[Chapter 686: The Dreaded John Bull]
Under such dire circumstances, White Films still managed to rake in $35 million at the North American box office during its opening weekend. Although it paled in comparison to Jurassic Park, it was still a respectable figure.
William White had every reason to be pleased, but the British were feeling the heat. He wasn't the only one eyeing the Eurozone exchange rates. Given the current situation, it was clear that others were gearing up for a long fight.
After suffering a setback last year, which, while not catastrophic, had left them rattled, the top dog had evidently decided to sit this one out. Avoiding Hong Kong was an unmistakable signal.
"Sir, the head honcho of England just made a public statement claiming they could remain in the European currency system. Plus, the guy in charge of finances said further adjustments to the exchange rate weren't off the table."
"Damn, these Brits must have lost their minds. Their interest rates are already over 10%. Don't they realize we haven't even played our cards yet?" William White chuckled, reveling in the chaos the British had caused for themselves, which meant he had no reason to hold back.
"Sir, they might be banking on international speculators backing down. But honestly, the effectiveness of that strategy is questionable."
"Filson, sell off the lira immediately; let's give them a wake-up call. By the way, what's the deal with Soros?"
"Sir, it's unclear. He's raised nearly $10 billion, and our think tank believes it's directed at the pound. The lira isn't even worth targeting."
"Ha! Let's start with this round and see if this clever fellow decides to steal a page from our book."
William White's moves were hard to keep under wraps. A group of big players was already watching, and the moment someone blew the whistle, they wouldn't hesitate.
What? Were they worried someone would invoke state power?
Cough, cough, the current international financial market resembled the environment during World War I. The flow of capital faced almost no restrictions. International traders had long recognized this shift; the only ones left in the dark were the politicians.
For a good while ahead, financial speculators were going to borrow money from the Japanese. The yen's exchange rate had stabilized, and although interest rates had risen considerably, there was still arbitrage space.
Americans had stirred up a storm in the capital markets, while those in Japan provided the ammunition. Damn, that combination was indeed quite peculiar.
Some wondered if the Japanese were foolish; if they had so much money, why didn't they invest it?
Cough, cough, the common people were devastated by the Americans; even if bank deposits earned no interest, they still chose to keep their money in the bank.
The banks in Japan were also in a bind. No matter how low the rates were, they still had to pay interest. They had to lend out the money they held. As long as you had the ability to repay, a lower rate was just fine.
This was why William White could easily acquire loans. No one doubted his ability to repay, making those loans highly sought after. If connections were lacking, even if you offered to lend, they wouldn't accept.
Some questioned why the Japanese were putting up with this, suggesting they might as well loan to their own businesses.
Haha, a whole other issue came into play. Japan was advancing too quickly; the entire industry faced overcapacity -- what industry did they plan to support?
...
"Close to $2 billion in lira? There are rumors surfacing that the lira intends to devalue significantly."
"Cough, cough, where's that coming from?" Soros was frustrated, damn it, this was supposed to be my plan! How did William White get in on it too?
"Bastard, he's deliberately causing market disruption. What the hell are those damn Sicilians doing?"
"Sir, they're appealing to the Germans for help."
Soros realized things were going downhill for him. So what if it was just $2 billion? They were utterly useless.
"Sir, they won't hold out; at most they have a few hours before they give up."
"Good Lord, has anyone figured out how much credit William White gained in Japan?"
"Can't find out; it's likely in the $10 billion range, with several major trading firms in Japan involved, so the capital should be significant."
"Idiot, go ask Morgan Stanley and Citibank; White Bank rarely conducts international exchanges. Exclude his regular foreign exchange amounts, and that'll give us his current cash."
"Understood, sir."
It was best to flee from an unhinged tiger. Damn it, William White had handled such an enormous amount of funds over the last six months that even he might be confused about it. Asking me to trace it? No way.
...
"Gordon, are we short on funds?"
"What did you say? PS25 billion; you call that not enough?"
"Yes, the Sicilians are finished. In four hours, they'll announce their exit from the European exchange rate system."
"Damn, it's always like this -- whoever they ally with will end up in trouble. Just like in World War I and II, if they can't fight a war, how can they manage an economy? No, I need to inform the Germans they must lower interest rates. Damn it, has White been contacted yet?"
"Gordon, I must say, it seems we severely offended him this time. Just now, the third phase planning of the memory factory got halted. Old friend, the overall relocation plan for the Bentley factory is already set for implementation. If we don't handle this well, we're in big trouble."
"What? That's impossible; he'll at least lose PS1 billion."
Downing Street's entanglement and confusion didn't bother William White at all. What of a loss of PS1 billion? Forget that; he wouldn't even be concerned if such a loss occurred.
If money was lost, he would still find a way to earn it back. If breaking contracts became habitual, how would he, William White, protect his investments?
Any flimsy excuse could lead to the confiscation of someone else's assets -- there really was no justice in that. Now, it was time for you all to pay the price.
...
The Germans were not going to adjust interest rates -- that much William White was certain. The Japanese were indulging in quantitative easing; what would be the result? If they did the same thing, did they think Americans would be polite?
The Plaza Accord was not merely a scheme against the Japanese; the Germans were also targets. The Americans could threaten the Japanese, but the Germans would not be easy to deal with. If you had the guts, come and throw down with me again.
"Sir, you were right. The Germans have refused; they won't lower interest rates. Their current level of inflation is already the maximum they can accept. I also heard they plan to curb real estate investment."
"See, I told you so. What worked in Japan won't have effects on them. Don't even mention the British; even if Bush Sr. himself showed up, they wouldn't care. Hahaha, now that's the mark of a honey badger."
"Cough, cough, sir, honey badger?"
"A remarkable animal. On the African continent, there's no creature that isn't afraid of it. You know, Filson, it chases lions."
"Seriously? Is it that powerful?"
"Tsk, tsk, this little guy is indeed cute. In The Lion King II, the honey badger will reign supreme."
While William White was being eccentric, Filson found the situation perplexing and planned to look up some information. Damn, how come I had never heard of such a formidable creature? Was the boss trying to pull one over on me?
Initially, the lira collapsed, plummeting more than 10%. When they announced their exit from the European exchange rate system, the world was left dumbfounded.
Couldn't be, right? It seemed to be just a few international speculators; did they really have to act so weakly? Holy smokes, the Euro system seemed to have a huge problem. Wait, didn't the British say something earlier about having confidence? They hadn't made a move, yet you popped out to declare confidence -- haha, having confidence indeed was nothing but nonsense.
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