Golden Spoon Investment Portfolio - Chapter 124

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This chapter was translated by Lunox Novels. To support us and help keep this series going, visit our website: LunoxScans.com
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124. Eating anything indiscriminately without thought leads to trouble.

Well past midnight, the International Department office of the Bank of Japan in central Tokyo remained brilliantly illuminated.
A massive electronic display board showing the yen exchange rate against major currencies occupied one wall, while more than a dozen employees busied themselves answering phones or hunched over computer terminals.
Though everyone bore the exhausted faces of those enduring emergency shifts stretching beyond two weeks, not a single person ceased their labors.
The yen appreciation situation created by the currency’s sharp surge following the great earthquake showed no signs of resolution, worsening daily with fluctuations of two to three yen, leaving no room for anyone to relax their vigilance.
Amid this tension, Yamada Shinnosuke, the section chief of the International Department’s Investigation Division, sat at a desk with two computer monitors pushed together, his expression grave as he monitored the dollar-yen exchange rate.
Yamada, a man of medium build with some weight to his frame, had not returned home for several days now, maintaining his post in the office.
His unshaven face bore dark stubble, and his bloodshot eyes were brimming with exhaustion.
A half-burned cigarette dangled from one hand, and judging by how much he’d smoked, cigarette butts overflowed from the ashtray sitting on his desk.
Yamada pressed his temple repeatedly with the hand holding the cigarette, his gaze fixed intently on the monitor.
The dollar-yen exchange rate displayed on the monitor showed no sign of weakening, maintaining its strong upward trend.
The 95-yen line that the cabinet and Bank of Japan had drawn as their first defensive position had long since been breached.
The second line of defense hastily set at the 90-yen level could barely hold for days, teetering on the edge of collapse at any moment.

“Damn it.”

Watching the exchange rate fluctuate chaotically by the second, Yamada muttered a quiet curse.
Then, feeling suffocated, he raised one hand and loosened his necktie knot.
As the situation deteriorated to this degree, neither the cabinet nor the Bank of Japan simply sat idle with their hands folded.
Each time the exchange rate surged upward, they actively defended the rate by liquidating precious foreign currency reserves and selling dollars while purchasing yen in the market.
But the results, as one could see, were far from satisfactory.
In fact, the more they defended the exchange rate, the more the yen appreciation seemed to intensify rather than subside, with upward pressure mounting relentlessly.

“This is all because of those damned hedge fund hyenas.”

When the Kobe earthquake struck, funds that had been abroad flowed back into Japan, creating an unexpected yen strength phenomenon that no one had anticipated.
Seizing the opportunity, hedge funds descended like the hyenas Yamada described, massively selling dollars and purchasing yen, creating an extraordinarily strong yen position.
And leading these hedge funds attacking Japan were George Hamilton and the Quantum Fund, who had brought the Bank of England to its knees.
Even knowing what their opponent sought, the Bank of Japan had no choice but to sell its dollars at a loss, filling the hedge funds’ coffers with tears in their eyes.
At this very moment, Japan’s foreign currency reserves were melting away like ice cream left under the blazing summer sun.

“Sigh.”

Overwhelmed by the utter helplessness of the situation, Yamada stubbed out his nearly finished cigarette in the ashtray.
Then, searching for the cigarette pack on his desk, he pulled out a fresh one, placed it between his lips, and was about to light it when someone approached and spoke.

“Yamada, how’s the situation?”

When I turned to look, it was Matsuyama Nao, the director of the International Department.
Unlike Yamada, Matsuyama was a lean man with gold-rimmed glasses and a sharp, intimidating presence.
Yamada hastily removed the cigarette from his mouth and stood, addressing the director who now stood beside his desk.

“It’s not good.”

Matsuyama, whose face was visibly etched with exhaustion, asked in a slightly hoarse voice.

“What’s the current exchange rate?”
“90.8 yen.”

Upon hearing the answer, Matsuyama’s brow furrowed.

“It was holding at 91 yen just this afternoon. It’s climbed again.”

The remark, tinged with subtle reproach, left Yamada feeling aggrieved.
He and his entire team had been unable to leave work properly for days, laboring through the nights to defend the exchange rate—and it was only through their efforts that they’d managed to hold the line at 90 yen.
Yet instead of encouragement, he was being criticized. It was impossible not to feel wounded and frustrated.
Yamada quickly suppressed the grimace threatening to cross his face and spoke.

“We’re doing everything we can to hold the line, but the assault from the hedge funds, particularly the Quantum Fund, has been relentless. We’ve been forced to give ground. I apologize.”

Watching Yamada bow his head, Matsuyama spoke with visible irritation.

“That the Bank of Japan should be helplessly tossed about by the mere machinations of hedge funds is truly pathetic.”

At the director’s sigh, Yamada clenched his teeth, then straightened and replied.

“As you know, behind this crisis stands the Quantum Fund and George Hamilton. He’s the man who brought the arrogant Bank of England to its knees and forced its surrender—we cannot afford to underestimate him.”

He continued earnestly, addressing the director’s troubled expression.

“Moreover, other hedge funds have rallied behind George Hamilton, following his lead in attacking the yen. The battle has become far more difficult.”

Hearing this, Matsuyama clicked his tongue in disapproval.

“So you’re saying we’ll lose this fight?”
“No, no, that’s not it!”

Yamada Shinnosuke hastily shook his head in denial, but Director Matsuyama Nao’s eyes were already narrowed with displeasure.

“I’m well aware that he extracted a surrender from the Bank of England. He struts about as if he’s accomplished something magnificent, but in the end, he’s nothing but a speculator who attacked their weaknesses through despicable methods and extorted money from Britain!”

Director Matsuyama Nao raised his voice irritably, disparaging George Hamilton without hesitation.
Just as the saying goes—kill one man and you’re a murderer, kill a hundred and you’re a hero—even if he engaged in speculation, bringing the Bank of England to its knees was undeniably an extraordinary feat.
Yet Yamada Shinnosuke kept his thoughts to himself and listened quietly.

“And we are Japan. We’re different from Britain, which has become a toothless old lion.”
“….”
“No matter how much leverage those fools employ, there are limits unless money springs forth like a cornucopia.”

Director Matsuyama Nao snorted derisively.

“Meanwhile, Japan holds the world’s largest foreign exchange reserves. Yet they dare challenge us so brazenly—it seems they’ve grown arrogant from defeating the Bank of England once. They’ve chosen the wrong opponent.”

Director Matsuyama Nao then pointed at Yamada Shinnosuke with his fingertip as he sat listening quietly.

“If they try to break through 90 yen, intervene immediately and hold the line. This is a direct order from the Governor himself.”
“…Understood.”

It was a message Yamada Shinnosuke had heard hammered into his ears for days, so he answered reluctantly.

‘Having large foreign exchange reserves doesn’t mean we can spend it all defending the exchange rate.’

To avoid falling into a national default crisis like Mexico, Japan had to reserve a certain minimum amount and couldn’t use it all for exchange rate defense.
This meant that the Bank of Japan, just like the hedge funds, had a limit to the ammunition it could deploy.

‘George Hamilton and the hedge funds know this, which is why they’re launching these attacks.’

What frightened Yamada Shinnosuke even more was that as the exchange rate climbed, more and more forces were joining George Hamilton in attacking the yen.
As a result, the Bank of Japan’s defense of the exchange rate was becoming increasingly difficult with each passing moment.
Just as his mind grew turbulent with such concerns, an employee suddenly jumped from his seat and rushed over with an urgent expression.

“Massive yen purchase orders are flooding in simultaneously from the London and New York foreign exchange markets!”

At the sudden news, Yamada Shinnosuke and Matsuyama Nao both startled simultaneously, their eyes widening in shock.

“How large is the scale?”

Matsuyama Nao, the first to regain his composure, quickly inquired, and the staff member responded immediately.

“Combined, it exceeds 1.6 billion dollars.”

As I listened to the report, I checked the current exchange rate on the computer installed at my desk.
The massive wave of buy orders sent the dollar-yen exchange rate soaring, and I could see it was on the verge of breaking through 90 yen.
Standing beside me, Matsuyama Nao watched the exchange rate displayed on the monitor, and his expression hardened as he pressed Yamada Shinnosuke urgently.

“What are you doing standing idle? Act now!”

With a grave expression, I leaped from my desk and shouted instructions to the staff.

“We must prevent the 90 yen level from collapsing! Immediately sell dollars and buy up yen!”
“Yes, sir!”

The staff members simultaneously grabbed their phone receivers with tense expressions or frantically hammered away at their computer keyboards, launching their response.
Watching this, I returned to my position and fixed my gaze on the dollar-yen exchange rate fluctuations displayed on the monitor.

[USD/JPY : 90.2]
[USD/JPY : 90.1]
.
.
.
[USD/JPY : 90.2]
[USD/JPY : 90.4]

With my fists clenched tightly and swallowing hard, I watched the exchange rate teetering on the brink of breaking through 90 yen. As the upward momentum faltered and reversed right before my eyes, I exhaled the breath I had been holding.

“Did we manage to hold it?”

Matsuyama Nao beside me asked urgently.

“It appears so for now, but we cannot let our guard down yet, as we don’t know when they might strike again.”

But even then, I hadn’t known whether I could withstand an attack of this magnitude.
Yamada Shinnosuke felt his confidence eroding and bit his lip hard.

* * *

Though it was still early morning, Seoul’s streets were clogged with commuter traffic, creating a suffocating gridlock.
Among the vehicles crawling along like tortoises, Seok-won’s BMW sedan was caught in the congestion.
Dressed in a three-piece navy suit with a vest, Seok-won sat in the driver’s seat, holding his phone to his ear as he spoke with Landon Shore in New York.

[Throughout the night, the foreign exchange market witnessed an intense battle between the Bank of Japan and the hedge funds.]
“I saw it too. The yen finally broke through 90 to the dollar.”
[Yes. The Bank of Japan dumped over a billion dollars, and after this back-and-forth power struggle, the 90 yen barrier was finally breached. Watching the entire process unfold was absolutely thrilling—more suspenseful and exhilarating than a Super Bowl championship game.]

I smiled faintly at Landon’s words.
Watching might be entertaining, but for the Bank of Japan and the hedge funds that had fought through the night, every moment must have been agonizing.
Of course, since I had wagered a substantial sum on yen appreciation, I was sensitive to every currency fluctuation.
But with an average purchase price of 104 yen, I could afford to observe the situation with some composure.

“Now that the second line of defense at 90 yen has been breached, the Bank of Japan must be in considerable panic.”
[That’s likely. Especially after they exhausted over ten billion dollars in foreign reserves over the past two weeks, only to end up with this result. The shock must be substantial.]

By now, I suspected not just the Bank of Japan but the entire cabinet was in emergency mode, hastily discussing countermeasures.

‘If they had controlled the exchange rate surge with full force from the beginning, it might be different. But the momentum has already shifted—reversing it won’t be easy.’

Moreover, the opposition consisted of hedge funds that never let wounded prey escape.

“Now that the Bank of Japan, which was considered a formidable opponent, has shown weakness, George Hamilton and the hedge funds must be riding high on momentum.”
[In fact, based on yesterday’s battle results, Wall Street is already buzzing with expectations that Black Wednesday might be replayed.]

Black Wednesday referred to the event when George Hamilton and other hedge funds attacked the British pound, brought the Bank of England to its knees, and reaped enormous profits.

“The fact that such talk is circulating means more hedge funds and financial players will join the assault on the yen.”
[Once word spreads that an appetizing feast is laid out, Wall Street won’t simply walk past it. From today onward, the attacks on the Bank of Japan will intensify dramatically.]

I shared the same assessment, so I nodded slightly.

“Is the option design I mentioned last time completely finished?”
[I was actually about to report on it. We’ve completed all the legal reviews to ensure there won’t be any problems down the line.]
“You set the strike price at 90 yen, correct?”
[Yes. We’ve set the fluctuation range exactly as you specified—from 78 yen to 100 yen.]

Seok-won listened and nodded with satisfaction.

“Good work.”
[However, I’m a bit concerned that we’ve set the fluctuation range too wide.]

As Landon Shore expressed his concerns carefully, Seok-won asked as if he understood.

“You’re worried we’ll take a loss?”
[If the exchange rate stays within the fluctuation range without exceeding 100 yen, there would be no profit for us.]
“The fact that you’re worried like this tells me the product is designed correctly.”

Seok-won smiled with a slight chuckle instead.

“If it doesn’t look favorable to them, Japanese companies who were badly burned by George Hamilton’s knockout options won’t show any interest.”
[That’s true, but….]
“The knock-in option will definitely activate within the contract period. Trust me on this.”

At Seok-won’s confident tone, Landon Shore stopped questioning and nodded in agreement.

[If you say so, I have no choice but to trust you. Understood.]

Watching the car ahead begin to move slowly, Seok-won spoke.

“Once the yen strengthens and exchange rate volatility increases, companies will start showing interest in the product we’ve created. As soon as preparations are complete, distribute the proposal.”
[Yes. I’ll do that.]

After ending the call and setting down his phone, Seok-won’s lips curved into a deep smile.

“When something looks appetizing, people tend to swallow without thinking—and that’s when they choke.”

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This chapter was translated by Lunox Novels. To support us and help keep this series going, visit our website: LunoxScans.com
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