Exploiting Hollywood 1980
Chapter 479 I can't do that
"Come, come, try the fine cigars I got from the Dominican Republic." Ronald received Bannon, who had just returned from Tokyo, in an old house with an independent yard in the middle of Staten Island.
Bannon, on behalf of Ronald, purchased bullish contracts on the Nikkei Index and gained several times the profit. Both he and Ronald made nearly $50 million each from this big gamble.
Although it may seem like a lot, compared to those hedge fund giants who often calculate their winnings and losses with US$1 billion, this amount of money is like a small fish and cannot make any waves.
However, being small also has its advantages, that is, no one knows about it. Even if the two people mobilized a principal of 5 million US dollars each and threw it all into the market on Friday, no one would notice it. After receiving the necessary profits, Bannon decisively closed the profits and stopped playing with those big funds.
He flew first class on ANA from Tokyo to San Francisco and back to New York. Regardless of the time difference, I came to celebrate their major victory with Ronald.
Ronald cut the thick cigar himself and learned to light it with pine matches for Bannon. He also got one and put it in his mouth, and started puffing away.
"My half of this profit will be kept on the Tokyo Stock Exchange and I will use Japanese yen to buy some stocks. Do you have any recommendations?"
Bannon was in very good spirits, with residual red bloodshot eyes, and his hair was slicked back, like a mastiff that had just finished hunting.
"I don't know, my two allies in Japan, their companies have not been listed."
Kitagawa's Johnny's and the Kadokawa family's Kadokawa Bookstore are both family-run private companies, and it is impossible to accept their shares.
"Well, then I will follow my own path. I advise you to keep the majority of your profits in Japanese yen, buy stocks, buy government bonds, anything will do. As long as the assets are denominated in Japanese yen, our income will at least increase next year. 20%”
"Why?" Ronald's position is behind a very old writing desk. The armchair is in the corner of the room. The blinds on the windows are closed, and only some sunlight shines in through the gaps, one bright and one dark. The butt of a cigar, showing Ronald's position against a dark background.
"I remember that after the agreement was signed at the Plaza Hotel in 1985, the yen had appreciated a lot, right?"
Ronald didn't quite believe Bannon's statement. In less than two years, the yen has risen from 250 to 1 to 150 to 1, and...
"Just at the beginning of this year, the six Western countries plus Spain signed an agreement somewhere in the country. Didn't they prepare to stop the disorderly appreciation of the Japanese yen and the West German mark?" Ronald only spoke to financial news. A vague impression.
The White House Chief of Staff, James Baker, a close confidant of the former Commander-in-Chief, single-handedly took the lead because Nancy's astrologer consultant said that his horoscope was unfavorable to the Commander-in-Chief. Plaza Accord.
But by 1987, the continued depreciation of the U.S. dollar caused Americans to experience unprecedented price increases in household appliances, electronic products, automobiles and other durable consumer goods. These are the strong products of West Germany and Japan, whose currencies have appreciated.
The prices of Japanese products, which used to be of high quality and low price, are gradually rising. Everyone says that this is a kind of invisible, imported inflation.
James Baker didn't understand economics or international trade, but he knew politics well. The meeting held at the Louvre Museum in Bari at the beginning of the year stipulated that Europe and Japan should reduce fiscal deficits, reduce appreciation pressure, and contribute to America's leadership in the Western world.
"The Louvre Agreement," Bannon chuckled. Ronald is an expert in Hollywood, but a layman on Wall Street. "You are right about the first step, but when the financial expenditure is added, it will not be so easy to reduce it." If this happens, neither West Germany nor Japan will be able to complete the task of reducing their deficits, so it will be impossible for their currencies to depreciate against the US dollar.”
Bannon sat opposite Ronald, facing the blinds behind Ronald's chair. There was some sunlight shining on his face, which was very comfortable.
"Why does fiscal deficit equal currency appreciation?" Ronald didn't understand.
"This is monetary banking. It's very complicated. Simply put, government spending and trade deficits will tend to promote currency appreciation."
"Oh, I don't understand that. But we are America. We tell them not to appreciate the value, so they have to obey, right?" Ronald took another puff of his cigar. He really didn't understand international trade, but he did know a little bit. Politically, after all, Japan was a defeated country in World War II, and America stationed its troops there.
"That's true, but now that the stock market is in turmoil, in order to rescue the market and expand liquidity, the Federal Reserve has significantly lowered its benchmark interest rate, which is equivalent to pushing up inflation and pushing the yen to further appreciate against the U.S. dollar."
Bannon moved his buttocks on the chair. He felt that the posture and position facing Ronald made him feel uncomfortable, as if he had seen him before.
"This is what has to be done, there is no choice, so we can wait steadily for the yen to continue to appreciate and make another profit."
"Ah, that's good." Ronald scratched his head, "But why does pushing up inflation mean devaluing the dollar?"
"This is monetary banking. Consumers in our country like Japanese products. Although their currency has appreciated, we don't have a good substitute for their products. So our trade deficit with them is expanding because of the appreciation of the yen. Therefore, the huge trade deficit and the continued depreciation of the US dollar."
"Uh..." Ronald thought to himself that this is so complicated. I can't understand those complicated theories. "You are right. We should hold yen."
"It is to buy assets denominated in yen with yen..." Bannon felt more and more uncomfortable and changed the position of his chair.
"In short, we made a lot of money this time. Will you invest in Hollywood next?" Ronald asked.
"Why not? With so much money, I can invest in Hollywood at the same time and continue to raise funds on Wall Street to set up my own fund."
"Hehehe..." Ronald thought to himself that with so much money, he really didn't have to make a choice. Wouldn't it be bad to have everything?
"Did Solo lose a lot of money? Will his Quantum Foundation go bankrupt and be liquidated?" Ronald thought to himself that he had to thank this Eastern European Jew, the fund manager who wrote the best-selling book "Financial Alchemy". The money that Bannon and I made was earned by trading against him.
"Speaking of which, Solo's short position in Nikkei stock index futures is not as much as imagined." Bannon simply stood up. The chair he sat on seemed to be a head shorter than Ronald. I have to stand up again and not fall behind in momentum. Although your relationship with Japan gave us the opportunity to enter the market, the actual technical operations are still all done by me...
"Oh? He saw something wrong?" Ronald didn't expect Solo to be so smart and didn't lose a big loss like he did in the New York Stock Exchange.
"I suspect that his main funds went to the foreign exchange futures market to bet on the appreciation of the yen." Bannon took a puff of his cigar. This feeling was still wrong. The position where Ronald sat always gave people a feeling of being in control of everything. Standing up seemed like reporting to him.
"The Japanese have so many dollars in their hands, and they are making big acquisitions in America. Now the yen is appreciating, which is a good thing for their chaebols, so there is not much opposition in Japan. Housewives can also travel abroad with their children, and the strong yen is also good news for them. So public opinion also supports it."
"Why do you think this is? If the yen keeps appreciating, their products will only become more and more expensive for American consumers. One day, their company's products will no longer be popular."
"It's still monetary banking, this is called the Triffin dilemma. The US dollar is the world's reserve currency. Whether it is us or our main trading opponent, Japan, we are choosing between appreciation and depreciation.
The more developed their economy is, the more currency they will issue, and then they will need more US dollars as reserves. These US dollars will come to America to buy assets, causing our trade deficit. And in order to eliminate the deficit, the US dollar will appreciate..."
"Well... you are right", Ronald spent a long time, but he didn't understand this complicated monetary banking.
He remembered two points. One is that Americans want to buy more things from the Japanese. To a certain extent, they don't need to produce products to exchange, they just need to print dollars.
On the other hand, if more dollars are printed, Japan will continue to accumulate a large amount of dollars by earning money from exports to the United States. This money must be returned to America to buy assets denominated in dollars. Otherwise, if it is bought as U.S. Treasury bonds and kept there, the annual inflation loss will be very large.
Ronald can invest in Japan with the yen he earns. The dollars in the hands of the Japanese can also take advantage of the appreciation to acquire high-quality assets in Ame, which is a bargain no matter how you look at it.
No wonder the Japanese are now buying a lot of real estate in New York and Los Angeles.
"So have you thought about what yen assets to invest in?" Bannon felt that this position was always wrong, so he came over and asked Ronald to stand up, and he wanted to sit in Ronald's chair.
"Me? I don't understand stocks..."
Of course, Ronald couldn't be as professional as Bannon, who was born as a Wall Street banker, in selecting stocks.
But halfway through his words, he remembered what Warren Buffett said, don't look at the stock price, look at the company's product competitiveness.
I chose Coca-Cola and McDonald's stocks by myself, and I didn't understand the competitiveness of the company at all. I just thought that it would be right to buy stocks of companies that consumers in America and even the world like.
Then what products of Japanese companies are sold all over the world?
"I think I'll buy some Sony stocks for fun."
In America, the most common products Ronald encountered were Sony products. From small Walkmans to large Sony video recorders, except for the Beta format videotapes they promoted, which were not very good, the other products were the best choice in their industry.
"Sony? Their plate is very large, and it's not easy to increase, but it's up to you, it's safer." Bannon was a little disdainful in his heart. After all, he was a Hollywood artist and could only enjoy the dividends of the appreciation of the yen. For him as a director, that was enough.
Thinking of this, Bannon leaned back in Ronald's chair. This seat was indeed comfortable. He sat in the dark background, and the person opposite him had a little sunlight shining on his face through the blinds, and all his expressions were visible.
No wonder Ronald bought such a big house in Staten Island, a place where no one comes. This house is indeed comfortable and suitable for a big boss to handle things. I don't know who built it.
"No, why do I feel that your room looks like a movie I've seen?" Bannon realized. No wonder he felt familiar.
"We've known each other for so long. Is this the first time you've invited me to smoke a good cigar?" Bannon scratched his shiny hair with his little finger. He stretched out a hand and imitated the tone of the characters in the movie.
"I don't remember the last time you invited me to your house for coffee."
Ronald laughed and continued. Bannon finally realized.
"Damn, how did you get this house where "The Godfather" was filmed? This is the room where Marlon Brando sat and listened to everyone asking him to do things."
"Yes, fortunately it's in Staten Island, which was a cheap filming location found by Coppola at the time. I have found a professional prop company in Hollywood and started to restore all the furniture and scenery here, making sure it's the same as when the Godfather was filmed."
"Hey, you guy, when I bring friends here in the future, you have to lend it to me." Bannon knew that many people on Wall Street admired the movie "The Godfather". I especially like to imitate the way the old godfather speaks in the movie.
"Is it expensive?" Bannon touched here and there with satisfaction.
"Not expensive, just a few hundred thousand dollars," Ronald replied with a smile. The land price here is very cheap. In addition to the appearance that looks like a movie, the shots inside were actually shot in a New York studio. Therefore, this place is not well-known. The original owner felt that he had to spend money on maintenance and pay the expensive New York State property tax, so he sold it at a very low price.
Ronald also had to restore the interior decoration himself according to the movie.
"This house also comes with a part of the garden, and there is a larger public garden next to it. I plan to ask the town government if they are willing to sell it. This can be a place for me to entertain friends."
Ronald's pockets are deep now, and he is also very generous when talking about planning.
"Don't you build a swimming pool? Have a pool party?" Bannon looked at Hua's residence.
"New York is not suitable for pool parties. It's freezing in autumn and winter. I plan to go to Los Angeles to get a house with an outdoor swimming pool. Do you want a loft apartment on Fifth Avenue? There is a very luxurious indoor swimming pool there."
"I have to take a closer look." Bannon is still a little unaccustomed to the temperament of Hollywood artists, who are nouveau riche. What's the use of Fifth Avenue? If you have money, you still have to buy a house in the Upper East Side. Then join the golf club there. Those members only accept new members after an old member dies. This is called style.
...
Ronald's agent, Niceta, was able to resume work after her son found a nanny. Paula was also ready to return to work after two weeks of rest.
Tom Cruise's new film, co-starring with Elizabeth Shue, who became famous because of "The Babysitter", will start shooting in New York soon, and will also go to Canada and Jamaica for tropical beaches.
Ronald also received a call from his "old friend" Demi Moore. She hoped that Ronald could start shooting the new film this year and let her boyfriend Bruce Willis play the leading role.
That day, Niceta finally gave her Ronald's phone number and called to negotiate.
"But isn't Bruce's schedule enough?" Ronald said to Demi on the phone. It's time for him to return to Hollywood and make a decision on this project, whether to postpone it to next year or change the role.
"I have a way."
"What do you have?"
"If you agree to one condition, I'll tell you."
"You want to be the heroine, right?"
Ronald guessed what Demi Moore was thinking. She was in love with Willis, not because she wanted to be a housewife. She could also play a couple on the screen with her boyfriend Bruce Willis, who was in love with her.
This gimmick alone would greatly improve her star status. Neither Willis nor Ronald would refuse this opportunity to market the movie for free.
"Yes, my love affair with Bruce on and off the screen can get high media attention from the moment you announced the start of filming, and it will not lack heat until the filming is completed."
"Good idea, but there is a small problem. Demi." Ronald changed the receiver to the other side and put his legs on the table in the corner where the Godfather was sitting.
"What little problem?"
"I can't do that.
It's not because of your relationship with Bruce, but because you can't play a mother of two children well, Demi, I know you. If the heroine is a younger character, I can give it to you, but the family photo of the heroine and her children's husband is a plot twist in the movie, and I can't do anything for you."
"I can really let Bruce join the crew next month to shoot without delaying his stupid TV series." Demi still refused to give up.
"I am very interested in knowing what method can be used to do this. But the role is really not suitable for you, I can compensate you in other ways, Demi."
"Okay, when you come back to Los Angeles, we will talk in person. This matter is not suitable to be discussed on the phone."
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