Chapter 462 In the end, things still fell apart (bug fixes): No one can escape it.

The meeting room fell into a deathly silence.

In mid-November in Moscow, the weather is freezing cold; it wouldn't be an exaggeration to say that water freezes instantly.

Even though the White House was warm, the bankers sitting in the conference room felt a deep chill seeping into their bones through the thick walls.

They argued fiercely last night about this sudden devaluation of the ruble, still unable to understand the government's logic. What exactly are the Kremlin and the White House trying to do? Why did they suddenly act so erratically?

Could it be that the government is under pressure due to insufficient foreign exchange reserves, and is therefore eager to devalue the currency?

But at this moment, the bankers felt they had grasped the truth: all the reasons were just excuses, and the government's real purpose was to target them.

Other measures, such as stimulating exports and supporting the development of Russian industry and agriculture, are just incidental.

The Kremlin is trying to renege on its promises and is unwilling to truly share Russia with them.

The bankers remained silent, but in that suffocating silence, they began to frantically consider which side to take.

There is no doubt that the Kremlin is hiding in the background, its gaze evasive, its attitude ambiguous.

But the White House, standing at the front, clearly had no intention of continuing to compromise.

In fact, since the new government was formed last year, the officials who took office have been trying to find ways to restrict these bankers.

But the influx of international hot money was so rapid and intense that the White House had neither the power nor the authority to stop it. The government even had to rely on bankers to absorb this wave of hot money.

Now, affected by the Asian financial crisis, the influx of hot money has slowed down since this fall. So the government feels that it is not indispensable to them, and has taken action to target them in order to build the financial order they envision.

How insidious! This government has always been like this, always abandoning those who have served their purpose.

The bankers expressed their dissatisfaction through silence.

But Ivanov broke their silence directly, calling out directly: "Mr. Vinogradov, have you finished calculating? How many US dollars in futures contracts does the Reform Bank need to pay in compensation?"

Vinogradov opened his mouth: "This...I..."

Ivanov frowned. "Sir, I thought one night would be enough for you to think about the most important debt issues. You don't even understand the scale of the bank's debt. What's the point of you coming to the White House? You are a professional in finance, and I have always respected you very much. You really shouldn't make this kind of mistake."

Before Vinogradov could even defend himself, Ivanov, representing the government, made a demand: "Sir, immediately ascertain the extent of the bank's debt. If the Reform Bank cannot raise sufficient funds to repay its debts, the Central Bank will acquire the GKO held by the Reform Bank at 70% of its value to provide an emergency loan to the bank. If even the collateral is insufficient, I'm sorry, sir, the Reform Bank will be taken over and undergo debt restructuring."

This is the second time he has called for the government to take over the banks.

Many of the bankers present began to have their eyes gleaming; they suspected that Reformbank was the chicken being used as a warning to others.

Ivanov's gaze swept over the group: "Gentlemen, please first understand the financial situation of the banks. The government encourages everyone to absorb their own debts. However, if you are truly unable to do so, you can apply for an emergency loan from the central bank. Please do so as soon as possible. The government needs to understand the scale of your debts in order to provide appropriate assistance."

Then he added, "This should have been your own responsibility."

Smolensky couldn't help but retort: ​​"No one told us beforehand that the government had decided to devalue the ruble. Now what about our loans? A 15% devaluation of the ruble means we have an additional 15% of dollar debt."

Ivanov looked at him: "Mr. Smolensky, I've been wanting to ask you, what do you need so many loans for? You borrowed $55 million from Western Commercial Bank, $113 million from Chase Manhattan, and you also issued $250 million in floating Eurobonds. Does your bank really need so much money? What do you plan to do with it?"

He turned and gestured in Gusinsky's direction. "Mr. Gusinsky, the loan is for launching a satellite so that NTV's international channel programs can be watched by everyone. The purpose of the loan is to invest in more businesses. May I ask what businesses you are investing in?"

Smolensky's face was grim. He had taken out loans from abroad, of course, to invest in stocks and GKO government bonds. Stocks had soared this spring, and GKO was widely recognized as a profitable investment.

Who doesn't want their money to make more money and earn even more?

But he couldn't use that to shut up the young deputy prime minister, because the latter hadn't earned that money.

He even sold all his government bonds at a low price at the beginning of this year in order to suppress the abnormally high bond prices.

Then, the deputy prime minister himself might be stationed at the White House and have no time to deal with business matters.

His fiancée and business partner simply went to South Africa to farm, and didn't participate in the excitement of the Russian stock and bond markets this year at all.

So now, of course he can talk the talk without any real concern for the victims.

Footsteps sounded at the conference room door, and Punoning and the head of the security department walked in one after the other.

Ivanov nodded to them, then said, “Vlamikil, the bankers are about to go back to check the accounts. Why don’t you say a few words?”

Punonin did not sit down, but stood next to Ivanov, his eyes sweeping around like a hawk's before he spoke slowly: "Gentlemen, we all know that you have countless ways to transfer money out of the country. You have a whole financial network abroad. You are good at using all sorts of methods to transfer money out of the country and then hide it, evading taxes, creditors, and dividends to shareholders."

His gaze darted back and forth between the faces of the oil and mining tycoons. “But I must remind you of one thing: these methods you are so proud of are nothing new. They will be mastered when the time is right.”

The bankers felt a chill run down their spines: Who was in control?

Who else could it be? Of course, it's the KGB.

The fact that it's not called by that name doesn't mean the KGB has actually changed its ways.

The KGB does exist independently of the civilian government and the military, but what if White House officials approached them and said: "Go ahead, you're in charge of digging out the money these rich guys have hidden abroad, and we'll give you half of it"?

So, will the KGB be tempted?

Of course! Let alone half, even a third or a mere 10% commission would be enough for these ravenous wolves to pounce. They need operating funds, and even more so, they need military spending to expand their sphere of influence and power.

As for the KGB's involvement, and the fact that the interests of the tycoons have been violated, will it lead the international community to perceive Russia as a barbaric and unfree country?

Punonin suddenly laughed, nodded to Khodorkovsky, and said meaningfully, "Mr. Khodorkovsky, Mr. Dart has a lot of complaints about you. He believes that you have been infringing on his rights as a shareholder of the subsidiary by allowing him to own shares in Yukos' subsidiaries, selling oil to the parent company at the lowest possible price, and then exporting it. He thinks you are stealing money from him and the other shareholders. He will probably sue you. Perhaps you should clarify this matter."

Khodorkovsky's face froze.

This is a threat to him, a threat to all shareholders.

Don't make a scene. Don't think that by making a fuss about the KGB investigating your overseas assets, you can gain the sympathy of the international community.

At that point, the White House can simply state that the government is investigating these tycoons because of protests from other minority shareholders who claimed they violated the rights of investors, including foreign investors. To protect the rights of innocent investors, the government must launch an investigation.

See, this is the attitude a responsible government must have.

See, the government won't protect its own tycoons, so foreign investors can come and invest with peace of mind.

Khodorkovsky's face was ashen, and his voice was forced out through clenched teeth: "Thank you for the reminder, Mr. Punonin. I will handle the bank's debts and the relationship with the shareholders properly."

Punonin smiled at him: "You're welcome, it's my duty."

The bankers present were deeply alarmed upon hearing this.

Ivanov glanced at his watch, nodded, and said, "Alright, gentlemen, I won't take up any more of your time. Please sort out your bank information as soon as possible, and contact me anytime if needed. If you find it inconvenient, you can also contact me privately."

He politely saw everyone out, then specifically called out to Berezovsky, his face full of concern: "Boris, is your Union Bank ready? Let me know if you need anything."

Berezovsky, however, could not laugh.

He wasn't worried about his bank debts; in fact, he devoted most of his energy to politics, and his main way of making money wasn't through banks.

But that didn't stop him from breaking down.

Because he doesn't know anything.

The White House suddenly held a press conference to announce that the ruble had been devalued by 15%.

Before this, he hadn't heard a single word from them.

He was kept completely in the dark!

This filled him with fear; he felt a sense of danger of being abandoned.

But he couldn't show it at all; he couldn't even confront Ivanov directly—why didn't you tell me beforehand?

Because if the latter simply asks with a surprised look, "We already reported to the president, didn't the president ask for your opinion?", it would reveal that he has been completely marginalized by the president's inner circle.

This is a terrifying thing; all his social resources come from his status as a Kremlin darling.

Berezovsky could only manage a forced smile: "Thank you, Ivan, you're always so kind."

Kind? Ivanov dared not admit it.

Everything he's doing now has absolutely nothing to do with the word "kindness".

Russia is not the United States, and the ruble is not the dollar; national debt cannot be borne by people all over the world.

Ultimately, these debts became domestic debts disguised as foreign debts, short-term debts turned into long-term debts, and were gradually absorbed by the Russian people as the ruble depreciated in effect.

This is a common practice for all national governments after they incur debt.

How could he possibly laugh?

At this moment, Dyachenko could no longer laugh.

The president's daughter got off the car at the container market and hurried off to find Wang Xiao.

Her mind was in turmoil; ever since she saw the news last night, her mind had been in a mess.

People kept calling her cell phone, hoping to get more information from her about the government's economic plans.

But what could she say? She knew nothing.

She wanted to ask her father why he hadn't mentioned such a big thing at all.

But she dared not ask, for fear that her father would ask her in return: Don't you know why?

Various speculations tormented her all night. She had already gone out today, planning to go shopping at a high-end mall.

Seeing the long queues at the mall, customers rushed over to buy these imported goods, fearing that prices would skyrocket.

Finally, Diachenko couldn't resist and turned to the container market.

She wanted to talk to Wang Xiao.

Although Russia has a male-to-female ratio of 100:88.4, with women significantly outnumbering men, the core power circles in Russia—those that determine national policy, not those in insignificant sectors like education, culture, and society—are devoid of women; there are not a single woman in them.

Apart from Wang Xiao, she couldn't find anyone closer to the core power circle in Russia, so naturally, Wang Xiao became the only person she could talk to.

The container market is bustling with activity.

People flocked in from the subway, bus stations, and parking lots.

Previously, this place only catered to genuine wholesalers during the day, but today the situation has changed; they also do small-scale wholesale with family units.

As Tyachenko followed the crowd to the entrance, he was handed a flyer.

Moscow university students, who sacrificed their weekends to volunteer, kept urging, "Keep moving forward, keep moving forward."

A voice came from the loudspeaker: "Please purchase goods according to your family structure."

Volunteers wearing armbands immediately stepped forward to help direct the way to the various stalls.

Everyone was busy, and she couldn't find anyone to ask about Wang Xiao's exact location.

Fortunately, she was lucky. The assistant who ran out to deliver the order recognized her at a glance and quickly took her to Wang Xiao's temporary office—the original office was too small to be used as a dispatch center.

Unfortunately, Wang Xiao was busy sending out one instruction after another and receiving one message after another, but she was completely unaware of Tyachenko's arrival.

Just as she finally managed to give her mouth and ears a little rest, her assistant rushed forward to report. She then turned around abruptly and exclaimed, "Oh my God, Tatiana, what brings you here? Is there something you need to buy? We'll have to take a lot of pictures to use as free advertising."

Frustrated, Diachenko blurted out, "You knew? You knew all along, didn't you?"

That's a really stupid question.

The container market has become the largest sales point for goods. How could Wang Xiao, as the boss, be completely unaware of this beforehand?

The fact that he went directly to the container market to find someone means that he already knew this, doesn't it?

Sadness and fear welled up in Dyachenko's heart: "But I don't know, I don't know anything. I want to know, why don't I know?"

Xiao Gao and Xiao Zhao, listening from the side, were both speechless.

Sister, use your brain! How could your dad possibly discuss anything important with you? Unless he's also lost his mind.

Putting everything else aside, let's just mention Berezovsky.

What kind of person is he? Just a political broker, and one who only managed to get involved with the core power circle because of you, Big Sister.

It's fair to say that without you, he wouldn't even be able to get into the Kremlin, let alone treat the presidential villa like his own home and visit it every now and then.

But how did he treat you?

This summer, when he and Gusinsky joined forces to fight Potanin to the death, and all of Moscow was on edge, did he listen to your advice? Did he give you any face?

He's already showing you no respect, shouldn't you punish him severely so he can figure out who he really is?

Oh dear, when Wu Zetian was still a palace maid, she knew how to tame wild horses using a three-step method: whipping with an iron whip, hammering with an iron hammer, and severing the throat with a dagger.

This is the kind of person who could become an empress.

What about you? How did you treat Berezovsky, who didn't give you any face?

Yes, yes, our boss did step in and smooth things over, getting Berezovsky and Gusinsky to at least publicly shake hands and make peace with Potanin, so they would no longer be at odds or attack government officials.

It's like turning a new page.

But you really act like this never happened, and still consider Berezovsky one of your own? Is it just because Berezovsky can help you do business?

Have you lost your mind? Get this straight, if you think so little of yourself, who's going to respect you?

What a short-sighted move!

Wang Xiao looked at Ji Yachenko, but showed no intention of giving her any advice.

What are some good suggestions?

A person who is ambitious for power but lacks any sense of its application is better off staying a wealthy and idle person.

If you really get involved in politics, you might die without even knowing how.

Wang Xiao nodded: "Yes, of course I know. I need to coordinate all the supplies in advance. Roads are easily blocked by heavy snow, and if the supplies are not prepared in advance, there will be trouble."

Dyachenko opened his mouth: "Then you..."

Wang Xiao shook his head: "I didn't go to the White House or the Kremlin. When they came to my house to discuss things with Ivan, I avoided them. So I didn't give them any advice. I'm sitting here now because Ivan needs me. Whatever he wants to do, I will support him wholeheartedly."

Suddenly, Dyachenko didn't know how to continue asking the question.

Wang Xiao took her hand and asked with a smile, "Do you have anything urgent to do today? If not, come with me and work for Russia for a day."

Dyachenko was completely bewildered, not understanding what she meant.

Wang Xiao had already led her straight out of the room, downstairs, and to the Russian domestic goods market.

The products sold here include those manufactured in factories in Moscow and surrounding cities, as well as products sourced from farms and enterprises in distant Siberia and the Far East.

Apart from some factory workers, the vast majority of those working as sales clerks were university students from Moscow.

Compared to the bustling crowds at other stalls, this place was noticeably quieter.

Some customers glanced at the stalls, then hurried off to other stalls.

So when Wang Xiao clapped his hands to draw everyone's attention, everyone's eyes turned to him.

Wang Xiao raised his voice: "Let me introduce you. This is Ms. Tyachenko, the president's image advisor and also the president's daughter."

An uproar immediately erupted in the market.

In any country, the head of state's family receives a lot of attention, especially for those who grew up in the Soviet Union, but there is a great deal of curiosity about the head of state's family.

Wang Xiao introduced with a smile: "Ms. Tyachenko, on behalf of His Excellency the President, thanks everyone for their support of Russian products. She is here today to work with everyone to promote the products produced in Russian factories and farms to every household."

Tyachenko was taken aback, but had no choice but to force a smile at everyone.

She couldn't refuse, and she was unwilling to refuse.

Her reason told her that Miss Wang was helping her, and helping her father.

At this moment, her presence here, working alongside university students and factory workers, carries undeniable political significance and prestige.

She could even use this to show her father that although she had made all sorts of mistakes (which she didn't even understand exactly what they were), she was still trying her best and actively doing what she could for the country.

Tyachenko's eyes involuntarily welled up with tears, and he whispered his thanks to Wang Xiao: "Thank you, Miss Wang."

From the moment they met until now, Miss Wang has always helped her whenever she asks.

Wang Xiao smiled and said, "You're too kind. It's you who really appreciates your hard work."

She didn't particularly want to help Dyachenko improve his political status or anything like that.

She assigned people to work based on the principle of making the best use of everyone's talents.

Oh my! It's the president's daughter! Since she's already here, she definitely has to do some work. The symbolic significance and influence of Diachenko doing the work alone is equivalent to that of a thousand troops.

She'd never let her go.

Besides, if I assign someone to do the work, wouldn't that mean I'd finally have some peace and quiet? She's so busy, she doesn't have time to be someone's confidante.

Wang Xiao clapped his hands again: "Alright, my dear colleagues, let's keep working hard. I'll treat you to a big meal at noon, afternoon tea, and another big meal in the evening."

In fact, the college students who volunteer also receive a salary.

However, there's no need to say anything about that now.

On November 15th, the day the ruble officially depreciated by 15%, almost everyone was busy.

Ivanov didn't have time to call Wang Xiao until after dark.

Laughter came through the microphone: "Have you had dinner yet?"

Ivanov couldn't help but whine, "I haven't eaten yet, I'm starving!"

Wang Xiao looked up at the clock on the wall: "Have two biscuits to tide you over, the food should be arriving soon. The hibiscus tofu is quite good today."

Just as Ivanov was about to start whining, Wang Xiao instructed him again, "Are you in the office? Now go to the window, look up, and look ahead."

The moment the person being instructed raised their eyes, a giant flower bloomed on their retina.

Nemmtsov just walked in, ready to discuss the GKO redemption issue with him, when he was stunned by this burst of fireworks: "My God, who's setting off fireworks?"

One flower blooms and fades, then the sky is filled with a riot of colors.

The entire White House was in an uproar; the miserable civil servants who were still working overtime on the weekend all rushed to the windows to watch the fireworks.

Yes, yes, Moscow is a vibrant city, dazzling and colorful, a true city that never sleeps.

However, large-scale fireworks displays are extremely expensive, and such excitement is impossible without a grand celebration.

Watching the fireworks burst into the sky, one after another, it was clearly a grand spectacle.

What a wonderful day it is today? And who is so generous as to make such a grand gesture?

Ivanov heard a soft laugh coming from the microphone, like a little snake burrowing into his ear, tickling him.

"Do you like it?" Wang Xiao asked him. "This is a hymn I give to my hero, your medal."

Ivanov felt as if the fireworks in his heart were also bursting open, shooting straight into the sky, making him seem to float in the air, soaring up to ninety thousand miles.

Nemtsov turned his head and saw the man's face beaming with joy, and couldn't help but sigh inwardly: See, see, you still need to find a super rich woman. Only a super rich woman can create this kind of romance.

Ivanov proudly raised his head, showing off without any attempt to hide it: "This was given to me by the Queen, and she will keep giving me fireworks."

He believes that one day he will see the grand carnival that Wang described, a spectacle performed with drones and fireworks.

On that weekend evening, countless Muscovites looked up and saw a spectacular fireworks display.

Beautiful things can always soothe the fatigue on a person's face silently, making people unconsciously relax their facial muscles, and even unconsciously turn up the corners of their mouths.

In that instant, all the worries about life and the uncertainty about the future seemed to fade away, and a flower called hope blossomed in my heart.

The sun will always rise again.

With a six-hour time difference, the sun always rises earlier in Seoul, South Korea, than in Moscow.

On Sunday, November 16th, Tang Yicheng, who stayed in South Korea, had a busy day.

Three days ago, John Bogstein, president of the Institute for International Economics, testified before the House Financial Services Committee, directly warning, "South Korea is the next country to be affected by the Asian financial crisis!" He also stated that South Korea needs at least $50 billion in aid from the International Monetary Fund to overcome its current financial difficulties. (Note ①)

This statement immediately caused a huge uproar in the international community. The following day, White House Economic Advisor Spring also stated, "We will be closely monitoring this matter with the Treasury Department." (Note ②)

Tang Yicheng has ample reason to believe that the reason why the US stock market did not experience a violent upheaval due to Moscow's initiative to devalue the ruble by 15% is at least half due to the fact that the South Korean economy is already on the verge of collapse.

The United States clearly does not want South Korea and Russia to both experience problems at the same time, as the resulting financial crisis would quickly spread to the United States.

The stock market crash that lasted for half a month had already given Americans a full taste of the power of backlash.

Tang Yicheng is also paying attention to South Korea's economic trends. Today, a major event occurred in South Korea's economic circles - IMF Managing Director Contesu, after visiting Southeast Asian countries, transited through Hong Kong to Seoul.

What was he there for? Of course, he was there to urge South Korea to accept aid from the International Monetary Fund as soon as possible.

What were the specifics of the talks? The South Korean government did not issue a public announcement, so Tang Yicheng naturally had no way of knowing.

But when he called Wang Xiao to discuss this matter, he still offered his analysis: "I reckon the talks didn't go very well. On the 13th, American experts issued a warning. If the South Korean government really intends to accept aid from the International Monetary Fund, then three days should be enough time for them to come up with a basic charter. And as long as they have this charter, they'll have something to talk to Condescendant about. Condescendant shouldn't have left so quickly."

This is a matter of national destiny; how can we discuss it so casually?

The International Monetary Fund was the only one to offer a warm welcome; South Korea wasn't interested in the aid plan and had no desire to discuss it. That's why the meeting ended hastily.

Tang Yicheng sighed: "The South Koreans still prefer to handle this themselves. They don't want the International Monetary Fund to get involved, thinking that would cause even more trouble."

It's no wonder that South Koreans think this way.

South Korea's economy has been developing rapidly for 30 years. Last year, South Korea's GDP approached 500 billion US dollars, and the average annual income per capita was 10,548 US dollars.

Good heavens! Right now, more than half, no, more than two-thirds of the population in mainland China don't even reach a fraction of their $548 income standard.

It's perfectly normal for them to have this confidence.

The South Korean people firmly believe that as long as the National Assembly passes the financial reform bill, the economy can pull itself out of the mire.

Wang Xiao laughed and said, "Do you think South Korea can get through this on its own?"

“No!” Tang Yicheng shook his head. “It’s still too small. If it were as big as Japan, we wouldn’t be in such a passive position.”

However, even if it were as big as Japan, it might not have been able to develop so quickly.

Both its economic rise and Japan's are inextricably linked to one country: the United States.

A country built on a US military base has very limited options.

Ivanov had more comprehensive information than Wang Xiao, and he had already received a definite answer—the talks had broken down.

After arriving in Seoul, Kang Desu urgently met with South Korean Deputy Prime Minister and Minister of Finance and Economic Affairs Kang Kyung-sik and Presidential Chief Secretary for Economic Affairs Kim In-ho, stating directly that if the South Korean government was willing to apply, the International Monetary Fund would actively assist in obtaining a loan.

However, both of South Korea's top economic officials flatly refused. The South Koreans decided to rely on themselves.

Like it, another Asian country is also struggling in the storm: Japan.

When Ivanov invited Chubais to dinner, he shared this news: "The Hokkaido Takushoku Bank of Japan is estimated to declare bankruptcy tomorrow. There are too many non-performing loans and bad debts. The bankruptcy process is almost complete, and they are just waiting for the announcement on Monday."

Why mention this in particular? Because if it goes bankrupt, it will be the first major bank to fail in Japan.

With the Asian financial crisis not only failing to subside but intensifying, it will severely damage market investor confidence and could potentially trigger a new hurricane.

This is Japan, the world's second-largest economy. It influences not only Asia, but its influence can also reach the entire globe.

Chubais clenched his fist involuntarily, then relaxed it before nodding: "If I go to talk to them tomorrow, the chances should be better."

Before the Russian government announced the devaluation of the ruble, he, on behalf of the Russian Federation, proactively approached Kantsu, expressing the hope that the International Monetary Fund could provide loans to Russia if needed.

While Russia is confident it can easily weather the market turmoil that could result from currency devaluation, the financial market is fraught with uncertainty, and the Russian government hopes to control the magnitude of the fluctuations as much as possible to prevent them from triggering a potential global financial tsunami.

Given that it was a time when the US stock market was in dire straits, Chubais's concern for Kantsu was not unfounded, but rather a reflection of a pragmatic economist.

The talks went quite well.

Having a general direction is not enough; granting a loan and when the specific loan will be disbursed are two completely different concepts.

Chubais needs to continue the talks.

In Russia, no one is better suited for this job than him; he is experienced and knows how to deal with the International Monetary Fund.

Chubais consoled himself, "At least in the eyes of the international community, our situation is much better than South Korea's. Look, Kang Desu took the initiative to fly to Seoul to talk; I still have to arrange a meeting with him."

One was chasing after the other, it was truly a case of extremes.

Ivanov suddenly said, "Because South Korea has what they, the United States, and Europe want."

Chubais looked puzzled: "What is it?"

South Korea is a country with a small land area and very scarce resources.

“The market.” Ivanov held up one finger. “South Koreans basically don’t use foreign goods. Their philosophy is that one’s own country is the only place to live. They eat Korean food and use Korean products. There are so many cars on the street. If one or two out of 100 are foreign cars, that’s considered a big deal. The people basically use domestic cars. This is not good news for Europe and America.”

After comparing South Korea to Russia, Chubais focused on South Korea's financial situation and didn't seem to know much about it.

He found it unbelievable: "Is it because the South Korean government doesn't allow them to buy it?"

Even with so many restrictions imposed by the Soviet Union, as long as conditions allowed, the Soviets would still try every means to buy American and Western European goods.

Ivanov shook his head: "No, South Koreans just stick to the idea that their own country's products are the best, and as citizens, they must support domestically produced goods."

He shrugged and said, "Compared to South Korea, does Russia's market even need to be opened up?"

American goods have been in the market for a while now. If sales haven't met expectations, the only reason is that there aren't enough wealthy people in Russia, resulting in insufficient purchasing power.

That's a problem that no amount of market liberalization can solve.

“Besides that, South Korea has a large number of emerging technology companies,” Ivanov sighed. “Semiconductor companies have long since moved from the United States to Japan, and now the Industrial Light Corporation has moved to South Korea. These are all very attractive companies. However, these manufacturing companies are completely unwelcoming to foreign direct investment; they keep their doors tightly shut and absolutely refuse to let foreign capital in. This probably doesn’t conform to the principles of a free market economy.”

He smiled and said, "We don't have that type of company. As for the military industry, there are too many military professionals who have gone to the United States on their own initiative. They probably don't need us to further open up the market."

Chubais fell silent; this was not a pleasant topic.

But Ivanov didn't stop there. He was filled with emotion: "South Korean conglomerates are often criticized. They are called chaebols, and some people compare them to our oligarchs. But I feel deeply that we are not worthy of comparison. Whether it's Samsung, Hyundai, or other companies, South Korean conglomerates spare no expense in investing in the technology industry."

He gave an example: "The global semiconductor industry is currently in its half-life, and it's impossible to make money. But Samsung is still investing against the trend, building a new generation of chip factories and LCD panel factories, and has raised a lot of funds for this, just throwing them in. As for when they can make a profit? That's not a question they're considering right now."

He shook his head. “Our oligarchs would never do such a thing. What our oligarchs are good at is finding ways to use their monopoly position in Russia to obtain large amounts of foreign loans and then invest them in the stock market and the GKO market to make quick money.”

Chubais sighed and blurted out, "That's how capital works; it rolls to where it can generate huge profits in the shortest amount of time."

This isn't just the case with Russian oligarchs; it's the same with large financial institutions around the world—everyone's busy making quick money.

He was bewildered for a moment. Theoretically speaking, this was free capital; capital has the right to flow wherever it wants to go.

But isn't the purpose of capital to promote the development of productive forces?

Does this kind of capital, which allows you to make quick money, really benefit productivity?

No, on the contrary, it is like a devil, tempting countless manufacturers to divert funds and join this group of people who want to make quick money—investing in stocks, short-term securities, and real estate, driving up the prices of these things until they become a bubble. Then the bubble bursts, leaving nothing but a mess.

These funds should have been invested in updating production equipment and upgrading technology in the factory.

Without these, without these tangible industrial and agricultural products, how can the value of financial products be realized?

Unable to find an answer, Chubais remained silent.

Ivanov patted him on the shoulder and expressed his gratitude once again: "You've worked so hard, you've been working tirelessly for the country and enduring so much hardship."

Chubais smirked, then thought of something else: "When is Miss Wang setting off?"

He received information that the OPEC meeting this year would most likely be held in December. She needed to lobby the Saudi princes to ensure OPEC wouldn't increase oil production next year, so she had to leave early.

Alas, women have a very low status in the Middle East.

He had begun to worry about Miss Wang. Even though he believed in her wisdom, human prejudice was like Mount Everest, impossible to move easily.

Ivanov gave a vague answer: "She has almost finished planning and will set off at the appropriate time."

But as the weekend passed and the following week arrived, Qubais suddenly realized that perhaps Miss Wang no longer needed to engage in public relations with Saudi Arabia.

Why?

Because the whole world seems to have really fallen into a serious financial crisis.

On November 17th, Hokkaido Takushoku Bank in Japan officially went bankrupt, triggering a drop in Japanese stocks. On the same day, the Bank of Korea also announced that it was abandoning its efforts to prevent the won from falling below the 1,000 won to 1 US dollar mark.

That day, the Korean won plummeted, and the stock market was in utter chaos.

The financial crisis in Japan and South Korea quickly spread to the US market. The Dow Jones Industrial Average, which had been rising sharply in the latter half of the previous week, sounded the alarm again and turned to fall.

By November 18th, the situation in South Korea had worsened. The National Assembly failed to pass a series of financial reform bills, causing panic among South Koreans who had initially been confident they could weather the financial crisis on their own. Market confidence plummeted. The stock and foreign exchange markets were in dire straits.

South Korean Finance Minister Kang Ku-hee and Presidential Chief Economic Secretary Kim Young-ho, who had just rejected an offer from the International Monetary Fund, immediately submitted their resignations.

South Korea was preparing to receive aid from the United States and Japan, but was rejected by both countries, which were equally overwhelmed. They suggested that South Korea should go to the International Monetary Fund instead and handle the matter officially.

On November 21, the South Korean government, having exhausted all other options, had no choice but to seek help from the International Monetary Fund.

The very next day, Standard & Poor's promptly and decisively downgraded South Korea's foreign currency long-term sovereign debt rating from A+ to A-.

Thus, the financial crisis spread from Japan and South Korea to the United States, and then the sharp drop in US stocks quickly spread globally. Even the Hong Kong stock market, which had previously stabilized, saw the Hang Seng Index plummet.

To make matters worse, another scandal broke out in the American business world at this time.

The large American waste management company was once the world's largest waste disposal and environmental services company, a darling of Wall Street and one of the blue-chip stocks, regarded as a model of stable growth.

Then on November 25th, it was exposed for financial fraud.

From 1992 to 1996, it overstated its profits by more than $1.4 billion, and continued to do so in the first three quarters of 1997.

The exposure of financial fraud by a listed company naturally triggered a sharp reaction in the stock market, with the stock of the waste management company plummeting.

Even more alarming is that, as an outstanding example of blue-chip stocks, its financial fraud has been exposed, raising doubts among investors about other blue-chip stocks.

After all, it's common knowledge that when you see one cockroach in a room, there's a high probability that there are already 100 cockroaches in the room.

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Note 1 and Note 2: The content is from the article "The Storm in South Korea's Financial Street" in the January 1998 issue of "Contemporary Korea", written by Zhang Jinfang of the International Department of Xinhua News Agency.