[Chapter 479: Toxic Aid]
The Soviets had a distorted industrial layout, which presented an opportunity for America. Their over-dependence on oil exports for foreign currency finally landed them in trouble.
Well, America was also dumbfounded. They didn't expect that in less than a year, the Soviets would reach a point where they couldn't go on. It seemed their plan wouldn't take much longer to unfold.
Seeking international aid?
Economic aid was still common in those days. However, aiding a superpower? My goodness, if the assistance was too little, would they end up being schooled?
Even though it was humiliating, the Soviets didn't give up; as long as they could survive, they wouldn't care about preserving their dignity.
...
"Master, it seems the French are feeling generous this time, and the Germans too."
William White found Tanner's peculiar expression amusing.
"How could they? I can't say I understand the French; they are so different. They never see themselves as the underdog. In their eyes, the world isn't bipolar; it's a tri-polar setup. Well, only they see it that way. As for the Germans, they need to help their fellow countrymen. Let's not forget that part of the Germans is living in dire circumstances. And what about their conditions for this aid? Easing regulations?"
"Ha, that seems about right. Since the hostile state has ended and the Cold War is practically over, there shouldn't be much oversight needed."
"Tsk, tsk, I fear once the floodgates are opened, they'll have a wild time."
"That's for sure. I think the Soviets must be in a tough spot, or they're simply unable to maintain the situation any longer."
William White was well aware of this particular piece of history. Right or wrong was hard to say.
"Tanner, accepting this toxic aid might add to the Soviets' troubles. You should keep an eye on the people you send over; if there's something to gain, don't hold back."
"Okay, master, I got it."
William White felt a tinge of regret; the Soviet economy operated on internal circulation, leaving little room for maneuvering. Of course, if someone could borrow a lot of Russian currency now, they would surely make a fortune. Those loans would be practically given away.
Sadly, William White would have no chance to indulge in this grand feast. It was a banquet for British and French, with little chance for others to partake.
Then again, there was still some opportunity. Oil -- the price of oil was remarkably cheap. William White predicted that many oil companies might not be able to survive much longer. The desert tycoons sold at low prices and still made a profit because their extraction costs were minimal.
Other regions weren't so fortunate. The cost of extracting oil from Texas wells was high, and profits were already thin, especially when factoring in the hefty loan interest. Ha, they might as well go begging.
The most unfortunate were the offshore drilling platforms; those guys had already begun to incur losses. If the situation continued, they would soon be unable to carry on.
"Filson, the oil industry has hit rock bottom. What do you make of this?"
"Sir, the think tank analyzed that oil prices are highly unreasonable. If they remain below thirty dollars for an extended period, many oil companies will go bankrupt."
"Hold on, desert tycoons extract a barrel for less than five dollars. Thirty bucks? That profit margin is outrageous."
"Sir, you're calculating daily expenses. You can't assume the oil wells are free. Routine maintenance costs are substantial, and if it's an offshore platform, there are considerable environmental expenses too."
"Non-renewable resources can't remain cheap forever. Do me a favor and find suitable targets."
"Sir, it seems a bit early to act now. The desert regions are still increasing production, and the think tank believes oil prices are unlikely to rise unless a major war occurs."
"Ha ha, Filson, I believe you. But oil is a cyclical industry. I obviously need to buy when no one else is optimistic. Besides, I can't let my money just gather dust in the bank. And buying an oil company isn't as easy as buying groceries; it's not straightforward. In five years, you help me devise a plan. I don't ask to surpass Rockefeller, but I at least want to be on par with BP."
Seeing his confident boss, Filson felt momentarily dazed; perhaps the boss was right.
William White undoubtedly was right. For quite some time, his oil ventures would operate at a loss. However, that didn't matter; oil was still more reliable than dollars. The American economic policy was becoming increasingly shameless, constantly exporting inflation. The dollar's purchasing power declined year by year. For a tycoon like him, that amounted to blatant plunder.
For some, the green dollar bills represented wealth, and the shiny gold equated to riches. By the time one reached William White's level, gold and dollars were just a portion of wealth, and that portion's significance shouldn't be overly large.
Before the cash flow from the legacies increased, William White's asset distribution remained reasonable -- perhaps a little aggressive, but still within a rational range.
As the cash flow increased, William White would have to find outlets for that surplus money.
"Sir, do you have any specific requirements?"
"The North Sea and Gulf of Mexico, the current offshore oil platforms are probably at their cheapest point. You can afford to be patient. Remember, when I go to acquire, I'm saving them." William White raised an eyebrow and smiled, looking very much like a savior.
His boss was planning to pick up scraps or take advantage of a fire. Filson was all too aware of the current state of the oil industry; never mind offshore even the Texas oil companies were already showing substantial losses.
*****
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