Golden Spoon Investment Portfolio - Chapter 209

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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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209. Those damned Sabitz and his Republican cronies are trying to play chicken again.

December 15, 1995, Washington, USA.
Though it was late at night, the White House was ablaze with lights and moving with urgent activity, with only hours remaining before the budget agreement deadline.
In the Oval Office—President Davidson’s office with its expansive windows overlooking the illuminated Rose Garden—four men sat gathered together.
President Davidson, seated in the place of honor on the plush sofa, turned his stern gaze toward the men flanking him on either side and spoke.

“The fact that we haven’t heard anything yet suggests the negotiations are proceeding with difficulty.”

Chief Secretary Huxley glanced around cautiously before responding.

“Senior Advisor Ben Wood and Senator Edwards are currently meeting with Speaker Sabitz directly to persuade him, so we should see positive results soon.”
“I wish that were the case, but given how stubborn Sabitz is, I doubt he’ll even listen.”

Secretary Milburn, seated on the left, set down his coffee cup and naturally joined the conversation.

“While Speaker Sabitz is maintaining a hardline stance, we already had one shutdown back in November ahead of next year’s presidential election. Shutting down the federal government again would be a heavy burden for him to bear.”
“That’s right. Public opinion is already unfavorable, so it won’t be easy for him to act recklessly.”

While Secretary Milburn and Chief Secretary Huxley displayed optimism, Treasury Secretary Frank, seated at the far left, adopted a cautious stance.

“That may be true, but we should also prepare for the worst-case scenario.”

President Davidson turned his gaze toward Secretary Milburn and asked in a somewhat subdued voice.

“Have you finished preparing the contingency measures?”
“Yes. If the budget agreement is not finalized by midnight today, 800,000 federal employees will immediately enter a temporary furlough status. However, personnel in essential services directly related to protecting citizens’ lives and property—such as national defense, law enforcement, electricity, and water—will continue their duties regardless of the shutdown situation.”
“Work continues without interruption, but compensation will be paid retroactively once the budget passes, correct?”
“That’s correct.”

President Davidson nodded with his arms crossed.

“Even if a shutdown occurs, we need to keep it as brief as possible to minimize damage.”

Treasury Secretary Frank then spoke carefully with a grave expression.

“The suspension of administrative operations is problematic, but what’s more serious is that if we fail to raise the federal debt ceiling in time, the United States could potentially face a sovereign default crisis.”

After concluding the first shutdown last month, the Republican Party had raised the debt ceiling somewhat along with a one-month temporary budget, but only marginally.
It was merely a temporary measure that staved off the imminent insolvency crisis, nothing more.

“How long can we hold out without raising the debt ceiling?”

In response to the President’s question, Treasury Secretary Frank answered with a grim expression.

“We’re conserving finances through emergency measures such as deferring planned government expenditures, but our cash reserves will be completely depleted by early February next year.”

There was still more than two months of breathing room, and even if a second shutdown occurred, no one expected it to drag on that long.
Yet even so, it was hardly a situation to be complacent about.

“We should never reach default, but just in case. Have them monitor our cash position meticulously each day and manage the crisis accordingly.”
“Understood.”

Just then, the intercom on the side table buzzed, and President Davidson reached out with one arm to press the button.

“Yes?”
[It’s a call from Senior Advisor Ben Wood.]

President Davidson answered immediately—this was the call he’d been waiting for.

“Put him through at once.”
[Yes, sir.]

The female secretary acknowledged, and moments later the phone rang again.
President Davidson switched to speakerphone so those around him could hear.

“Hello.”

Then came the heavy voice of Ben Wood, the Senior Advisor who had served as Chief of Staff during the previous administration.

[I apologize for keeping you waiting and for bringing bad news.]

President Davidson’s brow furrowed at words so far removed from what he’d hoped to hear.

“You couldn’t reach an agreement?”
[I tried my best to persuade House Speaker Sabitz along with Senator Edwards, but his stance was far too rigid. He’s insisting that the Republican budget proposal cannot budge an inch.]
“This stubborn fool!”

President Davidson, who had been listening to the account, erupted in anger.

[They’re also refusing to draft a temporary budget to prevent a federal government shutdown… I’m afraid we’ll need to prepare for a shutdown.]
“Damn it. I understand.”

After ending the call, President Davidson irritably swept his hair back with one hand, his expression darkening.

“Those damned Sabitz and the Republican Party bastards are trying to play chicken again.”

Secretary Milburn then asked with a face full of concern.

“If they’re refusing even the temporary budget, it means the Republicans are already prepared for a shutdown. What will you do now?”

The question was whether to back down and accept the Republican budget proposal to avoid a shutdown.
Or to continue the standoff head-to-head, prepared for an unprecedented situation in American history where the federal government would shut down twice in a single year.
Either way, President Davidson bore an enormous political burden, no less than the Republicans.
All eyes—including Secretary Milburn’s—turned toward President Davidson.
Burdened by extreme pressure, President Davidson deliberated repeatedly, feeling his stomach twist.
Frustration welled up at the Republicans’ relentless push toward the brink.
With his disposition thoroughly tangled, President Davidson twisted his lips into a crooked expression.

“I can’t simply back down like this.”
“But….”
“With the presidential election next year looming, they’re deliberately cutting funding for one of my core campaign promises—social programs—and trying to undermine me by transferring control of Medicaid to the states to seize the initiative. I can’t dance to their tune.”

The successive shutdowns had destabilized government operations and public opinion was unfavorable.
But the power struggle with the Republicans was far more than a simple budget issue—it was essentially a prelude to the presidential election that loomed ahead.
Knowing this all too well, Secretary Milburn and the other attendees harbored private concerns and couldn’t easily broach the subject of compromise.

“If we enter a second shutdown, the government will face criticism too, but the Republicans, who pushed the situation to catastrophe with an uncompromising stance, will bear the brunt of condemnation.”

Looking at media articles and polling data, there was far more criticism of the Republicans, so the attendees nodded slightly in agreement.

“Thinking about it that way, a second shutdown might not be entirely unfavorable.”

President Davidson directed his gaze toward Chief Secretary Huxley and spoke.

“Still, a prolonged federal shutdown won’t be good for anyone. Keep making behind-the-scenes contact with the Republicans and try to find a compromise.”
“Yes, sir.”

He turned his head to look at Secretary Milburn and continued speaking.

“I need you to work with Professor Frank to ensure federal government operations continue as smoothly as possible.”
“I will do so.”

Secretary Milburn replied with a grave expression.
President Davidson and all the attendees had already accepted the shutdown as inevitable.
Yet at this moment, no one could have foreseen that the federal government closure would stretch beyond this first shutdown to an unprecedented 21 days, breaking all previous records.

* * *

The next morning.
Though it was Saturday, the five-day work week had not yet been implemented, so Seok-won was preparing for work as usual.

“Hmm….”

Standing before a large full-length mirror in the spacious walk-in closet attached to his room, Seok-won deliberated at length, holding two neckties in his hands.
He alternated between holding them against his neck to see which looked better, but both suited him so well that choosing proved difficult.
Both were newly released products from Gucci, and besides these, his closet overflowed with unworn clothing and accessories.
Jacob Thompson, Gucci’s chief designer, sent new products whenever the opportunity arose, so half the walk-in closet had become filled with Gucci items.
Along with men’s accessories, he also received women’s handbags, which he gifted to his mother, Jo Deok-rye, and his sister-in-law.
Both women were delighted with the gifts, and though they were people who could purchase Gucci bags whenever they wished, they were thrilled to possess unreleased items before they became available domestically.

“Come to think of it, Mother seems to be carrying the Gucci bag I gave her quite often these days….”

Seok-won smiled faintly and selected a tasteful black silk necktie with a subtle Gucci logo, tying it around his neck.
As he adjusted the knot in the mirror, the doorbell chimed from outside.
Turning from the walk-in closet, Seok-won picked up his mobile phone from the desk and answered the call.

[It’s me, boss.]

The caller was Landon Shore.
It would be late night in the United States, so a call at this hour could mean only one thing.
He adjusted his grip on the phone and asked immediately.

“Do we have results from the negotiations?”
[Ben Wood, the White House senior advisor close to President Davidson, and Senator Edwards spent late into the night trying to persuade Speaker Sabitz, but as you predicted, boss, they failed to reach an agreement.]

He maintained a composed demeanor at the expected outcome.

“Then we’ll enter shutdown right after midnight Washington time.”
[Yes, sir.]
“By now, Wall Street should have heard the news. What’s the atmosphere like?”

Political matters were Washington’s concern to handle. What mattered to Seok-won, who held massive short positions, was the movement of the New York stock market.

[Perhaps due to lessons learned from the last shutdown, there hasn’t been any significant movement yet.]
“That makes sense. Since more than a few traders who short-bet last time ended up packing their bags and leaving, it’ll be difficult for anyone to act rashly.”
[That’s correct. However, what’s encouraging is that while stock prices showed strong performance throughout the last shutdown period, this time they’re showing weakness and consolidating.]
“What about gold prices?”
[Gold prices are also showing no major fluctuations, appearing to be cautiously watching the situation.]

At that, Seok-won’s lips curved into a subtle smile.

“The fact that they’re playing a waiting game means investors are feeling anxious too. That’s good news for us.”
[Precisely. If even a small spark ignites at a time like this, panic selling will flood the market and prices will plummet sharply.]
“Keep monitoring the situation and contact me immediately if there are any changes.”
[Understood.]

Landon Shore, who had responded, added with an “ah.”

[And as you instructed, I’m planning to begin liquidating our yen positions starting today.]
“Go ahead with that.”

The yen depreciation trend would continue deep and long into the future, so holding the position would allow us to grow profits further.
However, with ten times leverage in use, the cost of maintaining the position was substantial, and more importantly, the IMF crisis was approaching soon, so reluctantly I decided to settle for this level and conclude the yen investment.

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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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