Chapter 157: The Start of Inflation
Chapter 157: The Start of Inflation
I had no choice but to lie if I wanted to survive the situation.
―Jo Soo-ah: It must be tough working overtime until this hour. Have you eaten?
―Kim Shin: Yeah. I grabbed some pizza.
“Jennifer is really pretty, isn’t she?”
“Girl groups need to protect the Earth. Girl groups give us courage and hope in life.”
“Hmm. I think I get why you guys like girl groups now.”
The Zero Two dance by the idols was playing on the 110-inch Micro LED television.
I was watching Zero-Two at the office with Oh Myeong-woo, Eddie, and Lee Jong-yeop while chatting on KakaoTalk.
“They’re doing a celebration performance.”
“Oh. That’s huge.”
While Zero Two was going on, performances by various idols took place.
The performance industry, which had been halted due to COVID, and idol groups unable to tour overseas gathered for a massive concert.
It was said to have active sponsorship from Korean companies, including Isung Group.
―Jo Soo-ah: Make sure to eat properly. Don’t ruin your health.
―Kim Shin: Yeah. I’m exercising consistently too. There’s a company fitness center.
―Jo Soo-ah: That’s a relief. I’ll message you later since you’re busy with work.
―Kim Shin: Okay. Thanks.
He set down his phone and turned to the TV.
Male and female idols smiled brightly as they danced energetically to Zero-Two.
The event also featured an impressive series of carefully prepared performances.
Since it was on Earth Channel, the viewer count was prominently displayed.
“The current viewership is 148.02 million?”
“It just started, so it’ll probably climb a lot higher.”
“…….”
Thinking that over 100 million people were watching Zero Two at the same time gave him chills.
“Even popular broadcasts don’t usually hit 100 million viewers.”
“It’s pretty rare. The Champions League final had 170 million, they say.”
Lee Jong-yeop looked it up and shared. Then he added,
“The Olympics, NFL Super Bowl, F1 finale, and Wimbledon tennis final were beaten.”
“…….”
It was astonishing for an idol performance to surpass global events such as the Olympics and major tennis finals.
He had acquired the New York Mets, but maybe the promotional effect was even bigger than owning a Major League team.
* * *
〈K-Pop Idol Concert Lasts 9 Hours〉
〈Earth Channel’s Zero Two Challenge Surpasses 158 Million Viewers〉
〈Tops Popularity Rankings on Earth Channel in 54 Countries Worldwide〉
The Zero Two Challenge hosted by Dream Art Rainbow ended successfully.
A few days later, Isung Electronics announced four new Earth Phones, saying they needed to ride the momentum.
―Vice Chairman Seon Jae-yong: We’ve launched Earth Phone Music, Earth Phone Drama, Earth Phone Movie, and Earth Phone Active as new products.
―Vice Chairman Seon Jae-yong: These are products focused on 16:9 screen ratios, audio performance, battery life, and activity features.
Vice Chairman Seon Jae-yong from Isung Electronics explained the new products via KakaoTalk, but there was some suspicion.
It had been less than a month since the Earth Phones launched, and now they were releasing more in quick succession.
The contract stated they could release various models within a year if Earth Phones were a hit, but there had been no word until recently.
―Kim Shin: They didn’t just take phones Isung Electronics was planning to release anyway and rename them Earth Phones?
It was a reasonable suspicion.
―Vice Chairman Seon Jae-yong: Correct. Branding is extremely important in the increasingly homogenized smartphone market.
The suspicion was spot on.
―Vice Chairman Seon Jae-yong: Our previous brands had strong identities, making changes difficult.
―Vice Chairman Seon Jae-yong: New ventures carry that much risk.
―Vice Chairman Seon Jae-yong: Launching Earth Phone will lead to a major remodeling of Isung Electronics’ smartphone business.
The Earth Phone price would stay around $500 going forward.
Rather than launching at $1,000 and slashing prices heavily, they planned to release at $500 and minimize discounts.
―Vice Chairman Seon Jae-yong: We estimate Earth Phone sales will exceed 100 million units this year.
That could secure as many as one hundred million new subscribers.
Even with overlaps, Isung Electronics could collect three months’ worth of fees.
Some might call a super rich person stingy, but $1.5 billion was enough to acquire a decent company, so there was reason to be pleased.
“Eddie, have you looked over the stuff Isung Group sent?”
App Store preparations were underway.
Mobile optimization for Earth Channel’s SNS and messenger services was progressing steadily.
Eddie was the busiest at the company, so it was just a casual question.
“Yeah, bro. I tore it apart properly.”
“Yeah? Anything usable?”
Isung Electronics had sent an OS they’d already scrapped, so expectations were low.
“It’s good.”
“Good?”
“Yeah. How to put it—it’s like a smartphone OS from the early days. Resource allocation, stability, scalability when running apps are weak, and there’s barely any security. No memory management, so you can’t even leave it on for long.”
“Yeah?”
Didn’t that mean it was terrible?
“But the basics are solid. If they’d kept fixing bugs and developing it, it could’ve turned into something decent.”
In other words, it was like a kindergarten-level OS that was passably okay.
Competitors like Android and iOS boasted high polish.
That’s why even Microsoft had given up on mobile OS, but their goals were loftier.
An OS that ran seamlessly on desktop and mobile, and ultra-lightweight for Pangea Live.
Actual program execution would happen on Pangea Live, so it didn’t need to be complex or heavy.
As long as it had sufficient security and stability, it would suffice.
“I’ll play around with it for now.”
“Yeah. Do whatever.”
He didn’t set deadlines or schedules for Eddie.
If Eddie made it work, great. If he declared failure, that was that.
Pangea Live could run on Windows, Android, or iOS, but there was a desire for their own OS.
* * *
Time flew by.
Just one month, but a lot had happened at the company—and in the world.
〈Earth Resource Joins Acquisition of Luxury Department Store Neiman Marcus〉
〈113-Year-Old U.S. Department Store Chain to Join Earth Resource?〉
〈Neiman Marcus, Hit by COVID, Selects Earth Resource as Lead Negotiator〉
The shopping mall division was proceeding with the acquisition of Neiman Marcus, America’s top luxury department store.
Media reactions were intensely hot.
―Kim Shin: No major issues with the acquisition?
―Alison: Negotiations with creditors are going smoothly. Neiman Marcus employees are demanding job succession.
―Kim Shin: Accept the job successions.
He had no intention of taking jobs from employees.
Factories incurred ongoing losses from equipment and labor if products didn’t sell, even if produced.
But department store staff were essential for normal operations.
―Alison: Understood. We’ll proceed.
〈Earth Resource Acquires Neiman Marcus in Bold Move〉
〈Neiman Marcus Rebrands as Earth Department Store〉
〈Long Lines Form in Front of New York Earth Department Store〉
After buying the department store, they moved on to hotel acquisitions.
〈Pfizer Expects to Supply 300 Million Vaccine Doses This Year〉
〈U.S., Europe Advanced Nations: Half Population Receives at Least One COVID Vaccine Dose〉
〈K-Vaccine Production Hits 600 Million Doses This Year〉
〈Biden Approval Rating Tops 60% on 100th Day in Office〉
〈NYSE Surges Sharply on Improving Economic Indicators〉
The U.S. and advanced nations were accelerating economic recovery with vaccinations.
Meanwhile, another issue had been brewing since February.
〈Powell: “May Keep Zero Rates for 3+ Years to Hit Inflation Target.”〉
Last year, the U.S. government and Fed had pumped astronomical sums into the economy, aiding recovery.
Emboldened, the Fed forecasted inflation below the 2% target for years.
They announced plans to maintain zero rates and keep pouring in massive liquidity.
―Kim Shin hyung warned of a bubble in front of Biden last year.
―Result: Kim Shin <<<<< Fed
―Forget the Treasury. The Fed manipulates global stock markets.
―Fed Chair is the President of the World Economy.
―Why do stocks move with interest rates?
―More big money from investment banks and pension funds than retail. 0.1% yield difference moves billions.
Last year-end, bubbles overflowed in stocks, crypto, real estate.
Economy tanked by COVID, yet stocks hit all-time highs, crypto surged.
‘Is a new era of currency value really dawning?’
Modern Monetary Theory offered one possible explanation.
Governments could print tons of money for stimulus without inflation.
Japan’s long zero rates and deficits were cited as proof.
With the U.S., Europe, world competitively printing money yet inflation dormant, a new era seemed plausible.
‘Did I speak up needlessly in front of President Biden?’
The saying about ignorant conviction being dangerous—maybe it applied to him.
By March, the mood shifted oddly.
〈U.S. Commodity Prices Rise Amid Recovery Hopes〉
〈U.S. Treasury Yields Break Magic 1.75%, Hit 14-Month High Intraday; Inflation Fears Grow〉
〈Powell: “Short-term inflation pressure likely, but transitory and not too high.”〉
Market worries about inflation began emerging.
Media started running inflation articles.
―Is Kim Shin hyung’s worry coming true?
―Inflation talk popping up weirdly often?
―Treasury yields rising suspiciously.
―Fed says no rate hikes for 2-3 years. Keep printing, no worries lol
Then April arrived.
〈U.S. March Inflation Tops 2%〉
〈White House: No Inflation Worries〉
〈U.S. Jobs Data Beats Expectations〉
〈U.S. March CPI +0.6%, Highest in 9 Years〉
〈U.S. Inflation at 2.6%, Beats Wall Street Forecasts〉
May signals showed prices surging too.
〈COVID-Hit U.S. Firms Hike Prices En Masse〉
〈Iron Ore, Copper at Record Highs; Inflation Warnings Amplify〉
〈Fed: “Optimistic on U.S. Economy, Sticking to Current Stimulus.”〉
〈Powell: “Won’t Change Policy Even If Inflation Tops 2% This Year.”〉
Commodities and CPI rose, but Fed stuck to zero rates.
Then June arrived.
〈Powell: “Inflation Higher and Potentially More Persistent Than Expected.”〉
〈U.S. Consumer Price Forecasts Revised Upward〉
〈CPI Beats Expectations, Raising Doubts on Fed Credibility〉
〈Wall Street View: “Need to Confirm Inflation Now. Kim Shin’s Year-End Warning Could Materialize.”〉
〈BOA: “Fed Unprepared for Inflation.”〉
U.S. finance buzzed with inflation talk.
The electronics boom had created semiconductor shortages, container freight costs were nearly ten times higher, and global oil and raw-material prices were soaring.
〈U.S. May CPI Up 5% Year-Over-Year〉