Rebirth as an American Tycoon

[Chapter 810: A Familiar Scent]

Would a desert tycoon engage in a price war?

Don't be foolish. This stuff isn't just manufactured. When you pump one barrel, you lose one barrel. Market share and all that isn't worth much if your oil runs dry.

The so-called oil-exporting countries really don't hold any power; they can't decide much of anything. Having oil is one thing, but if you can't extract it yourself, what good is it? The seven largest oil companies controlled most of the oil wells in the world.

As more oil wells were discovered, a group of big shots faced immense pain, as maintaining a monopoly on oil resources had become an impossible task.

So, let's drop the prices temporarily. After all, developed nations were the ones consuming the oil. If worst comes to worst, they could just impose a higher resource tax or an environmental tax.

The goal was quite simple: to control oil pricing. If they lost that, the U.S. dollar's status as an international currency would diminish. At least, they couldn't just print more dollars recklessly.

Looking at the curve chart in his hands, William White's mind sharpened.

"Hmm, this scent feels familiar. It's definitely a conspiracy."

The U.S. pulled a dirty trick, unilaterally withdrawn from the Bretton Woods system. That's when oil prices began to soar, rising from a few dollars per barrel all the way above thirty dollars.

It wasn't any Middle East war or oil crisis; it was all a mess caused by the dollar.

Now, the euro was on the verge of being introduced. Clearly, maintaining a strong dollar was more important than cheap oil.

Quick, increase production, or we might face some unthinkable consequences. Can you believe it? You guys still have kings? That's just ridiculous; let's act like a democracy here.

"Filson, I think we have a few tough years ahead of us."

Seeing his boss deep in thought, Filson wasn't much concerned. It was common for William White to get lost in his thoughts. Unless something critical needed addressing, it was best not to disturb him; the usually easy-going boss could have a temper when he was preoccupied.

Well, it looked like the boss must have sensed something. Filson was curious; it was just a curve chart of oil production and prices. He looked at it almost every day and hadn't noticed anything unusual.

"Sir, what is it?"

"Look here." William White sighed; he realized he'd perhaps figured this out a tad too late.

"Since the Bretton system collapsed in '73, we've been allowing oil prices to run wild.

From '79 to '85, the Soviets and desert tycoons reaped the benefits. You know the rest -- oil prices shot up, obliterating the Soviet financial system.

Filson, who was the biggest importer back then?"

"Japan."

William White shrugged. Japan had no good ties with the Soviets. Why would they necessarily buy from them? If the U.S. didn't give the nod, would they dare?

"Crashing the Soviet economy was a crucial part of the plan. By driving up oil prices, we made sure the Soviets had a never-ending supply of money. Then at the right moment, we would hit them with a sudden stop.

Look at this curve; the reduction in oil production in '91 wasn't because the Soviets decided to cut back. It was because the Japanese stopped buying.

Now, they've clearly set their sights on Europe. A unified currency, a unified army; if they also had an efficient coordination mechanism... Filson, this is a two-superpower scenario.

So, we need a strong dollar. Goodness, before the euro appears, those bastards will do everything to drive down oil prices. Damn, we were just a bit premature with our plan."

After this lengthy discourse, Filson was left dumbfounded. He suspected that there were traps involved but never expected the depths of the plot.

"Sir, what about gold?"

"Same thing. The prices of all precious metals will tumble before the euro arrives."

"These guys must be crazy! With so many currencies in circulation, how could they pull off such a drastic operation?"

"Hahaha, Filson, did you forget? We've been discussing the middle-income trap these past few days. Just look at all of Latin America and Asia; it's the same predicament.

Stock prices rise, real estate prices soar, their incomes increase, and so does national debt. I ask you, what happens if that money flows back to the U.S.?"

Filson remained silent. He truly did not want to envision that terrifying scene. Those old-timers seemed ready to reshuffle the deck. Odds were, they were also being seen as the next meal on the table.

"It's terrifying! Can the U.S. truly remain unscathed?"

"What's there to fear? If it comes to it, we'll just go to war. Once large-scale conflicts erupt, that hot money will naturally flow back.

In '99, Filson, I don't know when this crisis starts, but it surely ends by '99.

Goodness, no! They'll probably bail out Mexico. If anything kicks off this year, no nation will withstand a five-year recession."

Filson longed to cry out loud. 'What are these idiots doing? Do they even realize what they are getting into? You want a crisis; you've got a crisis! You want to call it off, just do it! Why don't you just fly away?'

At this rate, if things went sideways, it wouldn't just be the U.S. suffering; the whole world would plunge into despair. These crazy people were out for blood.

"Sir, I think even if none of this happens, we still need to prepare for a rough winter."

"Alright, keep this under wraps. As for why we're suddenly tightening the lines, just say I'm planning to retire."

"Cough, retire? Alright, while your age isn't fitting, your capital is more than enough."

"Let's go with that then. You handle the cleanup, and I'll take care of spending the money. I won't even need to pretend to be a bored rich kid."

"Alright, I'll make arrangements. Even if nothing happens, you should start be a bored rich kid. Our business is really a bit too big."

"Yeah, I know."

Filson didn't know that William White was having a tough time too. With the currency vastly depreciating, it would be foolish not to invest.

Gold? No good. Oil prices plunging? The only industry he could invest in was the IT sector.

But there was still a variable. If Leo Wanta cooked up some trouble, those old bulls would have quite a chaotic time ahead.

Some might say the Asian financial crisis started in '97; isn't preparing this early a bit overkill?

Cough, the name is just wrong; this situation didn't first arise in '97. Once the debt crisis started in Mexico, a global crisis began to unfold.

Just as Japan regained a bit of strength, it was struck again. Those benefiting countries nearly exploded. As for the Four Tigers of Asia, they were down to barely two left.

Why does the United States draw ire?

This is the logic behind it all. Soros shamelessly claimed it was their economy's fault that gave him the opportunity. If they hadn't been so aggressive, he wouldn't have had a chance to rake in the dough.

So where did the hot money of those nations come from?

Who forced them to open their financial systems? After their troubles hit, why did the International Monetary Fund impose such harsh conditions?

Most worrisome of all, everyone talks about how Soros had a hand in this, but was it just him?

The so-called international speculators may as well not exist; it was all the big sharks from Wall Street. This was a thorough plundering -- a matter of seeing a fat target and going for the haul.

*****

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