States. The decisions of this institution represent the national policy of the United States and it is unlikely that it would get involved with the Soros Group."
“However…” Chen Dong added, “Currently, the common interest of the Federal Reserve and Soros lies in the Southeast Asian gold and financial market, so it’s not hard to rule out the possibility of cooperation between them.”
......
Continue read on readnovelmtl.com
