Chen Dong looked at her with satisfaction and patiently explained, "It's the same principle. International speculative capital, led by Soros, initially attacked the currency markets of countries such as Thailand, the Philippines, and Singapore."
"Although gold is a type of currency, it is not the exclusive symbol of currency of any particular country."
As he spoke, Chen Dong looked at the others. It was clear that Annie Lin Zhiyuan and the others had not understood either. He continued helplessly, "A country's currency symbolizes its financial identity. Every time Soros shorts a country's or region's currency, he also criticizes the country's authorities' unfavorable economic policies both politically and economically."
"In other words, when he attacks the currency market, he always uses an old trick: when the public already lacks confidence in the country's economy, Soros uses speeches and other means to further incite panic."
"These methods are targeted at different countries."
"For example, when shorting the Thai baht, Soros focused his attack on the corrupt Thai government, while when shorting the Philippine peso, he focused his attack on Southeast Asian energy futures."
"These are the pain points of Southeast Asian countries, and also the most vulnerable parts of their financial markets."
Soros is good at exposing people's wounds, but not good at whitewashing them.
This situation is particularly evident in Southeast Asia. He is adept at shorting various currencies, but when it comes to going long on the Indonesian rupiah, he is powerless to do so.
This is also related to Indonesia's unique internal cultural and political structure.
Indonesia's various problems, including corruption, feudalism, and religious influence, prevented the country from recovering from the Southeast Asian financial crisis, even after receiving economic aid from the Federal Reserve.
After all, a sapling is rotten from the roots, and no matter how much Soros and his team prune it, they cannot raise the value of the Indonesian rupiah.
"However, there is another crucial reason why Soros acted out of character, causing the Southeast Asian financial crisis and then sparking a gold rush in Southeast Asia in a very short period of time," Chen Dong added. "That is, their actions were to cooperate with the Federal Reserve's actions."
"How can this be related to the Federal Reserve?" Ma Guoliang suspected that his boss had misunderstood the reason.
Chen Dong smiled calmly, "Have you forgotten? Shortly after the gold rush swept through Southeast Asia, the Federal Reserve launched economic aid to countries such as the Philippines, Singapore, and Thailand."
"They used the printed US dollars to buy up government bonds of Southeast Asian countries, as well as securities of local financial and credit institutions. After some manipulation, they successfully transferred domestic inflation to Southeast Asia."
"In other words, they took the currency that was in excessive circulation in the United States to Southeast Asia, used the US dollar to buy bonds in Southeast Asia, and then took the equivalent value of the bonds back to their home country."
"In this way, they absorbed the extra money they printed in their country without anyone noticing."
"At the same time, even if other countries have complaints, they can't find any evidence, and the Federal Reserve has indeed bought their bonds and has indeed helped their financial and credit institutions get through the credit crisis."
At this point, Afang remembered that Chen Dong had previously explained to her why the Soros Group and the Federal Reserve had such large-scale economic activities in Southeast Asia.
However, at the time, Afang did not know Soros's investment habits and thought it was just a routine collaboration between an international hedge fund and the Federal Reserve.
"I never imagined they were so wicked," Afang sighed.
Lin Zhiyuan disagreed, saying, "This is just a game of capital. The winner takes all, and the loser is condemned. Since these countries dare to tout the free market and enjoy its conveniences, they must also bear its risks."
Seeing that Chen Dong's face was very pale, he quickly added, "Of course, releasing diseased chickens into the chicken farm was indeed a terrible thing to do."
"According to the rules of the speculative market, international speculators generally only release false news about the stock market, whether it is good or bad. They achieve their goals by damaging the real economy in a certain place or even by releasing chicken plague. This has obviously deviated from the rules of the gray area."
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