Extraordinary Genius Chapter 917
"Feng, are you ready? We will start today. Lets work together to make some money!"
"Sure. We will defeat the Thai Government within ten days!"
Soros had split his invests into three areas. He will be shorting stocks, interest rates, and currency, where he is good at.
If Soros had only shorted the currency, his cost would be higher and harder to control. The strategy he is using is speculating based on the relationship between all three areas. Once the market crash, the other areas will plunge too.
That means if the stock market crash, the currency rates will also fall. If the Thai Baht rates plunged, the stock market would also crash. After that, the Thai Government will have no choice but to raise the saving rates, and it will expedite the financial crisis!
Feng Yus operating model is the same as Soros. He is also using a three-pronged attack as all the financial markets are inter-related.
This time, they will start by dumping Thai Baht again!
Thailand Central Banks person in charge, Basong, was reading some documents and thinking of ways to clear the banks bad debts when his subordinate barged into his office.
"Governor, a large volume of Baht is being dumped in the Forex market now. Thai Bahts value is starting to depreciate!"
"What? Why is this happening again?" Basong was shocked. Whats going on? Soros and his men are back? Is he not afraid after his defeat the last time?
"I am not sure. But we had investigated, and it seems that the Quantum Fund is behind this!" The subordinate replied.
Quantum Fund. Soros and his men are back.
The last time when the Thai Government increased the lending rates, they had affected their whole financial market and received lots of complaints. But in the end, they managed to chase Soros and the other international speculators away.
They thought everything was over and could slowly adjust their policies to save Thailands economy. But Soros and his men are back!
But if we can win against you all once, we can do it again!
"Dont panic. Tell the rest that they are not allowed to lend them Thai Baht. Also, notify the higher-ups never mind. I will report to the higher-ups myself." Basong waved his hand and left his office.
This had caused some delays for Basong, and its a problem with having too many levels in the government. If it was Feng Yus company, He Zhaoji could call Feng Yu anytime when there are any emergencies. The fire had started burning, and you still want to report to the higher-ups personally? What are you thinking?
It was also because Basong had won against Soros and was overconfident now. He still does not know how much funds Soros has this time. This time, Soros will use more extreme tactics and will not give the Thai Government any chance to retaliate!
"General, Basong has something to report."
"Ok. Let him in." Chavalit was not only the Commander-in-Chief of the Army, but he is also the Prime Minister. Although Thailand had a monarchy, the King does not have any real power. What the royal family did was to mediate the differences between the various political parties and appoint Prime Ministers. But the King of Thailand is loved and well respected by all Thais.
"Basong, what is it?" Chavalit thought Basong had thought of some new policies to improve the economy.
"General, that Jewish man is here again. I just received news that someone is dumping Thai Baht in a large volume. I am requesting your permission to use our foreign reserves to teach him a lesson!" Basong bows and said.
Chavalit was the same as Basong. He was furious, but did not panic or is afraid. Thailand had won against Soros twice, and those international speculators are nothing to be afraid of!
"Ok. I will permit you. This time, we must make these speculators pay a heavy price!"
Badong left with Chavalits orders. He had wasted almost an hour to get this permission.
When Basong returns to his office, he noticed everyone was busy, and some of his staff were shouting at each other.
"Whats wrong? Why is everyone in a mess?!" Basong was furious.
"Governor, Thai Baht had plummeted. It is now 26.1:1, and it is still dropping!" Someone shouted.
What? How long has it been, and Thai Baht had depreciated so much?
"What is going on? How did the rates fall by so much? Didnt you all retaliate?" Basong roared.
The rest of the staff were quiet and didnt know how to reply. Retaliate? How are we going to retaliate? We have no authority to use the foreign reserve, and you left to meet the Prime Minister. We have no way to contact you.
"What are you all waiting for? Use the foreign reserve to buy in Thai Baht and push the rates up!"
The staff starts to move.
"Boss, there is a large sum of money entering the market, buying up all the Thai Baht. Thai Baht rates are starting to rise!" He Zhaoji reported.
"Dont worry. Just follow my orders and continue to dump Baht at the frequency I set. Soros had borrowed more Baht than us. He is purposely leading the Thai Government to utilize their foreign reserve."
Feng Yu had discussed with Soros about this. They will pretend to go all out at the start to trick the Thai Government to use their foreign reserves and let them implement measures to bring their financial market into chaos.
Feng Yu and Soros already had a large amount of Baht. They still have not started to dump all their Baht. The policies implemented now will have no effects on them.
Feng Yu can even short 2 billion USD worth of Thai Baht, and Soros has more funds than Feng Yu. He will surely short more than Feng Yu.
What Feng Yu and Soros are doing, is to drag the Thai Government into the mud. When the Thai Government wants to retaliate, they will realize that there is nothing they can do!
This is to create a false impression for the Thai Government. They want to trick the Thai Government to believe they are locked in a stalemate, and if the Thai Government uses a bit more of their foreign reserves, they will win.
When Thailand used up all their foreign reserves, Feng Yu and Soros will give them the final blow!
At that time, the Thai Government can only get loans from other Southeast Asian countries, and Feng Yu and Soros will continue to attack whichever countries that lend Thailand money.
After the second countrys currency got attacked, the whole Southeast Asian currencies will go into crisis, especially the countries that are close to Thailand.
A countrys Forex market will not satisfy Feng Yu, Soros, and his men. They had used billions of USD, and if they can only get returns of a few hundred million, it will be a waste of their efforts.
Feng Yu continued to dump Baht at a steady pace, and Soros is doing the same. Thai Bahts rates are fluctuating non-stop.
Soros saw the Thai Governments had entered the market and had a victorious smile on his face.