[Chapter 587: The Mining Tycoon]
Once you've reached a certain level of wealth, all that's left is entanglent. This isn't just being dramatic; look at the purchasing power of the dollar -- it's been on a steady decline for the past decade or so.
Back in the '50s and '60s, if you had two billion dollars, you could claim to be the richest person in the world. Fast forward a few decades, and to beco the richest now, you're looking at starting prices of a hundred billion!
If a billionaire from the '60s were alive today, they might even go bankrupt. Oil prices have plumted from thirty bucks to ten dollars -- the ten-dollar figure is from the '90s, which equates to about two bucks when compared to the '60s.
Oil isn't reliable, gold isn't dependable, and silver is even less so. So this brings us to the question: how can you safeguard your investnts at this mont?
Finding a complete solution to this problem isn't just formidable; it's virtually impossible during his lifeti.
When currency issuance and pricing power are held in soone else's hands, all your efforts are in vain, no matter how hard you try.
Since there aren't too many good counterasures, and you can't simply create a currency body to replace it, going on the offensive is your only choice.
From the consortium's perspective, William White's rapid expansion seed completely haphazard -- one mont he's in real estate, then oil, and now he's a mining giant. They were left puzzled, wondering just what his primary business was.
With investnts spanning semiconductors and the entertainnt industry, they were astonished to realize that White Capital had quietly infiltrated nurous sectors.
Though it seed erratic at first glance, his investnts all had a common the: they were aid at the basics of life. Every sector ultimately aligned with that goal.
True, he may not directly control pricing power, but the consortium still failed to exert any real influence over him.
Sure, they could focus their efforts on crushing a single industry, but as long as none of his other industries faltered, he simply wouldn't care.
Take the oil industry now -- William White isn't bothered by any losses at all.
What if they managed to obliterate his industries entirely?
Well, it's just a thought. If every basic need in Arica hits the brink, the outco for them would be grim. What the little mustache couldn't manage doesn't an the good ole U.S. can't do it either. How many Native Aricans do you still see on this continent?
Sure, maybe around Thanksgiving, they'll stir so nostalgia about that.
Arica didn't see anything wrong with their past actions. For a long ti, this has been their main narrative.
As a child, I never quite understood while watching Westerns, always pondering why the Native Aricans were portrayed as so villainous.
Ha! Distorting reality has reached a new level. Arica's propaganda far surpasses anything anyone could manage.
"Sir, Mr. Stephen Friedman just let us know that two companies from Australia could sign a deal. They're asking if we'd be interested in a leveraged buyout."
"No need for leverage. I roughly need a credit line of about 2.5 billion dollars. If their terms are reasonable, I'd be more than happy to accept."
"Hehe, they will agree. To those board mbers, this signals a form of reconciliation."
"Sigh, to be honest, I can't compete with them. It's just a matter of mutual compromise."
A few billion dollars isn't a small amount for Goldman Sachs. In fact, they can't even co up with that much cash. Of course, investnt banks have their ways -- William White's credit is solid. This kind of credit line is more like an exchange system.
When it cos to acquisitions on Wall Street, if you have a few hundred million in cash, you can buy a company worth a couple billion. If you already have that couple billion, it's even easier.
William White is wealthy, but he won't touch his liquidity. The only reason he's able to pull off this acquisition smoothly is because the steel industry has seen a significant drop in profits.
In the early '50s, profit margins for steel companies peaked at a staggering 60%. At the ti, the European Recovery Plan allowed them to rake in a huge profit.
Fast forward to now, and the average profit margin in the steel industry has dropped below 10%. As for the Arican steel companies, they're actually losing money. That near-10% figure is really just a facade put up by the businesses in the European market.
If the steel industry is struggling, who are you going to sell your iron ore to?
Right now, Australia's not hurting for buyers. Another serious problem is that mining companies haven't consolidated; even if you want to take advantage of the situation, there are hardly any opportunities.
The golden age for iron ore companies was post-2008. It was a ti when any iron ore Australia sold would spike in value, often doubling or tripling.
Think about it -- the scrap left lying around today will be worth a fortune in the future. Strangely enough, Australia has an abundance of iron ore and high-quality coking coal, yet there's not a single decent steel mill.
It's a fortunate problem to have; there are only a few steel companies in Victoria. They think 65% quality iron ore is beneath them, opting to use scrap tal. They call it eco-friendly.
Australian workers aren't as easily managed; they'll strike at the drop of a hat. You really have no clue what they're thinking.
"Seriously, sir, fully automated unloading equipnt? Isn't that extrely costly?"
"Costly? Hehe, we need to build a new bulk cargo terminal and disregard the previous one. This way, the union won't have any excuse to make trouble."
"Sir, there might not be much demand right now, the throughput is barely half of design standards."
"Filson, from now on, you need to start looking at issues from a developntal perspective. Besides, I'm not in a rush for this terminal."
"Alright, so how long is the construction period likely to be?"
"Let's start with the design. Until you have the blueprints, how can I know if it requires land reclamation? Is there beach land? Either way, expect a minimum construction tiline of three years."
"Got it. If land reclamation or dredging happens, those environntalists are going to raise a fuss."
"Sigh, I'm not building a reclamation project on the Great Barrier Reef. These guys are clueless. If we reverted back to primitive society, that would be truly eco-friendly. Yet with five billion people gathering for a barbecue, who knows if there's enough wood for a fire."
Filson didn't pay much mind to the boss's gripes. He was contemplating whether this new bulk cargo terminal project would provoke the unions and environntalists.
William White knew very well how often things go wrong at docks in Australia. If there's ever a problem, the workers are quick to quit.
In such a quirky country, don't expect to swap out workers easily.
Australia is a place with a significant imbalance between brain and brawn. Office workers can't hold a candle to truck drivers. The operators of large machinery in the mines act like kings; money isn't even a necessary condition for them.
You know how much it costs to replace a light bulb in Australia?
At least a hundred Aussie dollars.
Then you're probably thinking, I can change it myself.
The answer is no, you can't.
Of course, if no one's around to notice, then changing a fuse or a light bulb is fine. Just rember one thing -- don't let anything go wrong, or the insurance company won't cover it.
[T/N: I am not sure of the actuality of this Australia part. Let know if this is incorrect, I will update.]
*****
spatreon/Sayonara816.
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