<b>Chapter 901 – Many reasons</b>


    A country is simr to apany. When the country has limited products, it’s easy to make losses when the economy is not doing well. The Government had to inject funds into the economy to make up for the losses.


    This method is not wrong, but there are two crucial factors. First, can the injected fund be sustainable? Secondly, the fund is injected into the economy must increase the country’s exportation abilities and lowered its future losses.


    But the Thai Government can only achieve the first point. They could get investments from Japan, but their exportation got lowered.


    Thand’s main exported products are electronics. Most of the electronicponents imported by China were from Thand and other Southeast Asia countries.


    But from the start ofst year, the global demand for electronic products had dropped significantly. Thand’s electronics exportation could not maintain even with the increased trade with China. Thand’s trade dropped from 8.2% to 3%.


    That means Thand’s exports might seem to be doing well, but they are losing money.


    Also, most of Thand’s electronic factories were set up by Japanesepanies. Thebor cost andnd are very cheap in Thand, and it creates a false impression that Thand is a world-ss electronicponent manufacturing country. But these factories are all Japanese electronicpanies’ subcontractors.


    Even with such high investments, the Thai Government is still making losses every year. The GDP might be high, but the country did not make any money. Most of the money is taken away by foreign investors, especially Japanesepanies.


    Sony, Panasonic, AIWA, and even the Sixth Sense Company have factories in Thand. Not only the cost of setting up a factory is low, but the operational cost is also meager, and the Government also offered attractive subsidies.


    With more factories, the demand for manpower will increase, and the workers’ sries will increase. Thand’s workers’ sries had increased by more than ten times over the past ten years. When the workers’ sries increase,panies that require massive manpower will lose itspetitiveness.


    Shoes, clothing, etc. were formerly Thand’s main exportation products. But as most of these factories closed down, the export also drops.


    This information and data were gathered by Feng Yu’s men, and Feng Yu understand why Thand’s financial system can copse so fast.


    Thand’s Government is operating under losses, and the average debt per person is more than 1,500 USD. But the Thais are still spending their moneyvishly. European perfume, expensive wine, cars, watches, etc. were imported into Thand.


    Thand, being the world’s third importer of Mercedes Benz, showed how the Thais spend their money. Fu Guangzheng had thought of selling Songjiang Motors vehicles to Thand, but the dealers in Thand were not interested. Only luxury brands can sell well in Thand. The mid-range segment is taken up by Japanese brands.


    The Thais were satisfied with their lives and felt their country is developing fast. They even look down on China, because their average ie is higher than the Chinese.


    After the Thais be wealthy, they start to spend on luxury items and also invest in the stock market. Most people in Thand invested in shares. Regardless of teachers, workers, drivers, and even full-time housewives start buying shares. The stock market is rising, and everyone thought they could earn big bucks when they enter the stock market.


    The deposits in banks got lesser, and everyone took out their savings to invest in the stock market. Even people even got loans to buy shares, as they felt the returns from the stock market is more than the interest rates.


    Thand’s financial institutes also got loans inrge amounts from the banks. The amount they invested in the stock market was so significant that they could manipte the shares to profit from it.


    The banks gave out more and more loans, and people deposited lesser and lesser with the banks. As a result, banks can only increase their loan interest rates. But despite the higher interest rates, it did not stop people from getting loans. Annual interest of 17%? Never mind! I will get that loan!


    The returns from investing in properties and shares can cover the interest within a few months! This is no longer investing. It had be spection!


    The interest rates for loans had increased, and somepanies could not afford the interest. As a result, their productions were affected and could not export their products overseas, thus, lowering Thand’s total exportation.


    When other countries got wealthy, they will invest in their country’s basic structure, like education. But Thand’s prosperity is only on the surface. The Government is making losses every year and does not have money for education.


    Thand’s education system and technology are way below the rest of the countries in Southeast Asia. Thand is in thest position in Asia.


    Without technology and a sound education system, the country will not have engineers. The critical high tech industries in Thand cannot be developed. No country can be dominant if it does not have advance technology. That’s why Thand’s economy might be doing well, but it is never a stable country.


    Simply put it. Thand is neither here nor there. They do not have hi-tech industries, and their traditional industries are losingpetitiveness. It’s unavoidable for their economy to copse.


    The Thai Government is not aware of these problems?


    Of course not. The Thai Government is aware of these problems, but they don’t have a solution. Their exportation is getting worse and Thai Baht is facing depreciation. If Thai Baht depreciates, Thand’s losses will be even greater.


    The Thai Government had no choice but to intervene in its financial market. They must stabilize their currency. However, when the Government of a country interferes with its financial market, it means that the country’s financial market has a severe issue. The country’s economy might copse.


    Soros and his gang also noticed this. They still had not to go all out, and the Thai Government had stepped in to interfere. If they attack Thand’s financial market with their full power, can the Thai Government stop them?


    Thand’s banks do not have money to help the economy as they have too many bad debts.


    Most of these bad debts are issued by the bank’s staff to their friends and rtives. These bank staff all felt that investing in shares and properties with the money from loans can get high profits.


    Even themoners on the streets are doing this to make money. How can the staff let their friends and rtives down? Don’t they have anything to mortgage? Never mind. The market is doing well now, how can they fail to repay the loan?


    A family of three had to pay the mortgage of 2 houses? Anyway, the houses are not for them to live in. They are investments, and after 1 or 2 years, they can sell it for profits.


    Another important reason is that Thai Baht is over valuated. If it weren’t for the fixed exchange rate, Thai Baht would have depreciated a long time ago.


    Several reasons resulted in Thand’s financial crisis. Even if Soros and his gang did not attack Thand, this financial crisis will also happen. But after Soros and Feng Yu attacked Thand’s financial market, they will bring forward this crisis!