Manhattan, New York, USA.
Salomon Brothers Headquarters Trading Floor.
Cox, sitting at his station surrounded by four computer monitors, placed the receiver back down. As he lifted his head to look at the screens in front of him, he saw that the pound's sell orders were continuing to flood in, piling up relentlessly during the brief ti he was on the phone.
The nearby forex traders, witnessing the rapid fluctuations in the pound's exchange rate, grew increasingly excited, raising their voices.
"It's dropped to $1.3800!"
"Goldman has also started dumping pounds in large quantities."
"How much is all this?"
"This is getting dangerous, isn't it?"
"No matter how old and weak the lion has beco, it's still Britain. Surely it won't collapse."
A black-haired trader quickly retorted to his colleague's comnt.
"With all these sell orders flooding in, even the Bank of England can't hold out forever."
Other traders nodded in agreent. The situation was clear to anyone watching—the Bank of England was struggling to withstand the overwhelming attack led by Soros and the global hedge funds. The sheer intensity of the sell-off felt like an all-or-nothing assault, and the traders instinctively sensed that today would be a critical turning point.
Seeing this, everyone rushed to pick up their phones, eager to join the selling frenzy. Cox was no exception.
"Sell $400 million at market price, both pound futures and spot!"
Not only did Cox fulfill Seok-won's order, but he also dumped all the positions he held, selling off pounds.
This sentint quickly spread beyond Wall Street, reaching investors worldwide, and the mass selling of the pound turned into a massive tsunami engulfing the Bank of England.
***
Bank of England Headquarters, London, UK.
Dealing Room.
Inside the dealing room of the Bank of England, a dozen forex dealers were seated at their stations, desperately clutching their computers and phones as they fought to defend the pound's value.
Riiiiing! Riiiiing!
"380, sell 8 million pounds!"
"Done!"
"375, 10 million pounds!"
Barely seconds after purchasing 8 million pounds, another, larger sell order ca through, prompting Tim, the departnt head, to let out a low groan.
"Ugh."
The situation was even more painful because, following the plan approved by Chancellor Henry the day before, they had already purchased a whopping ??600 million before the market opened. Despite these efforts, the situation remained dire. No matter how much money they threw at the problem, it seed to have no effect against Hamilton and the global hedge funds' relentless selling.
It felt as though they were on a sinking ship in the middle of the ocean, frantically trying to bail out water with their hands.
"How's the movent?"
The chief dealer, who had been staring at the Bloomberg terminal in front of him, turned around to face Tim, shaking his head with a somber expression.
"The sell orders are not decreasing. If anything, they're increasing as ti goes on."
"Damn it."
Though he desperately wanted to deny it, Tim instinctively knew there was no hope left. After standing in silent anguish for a mont, he hesitated before walking over to a desk, picking up the receiver, and calling Governor Arthur.
The line connected, and soon, Governor Arthur's voice ca through.
[Hello.]
"It's , Governor."
[I've heard things aren't going well.]
Tim forced the words out as if squeezing water from a stone.
"...I'm sorry. I don't think we can hold out any longer."
Governor Arthur paused for a mont before asking in a heavy, subdued voice.
[Are you certain?]
"Despite spending an additional ??400 million beyond the planned ??600 million, the exchange rate shows no signs of recovery and continues to fall."
[....]
"If this continues, we won't just be talking about the ERM; we could be facing a full-blown currency crisis that could shake the foundations of the UK economy."
As they continued to rapidly deplete their reserves to purchase the pound, which was on the brink of devaluation, Tim's words were not just a simple concern; they were a grim reality. Governor Arthur, fully aware of the gravity of the situation, responded without further insistence.
[Understood. I'll contact the Pri Minister and the Chancellor to discuss the matter. In the anti, do everything you can to prevent the situation from deteriorating further.]
"I can't make any promises, but I'll do my best."
After hanging up the phone, Tim let out a deep sigh. He glanced at the computer monitors, where an overwhelming number of pound sell orders were continuing to pile up, and he couldn't shake the feeling that today would be an agonizingly long and painful day.
***
Cambridge, Massachusetts.
Seok-won, seated at an outdoor table, glanced at his wristwatch. It was just past 8:15 AM.
"Sigh… Not being able to see real-ti exchange rate movents is driving
crazy."
In the era he originally lived in, he could check exchange rates almost in real-ti through HTS (Ho Trading System) or mobile trading systems, or at least through internet portals.
"Now, with no smartphones and even the internet being hard to access, it's incredibly inconvenient."
Though not quite an addiction, the ease of handling everything via a smartphone was sothing he missed dearly. Without it, he felt stifled and tied down.
"And it's not like I can just invent a smartphone."
Even with ideas and money, the technology to realize them simply wasn't there yet.
"Note to self: don't forget to buy Apple stock later."
Once, Apple had been successful enough to challenge IBM, but now it was struggling with deficits and on the brink of collapse. To redy the situation, the company had even ousted its founder, Steve Jobs, but things hadn't improved, and the company continued to spiral downward.
People saw Apple as a company with no future, one that wouldn't last a few more years, and it was largely ignored in the stock market.
"If I told anyone now that Apple would make a coback and beco the most valuable company in the world, they'd call
crazy."
But to Seok-won, who knew the future, this was the perfect opportunity to pick up Apple, the goose that would lay golden eggs, at a bargain.
"This is one of the perks of being a ti traveler, isn't it?"
Grinning to himself, Seok-won muttered quietly before sighing again.
"Ugh, I can't take it anymore. Next ti, I need to set up an office in New York so I can monitor the market in real-ti."
Besides that, if he wanted to continue investing seriously after boosting his capital this ti, he would need an office and staff to help him.
As he sipped the Aricano he bought as soon as the cafe opened, his phone, lying on the table, began to ring.
"Hello."
He quickly picked up the phone, and on the other end, Cox's voice ca through, brimming with excitent.
[The Bank of England just raised interest rates by another 3%!]
Hearing this, Seok-won gripped his phone tightly.
[Adding that to the increase from three hours ago, interest rates have gone up 5% today alone.]
The previous day, the interest rate had been 10%, aning it now stood at 15%. In essence, the Bank of England had been forced to surrender, unable to withstand the pound's collapse. Even though he had anticipated this outco, Seok-won's heart raced as the reality of the situation set in.
Struggling to contain his excitent, Seok-won asked calmly,
"How's the market reacting?"
[As soon as the additional rate hike was announced, the selling pressure on the pound intensified even more. The pound-dollar exchange rate has broken through $1.3600, and at this rate, even $1.3600 might not hold.]
"It seems the rate hike has only added fuel to the fire."
[With the Bank of England showing signs of surrender under Soros and the hedge funds' attack, even those investors who were hesitant until now are jumping in.]
Having regained his composure, Seok-won responded as if it were the most natural thing in the world.
"With such a feast laid out, anyone who just sits back and watches would be a fool."
[Haha, you're right.]
"Who knows? By the end of today, the UK might officially announce their surrender."
[I agree.] Cox replied cheerfully,
[It's a bit early, but congratulations on hitting the jackpot.]
With the phone pressed to his ear, Seok-won smiled.
"I'll take those congratulations once the investnt is fully wrapped up."
[Understood. I'll make sure to have the finest champagne ready.]
***
10 Downing Street, London, UK.
Inside the Pri Minister's office, adorned with old artwork and heavy with a somber atmosphere, the mood was grim. Over the past few days, despite pouring vast amounts of money into the market and using interest rate hikes as a last resort, the pound's decline had shown no signs of slowing down.
Chancellor Henry, sitting with a troubled expression, spoke first as he looked at Pri Minister Isaac, who sat in the center of the room, dressed in a distinguished navy suit with a striped tie.
"As you've already been briefed, despite the additional rate hike, the pound continues to fall."
Pri Minister Isaac, his face lined with worry, let out a low grunt.
The other cabinet mbers seated on either side of the room also exchanged gloomy looks.
Despite the UK's diminished standing compared to its past glory, the fact that the proud British Empire was crumbling under the assault of re hedge funds was both shocking and humiliating. Especially for Pri Minister Isaac, who had been the architect of the UK's entry into the ERM, the current situation was a personal disaster. If the UK had to yield to the hedge funds' assault, it would be a public admission that his policy had failed. This would not only damage his credibility but could also lead to the collapse of his cabinet.
"Can we inject additional funds to defend the pound?" Isaac, still clinging to the hope of maintaining the ERM, asked.
Chancellor Henry shook his head, showing his skepticism.
"We've already poured over ??1 billion into the market today, to no avail."
Arthur, the governor of the Bank of England, who had been sitting with a grim face, added in a somber tone, "Over the past few days, we've spent a quarter of our foreign exchange reserves defending against the hedge funds' onslaught."
"...!"
"If our reserves dwindle any further, we'll be facing a crisis far worse than just leaving the ERM."
The Ho Secretary, narrowing his eyes, asked, "By 'a worse crisis,' do you an we might have to turn to the IMF for help?"
The Ho Secretary, along with everyone else in the room, stared intently at Governor Arthur.
"Yes."
When Arthur gravely nodded, the Ho Secretary's face twisted in shock.
"How did it co to this...."
The other ministers also reacted with disbelief, murmuring in distress.
"To have to rely on the IMF...."
"This is a disgrace to our empire! Absolutely unacceptable."
"Sigh...."
"No matter what, this can't be happening!"
"How did things get so bad...."
As the cabinet ministers exchanged uneasy glances, Pri Minister Isaac's expression hardened.
Looking around at the group, Chancellor Henry spoke in a grave tone, "At this very mont, the hard-earned foreign exchange reserves of the British taxpayers are being drained into the pockets of global hedge funds."
"...."
"As much as it pains
to say, with even the rate hike card failing, our only remaining option is to withdraw from the ERM."
Chancellor Henry's desperate plea for a decision weighed heavily on Pri Minister Isaac, who closed his eyes tightly as he sat on the sofa. A dreadful silence filled the room as everyone awaited Isaac's final decision.
After what felt like an eternity of agonizing deliberation, Pri Minister Isaac finally spoke in a cracked voice, signaling his resolve.
"To think I'd go down in history for this... Very well. Cease all efforts to defend the exchange rate and prepare a statent."
At his words, both Chancellor Henry and Governor Arthur exhaled in relief.
"It was a difficult decision, but the right one."
"You've made a wise choice."
Though the situation was humiliating, the fact that they had avoided the worst-case scenario was a small comfort, and the other ministers' expressions reflected this relief. Watching them, Pri Minister Isaac, his face twisted with bitterness, turned to his private secretary.
"Before the official announcent, make sure to inform the French and German pri ministers."
"Yes, sir."
As the Pri Minister watched his political career crumble along with the pound, he stared blankly up at the ceiling, feeling utterly defeated.
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