Golden Spoon Investment Portfolio - Chapter 323

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This chapter was translated by Lunox Novels. To support us and help keep this series going, visit our website: LunoxScans.com
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323. These speculators are truly relentless.

March 11, 1997, Prime Minister’s Residence, Bangkok, Thailand.
As Prime Minister Mouan Sai Kittikachorn entered through the wooden door, Finance Minister Chatchai and Bank of Thailand Governor Warit rose from the sofa where they had been waiting in the unoccupied office.

“I apologize for summoning you here and making you wait like this.”
“Not at all. More importantly, did your talks with the opposition leader yield any results?”

At Finance Minister Chatchai’s question, Prime Minister Mouan Sai Kittikachorn’s brow furrowed.

“They don’t have any concrete countermeasures, yet they only oppose supplementary budget allocations and the introduction of consumption tax for economic stimulus. It’s utterly frustrating.”
“The implementation of consumption tax is absolutely necessary to reduce fiscal deficits.”
“I know that. But the situation is simply too dire.”

Prime Minister Mouan Sai Kittikachorn spoke with a sigh in his voice.
Seeing this, Finance Minister Chatchai’s expression darkened as he intuitively grasped that the consumption tax—one of the cornerstones of the economic reforms he had been pursuing with such ambition—would likely fall through.
Prime Minister Mouan Sai Kittikachorn deliberately averted his gaze from Finance Minister Chatchai’s troubled face and turned toward the sofa.

“Let us sit and discuss this matter.”

As the Prime Minister unbuttoned his jacket with one hand and took the seat of honor in the center, the two men settled back onto the sofa.
Prime Minister Mouan Sai Kittikachorn, whose face bore signs of considerable exhaustion, spoke first.

“What of the currency speculators’ movements?”

Finance Minister Chatchai responded with a grave tone.

“They remain quiet for now, but we cannot afford to lower our guard, as we never know when they might launch another assault.”
“Tsk. The baht has recovered, so they must have suffered considerable losses, yet they still refuse to give up. These speculators are truly relentless.”

Prime Minister Mouan Sai Kittikachorn clicked his tongue and frowned.
At that moment, Bank of Thailand Governor Warit leaned forward and interjected into the conversation.

“The currency speculators are indeed a problem, but the most pressing issue at hand is replenishing our severely depleted foreign exchange reserves.”
“How much foreign exchange remains, did you say?”
“Approximately 18.7 billion dollars.”

Prime Minister Mouan Sai Kittikachorn furrowed his brow as he absorbed the report.

“I could have sworn I heard the figure was 19 billion dollars just before the weekend. Am I mistaken?”
“Between then and now, the demand for currency conversion from private citizens and corporations has been so substantial that we’ve had to deploy an additional 300 million dollars to stabilize the exchange rate.”
“Hmm.”

At the news that foreign exchange reserves had actually decreased when they should have been increasing, Prime Minister Mouan Sai Kittikachorn involuntarily exhaled a low groan.
Observing this, Finance Minister Chatchai cautiously offered his perspective.

“While we cannot prevent corporations from converting dollars to repay foreign debts, we must take measures to stop private speculators from hoarding dollars for speculative purposes.”

Prime Minister Mouan Sai Kittikachorn’s eyes widened as he turned to face Finance Minister Chatchai.

“Are you suggesting we control private currency conversions?”

While Bank of Thailand Governor Warit remained silent—apparently having discussed this beforehand—Finance Minister Chatchai nodded gravely.

“I understand this is no simple matter. But it is absolutely necessary to protect the baht exchange rate.”

Prime Minister Mouan Sai Kittikachorn pressed his temple with one hand, as if troubled by a headache.

“I just told the nation in my address today that we have defeated the currency speculators and that the baht will never waver. If I now prohibit conversions, how can the people trust my words going forward?”
“But if we do nothing, our foreign exchange reserves will be depleted before we face the hedge funds in a second round, forcing us to devalue the baht.”
“Precisely. If an outright ban is impossible, we must at least implement restrictions on the amount each individual can convert.”

Though both men pressed their arguments forcefully, the decision carried such significant economic and political consequences that Prime Minister Mouan Sai Kittikachorn could not easily commit.
After deliberating for some time with his arms crossed, Prime Minister Mouan Sai Kittikachorn finally released a sigh.

“There are many factors to consider, so I will need to think about this matter further.”

In the end, Prime Minister Mouan Sai Kittikachorn chose to postpone his decision.
Though immediate action was critical to preserve foreign exchange reserves when every dollar mattered, both men recognized the considerable political burden such a decision would place on the Prime Minister, so they could only exchange disappointed glances without pressing further.
Finance Minister Chatchai, suppressing his disappointment, shifted the topic by placing the folder he had been holding on his lap down before Prime Minister Mouan Sai Kittikachorn.
Prime Minister Mouan Sai Kittikachorn, immediately understanding what it was, stiffened his expression and asked.

“Is this the list of banks to be shut down?”

Finance Minister Chatchai, meeting his gaze, nodded slightly with a grave demeanor.

“That’s correct. All sixteen banks are in urgent need of mergers and restructuring.”
“There are that many troubled banks?”

Prime Minister Mouan Sai Kittikachorn furrowed his brow as he asked, and Finance Minister Chatchai answered in a subdued voice.

“Considering that the reckless debts accumulated during the prosperous years have become an increasingly serious problem, if we don’t take decisive measures now, more financial institutions will face liquidity crises.”
“Sigh. This is quite troublesome.”

Prime Minister Mouan Sai Kittikachorn, his face etched with distress, splashed water on his face and asked again.

“How much money do you estimate will be needed for the bailout?”
“We’re projecting a minimum of two billion dollars will be necessary.”
“Ugh.”

Though Prime Minister Mouan Sai Kittikachorn had anticipated a substantial budget requirement, the thought of securing such an enormous sum amid severe fiscal deficits and dollar shortages already gave him a headache, and he let out a groan of distress.

“Given that the debt burden has grown heavier due to the sharp rate hikes implemented to defend the baht, bank restructuring and bailout support are absolutely essential.”

As Bank of Thailand Governor Warit stepped forward with strong persuasion, Prime Minister Mouan Sai Kittikachorn reluctantly accepted the documents.

“I understand. We’ll place it on the agenda for the next cabinet meeting.”

While the foreign exchange restrictions were postponed, at least the bank restructuring and bailout implementation had been approved—a small mercy. Finance Minister Chatchai was thinking this when Bank of Thailand Governor Warit’s mobile phone began vibrating in his pocket.
While Chatchai, the Finance Minister, was thinking that way, a vibration from Warit the Bank Governor’s phone went off in his pocket.

I apologize.

As Prime Minister Gidikhaem and Finance Minister Chatchai stared at him, Bank Governor Warit’s face flushed red as he bowed his head and took out his phone to turn it off.

“It might be an urgent call, so you should answer it.”

The Prime Minister Gidikam then lightly waved his hand and spoke.

“Oh. Yes.”

Warit, the bank manager, took out his cell phone from his inner pocket, held it in his hand, and answered the call.

“Since I’m at the Prime Minister’s Official Residence, unless it’s something urgent, can we talk later…? Huh? What did you say? Is that really true!”

At his sudden wide-eyed stare and raised voice, the two men exchanged puzzled glances.

“Ah. I see. Let me hang up for now.”

As Warit ended the call with those words, Prime Minister Mouan Sai Kittikachorn asked a question.

“Has something happened?”

While Finance Minister Chatchai watched with evident curiosity, Warit responded in a grave voice.

“The hedge funds have begun attacking the baht again.”
“What!”

Prime Minister Mouan Sai Kittikachorn’s eyes widened as he drew a sharp breath.

“Is that true?”

Finance Minister Chatchai, equally startled, pressed urgently for confirmation, and Warit nodded solemnly.

“They’re dumping baht indiscriminately across the Bangkok, Tokyo, and Hong Kong foreign exchange markets, launching a wave attack. As a result, the exchange rate that had held at 24 baht per dollar has plummeted to 25 baht.”

Beads of cold sweat glistened on Warit’s forehead as he delivered the news.

“No. What are we supposed to do now?”

Prime Minister Mouan Sai Kittikachorn asked, unable to conceal his dismay, while Finance Minister Chatchai’s expression hardened as he clenched both fists tightly.

“I need to return to the Ministry of Finance first and assess the situation.”
“Yes. Yes! Go at once.”

Finance Minister Chatchai and Bank of Thailand Governor Warit hurriedly rose and left the office.
Left alone, Prime Minister Mouan Sai Kittikachorn grew restless, anxiously wiping his face with both hands.

“We raised the benchmark interest rate and cut off baht loans. How much time has passed that they’re attacking again? These infuriating bastards.”

***

New York Plaza Hotel Penthouse.
Though it was late at night, Seok-won had risen after receiving a call from Landon Shore and now sat on the sofa in his bedroom robe, monitoring the baht exchange rate movements on his laptop.

[THB: 25.38 (
+0.83)]

Seok-won leaned back against the sofa, listening to Landon’s account while watching the exchange rate chart spike sharply as baht selling orders flooded in over the past hour.

[As massive baht selling orders have poured into the Hong Kong foreign exchange market, the Hong Kong Monetary Authority is responding immediately.]

The Hong Kong Monetary Authority (HKMA) was a government agency that functioned as a de facto central bank, formed by the merger of multiple departments.

[However, given the sheer volume of selling pressure, they appear to be struggling in a way they weren’t before.]
“Even for Hong Kong, foreign exchange reserves don’t multiply like magic. They have to be mindful of their remaining balance.”
[That’s true. If they’re not careful while trying to extinguish someone else’s fire, they could end up burning their own house down.]

Landon agreed with his assessment.

“Singapore and Malaysia, who coordinated with us before, must be in the same situation.”
[As you suspect, both countries are clearly being more cautious than they were last time.]
“Since both nations have far smaller foreign exchange reserves than Hong Kong, it’s safe to assume they no longer have the capacity to support Thailand further.”
[Considering that the three central banks poured out nearly 12 billion dollars when they struck at George Hamilton and the hedge funds last time, it’s quite likely their ammunition has run dry, as you’d expect.]

Beyond that, unlike the last time when they’d merely thrown light jabs, the hedge funds were now mounting a ferocious assault with tens of billions of dollars in massive selling pressure simultaneously across Bangkok, Hong Kong, and Tokyo from the start—and it was clear the defending side was being overwhelmed by their momentum.

‘You never realize it when you’re winning, but once your strength starts to wane, you begin to worry about what comes next.’

Watching the baht exchange rate continue to climb despite their desperate efforts to hold the line, Seok-won spoke in a measured tone.

“If we’ve confirmed that the coalition of four nations defending the baht is fracturing, there’s no reason to wait any longer.”
[Should we enter our bets then?]
“To break Thailand’s will to resist, it’s most effective to prune the smaller branches first. Let George Hamilton and the hedge funds handle Bangkok—we’ll concentrate our assault on the Hong Kong and Tokyo foreign exchange markets.”

As the long-awaited order to join the battle finally came down, Landon spoke with barely contained excitement.

[How much are we wagering?]
“This is a game we’re certain to win, so there’s no need to hold back. Bet without limits.”

At the mention of pouring in unlimited funds, Landon paused to catch his breath, then burst into hearty laughter.

[Andrew is going to be absolutely thrilled when he hears about this.]

It was something every trader dreamed of—the ability to place bets without limit, wagering as freely as one’s conviction allowed.
Seok-won held the mobile phone to his ear, a faint smile playing at his lips as he spoke.

“Tell Andrew to unleash his full capabilities without restraint.”
[Yes. I will convey that message.]

After ending the call, Seok-won set the phone down on the table and watched the baht exchange rate climbing steadily higher with each passing moment, his voice dropping to a murmur.

“At this pace, they’ll struggle to hold out for more than a week—perhaps not even four days.”

A bitter smile crossed Seok-won’s lips.

“From the moment George Hamilton and the hedge funds chose their prey, the outcome was already sealed.”

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This chapter was translated by Lunox Novels. To support us and help keep this series going, visit our website: LunoxScans.com
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