Chapter 23

“No matter how much I think, it’s an insane idea.”

Jonathan spoke in a long while.

“Yes, it’s crazy. However, I’m dead certain.”

“Sun, have you been planning like this until now?”

“I see the material and think what my enemy would do, what their approach would be, and how my enemy’s target would respond.”

“However, to think that Hong Kong will break its stock market on its own…”

“But that’s the most certain way to chase away the Hedge Funds.”

“Will they give up easily? The damage will be unbelievable.”

“Haven’t I told you what the Hedge Funds were after in the first place?”

“Korea!”

“Yes, this country.”

Actually, the hedge Funds wanted Japan the most, but how could they go after Japan when Hong Kong was such a formidable opponent? Japan was Asia’s financial fortress, along with Hong Kong. Also, the USA would not allow Japan to be played by the Hedge Funds, even if they had to throw Korea to the wolves.

***

The reason that expert financiers, businessmen, and politicians had a comparatively high survival rate in the Trial Tests was not that complicated. Some people guessed that it was because of their renown. However, most of those who said such things had not even experienced the Trial Tests. In there, fame was nothing more than a weakness.

They had a high survival rate because they could act strategically, as they had lived most of their lives on battlefields. They knew how to act to take things away and hold on to what they had. While I belittled the Hedge Funds, their real identity was elite financial groups who thrived by preying on the large global banks.

Their final objective would be Korea. However, we had protected ourselves so the hedge funds and investors could not play tricks on us by creating a closed financial system. We blocked foreigners from intervening and investing, and they could not attack Korea directly.

Therefore, they went with a strategy that would crumble Korea from the inside by spreading fear by attacking Southeast Asia and finally by attacking Hong Kong, which seemed impregnable.

Fear will overwhelm Korea, and the scared domestic investors will take back their investments. The foreign banks that had lent dollars to major Korean firms will scream to have the funds returned instead of extending their loan, saying that they had not entered a suicide pact with the Korean companies.

Fear would lead to chaos, and rumors would start that Korea would be ruined as a country. The situation would worsen until Korea announced a moratorium, which was a sign that they were defeated. It was then the Hedge Funds would collect the profit they had nurtured over a long time.

Now the strategy the Hedge Funds would use to attack an invincible opponent is obvious. The Trial Tests required such strategies, and some were skilled in such tactics, like the military, as well as financiers, businessmen, and politicians.

One might have already guessed, but it was true. I had been a trader like Jonathan, and I also had worked at Wall Street for a time.

***

“The money we earned in Thailand is impossible to believe. 50 billion dollars came out of the baht market, which deals at 3 billion dollars. This is a historic incident in the financial field.”

“The words historic incident doesn’t cover what we did.”

Jonathan smiled faintly as he remembered that day.

“Everyone is paying attention to us, even if they do not know who we are or how we are structured.”

“They know that a group which monopolized everything exists.”

“People all have habits, and that’s true for trading too, Sun.”

“I get what you’re saying.”

“We have to keep in mind if our tail is caught, the trends will fall heavily in our favor.”

“That means we will be handing out what we could have gotten, right?”

“It will be alright if things stop there since we make a profit at least. My calculations and investments are based on past records, and as you will know, I prefer investing against the market. That will be true in the future.”

“We hit the jackpot like that, Jonathan.”

“We can’t move when we lead the trends. If many groups follow us, even I cannot estimate how the governments will change their financial policies.”

Jonathan finally looked like he realized how much money we had earned in Thailand and how much renown we had gained in the global financial market. His face quickly darkened. Jonathan did not look like someone who had accumulated massive wealth, but someone who regretted that he could not be relied on.

Jonathan met my eyes, and he again shook his head.

“Sun, you…”

I knew what Jonathan was going to say, and I interrupted first.

“Jonathan, what did I say when you asked me whether I was planning to prevent the disturbance that will come to Korea?”

“You said that you only see the money.”

“Yes. Don’t think about policy changes, unemployment rates, household debts, and anything else. Just work with the numbers in front of us.”

“We can ruin a country if we want, and the same thing will happen if we make a mistake, Sun.”

“We already have billions offshore.”

“You don’t have to remind me that we are criminals every time.”

“No, I’m trying to say that all of this is the Major Leagues that you have always dreamed of.”

I spoke sincerely.

“However, feeling responsibility is good. Wall Street numbs that feeling. But don’t be weak.”

Jonathan will get used to this, as human beings all adjust to their present situation. This was the excuse that those who had murdered in the Trial Tests had made to others.

“Sun, what is inside you? I…can’t get used to you.”

“You seem to have found the will to fight. Then let’s begin the briefing.”

***

A basic financial fact is that raising interest rates leads to stocks and bonds falling. However, we have massive funds, and the market had limits. Since we have to divide as much as possible, we will need to bet not only the stock falling but also that the bond will fall.

Another basic financial fact is that short selling is used when a fall is predicted. It literally means selling nothing, and a loss occurs if the stock price goes up. We had used this method when the stock price fell in Thailand.  (EN: Short selling occurs when an investor borrows a security and sells it on the open market, planning to buy it back later for less money. Short sellers bet on, and profit from, a drop in a security’s price. Short selling has a high risk/reward ratio: It can offer big profits, but losses can mount quickly and infinitely.)

However, there were only a few countries that allowed short selling on bonds at this period even if short selling stocks was possible. We would need to finish betting on bonds falling through a different route.

“The New York company will bet on bond falling, and we will directly bet on a stock falling through the rest of the paper companies.”

“Even if we go ahead with the stocks, there’s no way to bet on bond falling.”

“We will have to make a way. The desk team is idle, right?”

“Since they have no orders.”

“What’s the amount Jonathan Investments can use?”

“5 billion dollars. I left the other 5 billion for your shopping list, Sun.”

“It’s enough. I’ll write a product proposal. Have them go to the major banks, not only in the USA but in Europe.”

“What if they do not accept the proposal? Hong Kong is raising interest rates as we speak.”

“However, not up to 300%. You said that it would be insane.”

“A 50% increase would be insane.”

“That’s true. However, I will make the banks accept our proposal by setting the standard at a 100% increase. If the increase goes over, we win, and under, the banks win.”

“Sun…”

“It would be even more insane not to accept this offer. All of the banks will sign up as they sneer at us. They will call us idiots and pop the champagne to celebrate their victory.”

Those that had been willing to gamble on the 2008 subprime mortgage crisis had earned money like this. While sneering at them had been free, their earnings were immense. While we would be wearing expensive suits and waving around a thick wad of documents as we say that ‘this is the result of cutting-edge financial acumen,’ what we were actually doing was a gamble between us and the bank. We were going to repeat this performance multiple times against the major global banks.

“Who will refuse millions of dollars when it appears to them as a gift?”

Jonathan let out a sign, and he nodded after a long time.

“We will make the proposal even more appetizing. They can have the entire amount if the increase is under 100%, but we will apply profit in stages from 100% and above.”

“If things go your way, and the increase is 300%?”

“We’d get three times our investment.”

“Everyone would go for this. Let’s do it!”

“Are you serious?”

“I’m saying that it is that appetizing. I’ve heard of an even crazier thing than a 300% interest rate increase. When you told me to establish the company with my money and give you more than half of the shares was even more completely insane. Look where we are now. Anyway, I’m in.”

“Then begin the preparations.”

“What?”

“You’ll become famous that day, Jonathan. More than you could ever imagine.”

Edited by Userunfriendly