novelraw Chapter 616: Weeping Japan
Chapter 616: Weeping Japan
[Chapter 616: Weeping Japan]
Around 10:00 AM on the 24th.
This was just an hour after the Japanese Ministry of Finance announced the launch of its market rescue plan.
The Ministry of Finance immediately poured tens of billions of US dollars into the foreign exchange and stock markets, buying, buying, buying.
The Japanese government also organized financial advisory experts to appear on major television stations and publish articles in mainstream newspapers: "Our Great Japan is not like those small countries in Southeast Asia; we are the world's second-largest economic power. Any country, region, or financial institution that dares to maliciously short us, we are confident we can defeat them."
"Our foreign exchange reserves are as high as over 200 billion US dollars, making us the country with the largest foreign exchange reserves in the world, enough to handle any crisis.."
"We will make sure these financial bandits who dare to invade us will never return."
"Soros, Wall Street, so what? If they dare to come, we are confident enough to defeat them. They will only end up returning in defeat."
...Following the speeches of various financial experts, the Japanese public naturally became highly confident, believing this battle was surely won.
Various financial institutions and private funds followed suit, investing heavily to go long in the foreign exchange and stock markets.
However, the international speculators, led by Soros and the Five Major Wall Street Investment Banks, scoffed at this.
We ourselves possess 1.5 trillion US dollars in capital, and in the last few days, we have integrated over another trillion US dollars in international floating capital, bringing the total capital that can act in concert to 2.5 trillion US dollars.
Even if we cannot act completely in unison, as long as our general direction is the same, it is absolutely not something that a mere 200 billion US dollars can successfully rescue the market against.
If you dare to throw out these 200 billion US dollars, don't blame us for happily accepting it.
"Smash it for me." Following Soros's command, more short-selling funds appeared in the Japanese Yen foreign exchange market—sell, sell, sell.
In the time that followed, the Japanese Yen foreign exchange market completely turned into a bloody battlefield, with both sides pouring massive amounts of funds into the fight.
The exchange rate of the Japanese Yen against the US Dollar began to resemble a roller coaster, rising one moment and falling the next.
Did the Japanese Yen exchange rate rise?
It did rise, but before it could gain much ground, it was instantly suppressed, and it might even fall further.
No matter how much capital the Japanese invested, the capital led by Soros and the Five Major Wall Street Investment Banks easily absorbed it.
One day passed.
As of 10:00 AM on the 25th, the Japanese Yen's exchange rate against the US Dollar had appreciated by 0.01% over 24 hours; the two sides had fought to a draw.
However, in just one day, the foreign exchange reserves spent exceeded 20 billion US dollars, and the funds followed in by major financial institutions and private entities were several times that amount... On the 25th, the Japanese Ministry of Finance invested another 20 billion US dollars;
On the 26th, the Ministry of Finance invested another 18 billion US dollars;
On the 27th, another 15 billion US dollars was invested.
...But the short-selling funds led by Soros showed no weakness. The two sides traded blows, and the effect was basically zero. Although the overall exchange rate of the Japanese Yen against the US Dollar jumped up and down daily, the overall rate remained largely unchanged.
As of November 6th.
The rescue funds invested by the Japanese Ministry of Finance had reached a staggering 180 billion US dollars, yet the overall exchange rate of the Japanese Yen against the US Dollar had not improved at all.
In the Skycrest Capital Hedge Fund conference room.
Richard and Willix invited Linton to the conference room again.
"Boss, according to our statistics, the Japanese Ministry of Finance has invested a staggering 180 billion US dollars in the foreign exchange market. Their remaining foreign exchange reserves are nearly depleted. We believe the time to strike has arrived."
"Agreed."
Immediately, the Skycrest Hedge Fund invested 2 billion US dollars, using 30 times leverage to short the Japanese Yen in the foreign exchange market.
As expected, by November 7th, virtually all of the 200 billion US dollars in foreign exchange reserves invested by the Japanese government had been spent, but the exchange rate had indeed been pushed up to some extent.
Conversely, on November 7th, more international speculative funds saw through the Japanese government's weakness and inability to sustain its efforts.
A large amount of short-selling capital flooded into the foreign exchange market that day, and the exchange rate even fell by 0.5%.
On the morning of November 8th, the Japanese Ministry of Finance held a press conference and painfully announced that the market rescue plan had failed.
At this moment, all of Japan's financial companies, investment banks, and the public were completely stunned, with frantic curses and weeping heard everywhere.
"Baka."
"Impossible! How could our Great Japanese Empire fail?"
"It's fake, all of it is fake, this definitely isn't real."
...In contrast, the financial speculators on Wall Street and across the world popped champagne corks in celebration.
With the failure of the Japanese government's rescue plan, Japan's futures, stock, and foreign exchange markets completely turned into delicacies on the international speculators' dining tables.
Soros was particularly elated. In the conference room, raising his champagne with the elite traders of the Quantum Fund under him, he declared loudly: "Partners, Japan is now completely a delicious steak on our plates. Enjoy it to the fullest! Exert all your strength and harvest quickly."
...Skycrest Capital Hedge Fund.
Willix immediately ordered another 1 billion US dollars to be invested, shorting with 50 times leverage.
The Quantum Fund, the Five Major Wall Street Investment Banks, and the global flow of speculative funds were all so excited at this moment they nearly fainted.
The opportunity to aggressively acquire assets from Little Japan had arrived.
They all issued orders to short immediately, competing on speed to see who was faster.
Heaven collapsed, Hell opened, and demons descended upon the mortal realm. Without a doubt, the Wall Street financiers and international speculators at this moment transformed into devils, beginning to feast on Japan, this delicacy.
Faced with massive short-selling capital, the exchange rate of the Japanese Yen against the US Dollar plummeted at a speed akin to an avalanche.
On that day, the Yen to US Dollar exchange rate dropped by 135 Yen to 1 US Dollar, a decline of 7.3%.
Unfortunately, because the short-selling capital was too vast, Skycrest Capital's 1 billion US Dollars invested that day only managed to execute 400 million US Dollars worth of trades.
On November 9th, it dropped another 3.1%.
On November 10th, it dropped another 4.5%... Under the impact of massive international speculative funds, Japan was filled with wails. Not only did the Yen interest rate plummet, but the Japanese stock index also plunged rapidly, soon falling below 15,000 points.
It closed at 14,879 points on November 10th. The total market capitalization of the stock market had fallen to 5.4 trillion US Dollars. In just three days, the wealth evaporated from the stock market exceeded one trillion US Dollars, and the downward trend showed no sign of stopping.
A large number of companies began to go bankrupt and close down. Even major companies like Toyota, Toshiba, Panasonic, and Sony began comprehensive cutbacks, announcing massive layoffs.
The financial industry was even more desolate, with countless investment companies going bankrupt, and innumerable investment managers walking to the rooftops of tall buildings, leaping out into the open.
Even banks could not withstand the losses and began to collapse one after another... The financial market had no tears, and the financial bandits led by Soros certainly had no moral sympathy; in their eyes, there was only endless greed and profit.
The tragic situation within Japan did not elicit any sympathy; on the contrary, more international speculative funds flooded into Japan to begin looting, and more wealth was plundered.
On November 15th, the Yen to US Dollar exchange rate even broke past 155 to 1.
On this day, Willix closed all of his Yen short-selling positions.
In this battle, the short-selling profit in the Japanese foreign exchange market alone exceeded 8 billion US Dollars.
This was not the entirety of the profit. Back at the end of August, Skycrest Hedge Fund had also shorted 1.5 billion US Dollars worth of stock index futures in the Japanese futures market.
The average transaction point at that time was 18,610. By now, the Nikkei Index had fallen to 14,156 points, a decline of over 24%.
Calculated based on the current level, the profit from this 1.5 billion US Dollars had already exceeded 3.6 billion US Dollars.
To ensure that the Nikkei Index continued to fall by the settlement date on December 1st.
Willix prepared to use 500 million US Dollars to find brokers in Tokyo, borrow weighted stocks, sell them on the stock market, and thereby further suppress the stock market.
Many people shared his idea; Soros, the Five Major Wall Street Investment Banks, and other international speculative funds unanimously began to maliciously short the stock market further.
In the Japanese stock market, massive sell orders accumulated daily, stock prices fell repeatedly, and the Nikkei Index continued its sharp decline.
Countless retail investors wailed, and countless institutions wept, but they were utterly unable to stop the rampaging wolves.
Many experts and scholars began to appeal to the Japanese government, demanding that the government issue an order to revise stock market rules and restrict overseas funds from maliciously shorting the stock market.
However, the United States Department of State coldly sent a diplomatic note, stating that the rules of the free market must be respected.
Furthermore, on the 23rd, the Japanese Ministry of Finance issued an order to all brokers, requiring them not to lend stocks to overseas financial institutions.
However, under the intense pressure from the United States Department of State and the Department of the Treasury, this order was retracted that same afternoon.
Massive stock short positions continued to pile up in the market. The Japanese stock market had almost completely lost its ability to resist, stock prices fell repeatedly, and the Nikkei Index continued its sharp plunge.
Finally, at 9:00 AM on December 1st, the stock market opened, and the Nikkei Index had already fallen to 12,517 points.
Although financial institutions in Japan that had bet on a long position earlier tried to struggle in their death throes, they appeared exceptionally pale and powerless against the massive volume of stock short orders.
By 9:10 AM, the Nikkei Index had dropped to 12,429 points.
Finally, according to the rules, the calculated settlement point was 12,473 points.
Based on this point, the 1.5 billion US Dollars worth of Nikkei Stock Index Futures shorted by Skycrest Capital Hedge Fund directly yielded a profit of 3.34 times, with a total profit exceeding 5 billion US Dollars.
Moreover, the 500 million US Dollars worth of stocks borrowed from brokers also earned a profit of nearly 100 million US Dollars after closing the positions during this round of short-selling.
Thus, the first phase of the Japanese harvesting operation concluded in Perfection, and various funds began to withdraw in an orderly manner, leaving Japan devastated.
According to Richard and Willix's estimations, the wealth plundered from Japan during this financial storm was at least over 2 trillion US Dollars.
Of course, Skycrest Capital Hedge Fund also played its part in this. Skycrest Capital alone earned a total profit of 13.5 billion US Dollars in the Japanese market.
And America's harvesting of Japan was about to enter its second phase.
Led by the Department of Commerce, organizing the World Bank and the International Monetary Fund, Wall Street financial capital, and some physical enterprises, they arrived in Japan under the guise of trade exchange and helping Japan out of its difficulties.
In reality, they were targeting Japan's high-quality enterprises, ports, transportation, and other prime resources, investing, acquiring stakes, and carrying out a more covert plunder at bargain-basement prices.
What if they refuse the acquisition or investment? That is impossible, as the United States Department of State, The Pentagon, the Department of the Treasury, and the Department of Commerce are all watching intently.
Of course, this phase of plunder was not something ordinary overseas speculative funds could participate in.
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