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CH108 | GSI
🕑 Added 2025-02-06 03:40:01 +0000 UTCNew York City, USA
Through the massive floor-to-ceiling windows of an upscale restaurant, Manhattan's dazzling skyline stretched out like a living painting. The interior, adorned with antique touches, exuded a luxurious charm, reflecting the sophisticated atmosphere typical of a place frequented by the upper crust.
On a small stage tucked in one corner, a jazz singer in a sparkling gown stood beneath soft lights, crooning a slow, soulful tune into a vintage stand microphone. The gentle piano accompaniment drifted through the air, blending perfectly with the stunning nighttime view of New York outside—an elegant pairing of sound and sight.
It was the kind of place designed for more than just dining. The cosy ambience made it the ideal spot for intimate conversations, where whispered deals and quiet negotiations could unfold over exquisite meals.
Even though a single entrée cost as much as the average worker’s weekly wage, the restaurant was packed from early evening, with barely a table to spare. The tables spaced just enough to maintain privacy, were occupied by people whose faces were instantly recognizable—celebrities, tycoons, and influential figures. This wasn’t a place for the ordinary. It was a haven for those wielding immense wealth or power.
Among these elite diners were George Soros, founder and CEO of Quantum Fund, and Rodney, his protégé and the firm’s Chief Investment Officer. Both were impeccably dressed, sharing a bottle of wine that cost thousands of dollars, its rich aroma mingling with the faint scent of polished wood and expensive cologne.
As he cut into a perfectly cooked lamb chop and brought a piece to his mouth, George Soros spoke, his tone casual yet probing.
“I heard the dollar-yen exchange rate almost broke 95 yen today.”
Across the table, Rodney responded calmly, his demeanour steady.
“It did touch 95 for a moment but settled back down to 95.14 yen.”
“What’s your outlook?”
“You mean for the dollar-yen rate?”
“Yes.”
Rodney paused, contemplating his words while George Soros waited patiently, his piercing eyes never leaving his protégé.
“The upward pressure has eased as it approached 95, but I don’t foresee a significant drop.”
“So, you’re saying the yen’s strength will persist for a while.”
“That’s correct.”
George Soros gave a small, knowing nod as if Rodney’s assessment confirmed his suspicions. Then, with a hint of regret in his voice, he added,
“I expected Davidson’s policy shift towards high interest rates to curb inflation would strengthen the dollar after his midterm loss. Looks like I was way off.”
The analysis following the midterm elections had indeed pointed to the middle class—suffering under soaring inflation—abandoning the ruling party as a decisive factor in their defeat. The erosion of support from this once-reliable Democratic base was a painful blow for the White House and the party alike.
For President Philip Davidson, who was eyeing re-election in the upcoming presidential race, the situation was nothing short of a crisis. In response, Davidson swiftly abandoned his low-interest-rate policies in favour of aggressive rate hikes to combat inflation.
(TL/n - Philip Davidson is Bill Clinton)
But this sudden shift in U.S. monetary policy had ripple effects far beyond its borders. Mexico, for instance, found itself blindsided by a sudden currency crisis, unable to withstand the shockwaves of America’s financial manoeuvres.
Naturally, as U.S. interest rates rose, the dollar’s strength was expected to follow suit. George Soros and most of Wall Street’s big players had bet heavily on a strong dollar since late last year.
Glancing at George, Rodney offered a small gesture of consolation.
“The Mexican crisis was within the realm of expectation, but honestly, who could’ve predicted such a massive earthquake in Japan?”
“That’s true,” George Soros muttered, lifting his hand slightly. A waiter immediately appeared, refilling his empty wine glass with practised precision.
“How much capital has flowed back into Japan so far?” George asked, swirling the deep red liquid in his glass.
“Just over one trillion yen, from what I’ve gathered,” Rodney replied.
George raised his eyebrows, a faint expression of admiration crossing his face.
“I knew it, but still… Japan’s resilience is something else. It’s the kind of economic powerhouse that once nearly surpassed the U.S.”
Rodney, too, had come to appreciate the formidable influence of the yen carries trade—often personified by the term Mrs Watanabe—which referred to Japanese investors pouring funds into overseas assets. This time, he felt its full force as the capital flooded back into Japan.
“The damage from the Kobe earthquake was estimated at ten trillion yen, wasn’t it?” George continued.
“That’s correct.”
“Then we can expect a continued influx of yen carry funds for quite a while,” George concluded.
Rodney’s face tightened slightly, betraying a hint of discomfort.
“That’s highly likely.”
Investors on Wall Street, anticipating a stronger dollar, had been selling yen and Deutsche marks en masse to buy up U.S. dollars. George Soros had done the same, with Quantum Fund heavily positioned to short the yen while going long on the dollar.
Adding to that, George—already infamous for his attack on the Bank of England—had publicly declared in major media interviews that “the dollar is significantly undervalued against the yen,” boldly predicting a decline in the yen and a surge in the dollar.
But within just a few months, the exact opposite had happened. Now, George was facing not only public ridicule but also the grim reality of Quantum Fund suffering massive losses due to the miscalculation.
Yet, despite everything, George Soros showed no signs of anxiety. There was no fidgeting, no furrowed brows. Instead, he calmly brought the wineglass to his lips, taking a slow sip before speaking again.
“Good thing we set up a safety net for a situation like this.”
“I agree,” Rodney said, leaning forward with a more serious expression.
“But for the option terms to trigger, the exchange rate needs to break past 95 yen. As I mentioned earlier, the resistance is quite strong.”
George’s lips curled into a sly smile.
“The tougher the battle, the greater the reward.”
Then, with a glint of something darker in his eyes, he added,
“And resistance? It’s nothing that can’t be crushed with enough force.”
Rodney’s gaze met George’s, his voice steady but laced with concern.
“If the exchange rate spikes too quickly, the Bank of Japan might step in to intervene directly.”
George set his wineglass down, leaned back in his chair, and asked, his tone laced with meaning,
“You know what they call me, don’t you?”
Rodney responded without hesitation, his voice carrying a note of reverence.
“The man who brought the Bank of England to its knees.”
Leaving a mark on global economic history wasn’t something just anyone could achieve. Naturally, Rodney’s respect for the man sitting across from him was undeniable.
“As they say,” George mused with a faint smirk, “the first time’s hard. The second? That’s easy.”
Catching on swiftly to George Soros's intent, Rodney straightened his posture, his demeanour sharpening.
“If you manage to make the Bank of Japan raise the white flag after the Bank of England,” Rodney remarked, “you’ll be rewriting the legend itself.”
George chuckled softly, his eyes fixed on Rodney with a glint of pride.
“It’s a legend we will create together.”
Despite being well into his sixties, George’s eyes sparkled with a vigour that defied his age. Rodney, buoyed by the older man’s undiminished energy, allowed a smile to creep across his face.
“A legend we’ll create together… Just hearing that lights a fire in me,” Rodney admitted.
Finishing his meal, George dabbed at the corners of his mouth with a napkin before setting it neatly on the table.
“With Japan reeling from the earthquake, this is the moment when the Bank of Japan is at its weakest. Don’t let this opportunity slip. Restructure the plan and bring it to me.”
Rodney nodded, his mind already racing through scenarios.
“When should I have the report ready?”
“The sooner, the better.”
“I’ll have the proposal on your desk first thing tomorrow morning.”
Noting how smoothly Rodney had adapted to the shifting circumstances—already preparing a Plan B—George’s expression softened with approval.
“This is why I like you,” George said with a rare warmth.
As he regarded Rodney, the man he considered his successor, George’s eyes gleamed with trust. But then, as if struck by a sudden thought, he shifted gears.
“We’ll handle Japan as discussed, but I recently came across an intriguing paper. You should take a look when you have time.”
Though George Soros was a titan of Wall Street, his passion had always leaned more towards academia. He harboured a strong desire to have his economic theories recognized in scholarly circles. Reading economic papers remained one of his few consistent hobbies, even amidst his high-stakes investments.
Rodney, well aware of this habit, responded casually without overthinking.
“The fact that you’re mentioning it must mean it’s something special.”
“It’s titled The Correlation Between Technological Advancement and Economic Crises. To sum it up: as technology advances, information spreads faster, and with it, fear and uncertainty propagate more rapidly. This, in turn, amplifies the psychological impact on investors, making economic crises more volatile than in the past.”
Rodney let out a low whistle, genuinely intrigued.
“That’s a fascinating perspective.”
George nodded, his expression thoughtful.
“It aligns with my view—that people’s understanding of the world is inherently flawed. Predictions rarely match reality, and that gap plays a critical role in how situations unfold.”
“That explains your interest,” Rodney said with a smirk.
“Even aside from that, it offers some novel insights that could be valuable for our investments.”
“Who authored the paper?” Rodney inquired.
“Professor Frank. You probably know him.”
“You mean Philip Frank? The Nobel laureate from Harvard?”
George nodded again.
“That’s the one.”
“If it’s Professor Frank, his work is respected not just in academia but on Wall Street too. I’ll definitely have to read it.”
But then George added something unexpected.
“Interestingly, it wasn’t just Frank. There was a co-author.”
“For someone to co-author a paper with Professor Frank, they must be a highly distinguished scholar,” Rodney mused.
But George’s response caught him completely off guard.
“I thought the same,” George Soros admitted, his voice tinged with amusement. “But when I looked into it, I was shocked.”
Rodney stared, puzzled. There was a peculiar glint in George’s eyes now, the kind you’d see in a child discovering a new toy.
“Turns out, the co-author isn’t a renowned professor or scholar from some prestigious university. It’s a young man who graduated from Harvard just a few years ago.”
“What? Is that true?” Rodney’s eyes widened in disbelief.
“I know it sounds like a joke, but it’s real. I couldn’t believe it myself, so I double-checked, even triple-checked. It’s a fact.”
“If that’s true, he must be a phenomenal genius.”
“Well, according to Professor Frank, if that young man had stayed in academia, he’d have won the Nobel Prize someday, just like him.”
Rodney raised an eyebrow. “You mean he’s not in academia anymore?”
“Nope. Graduated from Harvard and returned to his home country. That’s why I’m bringing this up. I’d like to scout him for our fund. What do you think?”
Rodney didn’t hesitate. A talent endorsed by a Nobel laureate needed no second thoughts.
“The more brilliant minds we have, the better.”
But then a question flickered in his mind.
“If he returned home after graduation, I’m guessing he’s not American?”
George nodded. “I heard he was an international student from South Korea. His name was… right, Seok-won Park.”
The name sparked a memory. Rodney’s brow furrowed briefly before realization struck. His eyes widened, and a sharp breath escaped his lips.
“Ah.”
George’s expression tightened. “What is it?”
“If it’s the same person I’m thinking of—and I believe it is—working with us might be impossible.”
George’s eyes narrowed. “And why’s that?”
“Do you remember Eldorado Fund?”
“The one that made a killing with bonds recently?”
“They’ve also raked in impressive profits trading Mexican pesos and yen,” Rodney added.
George nodded. Eldorado Fund has been making waves on Wall Street in recent years with astonishing returns. Even he had taken notice of them.
“Don’t tell me he’s already been recruited there,” George muttered, his brow furrowing deeper.
Rodney let out a dry chuckle.
“Not exactly. Seok-won Park is the owner of Eldorado Fund.”
“What!” George’s eyes nearly popped out of his head.
“Are you serious?”
Rodney nodded gravely. “Dead serious.”
For a moment, George could only stare, and then a bewildered laugh escaped him.
“I always wondered how a rookie fund could post such insane returns. But now, after hearing this, it all makes sense.”
Rodney smirked. “Same here.”
Rodney, who had long suspected that it wasn’t Andrew but Seok-won leading Eldorado Fund’s investment strategies, now felt his suspicions confirmed.
“So, he’s the head of a competing fund…”
Rodney mused, shaking his head. “You’re right—it’ll be tough to bring him on board.”
George Soros clicked his tongue, clearly disappointed.
“Still,” he said with a wry smile, “this just makes me even more curious about him. I’d love to meet him someday if the opportunity arises.”
