[Chapter 841: False Prosperity]
A low-inflation, high-growth economy was the dream of every country. It seed that after shaking off the effects of the bubble economy, Arica was about to take off once again.
Before the bubble burst, financial conglorates had clearly seen the risks. Otherwise, why would they be buying up everything around the globe? No matter how much Aricans wished to Westernize, deep down, they still held on to their identity. They didn't fully resonate with Arican values; it was rely a case of respecting their success and thinking they needed to learn from them.
"Mr. Fujita, why not reconsider? We can offer you extrely low interest rates. You know, we always go for the lowest rates with companies like Viking Comics," one businessman proposed.
"Mr. Murai, I sincerely apologize, but our Asian headquarters is well-funded. To be honest, Mr. White is quite worried about the current economic situation. While things are okay here, operations in the U.S. and Europe have already begun reducing leverage."
"Really? No impact here at all?" the credit departnt manager at Sumitomo jumped at the news. If this gentleman also turned out to be cutting back leverage, they would be left in a dire situation.
Interest rates were indeed low, but didn't they have solid cash flow? If it was just about investing in those intangible stocks, they surely wouldn't lend so much to a single company.
"No, things remain unchanged here. By the way, investnt in the Rabbit Kingdom has increased; I believe they just financed a highway project."
"Ah, I see. We also have plans to establish an office in the Rabbit Kingdom. Too bad they haven't fully opened up their financial market yet."
"Right, that is quite unfortunate. Their banking system could really use so professionalism."
"Oh, share so insights! I think they will eventually open that sector.
"Haha. I actually got a credit card there, but it was my boss who had set it up, you know? They actually make you deposit fifty grand first..."
As Fujita finished, Murai looked shocked. A credit card? For the boss? Didn't they understand how absurd that was? If a deposit was needed, wouldn't a savings account work just fine? The most outrageous part was that the fifty grand was just a deposit; the monthly bill still needed to be paid on ti.
"That can't be right, Fujita. What do you need that card for then?"
Fujita gave him a sideways glance, "You really have no clue, do you? How much trouble has the boss gotten into? That's beyond what us underlings can question."
"I just ntioned earlier that I was handling it on the side for him. So things are a bit inconvenient for him to handle personally."
"Oh, I see now. Please forgive ; I was just so shocked by this credit card situation. What a sha, if branches could open up now, we could really cash in on the credit card business. It's such a pity there hasn't been much over-consumption lately; it's really terrible."
As a developed country, Arica's credit card ownership and usage statistics were not particularly high. Of course, that was relative; they weren't as outrageous as Aricans had it.
With a two-thousand-dollar monthly inco, a typical Arican might rack up a $3,000 bill--often even closer to $4,000. For them, it was simply a matter of keeping an eye on the minimum paynt due.
The credit card business was one of the most important services a traditional bank offered, aside from loans. Unfortunately, Aricans seed reluctant to borrow for consumption. More often, they took advantage of the short interest-free periods available. A couple of tis was manageable, but if it beca a widespread trend, banks would suffer imnsely.
As more and more information ca in, Filson and his think tank did not view the Arican economy positively. It was clear that residents lacked any willingness to spend, or perhaps they just exercised a great deal of restraint when it ca to spending.
"Why is that, boss? This is just too strange," Filson asked.
William White certainly had his theories. It was, after all, the result of the Arican system's shortcomings. In the early 1990s, people feared over-consumption far less. Their ho values were on the rise, and assets in stock accounts were growing too. There was even a ti when the increase in family assets significantly surpassed the husband's annual inco.
But alas, what was virtual was still just that--virtual. Aside from debts that needed to be paid, everything else was unreal.
"It's quite normal; they've been taken for a ride. Real estate, stocks, bonds--none of those are being trusted anymore. The only thing worth believing in is the yen!"
"Ha! They don't even trust dollars now. Look at the exchange rates; they believe in their own country more than xicans do."
Having reached a consensus, William White didn't mind shorting the Nikkei index. The profit margins now were actually larger than during the bubble economy.
Short selling needed partners. There was no future for a solo act.
"Sir, the South Arican sector isn't that promising."
"Yeah, let's exit that; it's too small of a market. If there's another short selling ban, that would really be pointless."
"Alright, let's focus on the Nikkei index then. Based on the current market, there are still quite a few optimistic about Arica's economy."
"Who on earth is feeling that optimistic? Those guys have caused quite a bit of damage, haven't they realized?"
"Cough, cough, mainly so European banking institutions. The top three rating agencies in the U.S. rely suggested holding positions."
"Ha! They're like a beacon in the night. If they ever give a buy rating, I might as well run for the hills."
"Right, I think internally they aren't too optimistic about it. Not that it's too disastrous; Arican conglorates hold plenty of overseas assets."
"Sure, the unfortunate ones are the minority. Otherwise, why would they keep loosening monetary policy?"
For William White, this Christmas felt almost like just another workday. The financial market's turbulence kept him on edge.
With the financial turmoil in Latin Arica and Europe not faring much better, Russia--after years of struggle--decided to flex its muscles.
"Little Tanner, how's Russia doing? I haven't heard you ntion anything."
"Uh, boss, people have been dispatched from Hawkeye. But it feels more like they're just playing gas."
"What? You can't be serious?" William White stared at his phone, nearly dropping it as he watched the news on TV.
"I honestly don't know how to describe it; they're fighting tooth and nail during the day and trading weapons at night. They're directly selling arms to their opponents. I'm at a loss for words."
"What the hell? After fighting all this ti, this is where we stand? I've been wondering why it hasn't ended yet."
"Sir, this is a sweet deal. If it just goes away, all the soldiers would be fuming."
"Well, I hope they enjoy themselves."
A military without faith or glory couldn't possibly win any war. For them, preserving their lives and securing enough bread was far more important than achieving victory.
As for the innocent civilians, neither side gave much thought to their plight. The battle-hardened Russians liked their fighting gritty. Usually, they'd only check the results after the smoke cleared.
What? Many of them were innocent civilians?
Rest assured, nobody would care. They would tell you it's a war; no one is purely innocent.
The wars raging in the Caucasus region didn't phase the capital markets. Oil prices continued to tumble, and gold showed no signs of recovery. These strange occurrences seed to support Buffett's theory about gold being worthless. That fool--convinced by his subordinates and mocked rcilessly--was the laughingstock in the industry.
*****
spatreon/Sayonara816.
Reviews
All reviews (0)