Wall Street of the third generation chaebol

＜ A box that cannot be opened. (3) >

“McKinley’s concerns are reasonable in a way.”

Wall Street, hedge fund headquarters.

I came back to New York. He leaned against the back of the chair.

“The current situation where too much power is concentrated on one individual is not a good structure.”

“Then the antitrust laws…”

“But there’s no reason for me to accept it, is there?”

Looks right.

But should I accept it unconditionally? not. I needed to put my interests first.

“If you take the antitrust laws and split the company, there can be benefits. Standard Oil.”

“Is this standard oil?”

“Chairman Rockefeller’s oil price policy has always been at the lowest price. Since Standard Oil is huge, economies of scale pushed prices madly downward. So, competitors went bankrupt.”

It went bankrupt due to lack of profitability.

Even if oil is drilled and spewed out, oil companies go to the brink when the cost of extracting oil is higher than the price of standard oil.

It’s an industry with huge sunk costs.

If you press the lowest price, all your competitors will go bankrupt.

Just like Amazon.

“We keep pushing prices down to increase the monopoly barrier. We saved even more by signing a rebate deal with the railroad, and getting the Pennsylvania Railroad almost evaporated our shipping costs.”

“If the price of oil rises, there will be strong opposition from consumers. In addition, how do you beat the anti-monopoly law because it has high consumer utility?”

how do you hit

It was split because it was an unfair trade act.

“Standard Oil’s problem isn’t the social ills caused by monopoly. It’s a problem in the previous stage.”

“If you say the previous step…?”

“Unfair trade practices. How many illegal acts were committed while clearing out competitors, and I’m going to go to the goal because of that. It was an obvious market disturbance.”

This is why Standard Oil was split.

Years later, with the courage and effort of a reporter who exposed Standard Oil’s illegal activities, Teddy Roosevelt moved the Anti-Trust Bureau to file a lawsuit splitting Standard Oil into 34 pieces.

In the end, it was sentenced to 34 divisions, and Standard Oil disappeared into history.

“Well, the moment Standard Oil is split under the anti-monopoly law, the price of oil will rise and sales will start to explode. Ironically, by splitting the company, the total market capitalization goes up.”

In original history, Rockefeller’s fortunes were doubled in this way.

“It’s rather advantageous.”

“So, the dissolution of Standard Oil isn’t necessarily a bad thing. It’s not bad, but breaking the monopoly sets a precedent.”

“That’s bad news for us.”

“Well, someday I’ll have to liquidate my stake and distribute my powers, but at least not now.”

“I think so too.”

“The good news is that McKinley doesn’t yet know the details of Standard Oil’s unfair trade practices.”

In other words, McKinley can never split Standard Oil through an anti-monopoly method.

“It’s okay if you don’t get caught even if you engage in unfair trade practices. Standard Oil’s current attitude is doubled in that way.”

The United States has a strictly distinct system of legislative, judiciary, and executive branches.

When the president sees the judiciary and says, ‘Try dismantling him,’ the Chief Justice of the Supreme Court does not say, ‘Yes, I understand.’

It was self-evident that he would raise his middle finger while shouting ‘f*ck it’ with a Buddha-like smile.

“Then, Master, isn’t there anything to worry about? You can’t split standard oil using the anti-monopoly method.”

“There are exceptions. Pretending to be crazy. What if we split it up with an executive order?”

Executive orders are one of the most powerful orders a president can issue. Executive orders should basically be based on laws, and since antitrust laws already exist, they can be dismantled at any time by the legislature or the executive branch.

“If Standard Oil splits, the next target is likely to be me.”

Splitting America’s largest trust.

The trust I have still could not compare to the size of Standard Oil.

If I pretend to be crazy and split the Standard Oil that dominates the whole of the United States, will the President of the United States be afraid of me?

‘I must have heard the iron mace. I need to look after that child. It must have increased my unfounded confidence.’

“But, if the executive order is not passed by the parliament, it’s futile, isn’t it?”

“Did Congress look pro-trustworthy?”

“Isn’t it?”

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Oh no

“James, it’s clear why the US Congress was on a pro-trust line. If not, America would be dead in those days. Those were strange times, and you shouldn’t take the congressman too lightly.”

The Civil War had just ended.

Railroad companies act unfairly at a time when the government has to pour money into the reconstruction project to build railroads. Even if I say that, the seeds are not eaten.

It looks ruined right now.

“The lawmakers had no choice but to take the side of companies because the country (their constituency) had to survive immediately.”

“It makes sense. In the first place, the powers of lawmakers are not so weak.”

“Yeah, the power of lawmakers to legislate anywhere in the world is incredibly powerful.”

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One or two businesses? Local legislators could do it too.

Stealing trust? If we all agreed and passed the bill in the House of Representatives, we could rip them to shreds with an executive order or procedure right away, even next month or next year.

“If the law decides that, we could come up with a bill that would allow the company to be divided by administrative proceedings without going to the judiciary. If you point your finger at ‘you monopoly’, it will be crushed by administrative proceedings.”

“Is that possible?”

I didn’t even know it was possible.

But in the 21st century, I was shocked to see the legislators pushing for legislation to solve the anti-monopoly law as an administrative procedure, saying they would split the Amazon.

It could make the judiciary unnecessary.

“We cannot change the flow of time.”

dilemma.

The greater the national interest in the United States, the stronger the power of the central government. There’s no need to keep an eye on companies. When their hair grows thick enough, the lobsters will close their mouths and pick up the mace.

“It’s a fate I’ll have to face someday.”

The more money we earn, the stronger the power of the central government. It’s foolish to say that you don’t make money.

The Internal Revenue Service (IRS) is opening its eyes, but it cannot evade taxes. If you get caught, there is no soup.

“Is there no way to stop the antitrust laws?”

“There is no way to stop the antitrust laws. If you say split, you have to split. There are no exceptions except litigation.”

America is a capitalist society.

As such, the country is very sensitive to market disturbance and anti-monopoly laws.

The era of reconstruction (the era of plating) was only an exception.

“Then should I sit still?”

James raised his voice slightly as if in anger.

“But you can’t split it?”

“Yes?”

James gave him a puzzled look.

I smiled brightly.

“They will be split only if they are re-elected.”

While the re-election was shaken and confused.

We just need to quickly establish our own order. If the antitrust laws were that strong, we would all need a mace.

‘This is an opportunity.’

what kind of bullshit?

An institution that is a control system on the subject of a financial monopoly chain.

Isn’t that the Federal Reserve (FED)?

“……her.”

James opened his mouth wide in surprise.

***

BIS.

International Settlement Bank.

It is an international financial institution based in Basel, Switzerland. This is a payment monopoly institution that operates SWIFT, a financial network where financial settlements are made around the world, and it is also a secret institution where finance ministers and large bank heads from all over the world gather in secret to carry out a scheming scheme.

An international financial institution that competes with the Federal Reserve System (FED). It looks like a conspiracy theory, but in reality, it is an institution that does a lot of healthy things.

Basel Committee.

After discovering that banks around the world were too vulnerable to a bank run when banks around the world spent them on investments or loans without leaving a single deposit, BIS immediately convened the Basel Committee and signed an agreement.

Equity ratio of 8%.

Why did this suddenly pop up?

“A monopoly and a controlling authority are not mutually exclusive concepts. Father.”

JP Morgan Bank.

After working at a hedge fund, I visited Morgan Chairman John Pierpont. The middle-aged man, who laid his large body on the chair in the president’s room, was listening with his eyes closed.

“Is that what you mean as soon as you arrive?”

“…have you been well?”

“Oh, yes.”

あ.

Chairman John Pierpont Morgan opened his axe’s eyes and looked at me. I don’t think this is the answer you want.

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Oh

It was then that I realized that I was wrong. I immediately got up from my chair and folded my back into a folder.

“I’m sorry. I was careless.”

“…Come here for a second.”

I approached President Morgan.

No matter how much he is a father, he is the chairman, but he will value politeness.

I approached the president nervously at the serious expression on his face.

But unexpectedly, President Morgan began to look at the wounds in my earlobe.

It’s all better now, but Chairman Morgan’s worried eyes were fixed on the spot where he almost got cut in Japan.

“Please refrain from going abroad for the time being.”

“I will stay in New York as much as possible.”

“Okay. There will be a lot of face to face in the future, so I won’t be bored.”

Chairman Morgan smiled bitterly.

“By the way, you must have a lot of trouble, too.”

“That’s right. Now Standard Oil…”

“I came back after making such a big achievement and calling for a fortune, what do you plan to do with my marriage?”

“…marriage?”

“I wonder if there is a candidate who can handle it, but how are you really going to do it?”

“…!!!”

For a moment, silence subsided.

I was sweating profusely with my hands.

get married, get married

If you say I’m married to Dollar, I’ll be beaten until my cheeks catch on fire.

‘…Let’s change the topic, this is a battle I can’t win.’

I hardened my expression.

“That’s not what I’m thinking about.”

“Yeah, well, I was frustrated, so I stabbed it once. Going back to the topic, the president is preparing to split Standard Oil, right?”

“You knew it too.”

Chairman Morgan let out a smirk.

“I’m drooling, saying that I’m going to split you up like that, but it’s strange that you don’t know. Is there any workaround?”

“What did you hear? As I just said. Control agencies and monopolies can coexist.”

Sasasak-

I wrote down ‘control agency’ and ‘monopoly agency’ with a fountain pen.

“Law scholars say that monopoly is not necessarily a bad thing. Monopoly is definitely a way to provide social utility if it works well.”

The greater the monopoly, the stronger the control.

Although strong control has two sides, it means that when it functions as a good function, it is a subject that can produce greater utility than any non-monopoly institution.

So there is order.

“If you think carefully about the National Tax Service, it can be seen as a monopoly institution. Doesn’t it have a monopoly on collecting national taxes? It is invincible because it has the executive power.”

But police are the opposite.

“Police power is muddy with a mix of states, cities, federal states, even the federal government and the militia. Fight for power, fight for jurisdiction. How tiring.”

Competition can be bad.

Have you seen Prisoner’s Dilemma? Competitively trying to live alone, society as a whole may go to the goal.

“In other words, monopolies and control institutions are not mutually exclusive.”

“in conclusion?”

“It operates as a government institution, but it just needs to establish its status as an independent institution led by the private sector.”

FED. FED. FED.

Federal Reserve System.

It is a central bank system created by the Federal Reserve Act, which is a government institution, but is led by the private sector with a stake.

The chairman and directors of the Federal Reserve are appointed by the president, but blindfolded.

The banks holding the stake are world-class bulge brackets (super-large banks), so they cannot be overlooked.

In fact, most of the board of directors of the FED are from bulge bracket or hedge fund managers to the extent that it can be considered as a private institution.

“If we can eat this monopoly and control system, we can be safe from the antitrust blades.”

Control system by large private organizations.

We promised to call this a ‘cartel’.

That’s a government agency.

“If you consider the influence of JP Morgan, it will be swallowed up quickly. If we rather pretend to be a government institution and build a wall between us, we can safely avoid the mace of the anti-monopoly law.”

antitrust law?

How to wield it against a government agency. As soon as that logic is established, the National Tax Service should be split first?

In the first place, the president appoints the chairperson and the board of directors, but your president is also responsible, right?

“If you want to split it, split it. That’s the motto of this operation.”

squeaky.

Chairman John Pierpont Morgan leaned back in his chair. Then he tapped the desk with his fingertips.

Did some time pass?

President Morgan opened his eyes like lightning.

“I need chaos.”

“Yeah, we need to snatch this government agency bill while it’s busy.”

“It’s what you do. Have you figured out a way?”

“My father has also devised a strategy that will bring back memories.”

“memory?”

“Yeah, we’ve prepared the best hand to drop even a flying presidential re-election candidate.”

I smiled.

“Big Bath.”

“…!!!”

The Trigger that triggered the Black Wednesday of the last railroad panic. I was going to fire this bullet at the president once more.

President Morgan opened his eyes.

“Big Bass. You’re saying you’re going to create a massive deficit by collecting all future losses, expenses, and investments.”

“If the shock hits right before re-election, McKinley’s support will be fatally wounded. Could the nominee be replaced by Roosevelt?”

“Yes. But how many trusts will the New York Stock Exchange collapse with a big bass?”

“If I had been in New York all this time, I would have.”

President Morgan, who was silent for a moment after hearing my words, burst into laughter.

“Heh, I’m pretty sure I didn’t go to remote parts of East Asia in vain.”

“father.”

“Tell me.”

“Yes, the earnings of all American-Japanese companies this quarter will be an earnings shock. It was a currency swap attack that no one expected. We confirmed it through the accounting data submitted to the Bank of Japan.”

“Well.”

“Companies that have invested in the Qing Empire are expected to experience an earnings shock due to their huge investment and deficit for the same reason.”

awning shock.

It is said that the company’s performance has been disastrously broken. So, when an earnings shock occurs, the stock price plunges.

But what if the earnings shocks of the United States, Qing Empire and Japan hit the New York Stock Exchange at once?

I raised my index finger.

“The shock was predestined. There was a way to stop it. But I won’t do it. So if you just give me a slight push on your back, you’ll just fall as if you’re giving yourself to gravity.”

awning shock.

big bass.

A booming bubble on the New York Stock Exchange.

What will happen when these three chemical reactions occur?

For reference, a sharp drop in stock prices during this period was always a trigger for panic. It was a time when financial institutions did not have reserve reserves, so the moment a margin call is applied during a crash, a bank run easily occurs.

That’s how the Panic of 1907 happened.

“We will build a fence out of chaos.”

I know.

‘Why did you touch me? Even if I just stood still, the middle would have gone.’

I raised the corners of my lips.

‘It’s a fight you’ve caused yourself.’

so.

Endure evil with strength

＜ A box that cannot be opened. (3) > end