instant noodle richest man

XG people are not stupid. They are all very smart. Soros cannot be aimless. He suddenly accepted an exclusive interview with Fortune Magazine and pointed out that XG has problems with its economy. This clearly means that he wants to start directly intimidating XG and use his reputation to scare G coins to collapse on its own!

For a moment, the entire XG elites were frightened. Some elites immediately tried to sell the Hong Kong dollar, but found that the exchange was not open.

Then the elites became even more frightened, saying that ZF would stop them from running away!

In fact, it’s not that they don’t let them run away, it’s just that they close the door and rest normally because of holidays. These people are really frightened.

On the other hand, the relevant departments of XG could not sit still and wait for death. In fact, they had foreseeed Soros' problem for a long time. After studying it hard for half a year, they finally came up with a very powerful solution.

They believed that as long as this method was done, Soros could be driven back immediately.

So what is this magical method?

That is to increase the exchange rate of G-coin lending.

They studied Soros' many cases and found that his shorting routine was actually very fixed.

Simply put, it is to first lend out local currencies from the bank, and then sell them as soon as possible and exchange them for US dollars.

Next, we used various news and means to suppress the currency's exchange rate. Finally, when the exchange rate dropped a lot, we exchanged the US dollar for local currency and returned it to the bank where they borrowed money.

In this way, you can earn a lot of dollars from it as an intermediate profit.

So the relevant departments of XG were surprised to find that as long as they raise interest rates and make Soros borrow money without profit, that would be fine.

Let me briefly explain it. Suppose that before the interest rate adjustment, Soros wants to borrow from XG's bank for three months, with a total of 1 billion GB, and he needs to pay 5% interest as the bank's borrowing income. Then, after three months, Soros needs to repay the bank 10.5 billion GB when repaying the money.

In other words, Soros' profit from shorting XG must exceed 500 million GB, which is profitable.

However, after the relevant departments decide to raise the reception interest rate, for example, increase the interest rate from 5% to 20%, then Soros will have to pay 12 billion GB to the bank, which means he will make at least more than 2 billion GB of profits in order to be profitable.

In this way, the difficulty of Soros' profit will be greatly increased, and the profit will be greatly reduced. If various operating costs and labor costs are included, the business will be unprofitable.

So as long as Soros is smart enough to see XG increase the lending exchange rate, he will give up on himself.

Not to mention that the relevant departments of XG have made sacrifices this time, and directly increased the interest rate from 5% to 30%, which has increased six times. In the eyes of people in these departments, Soros decided that it was impossible to get XG this time, because he came to lose money!

The result is really good. No one will borrow money from the bank for a while, and if you can't borrow money, there will naturally be no situation of suppressing the exchange rate. Everything is so perfect.

XG's society and elites were relieved to see the relevant institutions responding so quickly, and it seemed that Soros' disaster had just passed.

But after being happy for a week or two, some people found that something was wrong, and XG's stock market began to see a considerable decline.

Then, several companies had to announce bankruptcy due to financial problems.

This made XG, who had finally calmed down for a while, start to fill the smoke again.

The relevant institutions of XG began to investigate nervously, wanting to see if Soros was the work of it, and then they breathed a sigh of relief because there was no Soros problem here. The decline in the stock market and the bankruptcy of enterprises were all normal business problems.

But the relevant institutions couldn't laugh because the reason why these companies went bankrupt was because they had no money.

This seems normal. It is natural for a company to go bankrupt when it is out of money.

But these companies could not have gone bankrupt.

You know, not all companies in the world are as rich as Boss Jia’s Daqian, with such abundant cash flow.

In fact, more than 90% of the companies on the market need to be operated on bank loans. The larger the company, the more this is the case, because these companies will choose to borrow from banks in order to pursue speed during the expansion process.

It is unrealistic to earn all the loan back in a short period of time, so the best way to fill the loan is to borrow another loan, use the funds from the latter loan to make up for the expenses of the previous loan, and then repeat the process again and again.

I believe that those readers with many credit cards, and loyal users of a series of APPs such as Huabei, Jiebei, WeChat, Xiaomi Finance, JD Baitiao, etc., must be very familiar with this routine.

These are normal for most companies. As long as the company can maintain operations and have certain profits, there is no problem with these accounts. As long as you can borrow new loans from the bank in time and continue to maintain the capital cycle of this Russian nesting doll.

This is how most large enterprises in the world operate.

But these companies never dreamed that the interest rate on short-term loans of banks would instantly increase by 6 times, from 5% to 30%, which really took the lives of these companies that survived by loans.

Let’s borrow money. The interest rate is too high. I will definitely not be able to pay it back in the future. I owe more to the bank then.

If you don’t borrow, then the previous loan will not be repaid, and the company’s funds for normal operation will be empty, and the company’s account will become cleaner than the beggar’s job.

Faced with such a situation, many companies can no longer withstand it. They neither want to borrow money nor can they afford to pay it back, so they can only declare their company bankruptcy.

Of course, there are some smarter ones who will choose to put all the current funds of the company together, and then use the excuse of going abroad to investigate and return something next week, and will not return XG in your life.

If there are only one or two such companies, there is nothing, but when more than 2% of XG companies have the same similar problems, the stock market will inevitably fall.

Especially when the elites in the stock market know the reasons for the large number of companies' bankruptcies, and XG's relevant institutions cannot recover the policies in a short period of time. More companies will have to run away as their funds expire, but they cannot borrow new loans and have to run away, the stock market will usher in a sharp drop.

On December 28, 1997, in just three hours, G-shares fell by 3,000 points, from a valuation of 15,000 points to 12,000 points.

When time entered January 1998, in this new year, G stocks also ushered in a new low. G stocks fell below 10,000 points, a historical low in nearly five years. The whole story was wailing for a moment.

I believe everyone understands it. Like Korea before, XG also cheated himself this time.

What's even more terrifying is that when some people began to study the stock market carefully, they found that since November, there were many short orders in the stock market, and all the ones they bought were Hong Kong stocks that would fall sharply. These short orders combined have a huge size of nearly US$20 billion, which is equivalent to one-twentieth of the market value of the entire Hong Kong stock.

Let me explain what short orders are. In fact, the operation is the same as the exchange rate. I first borrow a part of the stock from the institution holding the stocks, and agreed to return these stocks in three months, and then give an interest of about 5%.

Afterwards, they sold it in the market and exchanged it for cash.

Then in the next three months, as long as the stock market falls, the capital to re-purchase the stocks will also fall after three months. Excluding 5% of the interest in the middle, all the rest will be profits from the short side.

If you can fall by about half of the entire stock market, then a short order of $20 billion can make a profit of $10 billion, which is a net profit.