The first country to be affected was Thailand.
In just two days, July 1 and July 2, the Thai baht depreciated by 21%, foreign capital fled, the stock market crashed, and prices soared.
On July 3, the Thai government announced that it would use $4 billion to intervene forcefully in the foreign exchange market, but the effect was minimal and completely ineffective.
Two days later, the Thai government decided to abandon the fixed exchange rate with the US dollar.
On the day of decoupling, the exchange rate against the US dollar immediately suffered a sharp drop, falling by as much as 17%.
From then on, the Thai foreign exchange market completely lost control and became chaotic.
Shocked by the financial markets, Thailand's private economy is in dire straits, with countless people who have lost everything in the stock market, foreign exchange market and business taking to the streets in protest.
The more the riot police suppress the protests, the stronger the public backlash becomes.
On July 8, unrest broke out in Bangkok.
Hundreds of thousands of people took to the streets, and various acts of violence continued to emerge.
Vandalism, car burning, burglary, rape...
Bangkok is in chaos.
As the capital city spiraled out of control, unrest and conflict erupted in more parts of Thailand.
......
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The financial crisis in Thailand has increased the pressure on currencies to depreciate in South and Southeast Asian countries.
A black storm is sweeping across other Asian countries.
On July 11, following Thailand, the Philippines became the second Southeast Asian country to adopt a floating exchange rate system.
The Philippine stock and currency markets both fell, and the currency depreciated sharply.
On the same day, Malaysia officially announced that it would immediately implement a floating exchange rate.
Unfortunately, it suffered the same fate as Thailand and the Philippines: its bailout failed, its currency depreciated rapidly, and the ringgit's exchange rate once fell to its lowest point since the founding of the country.
On July 16, even new currencies, which have been very stable for decades, experienced a significant depreciation.
Half of Asia has been lost.
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A month later, the storm finally began to sweep across Indonesia.
Despite the extensive preparations made by the Indonesian government and its early announcement of abandoning the fixed exchange rate with the US dollar, no one could escape the financial typhoon.
On August 14, the entire Indian Ocean financial system collapsed.
The Indonesian rupiah plummeted 26% against the US dollar, a sharp depreciation of 78%.
The stock market has been in a continuous plunge, causing widespread panic.
The same tragedy quickly spread to all walks of life.
The ordinary people of Yinni, whose income was already low, felt the biting cold.
Economic recession led to widespread business and factory closures, and unemployment soared...
In just one month, the number of people living in extreme poverty in Indonesia surged from 20 million to 31 million, and more and more people were unable to afford food.
Public discontent is growing.
In such situations, if the government fails to implement effective bailout and reassurance policies, social order will inevitably descend into chaos.
But Indonesia is a somewhat special country.
More than 70% of its wealth is concentrated in the hands of Chinese people, who make up less than one-twentieth of the population.
If domestic conflicts escalate, the Chinese community will inevitably be the first to be affected.
Lin Dong clearly remembered that in his previous life, it was precisely because of this that the Indonesian authorities at the time deliberately manipulated the emotions of the people in the country.
The incident occurred in May 1998.
There's still a long way to go until next May.
But experience told him that the butterfly effect of his rebirth could very well change the course of history.
No one knows whether the Glorious Society and the United States will deliberately escalate the conflict ahead of time.
They might even pressure the Indonesian government to instigate riots.
The recent entry of four carrier strike groups into the Southwest Pacific perfectly illustrates this point.
Therefore, Lin Dong dared not gamble.
He would rather launch the "Thousand Islands Project" ahead of schedule.
With the Dragon Gang's navy and air force not yet fully formed, at worst, he would have to pay a higher price.
....................................
In mid-September, the Southeast Asian financial crisis spread to East Asia.
Currencies plummeted and devalued across Asia.
The sharp devaluation of the South Korean currency has caused its short-term foreign debt to exceed US$120 billion, putting the country at risk of national credit bankruptcy and a foreign debt crisis.
During the same period, amid the continued sharp decline in the stock and currency markets, 75% of the securities companies in the island nation declared bankruptcy, and major banks frequently closed down.
In 1997, the island nation was the world's second-largest economy and the largest economy in Asia.
As a result, foreign exchange and stock markets in Asian countries once again experienced an unprecedented synchronized plunge.
By the end of September, stock markets in Thailand, the Philippines, and Malaysia had fallen by an average of more than 35%, and stock markets in other places also experienced varying degrees of sharp declines.
Even the Singapore stock market, which experienced the least volatility, fell by 19%.
Asian financial markets are in turmoil, a scene of utter devastation.
Currency devaluation and stock market crashes have caused heavy losses for investors, leading to a massive outflow of funds from Asia.
This vicious cycle has led to even more devastating losses for stock markets across Asia.
September 29th, Black Monday in Asia.
The Dow Jones Industrial Average plunged immediately after opening, giving the world its biggest drop in 30 years.
Trading was suspended at 10:46 a.m.
......
The financial crisis has devastated countless businesses, leaving tens of millions of people unemployed.
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