[Chapter 680: The Barrel Theory]
William White was busy, and so was Soros. To be fair, he was a capable player with a sensitivity to risk far beyond that of most institutions.
If the Eurozone was established, it would involve nearly twenty countries and a population exceeding three hundred million. In terms of economic size, they indeed had a chance to go up against the U.S.
Banding together for warmth -- or resisting U.S. dominance -- one could only say it was a double-edged sword: success came from unity, and so did failure.
After World War II, Europe really faded into the background. Living under the shadow of two superpowers was indeed frustrating. Now, with the cessation of the Soviet Union, they had shaken off the awkward position of being a buffer zone.
There was a saying: a once powerful nation could not remain in decline forever. The historically affluent nations of Europe certainly did not want to remain subservient to the U.S. Therefore, some justified attempts at independence seemed reasonable.
When looking at Europe as a whole, they certainly had the qualifications to challenge the U.S. From any angle, the outcome could hang in the balance.
But the problem was the massive imbalance of power among them.
To put it bluntly, apart from France and Germany, everyone else was just a burden. This was not even the most terrifying aspect; if France and Germany were leading, that could still be interesting. However, there was also a wild card.
The fact that Britain was playing second fiddle to America was already quite awkward. If they were expected to play second fiddle to France and Germany, well, they would rather jump the English Channel.
This inherently flawed alliance in Europe could hardly fool the shrewd wolves of Wall Street. According to the barrel theory, they just needed to exploit your weak points. No matter how strong France and Germany might be, if they could not cooperate, it was all nonsense.
"Sir, we've discovered abnormal trading in marks and francs. It's far beyond normal trade demands."
Soros found this incredibly annoying; in recent days, he could hardly tolerate such news. Damn it, they were practically on the verge of sealing the deal.
And yet it did not matter.
"Who the hell is doing this? Don't they know I'm the main player here?"
"Sir, looking at their trading style, it resembles Filson's handiwork."
"Filson? Isn't he negotiating a takeover with Shell? Did that fall through?"
"Not at all. From what we understand, White Oil has made significant concessions here. If nothing out of the ordinary happens, they'll close the deal soon."
"What about the pound and the lira? Were there any irregularities with those currencies?"
"Not at the moment, sir. Should we modify our plans?"
"Modify? Are you an idiot? What am I supposed to change at this point? Check his fund position!"
"Understood, sir."
Soros began to feel the pressure. His original plan was to first crash the lira, then short the DAX index. He had planned to knock the pound down hard and give the Brits a real shock. If the timing was right, he might even pick up some shares of sterling.
Now, the rhythm hadn't even begun, and others were already making their moves.
...
"What? Are you sure?"
"Sir, I am quite sure. Soros probably got the word too. The forex market is chaotic right now; it's unclear how much capital has flooded in. Sir, our stance at Morgan Stanley is..."
"Hah, our stance? What good does it do? Keep your eyes on Soros. If our movements align, we follow suit. If they get into a scuffle, we just watch the show."
"Okay, sir. Sigh, these guys are really reckless. How did the stock market open today?"
"Ha, what do you expect? The Japanese economy is on a downward spiral. If Europe doesn't stabilize, we might as well all jump into the sea together."
As the largest investment bank in the U.S., Morgan Stanley certainly preferred stability. The unrest in Los Angeles had only just subsided, and here they were stirring up trouble in the capital markets again.
Tsk, Soros, ha! Do I need to reassure myself here?
...
Goldman Sachs and Merrill Lynch shared similar thoughts. In fact, Wall Street bigwigs were all waiting to see some fireworks.
Soros always held himself in high regard, never considering his Wall Street peers as worthy competitors. His popularity, after all, was known.
As for William White, there were few on Wall Street who hadn't paid a price for crossing him.
Now, two tough guys were clashing, and it was quite the spectacle. Nobody better stop them; let them duel to the death.
...
"Sir, the first half has ended. Should we stick with the original plan?"
"Of course. Filson, Wall Street must be lively right now."
Filson smiled wryly; the looks in those people's eyes were rather strange.
"Sir, I just met someone for coffee, and the folks around us were incredibly gleeful."
"Hahaha, they might be disappointed. Soros loves to take center stage; why would I compete with him? Honestly, being a director would suffice."
Filson fully understood that Soros had to be bewildered right now. Damn it, it was supposed to be an easy win, and just as he planned to board the ship, everything went silent.
...
"What? Raising funds?" A loud crash followed, and a beautiful crystal ashtray shattered into a million pieces.
Soros was boiling with rage; he did not believe a single word of what his subordinates reported.
The White Oil accounts had hardly budged; now they suggested that they were out raising funds. Fine, maybe they really were raising money, but certainly not for any currency exchange.
Clearly, William White was up to his tricks again. As for who he was trying to confuse, apart from Soros, it had to be the Brits.
...
Would Soros lose his mind? William White didn't care. He and Filson were enjoying fine Cuban cigars, naturally something to savor during pleasant moments.
How much they earned really didn't matter to William White at the moment. Since someone considered themselves a player, he had no qualms about toying with them.
The Quantum Fund, huh?
"I might not be able to figure out your game, but on what basis do you think you can grasp my limits?" William White thought to himself, musing just how arrogant one had to be to come up with such an exaggerated name.
"Sir, Soros may have lost his way. However, the Brits are likely on high alert. If this drags on too long, their cash reserves might increase dramatically."
"Increase? Hahaha, Filson, that's exactly what I want! Otherwise, do you think I have nothing better to do than play around with Soros? Sigh, there are barely any fools left these days. If I don't swindle them a little harder, these guys won't even know how to spell 'death.'"
Filson was speechless; he hadn't realized the boss thought this way, but it seemed a bit overconfident. If France and Germany took action, matters could get troublesome.
"Filson, you don't seem to grasp the current financial market. Look at the outcome of Japan later on, and you'll understand. This world has become a flat playing field. Soros is just one malevolent shark among many. Once we start moving, forget about the Brits; even if France and Germany joined forces, they wouldn't stand a chance. One pawn could control one hundred billion bucks. What's to say that those behind him won't participate just because they gave money to Soros?"
William White had yet to say one more thing: If it came to it, he could always turn shameless.
Exactly, the hat of a currency manipulator.
If he couldn't get things flowing here, could he not go lobby in Washington? He didn't believe they would dare to resist.
*****
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