[Chapter 599: The Asian Financial Storm, Cashing in on Thailand]
Linton had just returned to Los Angeles and rested for barely a couple of days when Richard from Skycrest Capital showed up at his doorstep.
"Boss, as per your instructions, our financial hedge fund has been fully established. The $2 billion loan from the bank has been secured as well."
"Oh? How are things looking over in Southeast Asia now?"
"For over two months since setting up the fund, our team has been closely monitoring and simulating the financial situation in Southeast Asia. Just as we expected, starting early this month, Thailand's foreign exchange market has been in turmoil. Soros's Quantum Fund, backed by massive flows of international hot money, launched a fierce currency war against the Thai government.
From the ongoing tug of war, I estimate the Thai government has already burned through at least $4 billion of their foreign reserves. Considering their total reserves are only about $5 billion, they're nearly out of ammunition. Although Thailand has appealed to ASEAN for help, as we all know, the other ASEAN countries are too preoccupied with their own problems to offer any real support.
My guess? Thailand is about to buckle. The outcome of this financial war is nearly decided. What do you think -- should we make our move?"
Linton recalled the Asian financial crisis from his previous lifetime. He couldn't remember the specifics, but one detail was crystal clear: Thailand's surrender triggered the storm, on July 2, when Asia exploded into financial chaos.
[T/N: The handover of Hong Kong from the UK to China was on 1 July 1997.]
Thailand and most Southeast Asian countries were looted by the Wall street financial predators due to their own economic weaknesses. Their blind faith in Western economic theories, immature financial systems, and fully liberalized markets gave those financial raiders a free pass to invade.
Seeing today is already June 28, Linton knew it was almost prime time to step in.
Since this hedge fund was just established and independent from Soros's alliance, jumping in too early could tip off the market sharks. Soros, with his expertise, would spot a large foreign capital entry and probably reverse their own short positions, easily swallowing foreign funds before resuming the attack.
That's exactly why when the Asian financial crisis kicked off on July 2, after Soros and the Quantum Fund's financial battle with the Thai government reached its peak, tens of trillions of international hot money flowed into Thailand and then spread across Southeast Asia, wiping out years of accumulated wealth.
Following their victory, Soros took the lion's share, while other investors only got scraps.
In reality, Soros's Quantum Fund raked in over $50 billion from Asia during the crisis. If Russia hadn't abruptly slammed the door on foreign capital, freezing and confiscating over $20 billion of the Quantum Fund's principal and profits, that loot might have been even more staggering.
But now that he knew precisely when Soros would launch his full assault on Thailand -- July 1 -- they could act without fear. This timing was perfect. No risk of being cleared out by the big sharks, only ripe rewards to reap.
Linton thought Richard's team showed real skill. Their analysis was solid.
Since he had time over the next few days, he decided to join in and witness this grand financial heist firsthand.
"Fine. Get everything ready. We move in on July 1. I'll personally come to oversee."
"Got it, Boss. But with an operation this major, we have to enforce strict confidentiality. Everyone must sever all outside communication -- phones confiscated, no email, no instant messaging. Except for a handful of workstations, all internet browsers, email clients, and chat apps will be removed from every computer.
All staff will work in sealed quarters with no outings. Dedicated service personnel will supply meals and essentials. Security forces will be on high alert. Should I coordinate the service and security teams for you?"
"Sure. Arrange security and daily services as needed. You handle the rest. Also, I'll allocate 15% of the profits from this short on the Asian market as bonuses. You can set the distribution plan based on contribution levels."
"Thank you, Boss."
...
July 1, 9:00 a.m.
Upstairs in the Skycrest Capital office, Richard had rented a whole floor for the Skycrest Hedge Fund.
The space was divided into two main zones: an open office area with cubicles for daily work and a centralized operations zone with over 20 computers back-to-back, dedicated to running the campaign.
There was also a meeting and living area, furnished with a large conference table plus 20 cots and stocked with essential supplies.
Linton sat at the head of the conference table, with Richard to his left and Willix, the hedge fund manager, on his right.
Willix had over 20 years experience in finance, previously an investment analyst at a Goldman Sachs hedge fund, recruited by Richard with a generous offer.
The rest of the 13-member team was on deck.
"Everyone's been following and simulating Southeast Asia for weeks. The moment to act has arrived. This financial battle is about to break out. Attention: all phones are to be handed over immediately. All communication -- calls, emails, messaging -- will be completely cut off until this operation concludes.
All Skycrest fund's ins and outs will be handled by my security detail. No one leaves the premises during this period. All daily necessities have dedicated service staff. Meals will be delivered three times daily, and laundry service is provided for your changed clothes.
Everyone clear on this?"
Linton's authoritative words drew unanimous affirmations.
Such strict conditions, though harsh for outsiders, were routine in big financial operations.
Richard rose and collected the phones one by one.
"Willix, take command of the operation going forward."
Willix's eyes gleamed. "Understood, Boss. Let's move to the ops room. It's time to fight."
...
The team moved to the operations area and took their seats behind their computers.
"Boss, since yesterday, the Thai baht has steadily fallen from 23.8 to 24.4 against the dollar. Thailand's foreign reserves are nearly depleted. Recently, countries like Singapore, Malaysia, Indonesia, and the Philippines intended to lend their reserves to help Thailand, but under pressure from the Quantum Fund's massive short positions, they all backed out to protect themselves. I estimate Thailand's defenses are almost gone. I recommend we strike immediately and build significant short positions on the baht."
"Go ahead. What's your plan?"
"We currently hold $2 billion in funds. We've arranged with UBS for leverage of up to 50 times. I'm proposing to deploy $500 million with 50x leverage -- equivalent to shorting $25 billion in baht."
$25 billion. Even Linton was momentarily stunned. "Just like that, $25 billion all in one move?"
"No, Boss. We can't blast it out all at once; that would spook the market and limit our position size. $25 billion is the total exposure we aim to accumulate today. We'll build the position gradually in batches. Once complete, we'll coordinate with the Quantum Fund to crash the market."
"Sounds good. Proceed as planned."
...
At Willix's signal, the team sprang into action.
Handling such massive funds while keeping a low profile demanded countless subtle trades.
From 9:30 a.m. till 7:00 p.m., Skycrest built a short position totaling $17 billion in baht.
This massive selling drove the baht further down from 24.4 to 24.9 against the dollar.
Of course, the forex market never sleeps.
Per Willix's plan, trading would continue overnight until the entire $25 billion position was filled.
...
Linton found the process dull, so after exchanging greetings, he left to rest at home, promising to return the next morning.
Back in Los Angeles, his women had all arrived home: Nicole Kidman, Charlize Theron, Jennifer, Vivian Chow, Michelle Reis, and others who had just finished shooting at Universal Studios.
They often partied hard into the night at the estate, always turning up the energy.
Tonight was no different.
After dinner, Madonna eagerly began organizing the evening's festivities.
Joyful choruses and smaller group sings filled the space.
...
As the party hit its peak, Linton's phone rang, which was with his personal assistant Li Xiaoran.
Li Xiaoran reluctantly rose, answered, and stepped into the bathroom, saying, "Who could it be this late? Is this urgent?"
From the other end, an excited voice came through. "Li Xiaoran? This is Richard from Skycrest Capital. Is the Boss available? I have fantastic news."
"Great news?"
"Yes, the Thai government just held a press conference -- they officially abandoned the fixed exchange rate and adopted a floating rate."
"Hold on a second."
Li Xiaoran set the phone down in the bathroom and came back to inform Linton briefly.
"Ladies, hold tight a moment. I have to take this call. It should be something good." Hearing that, Linton immediately paused the party and moved to the bathroom.
He picked up.
"Hello, Richard. It's me."
"Boss, fantastic news! The baht has plunged to 28 against the dollar and is still dropping fast. At today's rates, our profits have already topped $1.5 billion."
*****
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