Lee Jae-myung is making money from China, paying homage to the United States, and then triggering an Asian financial crisis. You're really good at it.

South Korean President Lee Jae-myung, who is set to depart for the United States on September 22 to attend the UN General Assembly, openly stated that if South Korea were to invest 350 billion US dollars in the United States as required by the US without setting up a financial safety net, it would face a situation comparable to the 1997 financial crisis.

Previously, the Lee Jae-myung government had verbally reached a framework agreement with the United States: South Korea would establish a large-scale investment fund for the United States, in exchange for the US lowering tariffs — of which 150 billion dollars would be used for developing the shipbuilding industry in the US, and another 150 billion dollars would be added by private enterprises.

If the original agreement is implemented, the scale of this fund would be close to South Korea's entire foreign exchange reserves.

Although Lee Jae-myung's recent statement did not explicitly say he would not invest, it clearly indicated that he was slowing down and trying to distance himself from responsibility.

It should be noted that a lot of South Korea's money comes from China and Asia. In other words, the South Korean government plans to use the money earned from China to offer a token of loyalty to the US, give Trump a satisfactory response, and then lead the way in emptying the Asian financial system. This is not just about flattering the US, but actively participating in a major reshuffling of wealth flow in Asia.

Earning money from East Asia, but destroying the foundation of East Asia.

Looking back at the 1997 Asian financial crisis, it was due to large-scale capital outflows, sudden failures of short-term foreign debt, and structural mistakes of governments pursuing short-term political achievements without effective risk prevention mechanisms that led to South Korea's depletion of foreign exchange, Indonesia's political collapse, and Thailand's economic meltdown.

South Korea today is no longer the same as it was back then, but the dangerous trajectory is surprisingly similar.

Back then, South Korea was forced to accept an emergency loan of 58 billion US dollars from the IMF, leading to a surge in unemployment, company bankruptcies, family insolvencies, and a collapse of social confidence.

Now, the figure of 350 billion US dollars is more than six times the amount of the previous rescue, indicating the huge risks involved.

This is not just an issue for South Korea alone. If the won exchange rate becomes uncontrollable, and the capital market becomes unstable, other Asian countries will also be forced to raise interest rates, intervene, and provide relief.

You are going to bring down the whole Asia.

Original article: www.toutiao.com/article/1843933173568583/

Statement: This article represents the views of the author.