[Chapter 477: The Poor and Crazy Saddam]
After returning from Lanai Island, William White continued to stay busy. His investnt in Japan was nearing its final stages and clearly required constant attention.
"Sir, the price of crude oil keeps dropping. This will positively impact the profitability outlook for Japanese companies. Your returns on this investnt are also showing significant growth."
"Ha! That's good news. I just wonder, is there really a chance to support the current stock price?"
"No, there's a serious bubble. The sharp decline in oil prices will also affect the revenues of so oil-producing countries. If this continues, the world economy will be severely unbalanced."
...
Whether or not it would really be unbalanced was uncertain, but Saddam was already losing his mind.
"Why is production so low? I need an explanation."
"Sir, our extraction equipnt is inadequate, and the oil layers in this region have noticeably declined."
"Damn it, why is that? We've been at war for years, and we haven't increased production at all."
"Well, that might be... possible."
Seeing his subordinate hesitating, Saddam grew furious and almost fired the energy minister on the spot.
"Spit it out! Why are you stamring?"
"Uh, yes, our experts believe this oil region is quite vast, possibly stretching beyond our borders. While we've been at war, the neighboring country hasn't. Their equipnt is better, and they can drill deeper. Oil is a liquid; it moves to lower levels."
Saddam understood. Even though the neighbors hadn't crossed the border, they had ramped up production in that area. The tragic part was they now lacked the funds to purchase better equipnt.
He was now mad. He stubbornly believed that Kuwait next door had stolen his oil.
Fine, he needed to weigh the pros and cons. Kuwait was different; it had directly beco an ally of the Aricans, unlike his situation.
Although Saddam had also sought the Aricans' favor, he had never truly given them any respect in his rise to power. However, Kuwait daring to steal from him was simply outrageous.
What infuriated him most was that this guy dared to co asking for debts; it was downright reckless.
Over 14 billion dollars in debt -- when was he going to pay that back? The last eight years had been utterly disastrous, with losses in the hundreds of billions of dollars, making it hard to breathe.
So suggested he just default; after all, Kuwait's fighting capability was weak.
That wouldn't work. If he dared to refuse paynt, the other creditors would go crazy. It would take significant funds to restore production, so he absolutely couldn't play hardball; he still needed to appease them.
However, with oil prices this low, when on earth could he break even?
So people ntioned that Saddam had been forced into rebellion all those years ago. There's so truth to that. First off, he figured everyone should reduce output to lift oil prices; continuing production was pointless since it brought no profits.
Well, that plan was wishful thinking. The reality was harsh. Pressuring oil prices was the Aricans' strategy, aiming to undermine the Soviet economy.
They deceived the Soviets into starting a Star Wars program, helping their mates to drain the Soviets dry -- all of which was a prelude, with the most ruthless move being to suppress oil prices.
The ideal scenario was for the Soviets to lose a dollar for every barrel of oil they pulled.
To achieve this goal, the Aricans were willing to let their oil companies shoulder massive losses. With this backdrop, he intended to challenge Arican policies?
Heh, Saddam was indeed naive to think he could spark another oil crisis.
Using oil as a weapon did have so effect, but it was mostly disastrous.
Threatening was the most detested thing; the Aricans were surely not going to accept it.
Saddam had no clue he was digging himself a hole -- a big one. Sooner or later, he would be buried by his own pit.
...
With oil prices collapsing, the unfortunate ones included Rockefeller. As a giant in the oil monopoly, the oil trust couldn't escape this crisis either.
"Sir, the Rockefeller Group plans to sell their skyscraper and is inquiring about our interest."
"Is that so? Do I look stupid? A deal this good shouldn't be offered to the Japanese guys?"
Filson could only chuckle at his boss's complaints. It was obvious they intended to bring soone in to inflate the prices.
"Well, they are indeed in talks with Mitsubishi Properties. The Japanese guys are quite earnest."
"See? I knew it. The Japanese people are buying all over the world. Such iconic buildings are exactly their kinds of things. Tell them they can offer any price -- they won't bargain; they are so poor that they only have money left. They don't care about the specifics."
"Alright, sir, I got it. This bunch is seriously misguided."
"Heh, a competition between the world's richest and the Japanese tycoons, and they can't even win. They plan to play the victim, but they don't need to drag along."
Oil prices had only just begun to drop for a few days?
Rockefeller could be struggling so badly?
Heh, no matter what others thought, William White didn't believe it. As the largest conglorate in the U.S., they controlled assets worth trillions, both directly and indirectly. Are you telling they're lacking a re billion from selling that building?
Heh, only a fool would believe that.
If Rockefeller truly lacked liquidity, that was conceivable. Their behavior was quite unsightly; given the current situation, they were still zealously buying up Japanese assets.
"Filson, if they keep this up, they'll just end up sinking the Japanese."
"Sir, the current bubble is completely out of control. If this continues, it will lead to catastrophic consequences."
"Ha! Fine by ; we'll stick to our plans. I feel sick earning this money -- there's no joy in it. I don't even know what those old guys are doing with all this cash. Are they planning to take it to hell?"
Faced with a group of crazed cowboys, the Japanese would indeed face misfortune this ti. In truth, they weren't short on smart individuals, but the rush to invest everywhere was simply a desperate move.
The Aricans were madly investing in Japan, while the Japanese folks were investing crazily around the globe. Thanks to an exceptionally loose monetary policy, investnts worldwide began to spiral out of control.
This bout of severe inflation had global implications. The only thing that was dropping in price was oil.
The trap laid by the U.S. and UK for the Soviets was approaching its final closing mont.
Don't even ntion the Soviets now; the desert tycoons were already unable to cope. Their foreign exchange revenues had plumted, while expenditures soared. If this ga continued, they'd have serious trouble on their hands.
*****
spatreon/Sayonara816.
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