How I Made a Killing in South America (2)
After the meeting, Eugene picked up the phone and dialed the familiar hotline number.
The recipient was President Drump of the United States.
Of course, he had the authority to approve the investment, but committing $10 billion—with a 10x leverage multiplier—changed everything.
*If I eat too big, I might choke.*
Eugene took a deep breath and began the call. He informed Drump that he planned to invest the $10 billion raised through national bond issuance in a dollar inverse position with 10x leverage.
If Drump opposed the plan, Eugene had intended to scale it back.
[It’s fine. Do as you like.]
His response was surprisingly cool.
“…Is it really all right?”
Eugene’s voice carried a note of disbelief.
[In the capitalist market, you can’t stop someone from making a legitimate investment.]
“We might even turn a huge profit on our side. From the American perspective, that would mean a massive loss.”
[If you make a lot, share the profits. What are you worried about? That’s the alliance, that’s friendship.]
A flattering reply that made Eugene chuckle softly.
“…If the investment succeeds, I’ll involve American companies in the infrastructure projects that will come later. At the same time, let’s push forward with the construction of the Drump Hotel and Resort. American firms entering San Marcos will need entertainment facilities.”
[Puha ha ha, you’re quick on the uptake. I like that.]
With the negotiation wrapped up after appropriately accommodating Drump’s wishes, Eugene sank deep into his chair.
“Are you the operator of the leading room or something?”
*
New York housed the beating heart of global finance.
The so-called Wall Street. Traders at the world’s major financial institutions were anxiously awaiting the Federal Reserve’s interest rate decision announcement just three days away.
“Employment figures came in too strong. Unemployment dropped.”
“Damn it, then the Fed has a reason to raise rates.”
“To tame inflation, they have no choice. Chairman Powell will unleash a barrage of hawkish remarks.”
“Even if Drump squeezes as hard as he wants, Powell won’t budge.”
The market’s predictions converged on a single point.
An interest rate hike.
That would mean a rise in the dollar index.
“Boost the dollar buy positions! This is the opportunity!”
“Dump all emerging market currencies! Switch to safe dollars!”
“Invest in the rise!”
Wall Street traders began buying dollars en masse.
And the ripple effect hit San Marcos like a tsunami.
“Your Excellency! The dollar index is rising!”
San Marcos’ bet was $10 billion. The position was an inverse bet on the dollar’s decline—with a staggering 10x leverage.
In other words, a mere 1% rise in the dollar index would erase $1 billion, or 10% of the principal, into thin air.
And in reality, San Marcos’ investment fund had already turned to -$9 billion.
The numbers on the monitor were turning stark blue, yet Eugene showed no reaction.
“......”
But that was only the surface. Inside, Eugene’s mind was already shattered and scattered like dust.
*Wait, what is this Trump-type nonsense? He’s talking about bringing it down!*
His hands trembled and his legs felt unsteady.
*Should I cut my losses now?*
Should he call the Trump-type and demand a draw?
And two days later.
At the moment the loss had climbed past $9 billion and touched $10 billion.
[Jerome Powell is a disaster! He’s killing our economy! If we don’t lower interest rates immediately, I will use every means to fire Jerome Powell and destroy the Fed!]
An unprecedented situation unfolded when President Drump publicly threatened to dismiss the Fed Chairman and pressured for rate cuts.
Its destructive power was nuclear.
“Eh, eh?”
Wall Street plunged into panic.
“Have you seen SNS? Drump is really losing it!”
“Dismissing the Fed Chairman? Is this even real?”
“It’s not important right now! Uncertainty has exploded!”
A senior fund manager roared with veins bulging.
“The President attacked the Fed! This is a matter of dollar trust!”
“Then what about interest rates?! How are they going to be handled?!”
“Interest rate hike? Isn’t it saying to immediately lower rates and print money!”
Interest rate hikes? Price stability?
Those concerns no longer mattered.
“Does anyone have a line to the Federal Reserve? Go check the atmosphere!”
“The Fed says they are carefully considering President Drump’s remarks!”
“Damn it!”
The fear that the Fed might bow to Drump’s political pressure swallowed every piece of good news whole.
“Get rid of it now! Liquidate all long positions!”
“Sell! Sell everything!”
Traders simultaneously slammed the sell button.
Of course, San Marcos’ account, which had bet 10x on the decline, flipped to positive.
The -10% return shot up through 0% to +10%, then +30% in an instant.
“Your Excellency! It seems the investment succeeded!”
As Ricardo had said, the money was being recovered in a flash.
“I…”
Eugene finally exhaled the breath he had been holding and sank deep into his chair.
“I said it would drop.”
It hadn’t at all, but to Ricardo and Isabella it sounded merely like a calm, low voice.
And the next day, just an hour before the Fed announcement.
“100%! We achieved $10 billion in profits!”
The investment that Eugene had borrowed from South America had become a double.
If it continued like this, 150% or 200% returns were not even dreams, but Eugene issued calm instructions.
“Senior Secretary Ricardo, sell every product you’re holding right now.”
“…Huh? But if I hold just a little longer, the Fed will announce rate cuts and the return will be maximized, right?”
“No. We cannot place money containing the future of the nation on a ship battered by uncertainty. The profit is already sufficient now, isn’t it?”
A decision born of extreme caution.
Eugene thought.
*I can’t fully trust the leading room operator.*
From now on, he would believe only half of Drump’s words.
Ultimately, at Eugene’s order, Ricardo called to close the position, and San Marcos’ investment was finally shut down.
And.
[Breaking News: Fed to freeze benchmark interest rate… Dismissing interest rate cut expectations]
[Powell Chairman: “I will not succumb to political pressure. Inflation control comes first.”]
The Fed’s decision was to freeze interest rates.
A policy that directly contradicted Drump’s will to lower rates no matter what.
[Breaking News: President Drump nominates new Fed Chairman candidate.]
In response, Drump took a bold step to name a new Fed Chairman, but Jerome refused to yield in the end.
It was the moment Drump’s boast about lowering rates collapsed.
Then the market calmed and began buying dollars again, and the plummeting dollar index drew an upward curve from the exact point where Eugene had sold.
“Ah…”
Ricardo, staring at the graph, sat down with a thud on the floor.
If Eugene had been greedy and held even one more day?
Not only the profit, but there was a precarious situation where he might even have to return the principal at a certain level.
He thought.
*His Excellency predicted everything…!*
Without that, how could such miraculous results have come about?
Isabella looked up at Eugene with an expression full of emotion.
On the other hand, Eugene turned his chair and silently gazed out the window.
In truth, his legs had simply given out and he could not stand, but the mysterious atmosphere of the dimly lit office lent an almost supernatural air.
The aides’ eyes had moved beyond respect into the realm of faith.
And Eugene, looking out the window,
*It seems a bit green…*
He resolved never to invest national funds again.
*
The next morning. Presidential Palace conference room.
The expressions of the emergency-summoned cabinet members were frozen with tension.
In such cases, it was usually one of two things.
A major crisis had struck the country, or…
*Did he intend to purge us?*
*After working so hard, are we not being sent to the mines?*
*What did our kids secretly do behind my back?*
Eugene had made a big decision.
The senior secretaries could not hide their unease, but the man seated at the head of the table remained unnervingly calm.
Rather, the corners of his mouth were subtly lifted.
Eugene lightly cleared his throat.
“Why are everyone’s expressions so strange?”
“Ah, no. Because of the sudden summons, I thought something had happened…”
“Something did happen. A very big thing.”
The senior secretaries’ spines chilled at Eugene’s words.
Eugene signaled to Ricardo, the Finance Senior Secretary standing beside him.
“Senior Secretary Ricardo. Please announce.”
“Yes, Your Excellency!”
Ricardo unfolded the result report with trembling hands.
“Starting from 9:00 AM today, the management of the funds raised through national bond issuance has been terminated.”
Fund management?
The ministers murmured. Hadn’t they said the money from the bond sale was for infrastructure?
“By Your Excellency’s order, we invested $10 billion of the funds in a dollar inverse and the final return rate is… 101.4%. The profit totals $10.14 billion.”
Silence.
Perfect silence.
They said that when someone was too surprised, they did not scream but held their breath, and that was exactly what it was.
They had earned $10 billion?
In just a few days?
By leveraging borrowed money?
The senior secretaries stared at one another’s faces in disbelief.
Clap clap clap clap—
Then someone began to clap, and soon the conference room erupted with standing applause as if they were about to leave.
“Truly amazing!”
“Heaven must have sent you to San Marcos!”
“How could you have such foresight!”
The senior secretaries’ eyes had changed to almost fanatical devotion beyond respect.
Of course, because $10 billion was an astronomical sum in this poor country.
Amid the torrent of praise, Eugene feigned humility by raising his hand.
“It was merely good luck.”
When the result is good, the process is glorified.
Eugene did not miss this atmosphere and immediately moved to the main point.
“Enough self-praise. Now we have to use this money.”
Eugene grabbed the gavel and pointed to the screen.
Bold letters [San Marcos 6-Year Economic Development Plan] floated on the display.
“Since money has been generated, I plan to accelerate the plan.”
Eugene’s eyes burned with intensity.
“From today, I officially announce the establishment of the San Marcos Electric Power Corporation. And of the $10 billion earned this time, I will pour $3 billion into energy infrastructure.”
The ministers swallowed dryly. A $3 billion project. An unimaginable scale.
“I will build a large-scale solar power complex on the plain near Libertad. At the same time, I will begin construction of the power transmission and distribution network in preparation for the future nuclear power plant.”
Eugene tapped the map.
“The power produced here will become the engine that drives our industry in the future.”
The Construction Minister raised his hand, face flushed with excitement.
“Your Excellency, then what will the period be…”
“As fast as possible.”
Eugene cut him off firmly.
“Immediately, Senior Secretary Aman, post the bid announcement. Only for American companies.”
“Your Excellency, solar modules are cheaper in China than in the US. The price is nearly three times higher.”
“We earned $10 billion in the United States. If we don’t offset it to some degree, the relationship between the two countries may freeze rapidly.”
Aman, who had just understood, nodded.
“…Indeed, that would be the case.”
“Instead, take care of quality and time.”
“Quality and time… you say?”
“Yes, entrust it to the place that can deliver it as fast and perfect as possible. Clearly specify in the bid conditions.”
“Yes, understood!”
“And… Senior Secretary of Construction.”
“Yes!”
“Secure the site first. The basic construction must be finished before the bid.”
“Understood!”
“Senior Finance Secretary, prepare the budget execution plan.”
“Yes!”
“And Chief Secretary Isabella…”
Every time Eugene’s instructions fell, the responses rang out sharply.
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