“Brother Ki, I heard that you had learned how to play Mahjong.” Feng Yu laughed.
“Hahaha. Yes. The Chinese national game is entertaining.” Kirilenko laughed.
Yesterday, Kirilenko’s luck was excellent and had won in a game of Mahjong. After canceling his future contracts, he had recovered his losses, the interests incurred, and even made a small profit.
“Are you interested in playing a few rounds of Mahjong today?” Feng Yu finally has some free time and wants to relax for a while.
“Sure. But you must be careful. The Fu family brothers had called my God of Gamblers yesterday!” Kirilenko looked at Feng Yu. His eyes were full of confidence.
“Hahaha… God of Gamblers? I would like to play with a god.”
……
“Feng, how long is our break?” Kirilenko asked during the game.
“We will wait until Thai Baht returns to 25:1, and we will enter the market again. Now, we will build up our Forex Short position Futures Contracts in other countries. Why are you asking? You are busy?”
“Yes. The new equipment is fully installed in our electronic factories, and I need to return to oversee it.” Kirilenko knew he couldn’t do anything here as he does not know about financial trading.
Rather than worrying and being helpless here, Kirilenko prefers to do other things back in Russia. The earlier their electronic factories open, the earlier their mobile phones can enter the market.
Feng Yu had told Kirilenko that the newest model of the mobile phone had been developed successfully. What they need to do is to start production and launch it.
“Ok. I promise that after July, you will see high profits every month.”
“Hahaha… Then I don’t need to do anything for the rest of my life and still won’t finish spending my money?” Kirilenko laughed.
Feng Yu thought for a while and said. “Yes. If you can sell off all the shares from your investments, the mining company’s shares, the factories’ shares, your trading company, and your shares in the software company, you can spend the rest of your life spending money.”
Even if Kirilenko’s profits during this financial crisis are not as high as Feng Yu, but Feng Yu can guarantee that Kirilenko’s profits will be at least more than 2 billion USD during the coming one year. If Kirilenko sells off all his assets, he should have more than 6 billion USD. Even if he does nothing and keeps all his money in the banks, the annual interest from the banks will be more than what many people will earn in their lifetimes. It is enough for Kirilenko to spend for the rest of his life.
Even if Kirilenko start to take drugs, the money he had can buy more drugs than he can consume.
Unless Kirilenko got addicted to gambling, he would not finish his money.
They chatted while playing Mahjong, and Feng Yu became the translator for Kirilenko at the table.
In the Northeast of China, there is a saying. The ones who initiated the bets are always the ones losing. After a few rounds, Feng Yu was the only player to lose.
But Feng Yu was still cheerful. The money he lost at the Mahjong table is nothing to him. He only wanted to pass the time and relax and will not be as serious as his father. His father treated Mahjong seriously even when the bets are 1 to 2 RMB!
At night, it is another drinking session. This time Feng Yu did not run away. He accompanied Brother Ki to drink and got drunk. Of course, Kirilenko still drank much more than Feng Yu.
……
“The Central Bank had announced that certain Fund companies would be restricted from getting loans in Baht.”
“The Government will be taking out 5 billion USD of the foreign reserve to stabilize Thai Baht. The Thai Government is determined to let those international speculators lose all their money!”
“The Central Bank had introduced new measures. The overnight rates for offshore loans will be increased from 10% to 100%.”
Feng Yu was reading about Thailand news on Hong Kong media and had a smile on his face. The Thai Government had finally retaliated.
The exchange rates for Thai Baht had fallen to 27:1. If the rate continues to fall, the Thailand economy will crumble, starting from the financial market. Their stock market and property market will also crash.
Restricting some fund companies from taking loans in Baht, is stopping the banks from lending Baht to Soros. But the Thai Government can only restrict their local banks and not the overseas banks.
There are more than 50 offshore banks, and only 15 of them are directly under Thailand’s Central Bank. Although this will affect Soros and his men, the impact is not too severe.
It is the other two measures that will affect Soros.
Five billion USD of Foreign Reserve will pull up the Thai Baht exchange rate, and Soros and his gang are set to lose money. If they want to continue to suppress Thai Baht, they will need to use more funds. The money they have now is not enough to disrupt the market.
At the start of the operations, the Thai Government had taken out 2 billion USD from their Foreign reserve. If Feng Yu had not entered at that time, Soros and his men would suffer significant losses.
Even after Feng Yu joined them, Soros and his men had suffered some losses, but the losses are still within their acceptance range.
The last measure imposed by the Central Bank had increased the offshore overnight interest rates by ten times. This is not an ordinary move, and it is explicitly imposed to target Soros’s Quantum Fund. This will prevent him from dumping Thai Baht immediately after getting a loan.
The interest rate of 10% had increased to 100%. This will increase Soros’s cost of suppressing the Baht.
But Feng Yu felt this is insufficient. A 100% rate is not enough. If he is the Thai Government, he will increase the overnight rate to 1,000%, or even 2,000%! This will prevent Soros from borrowing Thai Baht to dump. Even if he can borrow, he will also not afford the interest!
Feng Yu remembered that in his previous life, the overnight rates had increased to more than 1,000%. But he could not remember exactly how much it had increased. How come it is only 100% now? This will not stop Soros.
The Thai Government does not know about Soros’s greed. Soros had built a 15 Billion USD worth of long-term Forex Future Contract much earlier and had made use of a financial institute to increase his leverage. He had used most of his funds to suppress the Thai currency.
……
“Boss, Thailand had imposed a series of measures, and all of them are targeting us!” Drucken Miller reported.
“Hmph! I had been waiting for them to act. Earlier, when we suppressed the Baht, the Thai Government used its foreign reserves to pull it back. At that time, we did not receive the information in time. Now, they are using more of their reserves. But this time, the rumors we spread will increase the number of speculators. The Thai Government will be powerless against us.” Soros replied confidently.
“But this time, without Feng Yu and his men taking part, will our funds be sufficient?” Drucken Miller was slightly worried. After all, their funds were diversified to build up future contract portfolios in many other Southeast Asia Countries. Although they are using leverage and the deposit proportion is not high, but the total amount used is very high.
They had built portfolios worth more than 1 billion USD in each of the countries Soros targeted, and the funds used are more than 500 million USD!
“Our original plan did not include Feng Yu, and it doesn’t matter whether if he took part in it. Tell the rest that since the overnight rates had increased, then we will increase the duration of the loans and continue to dump Thai Baht!”
