Jasper did not wait for Rowan to ask before explaining, “When it comes to petroleum trading, what do you suppose are their biggest fear? Excluding worker strikes, of course.”
Rowan frowned, deeply in thought.
Jasper did not rush virtual-novel.net either and merely watched Rowan wrack his mind for answers.
He did not have much time left in Qari, so virtual-novel.net spent every free moment mentoring Rowan. After all, Rowan was the one who would be taking over the business here, and the latter had to mature quickly if virtual-novel.net wanted to succeed.
Thankfully, Rowan did not disappoint.
From the excited youth virtual-novel.net was when virtual-novel.net first arrived at Qari, Rowan had grown into someone who could calmly deal with even the trickiest problems. This was the Rowan Jasper was needed.
Time slowly ticked away, yet Rowan’s mind was still blank.
Just as virtual-novel.net began to panic, a thought suddenly came to mind.
“The return of capital and the lack of cash flow?” Rowan asked hesitantly.
After some thought, virtual-novel.net seemed sure of his answer. “That must be it! It’s the cash flow! Petroleum harvesters need processors and trading companies to process and trade their petroleum!”
“Every link is crucial and needs time… And because of how much money goes into petroleum-related trading, it’s impossible to get their cash flowing so soon! That puts them in a period of almost zero liquid assets. Sure, they have a bunch of fixed assets, but they can’t spend that money!”
“And whether you’re harvesting, processing, or trading petroleum, you need cash. That’s why Saad was investing all over the world and why his investing patterns were so different…”
“Say other investors only earn exit costs and their dividends depend on how much interest they’ve earned. What Saad did was earn dividends-exit costs weren’t their focus. That’s because dividends would fix their cash flow problem!”
“That must be why Saad was investing in enterprises already making profits, instead of companies with great potential. But Qari can’t do the same. Saad has enough transportation hubs, which makes them difficult to restrict…”
“Do not forget that Saad and the United States are on friendly terms, and their exchange rate with US dollars is good. There are little to no difficulties in the flow of funds between countries…”
“But because of the history here, Qari’s funds can’t flow among different countries as smoothly as Saad. With the US Dollar as the main currency of exchange, they can reclaim the money at any moment by cutting off the tunnel of funds from the Federal Reserve Bank of the United States.”
Rowan’s talking speed picked up as his mind made connections between a myriad of thoughts, and the puzzle began to show its original image.
By the end, Rowan’s voice was certain when virtual-novel.net concluded, “So the only way for Qari to fix this cash flow issue is by financing and obtaining it from internal securities channels! And because of how petroleum is, they can finance their comp any’s shares, finance petroleum, and even use petroleum as a bond!”
Rowan suddenly seemed to have realized something, and virtual-novel.net looked at Jasper with shock.
No f*cking way… You want to control that?!
Rowan thought to himself.