“Feng, why did you call me over so urgently? I was still speaking to Brother Guangzheng about investing in their floating casino venture.”
Feng Yu is not interested in that business, but Kirilenko is very interested. He felt that even if he did not make any money in that venture and treated it as a holiday destination.
“Brother Ki, Ruble, and Russia’s stock market are starting to rise.” Feng Yu reminded.
“Great. How much can Ruble rise? Our outstanding loans to be repaid next year is not a lot.” Kirilenko thought Feng Yu was talking about the loans they took before the collapse of the Soviet Union. Since that time, Rubles had depreciated by over a few hundred times. The few hundred million USD loans are now worth only a few million USD, and this amount is including interest.
Now, even if Feng Yu and Kirilenko have to return a few hundred million USD, they will not mind. Without the loans they borrowed, they will not have their wealth now.
Rubles rising by one time, ten times, are no different to them now.
Feng Yu looks at Kirilenko helplessly. He knows that he had to explain everything in detail, or he will not understand.
“Brother Ki, I am not talking about our loans. Do you remember before those Southeast Asian countries’ financial market crash, Soros will push the currency rates and stock index up?” Feng Yu reminded.
Kirilenko paused for a second. “You are saying that Soros is going to start attacking Russia?”
“I am not sure, as we cannot check those trading accounts. I need you to get your men to verify this.”
Kirilenko shouted angrily. “Soros is too arrogant. Does he think Russia is the same as those small countries?! Feng, don’t worry. I will make a few calls and will know where the money came from.”
Kirilenko starts to make phone calls, while Feng Yu sat beside to eating snacks. Even if Soros had started attacking Russia, Feng Yu and Kirilenko do not need to panic.
After a while, Kirilenko puts down his phone with an angry look. “You are right. The Quantum Fund is behind those accounts, and they are pushing up the stock index.”
Feng Yu nodded. “That’s right. That means Soros is going to skip Hong Kong and attack Russia. The abnormal fluctuations in the Hong Kong stock market are just to trap us here!”
“What should we do now? Ruble and the stock markets are rising, and are we going to stop it?” Kirilenko was feeling helpless. If he is going to suppress the market, then his reputation as Russia’s top tycoon will be tarnished. His father will also be affected!
“Who says we are going to suppress the market? You are Russian, and I am your best friend. We must help to push up the stock index.” Feng Yu replied.
“Wait. Didn’t you say Soros is going to set up future contracts when the prices are high to reap the most profits? If we help to push up the stock index, Soros will earn more money!” Kirilenko was confused. He does not understand what Feng Yu is going to do.
“Your country’s Ruble is using the Managed Floating Rate System, right? All the currency fluctuations will be within a range, and the government will interfere if the fluctuations get out of the range.”
“That’s right. What’s wrong?”
“What if the fluctuation range is increased? The risk will increase dramatically, and Soros will suffer losses.”
“The fluctuation range can be increased?” Kirilenko opened a bottle of Baijiu and drank straight from the bottle.
“We do not have the authority to adjust it, but Yeltsin has. Soros’s Quantum Fund is only a hedge fund. He is pushing up the currency rates and stock index, and to do this, he must buy in large amounts of Rubles, shares, and many future contracts. He will make money if the stock index rises and will use the money he earned to borrow Ruble and start suppressing the stock index and currency to make more profits.”
“If Russia’s economy is doing well, it will be hard to suppress the stock market and currency, and Soros will still make money. You just need to know that Soros is betting on Rubles and Russia’s stock index to rise. If we make Ruble and the stock market crash, Soros and his men will suffer massive losses!” Feng Yu explained.
“You are telling me to let the higher-ups know about this plan, and use this strategy to teach Soros a lesson? But won’t Russia be suffering losses in this plan?” Kirilenko was not willing to accept this tactic. Feng Yu is not willing to let Hong Kong suffer any losses, and now is asking Russia to suffer losses to deal with Soros?
“You all will not be the ones suffering losses. It will be Soros and those greedy international speculators that will be suffering losses. Just think about this. They are pushing up the stock market and Ruble’s rates, and need to buy the stocks and currency in a large amount. The Russians can make money if they sell their stocks now, and when Rubles and stock market crash, Soros and those greedy international speculators start dumping their shares and Ruble at low prices, and your people can buy back their shares and Rubles. Isn’t it better for your people to own your country’s company shares? Those people will be the ones suffering losses instead of Russia.”
Is this the case? Kirilenko scratched his head, and what Feng Yu said seems to make sense. But he does not know whether if this is right or wrong. Nevertheless, he still trusts Feng Yu and knows that Feng Yu will not lie to him. They have many business ventures together and shared the same interest. Furthermore, he knows Feng Yu is not the type who will con his friends.
Feng Yu is not lying to Kirilenko, and this tactic was used by Russia in his previous life, making Soros and those international speculators suffered massive losses.
Of course, this strategy will let many countries criticize Russia, but does Russia care? You all can only criticize us, but do you all dare to attack us? What? Do we owe money to these countries?! We will drag out the payment to a few months later.
Which country dares to do anything when one of the world’s superpower refuses to repay their debts?
Russia is not afraid of wars, and if wars broke out, they can win and gained some benefits. Even the US does not dare to go to war with Russia, let alone other countries. Of course, a few countries governed by a few madmen, who are willing to go against humanity, will dare to attack Russia!
“Feng, you are saying that we will dig a hole into trapping them?”
“That’s right. They will help you all fill up the hole, and when everything is over, you can acquire the shares of Russian companies.” Russia is Kirilenko’s foundation. The stronger his foundations are, the better he will be.
This is just like Feng Yu. Regardless of his overseas investments, his top priority will still be his business in China. He can get higher returns and strengthen China at the same time. The stronger his country is, the more respect he will get when he is overseas!
“How are we going to do that?”
Feng Yu starts to tell Kirilenko about his plan. This time, he will give Soros a painful lesson!
