Wall Street of the third generation chaebol

＜ Mitsui Peace Conference. (2) >

“Detroit, I’m back.”

Mitsui Bank Headquarters.

Samuel Sachs has returned from British Hong Kong. The gold vault, precision factory machinery, and important documents from the Japan Settlement Bank were loaded through Qnard Shipping.

“You’ve worked hard. Did you hear about the Mitsui Peace Summit?”

“They’re talking about it everywhere. You shouldn’t know.”

Sax hung the black hat on the hanger.

“Foreign media have already brought news articles to British Hong Kong. Newspaper reporters, however, are quick. They were astonished that Japan was defeated in one month.”

If it’s outside the UK, is it the Times?

In fact, it is surprising that they knocked out the loser of East Asia, which emerged as a result of the Sino-Japanese War, in one month. It’s because they baked and boiled the Qing Dynasty in one month.

“Haha, if you can hold on to the supply and block it, wouldn’t it be strange?”

“That’s right. But there was one provision that I didn’t understand.”

It’s a clause I don’t understand.

In fact, there were many political provisions in the peace treaty of the Mitsui Conference. There may be clauses that the financier did not understand.

“Article 4 Abolished Hyeonchi Number.”

“ah.”

“Yeah, I understand that newspaper editorials have a structure that can maximize Japan’s divided regional sentiment. But I don’t know what this means economically. If there is a reason, can you explain it?”

Closed Hyeonchi No.

Abolished the prefecture, the centralized system, and revived the federalism of the prefecture. On the surface, it can only be heard for political reasons…

“It’s a lot of money.”

“This article? It’s a lot of money, why?”

“You can tell by looking at the nature of the Meiji government.”

Closed Bunchi County.

“The Meiji government has swept the land tax collection rights of local domains to the central government when establishing the abolished prefecture.

“Does the central government monopolize tax collection power?”

“Yeah, the Meiji government has been investing in industrialization and infrastructure based on that huge tax. This tax has been laying the foundation for the advancement of railways, factories, shipyards, heavy industry, and chemicals.”

huge funds.

In order for a country to achieve rapid industrialization, the central government must monopolize taxes. This is because the infrastructure that will be the basis of the Industrial Revolution costs tremendously.

How would an individual build a steel mill, a railroad, and a port?

First, the government should do it state-run.

After the Meiji government invested a huge amount of money, it has been operating in the form of disbursing the zaibatsu after that.

But this is a way that costs money.

“Then resurrecting Bun again…”

“Yes. Money flows through your wallet like water, but what if the central government’s land tax collection rights, which are the main revenues, are sent back to Bun?”

National infrastructure projects, which require huge amounts of money, were still overflowing in Japan. The central government loses money at the point when additional funds need to be put in.

“I’m going bankrupt.”

“It’s not just bankruptcy, it’s going to go bankrupt. About half of the state revenue is gone, so how do you keep it up?”

The central government will not be able to raise large amounts of capital or invest in industrial development. In the category of economy, I cut off the arms and legs of the Meiji government.

“There is only one way for the central government to overcome this.”

“Privatization Army.”

“Yes, there is no other way than to privatize state-run infrastructure projects and provide them with the central government. Even if they were to sell at a low price, the central government’s finances would suffer a great deal.”

that we eat

“This is a double trap. The first trap is to deplete the central government’s finances by depleting the government’s finances and make state-owned enterprises vomit out.

“The second trap?”

“But, can the current Japanese companies handle this hugely sized state-owned enterprise?”

“…!!!”

there is absolutely no

“This is the second trap. The only company that can buy a state-owned company is us.”

“……”

“Ah, if you need proof, I’ll show you today’s newspaper.”

🥳

I opened up a copy of the Asahi newspaper on the desk and showed it to Sachs, who had hardened like ice.

[Daejangseong, announcing the privatization of state-run railways. “Reducing the scale of the railroad agency and abolishing the regulations on private railroads.”]

[Railway Administration, starting with privatization from Yokohama-Tokyo and Kobe-Osaka sections.]

[The era of private capital has begun.]

– Asahi Shimbun.

“Unlike the US, most of Japan’s railroads are state-owned.”

The Japanese government transferred Bismarck’s system to Germany through the Iwakura delegation.

Germany’s Bismarck system.

Industrialization, science and technology, and a spider web of railroads.

By rail transport, they defeated Denmark, Austria and France. And by investing the compensation, it led to the rapid growth of German industry.

Japan wanted to become a military state like Germany, where economic growth is based on reparations.

Therefore, most of the Japanese railways are state-owned railways. The most important thing in warfare was the railroad.

“But I ended up throwing up all those nationalized railroads.”

“…..”

“Should we scrape this off?”

Shh.

Samuel Sachs reached out.

“After all, holding hands with you was the best choice of my life.”

Tub.

I smiled and shook hands with him.

“You’re welcome.”

***

“Does the bailout committee continue?”

James, who returned, asked me.

bailout committee.

The Bank of Japan Settlements should supervise and supervise the Japan Central Banking Committee, and the question was whether the bailout committee would be spared.

“For the Central Banking Committee to work properly, the bailout has to start working. For now, let’s focus on the bailout committee.”

“Okay, so what do you want to start with? I think the bailout committee has a lot of work to do.”

“A lot.”

Lots of things to make money.

After suffering all this time, it was time to take the sweet fruit.

“Did you list the companies that received bailout from the Detention Board?”

“Yes, I have listed all the companies that the Bank of Japan lends through direct accounts and those held through branch accounts.”

“You have a sense.”

“All of the middle-class and above in the Japanese archipelago were getting loans from the direct depository of the Japan Settlement Bank.”

Direct line of the Japan Settlement Bank.

This is a case where a 100%-owned subsidiary provided a loan.

Japan Settlement Bank – Direct Accounting Company – Line of the company.

These are blue-chip companies, including Zaibatsu.

“The average debt ratio is 1000%.”

“Yeah, it is said that foreign currency debt has increased by about 25 times as the yen fell.”

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Only 25 times.

“It’s solid. Is the yen more durable than you think?”

“Yes, but unexpectedly, if the debt ratio is 1000%, it is 10 times the capital. As soon as the Japan Settlement Bank lifts the payment deferment, it defaults (default) and goes bankrupt.”

“The room is.”

Japan Settlement Bank’s collateral.

A company loaned by a Japanese money broker who had loaned foreign currency by the Japan Settlement Bank. For reference, Japanese banks are national banks and commercial banks whose credit ratings have been downgraded.

Japan Settlement Bank – Japanese money brokerage – corporate line.

Again, these are non-premium companies.

There was Mitsubishi as an exception, but when it was transferred through a deal with Qnard Shipping, the loan was cut entirely.

Actually, thanks to Qnard, I was able to protect the assets of the Japan Settlement Bank.

‘for a moment. What is the average debt ratio?’

“A hundred thousand percent?”

“…..”

“Am I right now? Is this side too high?”

“Yes, the debt-to-equity ratio is over 1000 times the equity. Even the high-interest foreign currency loans are causing the debt ratio to rise vertically in real time. The underlying assets are also stale, but it’s because we have too much debt.”

“It’s serious.”

The moment the payment deferral is lifted.

Japanese small and medium-sized enterprises (SMEs) will be expunged due to public disintegration. When the SME belt is blown away, subcontracting by large companies disappears.

It’s not very, very good, but that’s the situation in Japan.

As an American capitalist, it was very good for me.

first job.

It is an investment shift.

“By the equity conversion, the non-preeminent companies will be owned by Japanese money brokers.”

“Is this a shareholder conversion?”

conversion of equity.

This means that the bank that made the loan converts the loan into stock. In other words, the bank, which used to be a creditor, becomes a major shareholder in an instant.

The company becomes owned by the bank.

Loans disappear.

It’s magic.

“Uh, let’s list the non-premium companies that were acquired through equity conversion like this by restructuring and mergers.

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One non-blue-chip company is in vain, but when 100 companies are merged, the story is different.

A trust is formed by merging companies acquired through equity conversion in units of each.

Then the large trust is completed.

‘It’s a big risk, but no problem.’

not what i do

If it goes bankrupt after merging with Trust as a non-blue-chip company, it is enough to stop losing only the collateral bank.

will explode and die alone.

A bankruptcy bank and the Japan Settlement Bank are in a business-to-business relationship with loans. Their debt ratio is tens of times higher than that of non-blueprint companies due to the nature of the banking business.

If we stop loss, it is default (default) bankruptcy.

“Then what will the blue-chip companies in your immediate line do?”

“They also have a debt ratio of 1000%. Make them directly owned by the Japan Settlement Bank through equity conversion.”

Japanese companies.

All I gulp

“Because in the first place, you have gone through this hardship to swallow up the blue-chip companies.”

“In return for debt relief, all the blue-chip companies are owned by the Japan Settlement Bank.”

“Yeah, now we have to make all the Zaibatsu into our company.”

Sequentially.

I have to get my interests back while revitalizing the Japanese economy.

When this transfer is completed.

It stabilizes the yen and makes corporate finances sound.

What we need here is the Central Banking Committee.

“James, when the equity conversion is completed, we are going to launch the Central Bank Council in earnest. The yen has plummeted for equity conversion, so we need to revive the yen when it is finished.”

second task.

The revival of the gold standard.

With the Bank of Japan in charge of the Central Banking Committee, the Bank of Japan took over the Japanese yen reserves under the pretext of working with the Mint.

The yen we converted to gold convertible.

“But Master, the yen went to the goal like this, can you return to the gold standard?”

James shook his head skeptically.

I grabbed a paper from the desk and handed it to James.

“Let me read it.”

James’ eyes rolled busy.

James, who had been reading the statistical data I had given him for a while, stiffened with a shocked face as if it had been struck by lightning. With a face that seemed to realize something.

“The amount of money released on the market…”

“Yeah. If we combine our gold reserves, would it be worth it? The gold standard.”

“……”

“Can you see about the pando?”

“Yes.”

James exclaimed.

In his eyes, it seemed that he began to see the plate I had crafted to return to the gold standard. I sat down in a chair and drank a Coke.

“At first, the central bank of Japan printed a large amount of yen through the peso currency swap. A large amount of yen would have been released in the market.”

“right.”

When the yen loosens in large quantities, the gold standard is shaken.

“In order to stabilize the gold standard, we need to reduce the money supply in the market. So, in order to absorb the yen, the 1st Tokyo Treaty imposed strict fiscal austerity as a condition.”

“That’s right.”

Even before being hit by a sword, I was just thinking of restoring the gold standard.

“But in order to break the gold standard in Japan, we abolished the gold standard by converting it into gold.”

He was stabbed and turned around and killed the gold standard system.

But if there is a reverse.

By killing the gold standard once, the gold standard was revived.

“Did you absorb a large amount of Japanese yen that was released in the market while converting gold?”

Because I did a lot of gold conversion.

The yen in the market was sucked into the Great Wall.

forced austerity.

The foundation for the survival of the gold standard was laid.

Now, if we ‘rent’ only gold, the gold standard system will be completely revived.

I nodded.

“That’s right.”

“….Oh My God.”

James shuddered.

How the hell do you have to look ahead to do these kinds of work? Now that I see, all the works were going in the direction of consolidating the gold standard, not killing it.

So.

After killing once with currency swap.

In the end, all Detroit master’s actions were moving in the direction of revitalizing the Japanese economy.

“James, I said. Did I really do these things to save the Japanese economy?”

I’m a do-it-yourselfer

‘If you ask who eats the economy of Japan, it’s just the United States.’

save the economy

But it only saves the economy.

“First, we will swallow up the Japanese companies that have gone bankrupt through the equity swap, and secondly, we will restore the gold standard to normalize the Japanese companies that were insolvent.”

Then, the Japanese economy will come back on its own. And all of them are owned by me and the United States.

But what does that matter to the general public and workers in Japan? Even if their company moved to the United States, they ended up in the same job.

Zaibatsu and the Japanese government are the only ones whose billionaires are collapsing.

“The unemployment rate is expected to drop below 5% if US companies start coming in in the future.”

“great.”

It’s getting tight and coming back.

I can hear the Japanese economy normalizing according to my plan.

“When the rough drawings of Japanese companies’ equity conversion and mergers and acquisitions are complete, hand them over to me. As soon as the Central Banking Committee is established, it will have to be sold to overseas consortiums and US trusts.”

“I’ll work on it quickly.”

“Give me some oil for the Great General or the Japanese court. If we touch it, we’re going to pass out.”

“Haha, of course.”

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Oops.

As James was about to turn around, he asked me if he noticed something.

“I had a purpose, but I almost forgot.”

“The dragon?”

“That gold standard system. I think gold mining companies in the vicinity will be listed up because I think it will be operated stably when more gold is secured.”

James handed me the folder I had listed.

“First place on the list.”

“This is the Unsan Gold Mine in Joseon. It is said that it is currently for sale in New York because it is owned by an American corporation called ‘Tongyang Mining Co., Ltd.'”

“Unsan gold mine for sale? I heard that the gold mine is big.”

“It is said that due to the Meiji Depression, it is in danger of going bankrupt without being able to afford the sunk costs of the initial investment.”

“A competitor?”

“No. It seems urgent, so I kept it.”

“You’re talented too.”

If it is a gold mine in Unsan, it will be enough to fill the surplus amount.

“By the way, this Dongyang Mining Co., Ltd. didn’t have a 25% stake in the Joseon royal family?”

“that is……”

James’ expression darkened.

I looked at James’s crumpled face while flipping through the files.

“You said you sold it for only $100,000?”

For reference, the first year’s dividend alone was $530,000. A 25% stake is $130,000.

James added an additional explanation.

tuk.

I dropped the file folder.

I even doubted that I might have heard the wrong thing for a moment at that shocking exchange fee.

The annual dividend alone is $130,000.

What if you hold this stake for 10 years?

$1.3 million in dividends alone.

In addition, the equity value is separate.

Combined, that’s roughly $2.5 million worth.

20 times as much if you have it.

“So, 25% of the stake in the first year’s dividend of $130,000 was sold for only $100,000?”

“Yes.”

I’m at a loss for words.

“…..why?”

***

Korean Empire.

Gyeongbokgung.

“Look, Minister Allen. Jim heard that Japan was devastated by Mirigyeon’s army in just Dalpo Bay. Is that true?”

King Gojong and Lee Hyung personally summoned Allen and had a private meeting. It was an indescribable thrill to see the content pouring out of the newspaper articles.

Qingguk, a trading power of the Korean Empire, was defeated by Japan. However, the Japanese soup was only boiled in Dalpo Bay.

So, how big is the difference in national power between Mi-ri-gyeon and the Korean Empire?

Allen said proudly with a proud face.

“Yes, Your Majesty. Our homeland, Mi-gyeon, destroyed Japan, an emerging power, in the first place in Dalpo Bay. Before that, one of Mi-gyeon’s bank told one of Mi-gyeon’s banks that it was easier because Japan’s economy was already in ruins. more.”

“…a single bank overthrown the country?”

“It is. It is a proud bank of the country called the Bank of Japan Settlement.”

“her.”

King Gojong was astonished.

However, he suddenly remembered one thing and carefully opened his mouth to Allen.

“Dr. Allen, this is Jim. I’ve heard before that Mirigyeon was originally a colony of Yeonggil. They were merchants in Yeonggil. I heard that one company overthrew the empire of India. How big is Yeonggili?”

At the word colony, Prince Allen frowned for a moment, but quickly released it before Lee Hyung-hyung noticed it.

“The empire where the sun never sets. That’s Yeonggil-li, the nickname of the British Empire. Their land is stretched all over the world, and they are the best empires in the world, both in name and reality.”

“Huh. There is no other sound of trembling. If so, how small is the Korean Empire?”

Lee Hyung muttered with a shocked face.

But Allen Corporation quickly appealed to the United States. Even if he died, he did not want his country to be remembered as a colony.

“However, Your Majesty. The sun is setting for the British Empire.”

“The setting sun?”

“Now it is shining the most brilliantly, but it is becoming increasingly difficult to handle the colony. But Mi-gyeon is different.”

“How are you different?”

“As you can see from the Japan Settlement Bank of Japan, Mi-gyeon is the rising sun of the present era.

“Uh-huh. Tell me the main point. The main point.”

“In a nutshell, if you are in the name of investing your money, I think it is right to invest in Mirigyeon, not Younggilli.”

mine gold.

At that sweet word, Lee Hyung’s eyes lit up.

If you take this opportunity to secure a share with your money, it will be a real bonus. Greed began to shine.

“Prince Allen. If you pretend, it’s just pretend. I will never forget your hard work thinking about the future of my Joseon royal family and the Korean Empire.”

“Haha, I’ve been taking care of His Majesty for several years. So, I’ve drawn up a list of companies that are worth investing in Mi-gyeon in advance.”

“Uh-huh. Corporation, what a list. Briefly state the main points. Only the main points. There is no such thing as the best company.”

Duke Allen handed over the list as if he knew it would.

The information was obtained from an executive named James at the Japan Settlement Bank.

In fact, I was going to post a report to Samuel Sachs, but he took it because he was absent for a while.

At that time, I received a list of blue-chip companies, so the credibility is sufficient. He said that his bank even brokered the investment for a fee.

Allen thought.

‘Still, it’s a bit scary to invest my slush funds.’

Bake and boil the mold in a test bed and try to use it with his slush fund, and if the profit is good, let’s go inside.

Prince Allen smiled as if he was a single-minded loyalist for Lee Hyung-jae.

“Currently, one of the largest steel companies in Mirigyeon. This is Bethlehem Steel. It is a superior company that properly sees the special warfare of Mirigyeon.”

＜ Mitsui Peace Conference. (2) > end