Chapter 265
Chapter 265
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Translator: crow
Chapter Title: MAD
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Not long after Korea offered up won to support the Third World, some countries declared a moratorium.
"Damn it. Without dollars, how the hell are we supposed to pay back our debts?"
Korea swiftly approached these nations with the following pitch.
"If you don't have dollars, you can't trade with the First World anyway. Since things have come to this, wouldn't it be better to focus on intra-Third World trade?"
Conveniently, these countries had the won Korea had given them in hand.
In this manner, Korea dramatically increased the Third World nations' dependence on intra-regional trade.
"Oil, grains, industrial goods, raw materials—we can supply all that among ourselves. Why bother using expensive dollars with their exchange fees? Just use won within the region. We'll minimize the fees as much as possible."
Pyongyang seized the opportunity to lure the countries into creating a won bloc safe from dollar fluctuations.
"That sounds pretty plausible."
The nations found the won bloc idea appealing.
"If we trade only in won, then in a crisis, Korea can step in easily to handle the foreign exchange issues—that's the point."
Korea sweet-talked the governments this way while also waging a public opinion campaign targeting civil society.
"The economic crisis in the Indo-Pacific region this time is an American plot to subjugate Third World countries under their influence. Just watch, and you'll see."
Such information spread rapidly through the media outlets Korea owned.
The public found these narratives persuasive.
"The Americans have been slapping anti-dumping tariffs on us at will from the start. No way they'd let us live well in peace."
Even intellectuals nodded along.
"Isn't the IMF and World Bank already offering dollar loans? Gotta hand it to the Americans—they're cunning."
Since the US had indeed triggered the Third World crisis, the conspiracy theory carried weight.
Washington belatedly grasped the true intent behind Korea's opinion campaign.
"Third World countries rejecting dollar loans? What the hell is that?"
Washington, planning to offer dollar loans to moratorium-declaring Third World nations and tighten the leash, was thrown off by the refusals.
"Public opinion is rejecting the dollar loans."
"Why would the people reject loans? They must know ending the moratorium quickly is best, right?"
"Your Excellency, Third World public opinion believes we artificially created this crisis to subjugate them."
"No way."
"Yes. Korea shaped that opinion."
Washington had sensed something off when Korea, unable to resolve foreign exchange crises for its Third World allies, handed out won anyway.
But to eliminate even the room for dollar disruption like this?
Korea's cunning exceeded Washington's imagination.
Lyndon Johnson let out a hollow laugh at the opponent's shrewd move.
The president reconfirmed that the party's judgment to check Korea was spot on.
"If our Third World friends won't take dollar loans, we can't even attempt to sabotage the treaty renewal. Right?"
"That's correct, Your Excellency."
The cabinet agreed with the president's assessment.
Rather, this offensive had only strengthened the cohesion of the Korea-led alliance.
In such a configuration, Washington's scheme to dismantle the alliance was a pipe dream.
"So, let's end this offensive here."
The president instructed his cabinet to throw in the towel and withdraw from the ring.
The US pullback was immediately detected through interest rate changes.
"The US cut interest rates?"
"The benchmark rate dropped to 11.75%. Based on the Fed's statement, they plan to keep lowering it steadily."
"What's the economic institute's forecast?"
"Target rate around 7%."
That meant abandoning the plan to absorb dollars and shake developing countries.
Lower rates signaled Washington would stay quiet for the time being.
Yi Seong-jun intuited that Washington's attack was over.
"Then it's our turn to move."
At Yi Seong-jun's words, the cabinet's gazes turned serious.
The elderly prime minister beckoned, and secretaries brought in documents.
The cabinet members carefully read the papers distributed before them.
"Th-this is."
Doubting their eyes, they ventured a cautious question.
"Are you really planning to dump US treasuries against America?"
"Does this Yi Seong-jun strike you as someone who speaks idly?"
Dumping US treasuries was tantamount to slapping Washington across the face.
Starting a fight with America when they held the upper hand and could end things nicely?
No ordinary person would dream of it.
"Your Excellency, even so, touching treasuries risks worsening relations with the US side. We must consider the Republicans too."
"If America hadn't acted this way first, I might have agreed."
But not now.
With America openly revealing its intent to shatter the alliance, Korea needed to express displeasure.
What kind of competition with America could they claim without even that?
The cabinet nodded as the prime minister laid out his intentions frankly.
But one thing was hard to accept easily.
"Your Excellency, even so, the amount to dump is too massive."
"If the amount is small, what's the point?"
But.
The bureaucrats couldn't continue.
The sum Yi Seong-jun ordered dumped wasn't trivial.
Not 1 or 2 billion dollars, but a whopping 30 billion.
Realizing the scale, the cabinet members swallowed dryly.
"Remember this. The Republic's expressions of will aren't cheap."
The prime minister was aged, but his eyes remained as sharp as a tiger's.
"We shall obey."
Yi Seong-jun's directive passed the cabinet meeting swiftly.
Days later, the Bank of Korea and sovereign wealth funds began dumping massive US treasuries.
"Sell it all."
At first, institutions and investors from various countries happily bought them up, but they grew horrified at the mounting treasury volume.
"Just how much are those bastards dumping?"
When the sell-off volume piled up past 10 billion dollars, hands began to tremble.
Were they dumping all their treasuries?
The White House was equally stunned.
"How much treasuries have the Koreans dumped?"
"10 billion so far. They're still selling, so it could exceed 20 billion."
Even Wall Street's major banks hesitated to absorb the flood of treasuries.
The Republicans took the situation gravely.
"Looks like the Democrats pissed off the Koreans with their fire-starting. We need to soothe them."
In haste, the Republicans dispatched heavy hitter Richard Nixon, former presidential candidate and congressman, to Pyongyang.
Nixon cautiously broached Korea's massive treasury sales upon meeting Yi Seong-jun.
Yi Seong-jun's response was straightforward.
"If the White House slaps our cheek, Pyongyang has to signal displeasure, doesn't it?"
The fact that the signal cost tens of billions was mind-boggling.
"Your Excellency, Washington fully understands your displeasure. The White House won't act rashly going forward."
"If the congressman says so, I'll pretend to believe it."
Yi Seong-jun ordered a halt to treasury sales on the spot.
By then, 27 billion dollars in treasuries had flooded the market.
"Did Yi Seong-jun really dump 27 billion dollars just because the White House displeased him?"
"That's what he said himself."
Not even breaking Korea's alliance, but retreating after a failed offensive, and still displeased enough to dump tens of billions.
What retaliation would follow if real damage was inflicted on Korea?
In this vein, Democratic think tanks' intel on Korea's retaliation options resurfaced.
"You're saying Korea could actually execute these options? Not joking?"
"You saw it this time. A country that dumped that much treasury because it felt displeased."
Whatever the subtext, Yi Seong-jun had stated it outright.
Would a political veteran like him not know how such phrasing could be interpreted dangerously?
"From the rhetoric alone, it's clear. Yi Seong-jun must be senile."
Whether Yi Seong-jun was senile or not, word spread in US political circles that he could act like a madman when angry.
Jokes about his dementia circulated too.
"Senile, to His Excellency? What insolence."
Yi Seong-jun laughed upon hearing it.
No, he was pleased.
"Exactly the reaction I wanted."
"Your Excellency."
Yi Seong-jun's aim was simple.
MAD.
The madman strategy.
"If others see me not as a rational politician but an anti-American lunatic, they'll tread carefully with my actions."
Both Korea and America held economic "nuclear" options capable of inflicting fatal blows.
In a mutual nuclear standoff, what if one leader appeared mad?
Of course, Washington wouldn't truly believe Yi Seong-jun insane.
But the "what if" would make them hesitate.
That was precisely what Yi Seong-jun wanted.
"If America's hesitation is the price, being labeled a senile old man is worth it."
In the twilight of life, the old man cared nothing for honor.