Chapter 23
“No matter how much I think about it, it’s insane,” Jonathan said after a long while.
I responded, “Yes, it is, but I’m sure that it will work.”
“Have you been planning like this up until now, Sun?” He questioned.
“I’m just thinking from the enemy’s perspective and looking at the data. Looking at what their approach is and how the enemy’s target would react,” I continued.
“However, the way you say Hong Kong would destroy their stock market with their own hands is…” Jonathan mumbled.
“But that’s the best way to chase away the speculators,” I replied.
He asked, “Will they give up easily? Despite all the damage?”
“I’ve already told you what the speculators were after from the beginning,” I said.
“Korea!” He shouted.
“Yes, my country. Korea,” I said.
In fact, the speculators wanted Japan the most. However, they couldn’t even deal with Hong Kong that well. Japan was Asia’s financial fortress along with Hong Kong. Also, the U.S. would never allow Japan to be played by the speculators even if they had to throw Korea to the wolves.
***
The reason why experienced financiers, businessmen and politicians’ survival rates were relatively high in the Trial Tests was simple. Some people believed it was due to their reputation, but those who said such things had not even experienced the Trial Tests. In reality, reputation and fame were weaknesses there.
Their survival rate was comparatively high because they acted strategically as they had lived most of their lives on the battlefield. They knew what to do to take things away and hold on to what they had.
I belittled the speculators but their real identities were a part of the financial elites from the world’s major banks. Their final objective was Korea. Fortunately, we had already created a defense system so the hedge funds and speculators wouldn’t attack Korea. It was a financial system that had excluded foreigners’ investment and intervention. Therefore, speculators couldn’t directly attack Korea.
That was why they proceeded with a strategy that would crumble Korea from the inside by spreading fear to destroy Southeast Asia. The dread reached its peak when the speculators hit Hong Kong, which had looked impregnable. Fear would overwhelm Korea and the scared domestic investors would withdraw their investments. The foreign banks that had lent dollars to Korea’s large companies would yell at them to return the funds rather than extend their loans. The banks would say that they wouldn’t want to enter a suicide pact with the firms.
Fear led to chaos that Korea would be ruined. The situation would worsen until Korea declared a moratorium, a sign that they were defeated. That was the moment when speculators could collect the profit they had nurtured over a long period.
Do you get it now? About what strategy speculators would have to apply to attack an invincible enemy? Those tactics were required in Trial Tests, and those who learned such strategies were not only soldiers but also financiers, businessmen, and politicians.
You may have noticed already, but it was true. I was one of them, like Jonathan. I had also worked on Wall Street.
*** (f)reewebnovel.comf reeweb novel.com
“The money we earned in Thailand was something that we normally couldn’t have. Fifty billion dollars came out of the baht market from only three billion dollars. It must have been an unprecedented incident in financial history,” I said.
“The term ‘unprecedented incident’ is not enough to describe it,” Jonathan smiled faintly as he reminisced about that day.
I said, “Everyone is paying attention to us, even if they don’t know who we are and how we are structured.”
“They know that there’s a group that has managed to monopolize everything,” Jonathan replied.
I continued, “Everyone has habits, and that’s true for trading too.”
“I get what you are talking about,” he responded.
“We should keep in mind that if our tail is caught, the trends will be in our favor,” I said.
“Then, we would have to share everything we could’ve gotten, right?” He questioned.
“It would be alright if things stop there because we would have profit at least. My calculations and investments are based on the past record. As you already know, I prefer investment methods that go against the market. I will continue doing this in the future,” I said.
Jonathan thought about it, “We hit the jackpot just like that.”
“My calculations don’t include the moment we lead the trends. If many forces follow us…I can’t expect how each nation’s financial policies would change,” I said.
Jonathan finally looked like he realized how much money we earned in Thailand and how famous we had become in the global financial world. His face darkened quickly. Rather than the expression of a person with tremendous wealth, he seemed to blame himself for not being able to handle the burden.
“Sun, you are…” Jonathan met my eyes and wielded his tongue.
I knew what he was about to say.
“Jonathan. What did I answer when you asked me if I was planning to prevent the chaos in Korea?” I interrupted him.
“That you only care about the money,” he answered.
“Yes. Don’t think about the change in policies, unemployment rate and household debt. Let’s only think about the numbers in front of us,” I said.
He responded, “We can destroy a country if we want, and it will happen even if we make a mistake.”
“We have already pocketed billions of dollars offshore,” I said.
“You don’t have to remind me that we are criminals like that every single time,” his voice trailed off.
“No. What I’m trying to say is that this is the major you’ve dreamed of,” I continued talking with sincerity, “However, I like how you are responsible. Wall Street numbs that feeling. But don’t get weak.”
Jonathan would get used to it slowly as humans always adapt to the present situation. At least, this was the excuse that killers made in Trial Tests.
“What’s inside you, Sun. I can’t…get used to it,” Jonathan hesitated.
“It seems like we have found the motivation to fight. Let’s start the briefing,” I said.
***
Some basic financial knowledge was that raising interest rates would lower bonds and stock. We had lots of money, but the market had limits. Since we had to divide as much as possible, we needed to bet on the decline in stock and bonds.
Another basic financial piece of knowledge was that short selling was used when a fall was predicted. It literally meant selling nothing, and a loss occurred if the stock price went up. It was a strategy we used when the stock prices plunged in Thailand.
However, there were only a few countries that allowed short selling on bonds during this period even if short selling stocks was possible. We would need to finish betting on the decline in bonds in a different way.
“The New York companies would bet on the decline in bonds, so we will directly bet on a stock falling with the rest of paper companies,” I said.
“Even if we proceed with stock, there’s no way to bet on bond falling,” Jonathan replied.
I asked, “So we should make a way. The desk team is idling, right?”
“Yes, because they haven’t received the new order,” he responded.
“How much can Jonathan Investments use?” I asked.
He answered, “Five billion dollars. I took out the other five billion for your shopping.”
“That’s enough. I’ll write the product proposal. Have them go around the major banks not only in the U.S. but also in Europe with that,” I continued.
“What if they don’t accept it? Hong Kong is raising interest rates right now,” he refuted.
“But not up to three hundred percent. You said that it would be insane,” I responded.
“Yeah, even a fifty percent increase is crazy,” he said.
“That’s true. I’ll make the banks accept our deal by setting the standard at a hundred percent increase. If the increase goes over, we win, but if it decreases, the banks win,” I said.
“Sun…” he hesitated.
I pressed on, “It would be even crazier if they don’t accept our proposal. Every bank would sign the contract as they would sneer at us. They would call us idiots and pop champagne to celebrate their victory.”
During the 2008 subprime mortgage crisis, those who gambled on it earned money like that. We laughed at them, but their earnings were massive. We wore suits and browsed through thick documents as we stated ‘this is the result of the most advanced financial engineering based on a complex design.’ However, what we actually did was a gamble between us and the bank. We were going to make this bet against the major global banks around the world.
“Who would refuse millions of dollars as a gift?” I asked.
Jonathan let out a sigh and murmured to himself. Then, he nodded slowly after pondering for a long while.
I continued, “We will make the proposal more attractive to them. They can have the entire amount if the increase is under a hundred percent, but we will apply profit in steps from hundred percent and above.”
“What if it increases by three hundred percent as you anticipated?” Jonathan questioned.
“We would gain three times our investments,” I replied.
“Everyone would jump into this. How about doing it with me?” he asked.
“Are you sure?” I was surprised.
“I’m saying that this is appetizing. I’ve never heard anything crazier than a three hundred percent interest rate increase. You telling me to establish our firm with my funds and giving you more than half of the shares sounded more ordinary than this. I’m so down,” he said.
“Then, get ready,” I said.
“For what?” He questioned.
“You will become famous, Jonathan. More than we could ever imagine,” I said.
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