Chapter 918 - Nibble
Chapter 918 – Nibble
That night, the rates for Baht returned to 25.4:1, and Basong was feeling proud. He will pull Thai Baht back to 25:1 tomorrow. The current rate is within the acceptable fluctuation range, but he still thinks it is not enough. The current rate will not let Soros and his men suffer many losses. He must increase the rates higher to increase Soros’s losses.
Feng Yu had a smile on his face as he looked at the rates. This little fluctuation will not make the Thai Government wary and will make them fall into the trap.
This is called cutting the meat with a blunt knife. The Thai Government will never expect it.
“Everyone had worked hard today. Other than the ones on duty, go back, and have a good rest. I want to emphasize it again. In the following two weeks, no one is allowed to drink alcohol, or take leave unless it’s an emergency. Also, no one is allowed to tell others about our investments.”
Feng Yu looked at everyone when he said these. He had spent a lot of effort to send one of his men to Soros’s side as his spy last year.
Feng Yu suspects that one of these brokers might be bribed by Soros. He had to be careful and must not fall for any traps set up by Soros. That’s why even the brokers in the company do not know about his hidden funds. Only Professor Liang knew Feng Yu still have a significant amount of money hidden somewhere, but he will not tell other people.
Kirilenko also knew about this. But it is a significant amount, and he is more careful than Feng Yu.
Feng Yu is not good at observing people’s expression, and he might be wrong. It could also be that the spy is good at hiding and had not made Feng Yu suspicious.
Feng Yu was most worried about the brokers from New York. Their families are not in Hong Kong, and in the US, Soros can offer them protection. They are not afraid of Feng Yu taking revenge on them. He was more assured with the Hong Kong brokers. Their families are all in Hong Kong, and there are triads in Hong Kong.
Which influential family in Hong Kong dares to say they don’t have any dealings with the local triads? These brokers are greedy, but they don’t dare to touch Feng Yu’s money.
The next day, Feng Yu told He Zhaoji and the rest to start dumping Thailand’s shares. The stock market had dropped slightly yesterday, and a large volume of shares was dumped when trading starts. Within an hour, the stock index fell by 3%.
Feng Yu had bought a significant amount of stock index futures and will make 5 million USD for every point dropped. If Thailand’s stock index fell by 100 points, he will make 500 million USD.
Although the returns might seem to be high, Feng Yu had put in a lot more funds. The loss from dumping the stocks is a large amount.
Feng Yu had dumped a large volume of stocks within a short time. But the Thai Government reacted fast, and announced a series of good news, boasting of high profits, to attract small-time investors. They are trying to pull up the stock prices, especially the blue chips.
At this moment, Soros and his men used their usual methods to spread negative news about the Thai Government. They said the Thai Government only has slightly more than a few billion USD left in their reserves, and Thai Baht will depreciate by more than 50%. The stock market index will fall below 500 points!
These rumors were shocking, and many people thought it was fake. How can the Thai Government’s foreign reserves be so low? Also, how can the stock market index fall below 500 points? It is currently still at 1,000 points.
The stock prices had fallen slightly, but it had recovered now. The rumors are too childish.
But some people believed in the rumors and started to sell their stocks. The stock index started to fall again.
As the stock index falls, more people start to believe the rumors.
All foreign investors start to withdraw their investments from Thailand’s financial market. Some companies start to sell off their factories and offices at low prices in exchange for USD. They felt that Thai Baht would depreciate, and Thailand’s economy will crash!
Some people, like Basong, still insist those rumors are fake, and only idiots will believe them.
The Thai Government felt it’s easy to crush these rumors. Basong will appear in front of the whole nation to clarify it. Let’s see if the people will believe the rumors, or will they believe the “expert” who had won against those international speculators?
But Basong does not know this was what Feng Yu and Soros wanted. They do not want everyone to leave Thailand’s financial market overnight, or else, the Thai Government will impose some extreme measures.
Also, if the Thai Government lost within two to three days, the rest of the countries in Southeast Asia will not be deeply affected. If the rest of the countries did not get involved, how can Feng Yu and Soros make profits?
Basong is now on Thailand’s news. He still has his confident and arrogant look on his face.
Overconfidence will lead to mistakes.
Thai Baht rates are still fluctuating aggressively, but the stock index is falling slowly.
“Old He, dump 5% more stocks today. Let’s give them some excitement.” Feng Yu ordered.
He Zhaoji nodded and went out to instruct the rest.
Feng Yu took out a can of Qi Li and drank half of it in one gulp. Everything was according to plan.
Feng Yu and Soros were not afraid even if some hiccups happened along the way. They are prepared for all possible scenarios and can react in time.
Maybe Feng Yu and Soros had thought too highly of the Thai Government. The scenarios they had prepared for did not appear. The Thai Government also did not push up Thai Baht rates like crazy.
The previous time, Soros is afraid of getting into a stalemate with the Thai Government because he does not have enough funds. But now, they have enough funds to fight against the Thai Government.
Unknowingly, the Thai Government had used more than 10 billion USD from its reserves to push up their rates. Basong knew Soros had lost the previous time, and this time, he should have prepared more funds.
Basong felt this was normal and even thinks that the longer the stalemate, the more losses Soros will suffer.
Both sides seem to have an agreement not to go all out and want to prolong the stalemate.
But there is a problem with Basong’s strategy. Feng Yu and Soros knew the Thai Government’s strength, but the Thai Government does not know how much funds Feng Yu and Soros have.
Basong thought the strategies he used previously were effective, and he can give Soros a deadly blow any time. But he did not realize that the Thai Foreign reserves are slowly being nibbled away.
When all the foreign reserves are used up, that will be the doom of the Thai Government and the start of the Asian Financial Crisis!