Golden Spoon Investment Portfolio - Chapter 138

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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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138. The Tipping Point

“Did you say 80 yen?”
[Yes.]

Kim Jung-sik, the team leader of Team 1, held the receiver to his ear, unable to conceal his bewilderment, as Seok-won continued speaking.

[The exchange rate will fluctuate wildly throughout the day, but don’t waver. Maintain your position as is. You understand what I’m saying, don’t you?]
“Yes. Understood, Director.”

As Kim Jung-sik hung up the phone, Song Jong-geun, who had been standing anxiously beside him, quickly asked.

“What did he say?”

Not just Song Jong-geun, but all the members of Team 1 turned their heads to look at Kim Jung-sik.
Kim Jung-sik, exhausted from nearly pulling an all-nighter, wiped his face with one hand and relayed Seok-won’s message.

“Keep holding until it reaches 80 yen.”
“Ugh…”
“Really?”

The team members groaned and sighed, scratching their heads.
With such extreme volatility in the yen exchange rate, holding a long position worth 15 million dollars using 3x leverage was enough to make anyone anxious.

“For it to reach 80 yen, the yen would need to rise another 3 yen from here. Is that even possible?”

At Song Jong-geun’s question, Kim Jung-sik felt his stomach burning. He pulled out a cigarette, placed it between his lips, and lit it.

“I don’t know either. But everything has unfolded exactly as the Director predicted so far. There’s no reason it can’t happen this time.”
“That’s true. When we switched from short to long positions, I never imagined the yen would surge this much.”
“Exactly.”

Kim Jung-sik exhaled white cigarette smoke and continued.

“Frankly, our average purchase price is 105 yen. Even if our prediction goes wrong and the yen drops significantly again, we’re still in profit territory.”
“That’s right.”

Song Jong-geun nodded his head, his expression shifting to one of fresh amazement.

“When we first established the long position, I thought we’d be fortunate just to avoid significant losses, but we’re seeing returns exceeding 20%. Even thinking about it again, it’s truly impressive.”
“I let out an involuntary gasp every time I check the profit margin. For someone so young, you really do have remarkable investment instincts.”

The other team members around us nodded in agreement, sharing the same sentiment.
In the midst of this, Song Jong-geun let out a wistful sigh, betraying his disappointment.

“Even if the yen falls further, we’re guaranteed profits, but now that we’ve come this far, I can’t help but wish we’d achieved an even higher return rate.”
“I feel the same way.”

Kim Jung-sik took a long, deep drag from his cigarette and glanced at the employee sitting in front of the computer.

“What’s the current exchange rate?”

The employee immediately checked the price display and responded.

“It’s risen slightly again to 82.87 yen.”
“They really seem determined to settle this today.”

Kim Jung-sik’s eyes grew contemplative as he tapped the cigarette held between his fingers.

“Whether it ends in victory or defeat, the final outcome will be decided today as the director said, so let’s trust and wait.”
“Yes, sir!”

The team members responded in unison.
Though they all bore signs of exhaustion from being here since midnight, their eyes burned with unwavering intensity.

* * *

Chiyoda Ward Nagatacho, Tokyo, Japan.
In the Prime Minister’s Official Residence office, Suzuki Kota sat in the center of the sofa with Fujimoto Masaki, the Minister of Finance, and Murata Takuya, the Minister of Economy, Trade and Industry, seated on either side.
Though each had originally scheduled other commitments, upon hearing news of the critical foreign exchange market situation, they had all cancelled their plans and hurriedly gathered to monitor the exchange rate movements since morning.
The three men, their faces grave, chain-smoked so heavily that the office was thick with cigarette smoke.
Though the ventilation fan was running, it proved insufficient.
The crystal ashtray on the table, which a secretary had replaced with a fresh one just an hour ago, was already overflowing with cigarette butts.
Suzuki could not tear his gaze from the terminal screen hastily installed across from him, and he stubbed out his nearly spent cigarette in the ashtray.
He immediately pulled out a fresh cigarette, placed it between his lips, and lit it with his lighter.
Exhaling white smoke, Suzuki leaned back in his seat and spoke to Fujimoto, seated to his left, his tone laden with frustration.

“How much money have we poured into this in just one day, and why is the exchange rate climbing instead of falling?!”

Fujimoto Masaki, the Minister of Finance who served as Japan’s equivalent to the Ministry of Strategy and Finance, answered with an embarrassed expression.

“We are doing our utmost to defend the yen, but the momentum of the hedge funds buying yen is so fierce that we are being overwhelmed.”

At this feeble excuse, Prime Minister Suzuki’s face contorted in rage.

“Are you telling me that Japan, a great nation, is being shaken by a mere handful of speculators?”

It was difficult to dismiss George Hamilton—the legendary Wall Street figure who had brought the arrogant Bank of England to its knees and extracted a white flag of surrender from the British government—as merely a speculator.
Moreover, the hedge funds moving in concert with Hamilton’s Quantum Fund each possessed formidable capital mobilization capabilities that could not be ignored.
Minister Fujimoto explained the current situation in a grave tone.

“As you know, the one orchestrating this attack on us is George Hamilton himself. And considering that JP Morgan and Goldman Sachs are providing the capital behind him, it would be accurate to say that Wall Street—not just the yen, but Japan itself—is under assault.”
“Damn those American bastards!”

Prime Minister Suzuki cried out as if seized by a fit.
At this outburst, Minister Murata Takuya of the Ministry of Economy, Trade and Industry ventured cautiously.

“Would it not be wise to call the White House and request their assistance?”

Prime Minister Suzuki then frowned and spoke.

“It seems I haven’t contacted them yet.”

From Prime Minister Suzuki’s furious expression, Minister Murata instinctively sensed that the conversation had not gone well.

“When I asked them to refrain from attacking the yen, they said the White House and the American government cannot involve themselves in financial investments outside the public sector.”
“Hmm.”
“We know they manipulate Wall Street through the Federal Reserve whenever necessary, yet they spout such nonsense. What kind of fool do they take me for?!”

Prime Minister Suzuki ground his teeth in fury.

“The White House’s response essentially means they have decided to turn a blind eye to this crisis.”

Minister Murata, having heard this account, muttered darkly.
Minister Fujimoto, seated across from him, also spoke in a grave tone.

“Perhaps they are enjoying this situation or even encouraging it from behind the scenes to check us, now that we’ve risen to a level that threatens the United States, much like the automobile export disputes.”
“Ugh.”

The more Prime Minister Suzuki Kota spoke, the more the grim situation weighed on him, and he let out an involuntary groan.
Trapped in a quagmire with no escape no matter what he tried, his chest grew increasingly suffocated.
At that moment, Prime Minister Suzuki Kota, cigarette still in his mouth, lifted his head and suddenly widened his eyes as he stared at the terminal screen mounted before him.
The exchange rate, which had been locked in fierce combat in the 82 yen range, had suddenly surged and reached the 81 yen level in an instant.

“What in the world is happening!”

Minister Murata Takuya and Minister Fujimoto Masaki also belatedly confirmed the rapidly shifting exchange rate and wore expressions of shock.

“What!”
“This can’t be.”

At that very moment, as if the timing had been orchestrated, a secretary who rushed in with an urgent knock spoke quickly.

“Governor Kajiwara is requesting an urgent call.”

Prime Minister Suzuki Kota, already startled by the sudden surge in the exchange rate, gestured urgently and shouted.

“Connect the call immediately!”
“Yes, sir.”

After the secretary left, the telephone on the side table next to the sofa rang shortly after.
Prime Minister Suzuki Kota immediately picked up the receiver and poured out his words in an accusatory manner before the other party could even speak.

“Why is the exchange rate suddenly rising!”

Through the receiver in his hand came the clearly flustered voice of Governor Kajiwara.

[I was calling about that very matter. Hedge funds are selling large quantities of Deutsche marks on the Tokyo Foreign Exchange Market and sweeping up yen.]

For a moment, Prime Minister Suzuki Kota, not understanding, furrowed his brow.

“Explain it in a way I can understand.”
[Since we are purchasing dollars to defend the yen exchange rate, they cleverly circumvented this by selling marks—which have stabilized in value relative to the dollar thanks to the Bundesbank’s rate cut last week—and buying yen instead, exploiting the gap.]
“…!”
[With the balance between marks and yen disrupted this way, the yen exchange rate against the mark has risen. As a chain reaction, the dollar price, which is weaker compared to the mark, has plummeted, pushing the yen up further.]

The situation was quite complex, but the conclusion was simple: the currencies, interlocking like gears, were creating a chain reaction that sent the yen skyrocketing.

“Then why aren’t we buying dollars or marks immediately to stop the yen from rising?”
[I wish we could, but we lack the capital to absorb all these incoming buy orders.]

In other words, they were out of money.
Suzuki Kota’s eyebrows shot up, his expression darkening with anger.

“I approved an additional one billion dollars this morning for currency defense operations. You’re telling me you’ve already exhausted it?”
[That… yes, that’s correct.]

Kajiwara answered with obvious discomfort.
But the one who should have been panicking and jumping out of his skin was actually Suzuki himself.

“How much money are these hedge funds pouring in that we’ve completely run dry?”

As Suzuki Kota asked with an incredulous expression, Kajiwara carefully responded.

[Since the market opened, we’ve seen over 3.4 billion dollars in yen buy orders on the Tokyo Foreign Exchange Market alone.]
“3.4 billion dollars? How is that even… how….”

Stunned by the astronomical figure, Suzuki Kota held the receiver to his ear, his mouth hanging open.

[We have less than 100 million dollars remaining. I hate to say this, but at this rate, it’s only a matter of time before the 80 yen level breaks.]

Suzuki Kota snapped to attention, gripping the receiver tightly as he barked out his response.

“That absolutely cannot happen!”
[But to prevent it, we’ll need more funds to purchase dollars.]
“Hmm….”

Caught between a rock and a hard place, Suzuki Kota let out a low groan.

“I’ll call you back. Wait for my call.”
[Understood. But time is critical, so please respond as quickly as possible.]
“Right.”

Suzuki Kota hung up the receiver.
Murata, who had been watching the conversation with a worried expression, leaned forward and asked.

“What did you say?”
“The hedge funds are sweeping up yen with 3.4 billion dollars.”

The two men gasped in shock, their breath catching.

“3.4 billion? Where on earth did they gather such an enormous sum!”
“Good heavens.”

Prime Minister Suzuki Kota, pressing his forehead with one hand, turned his gaze to Minister Fujimoto Masaki and asked.

“They say the funds needed to defend the exchange rate have run dry. How much more do you think we can allocate?”

Minister Fujimoto Masaki responded with visible reluctance.

“Just today—no, just this morning alone, we’ve spent 2.1 billion dollars. And when you add everything we’ve poured into exchange rate defense so far, it easily exceeds 20 billion dollars. If we draw down our foreign reserves any further, we risk the situation spiraling beyond a mere exchange rate problem into a full-blown foreign currency crisis.”
“Who doesn’t know that!”

Prime Minister Suzuki Kota’s face twisted with irritation, his eyes narrowing.

“But are you suggesting we simply stand by and watch the exchange rate break through 80 yen and climb higher!”

When Minister Fujimoto Masaki had no response, Minister Murata Takuya stepped forward to persuade him.

“The Prime Minister is right. First, let’s extinguish the fire at our feet.”

Minister Fujimoto Masaki understood all too well what catastrophic panic and shock would grip Japan’s entire economy if the critical threshold of 80 yen were breached.
His expression grave with deliberation, Minister Fujimoto Masaki opened his mouth heavily, as if rendering a difficult decision.

“I believe we can allocate another 1 to 1.5 billion dollars.”

Prime Minister Suzuki Kota, who had been watching with anxious anticipation, nodded and brightened.

“Good. I understand.”
“But this is truly the absolute limit.”

Minister Fujimoto Masaki spoke firmly, his tone brooking no argument.

“The other side’s pockets aren’t infinite either. If we hold firm here, their momentum will break.”
“I hope it works out as you say, Prime Minister, but….”

No matter what he tried, Fujimoto Masaki’s face remained clouded with deep anxiety.
Suzuki Kota ignored his expression and immediately picked up the receiver, speaking to his secretary.

“Connect me to Governor Kajiwara right now!”

* * *

As the dollar-yen exchange rate climbed past 80.99 yen and seemed ready to breach the 80 yen mark entirely, the Bank of Japan—now authorized by Prime Minister Suzuki—unleashed a massive injection of capital to purchase dollars, and the rate plummeted sharply downward.
The fallen rate now hovered around 81 yen, where both sides engaged in a fierce, unrelenting battle, as though determined to settle the matter once and for all.

[USD/JPY : 81.00]
[USD/JPY : 80.99]
[USD/JPY : 81.03]
.
.
.
[USD/JPY : 81.01]
[USD/JPY : 81.33]
[USD/JPY : 81.49]

As time wore on, the hedge fund forces led by George Hamilton—having expended their strength too forcefully at the outset—showed subtle signs of momentum loss, gradually retreating.
Seok-won, monitoring the exchange rate movements on his screen, tapped his fingers lightly against the desk while seated in his chair.

“The Bank of Japan is holding out better than expected.”

There’s a saying that battles are won by momentum.
Whether it was mere anxiety or not, I found myself thinking that if things continued this way, the Tokyo Offensive might very well end in failure.

“That cannot happen.”

With his resolve hardened, Seok-won picked up the mobile phone resting beside him.
The line connected, and moments later, Landon Shore—monitoring the situation from New York—answered the call.

[Hello?]
“It’s me.”

Leaning back in his chair, Seok-won gazed at the exchange rate on the monitor, locked in a fierce tug-of-war between rises and falls, and spoke.

“Have them purchase five hundred million dollars’ worth of yen through the Tokyo Foreign Exchange Market immediately.”
[Five hundred million dollars at once, sir?]
“That’s right.”

Landon Shore, momentarily taken aback, quickly grasped that Seok-won intended to finish this game decisively. He responded with a firm voice.

[Understood.]

Setting down his phone, Seok-won lifted the teacup and leisurely sipped the coffee Na Seong-mi had prepared for him.

“When a scale is perfectly balanced, it takes only one final drop of water on either side to shatter the equilibrium and tip it completely.”

Seok-won intended to be that tipping point himself.

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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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