"Father, Feng said we need to wait and let Soros and his men sink deeper. This will benefit us more." Kirilenko said.
"Are you sure? Do you know that our country's debt has reached 130 billion USD, and our foreign reserves are only 13 billion USD? The value of our assets is less than 30 billion USD. Soros and his men are attacking our financial sector, and we can't retaliate! "Senchenko said.
Although Senchenko was a soldier, in Russia, soldiers also had a great say in politics. Senchenko had helped Kirilenko to pass the message to the higher-ups, and he was praised by them.
"That's why we can only use Feng's method. We have too many short-term bonds and loans, and our economy might collapse at any time. The demand for oil, natural gas, non-ferrous metals, etc. is falling, and prices are falling. We will not be able to make ends meet this year! " Kirilenko said. "That's why we can use Feng's method to get those international speculators to fill our gap and prevent hyperinflation!"
Senchenko looks at Kirilenko and then at his eldest son. "What do you think?"
"Father, I think what my younger brother said makes sense. Moreover, in terms of business, my younger brother is much stronger than me. My brother is also a Russian. He won't be like what the outside world says, profiteering at public expense and cheating our own people's money! "
What Senchenko was most satisfied with was not that his eldest son was highly trained in military affairs, but that everything went smoothly under his care. It's also not that his second son is good at making money and had become Russia's Top Billionaire. His family does not need to worry about money. It was because these two sons knew each other what they wanted. The two brothers had a very good relationship with each other.
Ever since Kirilenko was exposed as Russia's top tycoon, there was a rumor that Kirilenko had relied on Senchenko to build his family business at the expense of the public.
Of course, after the higher-ups investigated, this is not the case. Most of Kirilenko's money was earned from overseas, and he had also contributed to China's development. For example, he had built an electronics factory, an automobile factory, etc. Kirilenko's mining company was the only mining company that had not had any accidents. Although they did not mine much, Kirilenko's mining company was the only one that did not have any accidents.
This also proves that Kirilenko is not like other Russian tycoons who had embezzled the country's mines and started to exploit them for profits.
The higher-ups knew about this, but the people do not think this way. Luckily, Kirilenko had learned from Feng Yu in the past two years and had donated a lot in Russia. That's why those rumors are not blown up.
"Since you two brothers have said so, I'll report it to the higher-ups and let them calm down."
The higher-ups had gotten financial experts to verify this method, and it is feasible. Not only will Russia's money not be taken away by international speculators, but it will also avoid hyperinflation in Russia. Russia's economy had improved last year, and it will not be able to withstand another crisis this year!
This year, Russia's unemployment rate had increased, and the per capita GDP had declined. Many international investors were preparing to liquidate and dump Russia's assets, including some mines.
Kirilenko also made his move and signed contracts with a few US companies. He intends to buy the oil fields and mines owned by those companies, but he wants to pay in Rubles. His reason is that he does not have USD.
Also, the payment is due at the end of August. If the payment is delayed, Kirilenko will have to pay 1% for every week, and 10% for every month.
Kirilenko signed the contract without hesitation. He knows Rubles will depreciate at the end of August, and he will not suffer any losses.
Those US companies thought Russia will be the same as other countries in Southeast Asia. They will be able to hold off Soros for at least a few months. After all, Russia is a superpower.
Some of the faster ones had withdrawn their investments in Russia in the second half of last year. But after Russia's bailout, they thought it will be fine, and some of them came back to Russia.
Now, Russia's stock market is rising, and Rubles are also rising.
Russia's economy had shown signs of improving by issuing short-term bonds. But they had issued too many short-term bonds. It is more than 70 billion USD!
The total amount of Russia's national debt and foreign debt is more than 200 billion USD. After paying off the interest, Russia's total income for this year is only 40%! This is only the interest, and Russia does not have any way to repay the principal.
That's why Russia's bond yields soared to 80%! This also means that Russia's bond prices have plummeted, and the market investors are looking down on Russia's credit rating. The market is panicking.
At this time, Soros and his men's funds entered the market and stabilized Russia's stock market and Ruble's exchange rate. Both indexes even rose.
Some foreign investors who had left Russia also returned to Russia to make money from the bottom up. Russia's economy seems to be improving.
Soros had invested tens of billions of USD. Some of the investments are his, and some are from his Quantum Fund's investors. Soros had used part of his funds to buy shares and the rest to buy futures. He felt he will make high profits this time.
But at this time, Russia announced a series of measures, and no one had expected these measures!
Default on sovereign debt!
The matured debts will be delayed for 90 days, and the short-term bonds will be extended to 3 years bonds.
This is a measure to lower Russia's international reputation, but it will reduce Russia's internal conflicts. These conflicts were then transferred to the major creditor countries, such as Germany.
Those countries' commercial banks will have a lot of bad debts, but Russia does not care.
At the same time, Russia also announced another measure. Rubles will depreciate by 50% against USD! From 1: 6.2 to 1: 9.5!
That means Rubles will depreciate by 50% on its own. No one had expected this measure.
Other countries were trying to stabilize their exchange rates, but Russia took the initiative to adjust their exchange rates. Moreover, it was a 50% adjustment!
This incident happened, and they did not even have the chance to react.
Those who had bought Rubles and felt that Rubles will rebound were crying.
As long as they used more than twice the leverage, they would be wiped out. Those contracts would all become a piece of scrap paper!
Soros paced back and forth in his office. He was mumbling to himself. "How did this happen? How did this happen?!
You've already exceeded your reading limit for today. If you want to read more, please log in.
Login
Select text and click 'Report' to let us know about any bad translation.
