[Chapter 841: False Prosperity]
A low-inflation, high-growth economy was the dream of every country. It seemed that after shaking off the effects of the bubble economy, America was about to take off once again.
Before the bubble burst, financial conglomerates had clearly seen the risks. Otherwise, why would they be buying up everything around the globe? No matter how much Americans wished to Westernize, deep down, they still held on to their identity. They didn't fully resonate with American values; it was merely a case of respecting their success and thinking they needed to learn from them.
"Mr. Fujita, why not reconsider? We can offer you extremely 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 department 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, investment 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 some professionalism."
"Oh, share some insights! I think they will eventually open that sector.
"Haha. I actually got a credit card there, but it was my boss who had me 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 time.
"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 mentioned earlier that I was handling it on the side for him. Some things are a bit inconvenient for him to handle personally."
"Oh, I see now. Please forgive me; I was just so shocked by this credit card situation. What a shame, 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, America's credit card ownership and usage statistics were not particularly high. Of course, that was relative; they weren't as outrageous as Americans had it.
With a two-thousand-dollar monthly income, a typical American 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 payment due.
The credit card business was one of the most important services a traditional bank offered, aside from loans. Unfortunately, Americans seemed reluctant to borrow for consumption. More often, they took advantage of the short interest-free periods available. A couple of times was manageable, but if it became a widespread trend, banks would suffer immensely.
As more and more information came in, Filson and his think tank did not view the American economy positively. It was clear that residents lacked any willingness to spend, or perhaps they just exercised a great deal of restraint when it came 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 American system's shortcomings. In the early 1990s, people feared over-consumption far less. Their home values were on the rise, and assets in stock accounts were growing too. There was even a time when the increase in family assets significantly surpassed the husband's annual income.
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 Mexicans 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 American 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 America'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 some European banking institutions. The top three rating agencies in the U.S. merely 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; American conglomerates 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 America 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 mention anything."
"Uh, boss, people have been dispatched from Hawkeye. But it feels more like they're just playing games."
"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 time, 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 seemed to support Buffett's theory about gold being worthless. That fool--convinced by his subordinates and mocked mercilessly--was the laughingstock in the industry.
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