Chapter 326

To tell the truth, Li Feng is still full of expectations for the layout of the financial crisis. I haven't read a few novels in my previous life. The protagonists have achieved their goal of accumulating wealth through the financial crisis. Now I personally participate in it. I think Li Feng is still very excited.

In view of the financial crisis, Li Feng did not read less books on finance, foreign exchange and currency, such as the national currency exchange rate system. Combined with the general memory of later generations, Li Feng clearly knew that the financial crisis began when the Thai baht gave up the fixed exchange rate with the US dollar.

I deeply admire the prediction of the financial crisis made by industry elites such as Li Shanquan, but I also feel that there are traces to follow, which is also the significance of the existence of people such as Soros.

After World War II, after clarifying the "bresenton system", two major international monetary cooperation institutions were established, namely, the International Monetary Fund and the world bank for reconstruction and development (i.e. the World Bank). Therefore, it can be said that the two major international monetary institutions in the future world are secretly controlled by the United States.

Since the hegemony of the US empire was established after the war, the world monetary exchange rate system centered on the US dollar was established. The monetary policies of countries all over the world are double pegged, that is, the dollar is pegged to gold, and the currencies of countries are pegged to the dollar according to the gold content. It is stipulated that an ounce is equal to $35, so that the currencies of all countries in the world are centered around the dollar.

This is the "fixed exchange rate system under the Bretton Woods system", which is also the origin of the later known as "US dollar kidnapping the world", and this is also the origin of the US dollar being called "US dollar".

With the recovery of European economy and the rise of Japanese economy in the 1960s and 1970s, the Bretton Woods system finally collapsed, and the floating exchange rate system came into being.

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Naturally, nowadays, all countries have their own exchange rate system for their own currencies. Some major powers in the world have adopted independent monetary management policies for their currencies, mainly those industrial powers.

In fact, most countries actually follow these industrial powers. For example, Britain and British countries are dominated by sterling, France and French countries and other European countries are dominated by their own currencies.

As for the United States, it is the largest rogue country. The currencies of most countries in Southeast Asia are directly linked to the US dollar, which is why these countries listen to the United States.

There's no way. There's a saying that "the economic foundation determines the superstructure.". You can't even listen to the fact that even the country's currency follows the US dollar.

Later generations also have a name of world currency, which can be used for international trade settlement, such as US dollar, Japanese yen, British pound and so on.

The first world currency is sterling, which was the glory of Britain's Empire at the beginning of the sun never sets. Unfortunately, it is gone now, followed by the US dollar. Next, including the Japanese yen, the euro and even later the RMB, have become the basis of the world currency.

In fact, it is still related to the status of the country, you are strong, you has the final say, small to personal to the state.

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With the disintegration of the bresenton system, most of the mainstream national monetary policies in the world adopt a separate floating exchange rate policy, such as the United States, Britain, France, Germany and Japan. There are about 30 countries, thus forming a common "world currency" in the international market, such as US dollar, Japanese yen, British pound, etc. Of course, due to the strong national strength of the United States, the dollar has become the mainstream world currency.

The vast majority of other countries in the world are linked to the currencies of these big countries, that is, their currencies will float with the foreign exchange of the currencies of big countries, which is called the "pegged floating" exchange rate system, that is, the domestic currencies of these countries change with the changes of the currency exchange rates of these big countries.

The other is joint floating, that is, the consortium between countries implements "fixed exchange rate" in each member country and joint floating abroad. The European Union is a typical example, and the later euro is such a result.

Of course, these are the mainstream exchange rate systems in the world, and some formulate relevant policies in combination with all parties. For example, Hong Kong implements a "linked exchange rate system", which can be said to be a variant pegged floating exchange rate system. When the currency is issued, it is based on foreign exchange reserves.

Xiangjiang currency issuing bank pays the corresponding US dollars to the foreign exchange reserve fund in advance according to the fixed exchange rate standard of US $1 to HK $7.8, and then issues currency. It is a variant "pegged to the US dollar floating" exchange rate system. As long as there is enough foreign exchange, the currency stability can be guaranteed.

In other words, if you want to issue HK $780 million, you must first pay US $100 million in foreign exchange reserves to the foreign exchange reserve fund, and then you can issue additional HK dollars. In other words, the more foreign exchange reserves you have, the more stable your currency will be.

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Similarly, Li Feng also understood the importance of foreign exchange reserves for Hong Kong. He thought that in the financial crisis, Hong Kong would not be able to withstand the attack of international hot money without the support of the mainland. After all, in the end, the exchange rate systems of Hong Kong, Thailand and other countries are essentially the same.

However, with the support of the mainland's strong foreign exchange reserves, Hong Kong can withstand external pressure, which is one of the reasons why foreign hot money led by Soros failed to attack Hong Kong twice. After all, the mainland's foreign exchange reserves are the first in the world.

It can be said that in the subsequent financial crisis, Hong Kong's performance was definitely supported by the huge foreign exchange reserves of the Chinese government. It is estimated that it will be very difficult to rely on Hong Kong itself. Like Singapore, although it withstood the pressure, it suffered heavy losses.

Naturally, Li Feng is also concerned about China's monetary policy. China is different from other countries in the world due to special political, economic and financial reasons. China's financial and foreign exchange control does not allow free exchange of foreign currencies.

It is also because of this. For China, it is always said that there is no foreign exchange financial market in China. European and American countries have repeatedly asked China to implement a floating exchange rate system in the early stage.

The advantage of Huaxia's financial exchange rate system is that Huaxia has almost minimal impact on the financial crisis. However, with the increasing integration of the world economy, China will integrate into the world economy sooner or later.

Perhaps this is also the reason why the RMB began to appreciate after China's entry into WTO, and perhaps the monetary system was slowly reformed and gradually integrated into the world economy.

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Since the 1990s, there have been two major financial crises. First, the British currency crisis and the European exchange rate mechanism crisis from 91 to 92; The second is the Mexican financial crisis in 1994-95.

From Li Feng's current perspective, the two crises are caused by currency or exchange rate adjustment, while the situation of Southeast Asian countries is a little similar.

Combined with the history of later generations, it was hot money that attacked the currencies of various countries, resulting in currency devaluation and even eventually leading countries to abandon their currency exchange rate system, which eventually led to the financial crisis in Asia.

Of course, this is Li Feng's experience after reading some financial exchange rate systems and combining the history before and after. Although it is not necessarily comprehensive, at least it seems to be the case.

When making the decision to participate in the financial crisis, Li Feng specially checked the previous two financial crises and relevant materials, including Soros's original case, and finally saw some signs.

In short, Li Feng also has a certain understanding of the economic and financial crisis in Asia, and has his own views in combination with history. He is not a financial white man now.

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Next, in addition to Li Shanquan, the heads of the Asian offices of many other companies also came to report.