Two days later, the TV news.
Thailand's "Finance Minister" officially announced that it would abandon the fixed exchange rate system that has been adhered to for 16 years, and submitted a letter of resignation at the same time as the "Central Bank Governor".
Because Wall Street sold a large amount of Thai baht yesterday, triggering a wave of exchanges.
The oligarchic group even spent as much as 100 billion baht in maturing government bonds worth more than 40 billion US dollars.
The central bank of Thailand is required to pay off these national debts at a fixed exchange rate.
At this point, the central bank was unable to pay back, and the Thai baht collapsed completely.
"Dear citizens, today I will announce on behalf of the Thai Ministry of Finance that the Thai baht will no longer be pegged to the US dollar."
"Starting from the opening of the market today, a free exchange rate system will be implemented."
"I will resign as finance minister, thank you all."
The finance minister's resignation not only represents a huge devaluation of the baht.
And at the same time, Thai products and Thai labor have depreciated. And with the beginning of the free exchange rate system, it is equivalent to the government handing over financial control.
How much the Thai baht will be worth in the future is not decided by the Thai government, only by the Wall Street oligarchy.
When the United States wants to cut its currency, the Thai baht will depreciate. When the United States wants to pay you back, the Thai baht will appreciate.
Unless the Thai government dares to close itself off and withdraw from free economic organizations. In other words, the Thai government must earn enough foreign exchange before it is qualified to re-introduce relevant regulations. But at the very least, the oligarchic group has severely damaged the Thai economy and taken away the fruits of decades of hard work of the Thai people.
Overnight, Thailand shut down 42 financial institutions and 370 listed companies declared bankruptcy, causing a chain reaction that set the Thai economy back for at least a decade.
"Nawa", a 30-year-old factory mechanic, got up around seven o'clock in the morning and changed into khaki work clothes.
According to his daily schedule, he would get up from his apartment in the suburbs of Bangkok and ride a bicycle to work at a factory three kilometers away.
Before leaving, her wife sent a lunch box and stuffed it into Nava's backpack: "Sir, I'm going to be lucky to you again today."
"For the sake of our family, the Erawan Buddha will bless us." Nava kissed his wife's forehead gently, turned around and left the house with a smile on his face.
Her wife fulfilled her duties and took her children to the kindergarten after her husband left.
"Good morning, Madhu."
"Good morning, Canano..." Nava is not in the habit of watching the news. He still greets acquaintances on the roadside enthusiastically as usual.
But no matter how hard he rang the bell, his friends who used to be happy were packing their things with numb expressions. Unconsciously, there was an uneasy atmosphere in the city's air.
Arriving at the gate of the factory, Nava parked his bicycle in the shed and happened to meet the security guard "Uncle Pola" who was watching the bicycle. He patted his bag with a smile and said with a hint of pride: "Uncle Pola, let's have lunch together in the cafeteria. My wife made the most delicious fried pork with green coconut!"
"Boy Nava, you are still in the mood to eat. Do you know that the Thai baht plummeted last night, and many rich people went bankrupt." Uncle Pola's face was gloomy, and his eyebrows were full of worry.
However, "Nawa" looked unconcerned. He took out a thousand baht note from his pocket and made a snapping sound with his finger: "No? One thousand baht is still one thousand baht. How could it fall?"
"We don't speculate in stocks, so it won't affect us."
Uncle Pola had not read any books. When he saw Nava's actions, although he felt something was wrong, he felt that it made sense.
Suddenly, I began to wonder if what I heard on the news was a little unfounded. Anyway, if the sky falls, there are still those wealthy people holding it up, so no matter how hard you hit it, you won't be able to hit them, right?
So Uncle Pola nodded, patted Nava on the shoulder and said: "Boy Nava, let's go to the factory to work."
Nava chuckled, carrying his bag, and followed Uncle Pola, and they walked into the factory together. But when they entered the factory, they saw a huge crowd of people standing in the square, raising their arms and shouting: "The workers are not guilty! The workers are not guilty!"
"Capitalists should not fire workers! Capitalists should not fire workers!"
When the two saw this scene, they couldn't help but look at each other and rushed into the crowd. After some questioning, they learned that the workers had received layoff notices as soon as they went to work today. Now the unconvinced workers are gathering in the square to protest.
However, this factory is already a large enterprise near Bangkok and an "iron rice bowl" in the eyes of the people. Specializing in exporting food, the salary and benefits are very good.
At the beginning, Nava was able to stand out from several selections and become a member of the factory because of his strong body and good skills. In the end, with only five years of salary, I got a mortgage on a house in the suburbs.
It shouldn't be... More than ten years after the factory was established, this was the first time they heard that the factory was going to lay off employees.
Among the chaotic crowd, a man wearing a suit and a red safety helmet stepped onto a tall wooden box. He rolled up a newspaper, pointed it at his mouth, and shouted to the crowd: "Quiet, quiet! Fellow workers and friends, I am Aticha, the boss of this company."
"It's Mr. Aticha." Nava, Pola and others all knew the big boss. After seeing the big boss come forward, the noise of the crowd gradually subsided.
I saw Aticha's face full of fatigue, and he said in a sad tone: "I'm sorry, I'm sorry, because of the depreciation of the Thai baht this morning, the goods in our factory can only be sold at a loss."
"Your salary factory will be paid normally, but the company can no longer operate."
"The factory... closed down."
When Nava heard the ending of the factory's collapse, his head buzzed and he fell into a sluggish state.
The factory closed down, what should he do? How is the child? How to repay the mortgage? Can he still find another job...
I saw the workers walking to the front and accepting their paychecks from Boss Aticha. Nava followed the others and walked to the wooden box with a confused look on his face, and took the salary from Boss Aticha.
When he came to the street with his salary, he suddenly realized that there were many times more people walking on the street than before. They all held stacks of Thai baht in their hands and frantically bought items in the shops.
Only then did he know that the number of Thai baht in his hand had not changed, but his purchasing power had dropped significantly. Things that used to cost 200 baht can no longer be bought with 1,000 baht.
At the same time, the bosses of foreign-funded enterprises are paying wages to their employees with smiles on their faces. The average monthly salary they give to each employee is about 10,000 baht, which is equivalent to more than 400 US dollars. But now 10,000 baht is still issued, but only more than 100 US dollars are spent.
The cost savings and profits generated are huge.
The total foreign-invested factories in Thailand can save at least tens of billions of dollars a year.
Moreover, local factories have closed down, and there is no factory to compete with them, let alone whether there will be anyone to use them.
Most of the unemployed workers outside hope to find jobs again. Taking advantage of this opportunity, they might be able to reduce workers' salaries.
After the workers left the sharply devalued Thai baht, Thai suppliers who came to deliver goods also arrived at the door of the foreign-owned factory.
This supplier specifically delivers rubber raw materials to an American tire company. According to the contract, the tire company will purchase this batch of rubber raw materials at a price of 5,000 baht per kilogram.
For up to ten tons of rubber raw materials every month, a total payment of 50 million baht is required, which is two million US dollars. But now, for the same payment of 50 million baht, they only spent 500,000 US dollars.
So when the rubber businessman got out of the car, he took the initiative to find the owner of the tire company and handed the white-skinned man a cigar.
He looked anxious and asked cautiously: "Sir, can I settle this batch of goods in US dollars?"
"We are willing to supply future goods to you at a price of one million US dollars per ten tons."
The boss of the tire company put his hands on his hips and smoked a cigar with disdain on his face: "No! Our supply contract lasts for five years. If you want to break the contract in advance, just wait until the company goes bankrupt!"
“Remember, the contract stipulates that settlement will be in Thai baht, and liquidated damages will be settled in US dollars!”
"Come here and transport all this rubber to the factory."
…
New York, Wall Street.
Solos was holding a cigar in his mouth, sitting in front of the office desk with high spirits, and scolded Fang Qiu: "Very good, the Thai team's bonus will be doubled this month. This blitzkrieg was very beautiful!"
"In two days and 48 hours, we completely destroyed the Thai baht. The total investment was 40 billion U.S. dollars, and the Thai government provided more than 30 billion U.S. dollars to rescue the market. Coupled with the losses of international retail investors, our total profit reached 40 billion U.S. dollars. Tens of billions of dollars.”
"A hundred percent return rate is simply a perfect war."
Solos showed a happy smile, because the US$40 billion is just a profit, and the impact in Asia is far beyond that.
But those benefits are all valued by the gentleman in the White House.
For him, the real money is the best.
And as long as this war is fought well at the beginning, the snowball will get bigger and bigger, and there will be more and more money in the account.
Suddenly the chief analyst of Hong Kong Island raised his hand and asked: "Sir, the landlords have been aware of our actions. They started to acquire Hong Kong Island's claims in the market two days ago and stabilized the current Hong Kong dollar exchange rate and the Hong Kong stock market. "
"I suspect they have more funding than expected."
Solos laughed contemptuously: "What are you afraid of? Even if they have six billion US dollars, or even ten billion US dollars, it doesn't matter at all!"
In his own scheduled plan, Solos had prepared a plan. As long as the Landowners Association's funds do not exceed 10 billion US dollars, it will suffer a crushing failure. Even if it exceeds 10 billion US dollars, with the current snowball momentum, Wall Street will win the final victory.
"The trend has been established, we need to continue to capture the next target, Korean Won!"
