215. worst evidence
In 1996, the fall of 1996 was in full swing.
To begin with, Hoyoung’s attempt to deflect the Asian economic crisis by blocking the Reverse Plaza Agreement was only half successful.
The Clinton administration tried to go ahead with the Reverse Plaza Agreement, but the Reverse Plaza Agreement itself failed due to serious opposition from the opposition party (Republican Party).
Moreover, Japan, the subject of the agreement, would not agree, but the US government had nothing to do.
However, as if the huge flow of the world could not be stopped, Hoyoung’s role ended here.
The Clinton administration did not stop its efforts to bring about a weak yen.
The current Secretary of the Treasury in the Clinton administration was Wall Street native Robert Rubin.
He was regarded as the most capable Treasury Secretary since the United States was born.
He was a man who believed in the words ‘a strong dollar is in the interests of the United States’, and despite the failure of the reverse plaza agreement, he began to induce a weak yen through continuous exchanges of yen and dollars.
And the aftermath of that impact was slowly appearing across Asia.
Especially in Thailand.
.
Among the connections Hoyoung met in the United States in the early days, if you were to choose the most talented person, you could definitely pick Smith.
Smith was a competent enough person to oversee both H&H America and Hermes America.
However, there was someone who showed such outstanding abilities beneath the surface, and that was Eric.
It was not an exaggeration to say that most of the money Hoyoung earns and invests in Gaia Investment is Eric, even though he does not take on external affairs like Smith.
That’s why Eric was one of the key people Hoyoung trusted the most and entrusted with the most important work.
And Eric was on the phone with Hoyeong.
– So···. Is your boss saying that there will be action on the Thai baht on Wall Street, so wait and jump on the bandwagon?
“To sum it up, yes.”
– Of course, it is true that most of the money I manage belongs to the boss. But I think one of my duties is to stop the boss’s money from going anywhere.
“You are right. Because you work like that, I believe in you and ask you to manage my money.”
– Then, may I ask for a detailed explanation of the instructions for this baht exchange? I know the boss will never give the wrong orders, but I think understanding the situation and acting on it will bring better results.
Eric couldn’t see it because it was a phone call, but Hoyoung’s face was smiling.
I really like Hoyoung’s attitude Eric is showing now.
Not just a do-it-yourself machine, but an expert who thinks proactively.
It was the image of Ho-young’s ideal business partner.
“Right now, the US government has collapsed the Reverse Plaza agreement, but quietly… Aren’t you well aware that we are openly inducing a weak yen?”
– of course.
Like Eric’s confident answer, he was also one of those who understood the current social situation well.
A native of Wall Street, he did not neglect to grasp international economic trends.
“This policy of the current government will continue at least until the end of this year. Of course, if President Clinton succeeds in re-election, it is clear that the yen policy will continue to happen. Of course, there will not be as dramatic a depreciation of the yen as if the reverse plaza agreement were implemented, but in the end the value of the yen will continue to decline. So, which one gets hit first?”
– Well···. It must be Southeast Asian and East Asian countries that export goods to the United States.
“Exactly. When you think about common sense, it is natural to buy Japanese-made products rather than other Asian products at the same price.”
Until now, in the late 1990s, no country in Asia had been able to catch up with Japan’s technological prowess.
Many countries in Asia were recording high economic growth rates with current account surpluses in US exports.
At this time, what if the value of the Japanese currency falls and the current account deficit continues?
As a matter of course, the country’s economic growth rate will plummet, and short-term foreign debt will increase to preserve the current account.
“And here’s the information I got from Wall Street. He said right away that hedge funds would attack the baht.”
– Perhaps···.
“Do you have any guesses?”
– Are you saying hedge funds will induce the devaluation of the baht?
“I am not sure if that is true either. However, from my point of view, I just judged that there was a high possibility that it would actually happen.”
Hoyoung replied leisurely, but genuinely admired Eric’s answer.
It was also not for nothing that Hoyoung was using Eric as the general manager of his American funds.
He seemed to have a rough idea of what the hedge fund was up to with limited information and a few words from Hoyoung.
– The current baht exchange rate is about 25 baht to the dollar. However, even the Thai baht that Wall Street holds will be approximately 10 billion baht (about 250 billion won).
“If you sell more than billions of baht in a short period of time, the value of the baht will plummet. Then, when they reach the target amount, they sweep the baht back with the dollars they sold.”
– Selling the baht that was swept up like that again… After doing this a few times, they’ll be able to make a huge difference in their sittings…!
“Exactly. We’re just going to jump on the bandwagon a bit.”
– I know exactly what you mean.
Hoyoung was well aware that the result of this act would lead to Thailand’s foreign exchange crisis.
That being said, it was a phenomenon like a wave that was too big for Hoyeong alone to block.
To be honest, Hoyoung wasn’t even an apostle of justice, and this opportunity was a really good opportunity to collect baht.
Therefore, Hoyoung decided that if this outcome could not be prevented, he would choose to ride the flow.
However···. He had no intention of becoming one of the kind with the hounds of Wall Street.
“However, we do not resell.”
– yes?
“Every time the baht plummets, please continue to buy. All I have to do is keep collecting them until the moment I say I am done.”
– Did I hear correctly?
Eric asked Hoyoung again.
The reason hedge funds do this is, of course, to make money. It’s especially for dollars.
Therefore, it was an instruction that did not make sense from common sense to just collect baht without reselling it.
“yes. Trust me and do it.”
– Well···. Okay. After all, there are enough cash assets. I will do as instructed.
Hoyoung smiled.
I also felt grateful to Eric for trusting and following instructions that I could not easily understand.
“Anyway, this is something Eric should do well. I beg you.”
– yes. Just trust me and leave it to me.
Hoyeong exchanged some more nonsensical talk with Eric before hanging up the phone.
Even if the reverse plaza agreement was blocked, it was fully guessed that the US government would come out like this.
The US government is very optimistic about this presidential election.
Clinton’s approval rating is still at a level that is not abnormal, and a competitor named George Bush will not be seen as such a strong competitor.
In fact, even in the Republican Party, this sentiment was strong when George W. Bush was elected as the presidential candidate this time.
Anyway, when I read the situation, the chances of the Republicans winning were not high.
That is why he is a young and energetic politician.
And they tried to make George Bush, the son of former President Howard Bush, a scapegoat for this presidential election.
‘The US government’s yen policy will also end after this year. I just have to endure this year.’
Because Hoyoung holds the key to the presidential election that no one expected.
.
.
.
Another month passed.
The US presidential election, which will be held on November 5, 1996, is now less than a month away.
Hedge funds couldn’t stand it and started attacking the baht.
Eric was constantly collecting money by attacking when the baht ran out as instructed by Hoyoung.
And across the United States, the Bush and Clinton campaigns were in full swing.
There were still many who predicted a comfortable victory for the Clinton administration.
In all polls of approval ratings so far, Clinton has easily eclipsed Bush.
“after···. Have you not heard from Hoyeong yet?”
“yes. till now···.”
That is why the current Bush campaign was not in such a good mood.
Beginning the campaign in earnest, George Bush flew all over the United States and passionately campaigned.
The catch prize put forward by the Bush camp has received a good response from American citizens.
The catchphrase of Great America, One America was well received by all white minorities in the United States.
This is because Americans are getting tired of being the world’s police force since World War II.
However, it was still a situation that could not be called mainstream.
Little by little reactions were coming from states with a large number of blacks, such as Louisiana and Miami, but there was not much time left until the election period.
“This time, Bush is fine, but is there a need to change a president who has no major flaws?”
“Four years is too short a period for a president. It means that we need to give it at least eight years before we can properly implement our policies for the United States.”
Most Americans were implicitly rooted in this idea.
The idea that George W. Bush should be promoted to a second term unless he brings a very good strategy or Clinton has no special flaws.
So even today, a deep wrinkle grew between Bush’s eyebrows.
.
A week has passed and there are only three weeks left until the US presidential election.
And Bush was finally able to get in touch with Ho-yeong.
– Candidate. Smith, whom I saw last time, will visit the candidate’s camp headquarters today. With the conclusive evidence I told you the other day.
It was a short call, but George Bush couldn’t sit and wait for Smith from the moment he got the call.
Three weeks is a really short time to do anything.
The trend is already leaning towards Clinton, and there is only one presidential debate left.
It is unknown what the evidence Ho-yeong sent was, but it was only natural that the current situation could not be overturned unless it was a big deal.
“Candidate. A man named Smith…”
“Let me bring you right away!”
how many hours have passed
As soon as Bush heard the name Smith, he cut off his secretary and had him brought in.
After a while. He could meet a familiar face.
“Governor… No, candidate, long time no see.”
“yes. Long time no see. how are you?”
“I was fine. How holy the boss was to make sure to send this directly to the candidate… Oh, and by boss, I mean Chief Hoyoung Yoon. You asked me over and over again to ask me to go myself because of security without having anyone ask for it.”
Bush and Smith exchanged greetings and formally inquired after each other, but Bush’s eyes were fixed on the stack of papers Smith was holding.
And Smith, noticing that, handed the document to Bush.
“I obviously delivered well. I hope it will be of help to the candidate.”
“Thank you very much. I will never forget this favor, Mr. Please forward it to Yoon.”
“yes. Candidate.”
As Smith left the camp again, Bush began to look through the papers Smith had given him.
“Oh, no…! This really happened in the White House?!”
Evidence of the worst scandal since America’s founding was unfolding at his hands.
“With this, we can definitely win.”
Bush now understands why Hoyeong is so confident.
Bush’s eyes were full of victories and hopes.
