[Chapter 835: Thanksgiving Surprise]
No matter how much the outside world struggled, it didn't affect William White. This year's Thanksgiving surprise box included a big new gift.
In America, giving gifts was often a hassle. If one could simply send a check, that would be ideal. Unfortunately, their boss had a lot of businesses. Even that oversized turkey, the boss prepared for everyone.
Of course, one could refuse these gifts. If someone made their refusal clear, the items would be donated to charity. Thanksgiving was different from Christmas; while Christmas was best spent with family, Thanksgiving was about participating in community service.
"Larry, you're quite trendy. I thought you were still using that thousand-dollar phone. Tell me, is this what they call a tax on intelligence?"
Larry Ellison didn't mind the teasing from Steve Jobs. They were alike in some ways--both IT elites with modest backgrounds who enjoyed dabbling in Hollywood. They also shared a characteristic: both were outspoken and somewhat obsessive, not always well-liked.
"Steve, haven't you noticed that all the Hollywood stars are using these phones? Fashion! My goodness, I truly admire William's promotional skills," one of them remarked.
"Wow, now that you mention it, he really is creating this atmosphere on purpose."
"Of course! You think? This year's Thanksgiving surprise not only includes turkey and steaks, but also wine and phones."
"Ha! All that stuff belongs to your boss. Isn't that just keeping the riches in the family?"
William White shrugged off the jabs; with year-end approaching, he had to spend some of the budget. The so-called Thanksgiving surprise was just a small part of it.
"Damn it, I should have a talk with him about how this phone could be produced in Mexico," someone suggested.
"Bill, that might not work? If there are no quality control issues and production costs are kept low, they'll make a ton of money."
Alan Greenspan raised an eyebrow at Clinton's comments. Capitalists always sought profit maximization; why would they care about employment rates?
"Alan, is the gap really that vast? Can Mexico produce all the components?"
"Not yet; it's just an assembly plant. At most, 30% of the components come from there. The rest are from more developed places."
Greenspan maintained a calm facade, but internally he was unsettled. Building a billion-dollar company from nothing was no simple feat. Perhaps this guy always wanted to split from Motorola.
Greenspan came to see the president, but it wasn't just about a phone factory. They were facing serious trouble.
"Bill, the situation in Mexico doesn't look good. If we don't intervene, they're finished."
"Damn it, I just heard from Al that they refused help. Those idiots really think we have to rescue them?"
American aid was hard to come by; if one couldn't meet their conditions, there was no point dreaming about getting that cake.
The U.S. was consolidating oil resources, and Mexico, being an important oil-producing region, needed to follow orders. Your currency might be free from the gold standard, but that also had its drawbacks. The world doesn't have enough gold--don't even mention $400 an ounce; even if it rises to $2,000, it wouldn't keep pace with economic growth.
Americans believed in credit currency, and the Federal Reserve wasn't a government body. That credit depended on a group of bankers.
Oil was valuable; it was more reliable than silver, and industrialized countries depended on it. Connect those three entities--dollars, oil, and treasury bonds--and government credibility flourished, making it natural to retain exclusive international currency status.
Americans thought simply, but Mexico wasn't naive. Unable to develop their own resources, they were unwilling to hand their economy to the U.S. This dragged on.
"Refusal? Ha! They'll agree. If we hadn't stopped it, the peso would have depreciated by at least 50%."
Clinton found Greenspan's confidence infuriating. After all this talk, weren't they just a bunch of Wall Street vampires?
Sitting in his position, Clinton obviously didn't want an economic crisis to occur during his term. They claimed it wouldn't affect America, but he didn't buy it at all.
"Alan, a 50% depreciation? Have you considered that might lead to social upheaval? If CPI rises over 15%, it'll be a nightmare."
Greenspan scoffed lightly; he understood Clinton's concerns. Being so close could mean economic crises would have ripple effects--if there was a crisis, not just the U.S., but the entire continent might suffer.
When they benefitted, politics seemed fun, but when the consequences showed up, they wanted to pass the buck. Was it really that hard for a politician to take responsibility?
"Mr. President, their short-term debts are about to exceed $20 billion. As you know, not all international speculators are obedient. And we must act quickly; they can't last much longer."
Clinton's face turned grave; it was tense. Celebrating the North American Free Trade Agreement's anniversary with a collapse?
Some politicians would go to any lengths to achieve their goals, but really messing up the neighboring country could bring their own troubles.
So, the anticipated Thanksgiving surprise for Mexico faded. In the bickering of politicians, they lost their best chance.
More evidence proved that if one didn't act before a crisis hit, they would face dire consequences.
As for the free-market principles praised by the Chicago School, just listen to them casually. The market can't solve all problems.
Of course, the government can't either. William White believed that before a crisis hit, markets could indeed address issues. However, if the crisis occurred and one still held that belief, America's Great Depression didn't come about for fun.
Rest assured, if one indulged, another Great Depression was bound to follow. Government intervention wouldn't prevent economic crises, but it could lessen the blow. In other words, it allowed people time to prepare.
"Sir, it's strange; they're on the brink of collapse, and Soros hasn't made a move. It's very unusual."
"Ha ha ha, Phil, you should think about the feelings of Wall Street. I believe if the Fed planned to step in, they wouldn't dare overreach."
"Sir, is this guy really from the Fed?"
"Phil, where do you find so many geniuses in the world? You think someone suddenly controls billions with a hedge fund? What qualifications does Soros have to manage such vast resources?"
William White looked disdainful. Many become wealthy overnight; how many can sustain it?
Always winning?
Of course, being a watchdog for the Fed led to this outcome. If all else fails, there would always be someone to come to the rescue. All those conglomerates that managed to extricate themselves from trouble surely had someone backing them.
"Well, boss, it looks like this Thanksgiving won't be an issue. How long can they hold out? That'll depend on luck."
"Other than asking the U.S. for help, what about the International Monetary Fund?"
"Ahem, well, boss, their conditions are so harsh, it's as if they don't want anyone to survive."
"Ah, they've forgotten the original mission of this fund. It seems Mexico can only pray now."
*****
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