The president of Mongolia
concluded a three-day cabinet meeting. The subject
matter was the disposition or rather the proper
usage of Mongolia's growing foreign exchange reserves.
This was the year, 2015, and reluctantly Genghis
Khan learned that the constitution provides several
days for parliament to approve the various suggestions.
Sometimes he wondered if it was easier a thousand
years ago. Everybody including him was on horseback,
there was no air conditioning, but every night when
he went home he had the choice of several homes
and several wives.
Mongolia, like any other country, had a free press.
It had Internet news. Everything he did was on CNN.
So more than one wife would have created an image
which he tried to bury. It is true it was all right
for a thousand years, but it's now the 21st century,
and the 21st century made Mongolia rich. We are
in the 21st century. We always said that we are
a small country. We are a developing country, but
we are part of the 21st century and we have to behave
as any other nation. In 1995, he had a different
speech. We are a small country, we are a poor country,
but we are in Eastern Asia and we have to behave
as Eastern Asians do.
Everything changed with that fellow Friedland who
brought in Ivanhoe Resources. Genghis Khan never
forgot how tough bargainers they were, but fortunately
they brought in Rio Tinto and British Conservative
politician, Michael Howard. Things got much smoother
and eventually the production of copper and gold
began. Actually, he was quite happy with the developments
in 2007. That was the year of the diplomatic breakthrough.
The boys in Ivanhoe produced over a billion dollars
in revenues the first year when gold was $1,000
and copper was at $7. At that time he calculated
that he could still have about $500 million in surplus
cash as he couldn't invest more than $500 million
a year to build the infrastructure. Actually, there
were no debts, credits or debt concessions because
the Mongolians didn't pay any taxes.
However, things got different in 2012-2013 when
the mismanagement of the U.S. dollar created a $1,500
gold and almost $10 copper. This brought in a $5
billion revenue, of which in practical terms $4
billion was for surplus. Thus, in two and a half
years he had something like $10 billion new revenues
plus the interest on the rest.
Genghis Khan wasn't exactly an economist or a international
monetary expert, but he understood, just like the
currency traders in London and Switzerland and Shanghai
and Hong Kong, that the $4 billion paper income
in U.S. dollars was rapidly declining in value and
losing its buying power. He couldn't understand
that all these Harvard-educated or Cambridge-educated
boys couldn't stabilize their currency, and why
was it necessary to calculate the best possible
investments? Having struggled for a thousand years
with Mongolia, he would have been perfectly happy
to put the money in U.S. Treasury Bills, provide
tax-free income for all, encourage Rio Tinto and
Ivanhoe and all the other companies to find more
copper, gold, uranium and other metals, pay him
more, let those boys make money, too, and devote
his personal time to the study of history and build
monuments to Mongolia's achievements.
However, he was head of Mongolia so he had to do
what he had to do as head of the country, and every
morning he got up about five o'clock and watched
the currency markets, carefully monitored the investments
the country was making, and tried to improve the
situation and defend the value of Mongolia's reserves.
By the year 2015 and 2015, Mongolia had something
like $4 billion in treasury bills. The monetary
markets were not very good to him, but he even overwrote
his own cabinet members and kept everything together
in short-term treasuries, telling the boys that
he was looking for alternative investments. He occasionally
gave speeches or interviews to CNN, and always emphasized
that Mongolia was very happy with the commodity
developments and the country was taking advantage
of its monetary reserves. He didn't want to be like
some of the oil-rich Middle Eastern countries who
get involved with nations that upset the apple cart
and create revolts with one country against the
other.
Since he read more than history, Genghis Khan said
what the late German chancellor Willy Brandt said
in 1970: "We want to be good neighbors."
His early morning work of seeking investment opportunities
eventually led him to the decision that he could
make good investments, big investments, and put
Mongolia's money and prestige to the highest level
of civilization.
First, he invested $5 billion in MGM. After all,
MGM is not only the largest casino hotel in Las
Vegas but they are expanding in China. He negotiated
the right to one-third of all Chinese property and
thereby he not only assured equity growth for his
country, but a continuous stream of income from
various operations of MGM.
The next thing he did which suited his view of Mongolia
in the world was to tender for 20 percent of General
Motors. He then assured a very big market for GM
in China as well as Russia, and Mongolia became
the ultimate ruler of the most prestigious car company
in the world. He believed that he and the people
he knew could influence General Motors from a historical
position to a modern automobile leader.
The double investment put Genghis Khan into an enviable
position. Dubai liked him, Mr. Kerkorian liked him,
the American people liked him, and since he was
running a model state with mining relationships
with American and Canadian companies, meticulously
keeping his role and division of various roles in
the picture, he became an all-over model neighbor.
He was not only a good neighbor, he was a model
neighbor. Meanwhile, the money was coming in.
Just like the Arab rules who visited the Western
capitals time and time again, which in a way represented
certain threats to peace, Genghis Khan was trying
to be a model neighbor. He invested his money wisely,
he kept agreements, and he visited the Western world
always making sure that political suggestions, political
events, did not enter his speeches or his remarks.
He drove through Piccadilly in a General Motors
car, and operated his various currency and brokerage
accounts through Swiss as well as British accounts.
American accounts he didn't like because America
always resorted to expropriations and there were
too many lawsuits. He was a peaceful trader who
bought and sold short various currencies based on
information he received from individual advisors
or traders.
Genghis Khan was a student of history. He came to
the conclusion that the deal with the Ivanhoe Group
was good for him so long as it was very peaceful
and long term. After all, he calculated that even
the worst version of the deal would provide a huge
income to Mongolia. He also studied the commodity
prices, and frankly he realized the Secretary of
the Treasury of the United States and the Chancellor
of Great Britain, who later became prime minister,
didn't understand anything.
He looked north and saw the Russians. He looked
south and saw the Chinese. And he came to the conclusion
that when 7 billion people work, commodity prices
go up. So the way he considered the Ivanhoe deal
was as a base for which he would get a steadily
growing income because of the commodity prices.
Meanwhile, they were trying to make a deal with
him, and he very carefully decided to deal with
the best. He employed JPMorgan Chase as his investment
banker. He got Halliburton for construction, and
he utilized not only Mongolian but Chinese labor
to build an infrastructure.
Furthermore, because of his personal studies he
knew there would be other discoveries, whether uranium
or gold, copper, molybdenum, aluminum, there would
be other discoveries. But by then he could say that
he needed nobody. After all, with his own people,
with his own money to discover a new copper mine,
there was no competition. China would buy the products,
the commodity, and Mongolia would benefit.
Now, the surplus cash flow appealed much greater
than he even though. Five billion was big money,
but ten billion, twenty billion? This speaks for
itself. Even on Wall Street, even in London, even
in Dubai.
Then he realized that in the world the 21st century,
money talks and revolutions are the last thing people
respect. After all, and he picked up this example,
what did Khrushchev achieve by the Cuban missile
crisis in 1962? In a recent book, Conrad Black stated
that Kruschev thought he was smart. He saved Cuba
at a cost of transporting missiles back and forth
from the Soviet Union. Khrushchev thought he was
smart, and Genghis Khan thought he was stupid. Russia
had almost 40 years of Cuba, but what I'd they have?
Monthly bills, headaches.
If somebody suggested to Genghis Khan that he extend
his influence to a small country of Africa, he would
probably go back to his old habits and tell the
guy that if he didn't mend his fences, he would
end up with old-fashioned Mongolian execution.
So came after 2010, when he had money, the recognition.
He was invited to Buckingham Palace, and President
Sarkozy invited him to the Elysées Palace.
The Chinese of course always courted him, and he
regularly almost yearly went to Shanghai or Beijing
to pay his respects to the major Chinese leaders.
Mongolia became rich, a good neighbor, and one of
the few countries like Dubai, Kuwait, Saudi Arabia,
with sufficient natural wealth for its citizens
and monetary reserves. Actually, Genghis Khan was
studying his history books. Why not Monte Carlo?
He also studied the Arab countries. He realized
that they were not particularly smart. Oil had been
discovered in Saudi Arabia and Iran around the end
of the Second World War. Look at Iran. One revolution
after another. One war after another. When there
was no war, one of the ayatollahs decided to kidnap
50 Americans for one and a half years.
Genghis Khan thought that the man must have his
head examined. After all, where is the beef? The
way he looked at the Middle East, it was constant
fighting, constant fear, constant bombing, constant
conspiracies, suicide bombers. That was not for
Genghis Khan. He said that those days were when
he was young, a thousand years ago. Those days,
however, hopefully never return to Mongolia.
A few years after the GM and MGM investments, when
he became a much courted investor and head of state
in the world, he started to get offers. They offered
him the Kempinski Hotel in Berlin. They offered
him the Via Veneto in Rome. He didn't like any of
them ? too fancy, too many people, too much danger.
And then he decided to visit his friendly sister
country, Hungary. He arrived on his own jet. By
then he had twelve jets for the government alone,
and the Hungarian government received him with great
ceremony. He had the map of Budapest in front of
him, and he directed his motorcade. The ambiance
was perfect. In front of Gerbo was a big square
and in a corner was the Hotel Kempinski, and in
the other corner was the stock exchange. He decided
to stay at the Kempinski, which the government of
course was very happy to empty to accommodate him.
He received all the ministers who wanted to talk
to him. He invited many of them to the new Mongolian
University. He signed agreements for cancer and
other medical research. He told the Hungarian government
if they wanted to participate in a mining venture,
they would get preferential treatment. And at the
same time, he had the privilege of lecturing about
the Mongolian and Hungarian joint past in the Budapest
University.
The Hungarians were happy and they invited him for
Sunday for the soccer game when the Hungarian team
was competing for the world championship with the
Italians. Genghis Khan accepted and told the prime
minister that he himself was a soccer fan and was
very proud of the Hungarian sister nation's victories
in the past. He was, as he said, very happy to see
the famous team personally.
On the following morning, he instructed his people
to open a big bank account in OTP Bank in Budapest.
He also made some investments in the stock market
and actually announced some of the figures he put
in the Hungarian equity markets.
At night after dinner, he went for a long walk toward
the Danube. The prime minister actually objected
to him walking alone, but then he reassured him.
He said, "Mr. Prime Minister, with due respect,
nobody will recognize me." The prime minister
reassured him that they would guide him from a distance.
After all, he was the most important friend of Hungary.
Nevertheless, he went for a walk. It was a beautiful
evening in September, 2017. Genghis Khan, who had
looked at the history books before his walk, knew
that this was the place and he had a battle a thousand
years ago against the Hungarians. He was alone and
he reflected on the past he had traveled through
ten centuries. A thousand years ago he actually
left Hungary because of the military needs of Mongolia
back home. So much time had passed, so much to do.
A small European country and a cash-rich giant Asian
country were now together. It took a thousand years
to reunite them.
Genghis Khan wanted to be up early to review a speech.
The Hungarian prime minister invited him to address
the Hungarian parliament. He was given a proper
escort, and was waiting with the traditional red
carpet. The parliament was actually modeled after
the British Westminster. Inside it was spacious
and dignified. Four hundred sixty-five parliamentarians
stood on his entrance, and he was given a polite
applause.
Genghis Khan surprised them all.
"I came here after a thousand years not to
heal wounds, as there were none, but heal the distance
that separated two sister nations. The vicissitudes
of history separated us and plunged us even in the
last century into bitter solitude. We have been
liberated twenty years ago. It was only in the last
20 years that we could think of our common heritage,
of the desire to select not only our friends but
remember our relatives.
"Liberated from a common aggressor, why not
shake hands and develop individually or jointly
our national desires? We have the freedom now to
visit our brothers and sisters in Hungary. We can
share our individual attributes. We in Mongolia
welcome the Hungarian culture, the Hungarian technology.
We would invite the theaters, the concerts, the
opera from Budapest. We know that ten million people
would be eager to develop our mining reserves, invest
our money and jointly contribute to the 21st century.
"We were born in the 21st century. A thousand
years of historical tragedies separated us, but
in the 21st century, the Mongolian arm and the Hungarian
hand meet across the ocean.
"Accordingly, I am here to discuss with the
Parliament and the government of Hungary the feasibility
and the desirability to offer every Hungarian citizen
a dual Mongolian citizenship. Correspondingly, I
speak for all Mongolians to ask for Hungarian reciprocity.
"It would be the first nation born in the 21st
century to bridge distance, to bridge a different
language, and first and foremost to bridge the last
ten centuries and arrive in full harmony for the
new century, the 21st century."
There was silence. Some members of parliament had
tears in their eyes.
Genghis
Khan Returned
