Golden Spoon Investment Portfolio - Chapter 70

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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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70. How delightfully sweet.

The moment I stepped out of the executive office and onto the Trading Floor, I felt the oppressive heat washing over me in waves.
Telephones shrieked incessantly, and traders with rolled-up shirtsleeves bellowed orders or conducted frantic conversations in urgent tones.

Ring! Ring!
“What is this? They only raised it by 25 basis points—why such a violent reaction?”
“Check the corporate bond situation too!”

Amid the chaos of a war zone, Andrew, who had come out with me, rushed back to his desk to control the trading.
A young dark-haired trader then spoke to Andrew urgently.

“The 10-year US Treasury yield is surging by 11 basis points!”
“What about the 2-year?”

Andrew asked, casually tossing his overcoat onto his chair.

“Rising by over 28 basis points.”
“The 2-year is reacting sharply, as expected for something so sensitive to policy rate changes.”

At my words as I approached from behind with Landon Shore, Andrew checked the bulky CRT monitor mounted on his desk.
The screen displaying Treasury trading activity showed green numbers flickering chaotically, as if reflecting the market’s shock.
After scanning the figures rapidly, Andrew straightened his torso and turned to face me.

“The decline is significant, but not yet a crash.”

I crossed my arms and spoke with a leisurely expression.

“We’ve only just pulled the first trigger. There’s no need to rush.”
“….”
“All those sell orders flooding the monitor are proof the market is trembling.”

Indeed, the market was reacting far more violently than the magnitude of the Federal Reserve’s rate hike warranted, revealing just how fragile and anxious it truly was.
Even in that moment, as numbers shifted frantically and sell orders multiplied across the monitor, I curved one corner of my mouth upward.

“When the second shock arrives—and it won’t be long—this market, thin as ice, will shatter completely and collapse.”

I couldn’t tell whether the second shock Seokwon mentioned would be hedge funds dumping massive amounts of securities onto the market or a surge in the yen.
But one thing was certain regardless: the bond market’s atmosphere, which had been uniformly optimistic until now, had completely transformed.

‘If both hit the market simultaneously….’

Conjuring up a horrifying scenario in his mind, Andrew found himself swallowing hard without realizing it.
Then, gazing at Seokwon, who had orchestrated this entire situation with prescient foresight, he couldn’t help but think how remarkable he was.
Landon Shore, unlike his earlier restlessness, now exuded composure as he rubbed his palms together eagerly.

“This would be hell for the other hedge funds, but we’ve hit the jackpot proper.”

Having caught the scent of money, Landon Shore’s face radiated vitality as he thrust his thumb upward.

“Another brilliant shot, boss. You’re truly something.”

Seokwon chuckled softly and turned to Andrew.

“The more the market crumbles, the better it is for us, so let’s sit back and watch the flames dance. When the moment comes, we’ll dust off our hands and lock in our profits.”

Though he still needed to observe how the situation unfolded, Andrew’s faith in Seokwon had deepened considerably through this affair, and he answered without hesitation.

“Understood.”

Lifting his gaze to the massive screen mounted directly ahead, Seokwon watched as not only bonds but equities also declined in tandem, displaying weakness across the board, and a deep smile spread across his face.

* * *

One week later, the Brady Press Briefing Room at the Washington White House.
With television cameras for live broadcast positioned in front of the podium, journalists from various news outlets wearing press credentials around their necks filled the room.
The press conference, held immediately after a summit between the leaders of the United States and Japan—an issue that had become major news due to recent trade disputes—drew even greater attention.

“The President is entering.”

At the announcement from a White House staffer, all the assembled journalists rose from their seats.
Moments later, blond-haired President Philip Davidson entered through a side door accompanied by his aides.
As the television cameras tracked his movement, President Davidson ascended the stage and took his place at the podium, with the large White House logo painted on the wall behind him.
A brown-haired female journalist seated in the second row, noticing the President’s rigid expression, leaned toward her colleague beside her and whispered in a low voice.

“From the look on his face, it seems the talks didn’t go well.”

A colleague reporter wearing a striped necktie glanced at President Davidson while holding a pen poised over his notepad.

“The fact that they’re holding separate press conferences instead of a joint statement after the summit makes it obvious.”

Had the talks gone well, the Japanese and American leaders would have emerged together with smiles, conducting a joint press conference as my colleague suggested.
The female reporter was about to say something else when she noticed the President beginning to speak, so she promptly fell silent.

“As you all know, I held a summit meeting today with Japanese Prime Minister Suzuki Kota, who visited Washington.”

While the assembled reporters leaned forward intently, taking notes, President Davidson looked directly at the television camera in front of him and continued in a measured voice.

“We conducted an in-depth discussion regarding Japan’s market opening to reduce its trade surplus, an issue that has become prominent between our nations recently, but unfortunately we were unable to reach an agreement.”

As the confirmation that negotiations had failed as expected rippled through the briefing room, a subtle murmur arose.

“Both nations made their utmost efforts to reach a conclusion until the very end, but regrettably, we could not reach agreement on any of the four sectors—including automobiles—that both countries had designated last July. We could have issued a perfunctory joint statement, but I believe it is better to reach no agreement than to reach an agreement devoid of substance.”

Japan was a traditional ally, and given that this was immediately following a summit meeting, it was customary to moderate one’s tone even if the desired results had not been achieved.
However, without any such restraint, President Davidson displayed a considerably hardline stance, causing the Japanese journalists in the briefing room to exchange bewildered glances.

“The United States and Japan will continue to maintain a strong alliance going forward, but ultimately the Japanese market must become more open to America than it currently is.”

Since the negotiation results had been unfavorable, President Davidson concluded his remarks briefly, and the session immediately moved to the question-and-answer period.

“We’ll take questions.”

As multiple reporters simultaneously raised their hands, the White House spokesperson standing to one side pointed to the brown-haired female reporter who had been chatting with her colleague earlier.

“You there, the woman.”

The fortunate reporter’s eyes gleamed as she quickly posed her question.

“Prior to the summit, Commerce Secretary Vincent stated that if trade negotiations fail, the United States would consider all possible measures, including intervening in the foreign exchange market to raise the value of the yen. Do you agree with that statement?”

Though it was a sensitive matter and he could have deflected the question, President Davidson answered directly.

“Since this is a matter that requires further consideration, nothing is confirmed at this moment. However, one thing is clear: we will take all possible measures to open Japan’s market.”

Normally it should have ended there, but the reporter quickly posed another question.

“Does that include the permanent revival of Super 301 that’s been discussed in the Senate among possible measures?”

President Davidson hesitated for a moment before nodding his head.

“If necessary, we won’t rule that out either.”

The room erupted at President Davidson’s bombshell statement.
The press briefing room immediately descended into chaos as journalists scrambled to extract more information from the president, and among them, the Japanese reporters’ expressions shifted from shock to outright alarm.

* * *

At the same moment, in the Penthouse of the New York Plaza Hotel.

[Are you saying Super 301 could be invoked against Japan?
Mr. President! Can we interpret your statement just now as a warning to the Japanese government?]

Sitting on the premium leather sofa in the living room dressed casually, I watched the press briefing room thrown into turmoil by President Davidson’s bombshell statement and murmured leisurely.

“Super 301… The president really meant every word of that.”

And for good reason—Section 301 of the Comprehensive Trade Act, enacted in 1988, was commonly known as Super 301, which allowed the U.S. administration to take discriminatory retaliatory measures against trading partners.
It was a formidable law that empowered the president to discretionarily implement sweeping and potent retaliatory measures—including retaliatory tariffs reaching 100% and import quotas—against countries engaging in unfair trade practices.

“Super 301 alone would be terrifying, but with the mention of yen appreciation on top of that, Japan is going to be completely upended.”

Given the massive implications for U.S.-Japan relations, this couldn’t possibly have been a slip of the tongue.
It was undoubtedly a carefully calculated statement intended to pressure Prime Minister Suzuki Kota and the Japanese government.

“But they have no idea this won’t stop at the yen—it’ll come full circle and obliterate the hedge funds and the international bond market.”

By traditional logic, a rising yen shouldn’t have any impact on inflation or bond prices, so it was only natural.
But it was a grave oversight to ignore how hedge funds had been chasing returns by piling leverage onto assets across the globe.

“Along with the pound, the yen is the currency on which hedge funds have placed their heaviest bets.”

As I smiled thinking of the storm about to break, my phone on the table rang loudly.
When I answered, I heard Landon Shore’s voice, brimming with excitement.

[Boss! The dollar-yen exchange rate has broken through 108 yen and is soaring!]

Leaning back against the sofa, I responded as though it were obvious.

“When the President of the United States openly makes statements encouraging yen appreciation, the market has no choice but to be startled.”
[I anticipated negotiations with Japan wouldn’t be easy, but I genuinely didn’t expect the White House to play such a bold move.]
“The harder they pressure Japan, the more it helps the election campaign, so they’ll maintain this aggressive stance until they get the results they want.”

Landon Shore nodded in agreement.

[The opposition Republican Party also won’t oppose—and is actively cooperating with—legislation to permanently revive Super 301, given their concern for Rust Belt workers’ votes. I think they’ll continue this way.]

Landon Shore continued speaking, his voice still tinged with excitement.

[This means the yen appreciation sentiment will persist for quite some time.]
“It will. To stop yen appreciation, they’d need to open their markets enough to satisfy the White House, but that’s realistically difficult.”

I adjusted the phone in my hand and continued.

“Moreover, this situation will remind Japan of the Plaza Accord from a decade ago—an absolute nightmare for them. It’ll only fuel further yen appreciation.”

The Plaza Accord, which artificially elevated the yen’s value and sank Japan’s economy in an instant, was an unforgettable and horrific trauma for the Japanese government and its people.

[Even if they revive Super 301, using it against an ally like Japan carries political burden, but exchange rates can function as a direct pressure tool. The White House’s strategy this time seems to have struck Japan’s weak point precisely.]
“For the Japanese government, this must be an extremely awkward situation. But thanks to it, we’ll rake in substantial profits—a very fortunate turn of events.”
[Hahahaha! Indeed.]

Landon Shore burst into laughter and asked in a measured tone.

[How high do you think the yen will climb?]

I paused briefly before answering.

“At minimum, it’ll rise 7%. Let’s maintain our position until then.”
[7%! Wow. Just thinking about it is absolutely delicious.]

After issuing a few more necessary instructions and ending the call, the press conference had already concluded.
I picked up the glass of neat whiskey sitting on the table, watching the television screen where an anchor in the studio was summarizing President Davidson’s remarks.
The ice clinked softly as I took a cold sip of whiskey and murmured quietly.

“The yen is merely an appetizer. The real feast is bonds.”

He etched a deep smile across his lips and settled leisurely into the sofa, his body sinking into its embrace.

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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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