Thailand had asked the Chinese Government for help. Still, China’s reply to Thailand’s Ministry of Foreign Affairs was: “We will help you contact the International Monetary Fund and will provide aid under their lead. We will donate food, medical, etc. supplies, and export credit to a.s.sist you all.”
This reply is perfect. China will a.s.sist, but it will not be in time to save Thailand.
Just help us directly. Why do you need to contact the International Monetary Fund? That organization is set up to foster global monetary cooperation and financial aid to countries in poverty. We are also a member of the IMF, and we can contact them ourselves.
If the IMF can a.s.sist us, why will we still approach you? Chavalit was furious, but he had no other solutions. He had already borrowed 15 billion USD from some countries in Asia, but this amount will be given to Thailand over some time.
Now, which countries in Southeast Asia have enough foreign reserves to lend Thailand? China, Taiwan, j.a.pan, and Hong Kong. j.a.pan had rejected Thailand, and Taiwan still has not replied to Chavalit. Hong Kong said they needed time to consider, and only China is the only country that agreed.
Also, China has a representative in the IMF executive board and can help Thailand get help much faster.
Soros started to get worried. If China intervened in this war, he must retreat immediately. China and Hong Kong have more than 100 billion USD each in their foreign reserves. If Taiwan also joins in to a.s.sist Thailand, Soros might lose all the money he had used in this war.
Luckily, Feng Yu called Soros and told him that he had convinced the Chinese Government and the Hong Kong Government not to interfere. Both Governments will provide minimal a.s.sistance to Thailand, and Soros can go-ahead to increase the amount of Baht dumped.
Of course, this is also a threat from Feng Yu. He is hinting to Soros that he can switch sides anytime and make Soros suffer ma.s.sive losses.
If Soros wants to get profits, he must increase his investment to suppress Baht’s rates. He can no longer feign ignorance and wait for Feng Yu to dump Baht. Now, Feng Yu can just sit back and watch his profits grow.
“Boss, can Feng be trusted?” Drucken Miller asked.
“It is better to believe him. Tell the rest to watch Feng fund’s movement closely. If he tries to scam us, we will drag him down with us!” Soros replied.
Soros is a proud man and had never been threatened by anyone in the financial market.
Although deep in his heart, Soros felt Feng Yu is not influential enough to convince China and Hong Kong’s Governments. But if China and Taiwan got involved, they can affect the economies of the region. However, both countries are not close to Thailand.
Also, once China and Hong Kong got involved, other countries might take the opportunity to attack Soros, and the international financial organizations will criticize and disrupt his plans.
But even if the possibility is 1%, Soros is not willing to gamble. Furthermore, he can reap the profits even without Feng Yu’s help now.
Now, Feng Yu can stop dumping Baht and can continue to make profits from short position future contracts. This time, Soros will be investing three to four times more than Feng Yu, and his profits are only one time more.
All this while, Soros had always been getting the bigger slice of cake in investment.
Hmph! I will let you win this time. After Thailand’s economy had collapsed, the rest of the countries will be affected, and he will start his attack on Hong Kong!
“Boss, are we going to dump our Baht in Tokyo now?”
“Yes. This is the final battle with Thailand!” Soros snubbed his cigar in anger!
……
“General, a large amount of Baht, is dumped in Tokyo Market. It is too sudden, and we are not prepared for it.” The Finance Minister of Thailand said.
Chavalit smashed his teacup on the floor. “You all are not prepared? What have you all been doing? You are the Finance Minister, and you are not prepared for it? You are no better than Basong!”
The Finance Minister was mad. Am I not better than that idiot, Basong? We had warded off Soros twice using my strategy, and I had been telling you that the banking regulations are too lax. You are the one who chose to believe Basong and refuse my suggestions.
Now, you are trying to push the blame on me?
“What’s wrong? Are you not satisfied? I will give you a chance to resign now. Don’t force me to fire you!” Chavalit roared.
The Finance Minister almost fainted. You want me to resign now? Does that mean I have to bear the full responsibility for this? I also do not want this to happen, and I admit I am partially responsible for it. But you can’t push everything to me!
But the Finance Minister remembered Chavalit is not only the Prime Minister. He is also a General, and his gun is always by his side. More than one government official had been shot for angering him.
The Finance Minister nodded angrily and agreed to shoulder the full responsibility.
“I am very sorry. The Ministry of Finance does not have any money to help our country in this financial crisis. As the Minister of Finance, I will bear full responsibility for what had happened. Our Prime Minister Chavalit had borrowed a large sum of USD, and we will surely win those international speculators. Our country’s economy and financial markets will be back on track! With this, I announce my resignation…”
The Finance Minister looked at the camera listlessly and read his script. He must bear the full responsibility and still suck up to Chavalit.
Actually, what had Chavalit been doing? Since the start of his term, Thailand’s economy had been going downhill, and the Government had been in red!
If the cabinet had noticed this crisis earlier and thought of measures to stop it, will today still be the same?
Finance Minister wept and walked off.
When Feng Yu and Soros saw this news, they were overjoyed. This is a stupid move by the Thai Government.
The country’s Finance Minister’s resignation will not regain the people’s confidence in the Government. Instead, it will be another blow to the economy. Not only will the people lose confidence with the Government, but the remaining foreign investors will also start buying in USD to hedge losses.
Some of those foreign investors will start to short Baht and try to make profits.
Chavalit thought he had borrowed 15 billion USD, and it’s enough for Thailand to last until China’s help arrives. He thought after Hong Kong’s return to China, China’s a.s.sistance to Thailand will be arriving through Hong Kong. But now, it seems… Thailand can’t last so long.