Reborn in Tokyo: From Heiress to Global Tycoon

Chapter 224 Heavy Snowflakes

On the right side of the long table, Saionji Masato pushed up his gold-rimmed glasses with one hand, his expression solemn.

"If all the valuable capital of Japan's major commercial banks were forcibly locked up in those traditional zombie companies that exist only to prolong their existence..."

"This will create an extremely terrifying crowding-out effect. You see, banks have a physical limit to their credit lines. When all the funds are sucked dry by this quagmire... semiconductors, internet communications, and all sorts of advanced manufacturing industries..."

"These high-growth emerging industries that truly need massive financing to participate in global competition will face a credit crunch. In order to fill the gaps in old debts, major banks will inevitably become reluctant to lend to emerging industries."

"The truly innovative entities that represent the future of the nation will starve to death because they receive absolutely no support!"

The atmosphere inside the strategy room was extremely oppressive.

Following Satsuki's progressive guidance, countless scattered fragments of economic logic were pieced together in the minds of executives such as Shuichi, Endo, Eguchi, and Yanai.

A desolate scene of desolation and decay unfolded before everyone's eyes.

What will Japan's future look like?

Satsuki put the black marker back into the pen slot under the whiteboard.

"Smack."

She turned around and placed her hands on the armrests of the leather seat.

"The Ministry of Finance is trying to buy time. What they will gain in return is decades of structural stagnation in the country's total factor productivity."

"Non-performing loans are difficult to liquidate in a substantial way, and the zombie companies and the political iron triangle will form a long-term bond of interests. Deflationary expectations will solidify as a result, completely changing the consumption habits of the next generation of citizens."

"Once we get bogged down in the mire along with this country..."

Satsuki's voice was very soft.

"While capital from Europe and America is rushing to develop next-generation information and communication technologies and high-end manufacturing, Japan's resources are being used to feed a series of rotting zombies."

"This once-shining economic fortress will be slowly and gradually abandoned by the global wave of industrial upgrading, resulting in an irreparable loss of ten, twenty, or even thirty years of national fortune."

Everyone felt a chill run down their spines.

The Ministry of Finance's desperate attempt to whitewash its delaying tactics is, in reality, a slow and deadly poison that will cause Japan to decline and perish through gradual blood loss.

"A short, sharp pain is worse than a long, drawn-out one."

Satsuki sat down again in the large leather swivel chair.

"Choosing to procrastinate for the sake of superficial stability means that we will be dragged along and rot in the quagmire by this stenching zombie for the next few decades."

She interlaced her fingers.

"The only option is a hard landing."

"Use the most devastating avalanche to shatter everyone's illusions in an instant. Destroy the false balance sheets in a flash. Make the companies that should go bankrupt go bankrupt immediately, burst the abscesses that are covering up bad debts all at once, and completely dismantle the old political iron triangle."

"The old order completed its market clearing during the hard landing, and the old zaibatsu were stripped out. Only the Saionji family, with its massive cash reserves, was able to take over the foundation of the country's emerging industries on the ruins of market reconstruction and establish our new order."

Upon hearing this, all the executives present sat up straight, their spirits lifted.

"Since the authorities want to cover up the tragic nature of this macro-crisis and attempt to deceive the public."

Satsuki began issuing orders.

"We'll tear off this fig leaf ourselves."

"First, we need to wake up the people."

"Uncle Masato. Utilize all of Saionji Media's clandestine media matrix, gossip magazines, and financial tabloids to fully expose the true identities of the four deceased at the Jingwang Plaza Hotel and the underlying debt chain."

"Make all the data public about Matsuura Construction's high-interest leverage, the liquidation of the underlying assets of foreign investment bank wealth management products, and the deadlock data in options trading."

"We must portray this fatal fall as the first death knell for the collapse of the entire Japanese financial system. We must clearly tell all retail investors in Japan that even the top elites who control core resources have been hanged, and the chips in their hands have become worthless."

Satsuki picked up the slightly chilled Darjeeling tea from the table.

"Once the market panic is fully ignited, the market will accelerate its collapse." She looked at the slightly cool tea in her cup, her tone calm, "The implied volatility of the $300 billion in notional put options hidden in the Cayman Islands will surge abnormally. Our offshore accounts can reap astronomical profits in a very short time."

"At the same time, the massive sell-off will completely destroy the asset valuations of existing domestic companies. It will render the stock prices of those old conglomerates worthless, physically destroying their ability to resist us."

Satsuki gently placed the teacup back onto the sandalwood tray.

"When the Ice Age truly arrives, the Saionji family will be able to use their overseas funds to legally take over those high-quality bankrupt companies and large commercial banks at extremely low prices. They'll have prepared an excellent hunting ground for us in advance." (Note: The above are all results under ideal conditions.)

A brief silence fell over the strategy room.

Xiu, sitting at the head of the left-hand seat, placed his hands on the table. He looked at the deduction conclusions on the whiteboard, his fingertips slowly rubbing the back of his hands.

"Satsuki. Triggering panic can indeed maximize profits." Shuichi slowed his speech slightly, his gaze passing over the black glass conference table. "However, I think you also understand... if we take the initiative to become the trigger point, it's tantamount to declaring war on the vested interests of all of Japan."

"After Takeshita Noboru's downfall, Osawa Ichiro finally took over the power of his faction. He is currently extremely eager for political stability. If you force him to go to the Diet to expose the truth, facing such a desperate situation of being dragged into it, he will most likely turn around and bite back."

Xiu Yi leaned forward slightly.

"Once the three major financial groups and the bureaucrats of Kasumigaseki realize that we are deliberately undermining our core interests, they will immediately put aside their prejudices and join forces to suppress the Saionji family in order to protect themselves. The chances of winning a single clan directly confronting the entire national machine are too low."

Satsuki sat quietly in the leather swivel chair.

She lowered her eyes slightly, looking at the cool, amber-colored tea in the bone china teacup in her hand.

The cup reflects the straight band of light from the cool-toned LED tube at the top.

"Father is right."

Satsuki's voice was calm.

"The Saionji family is not currently large enough to openly overthrow the entire old ruling class. It would be unwise for them to be the one to smash the plate."

She extended her right hand, gently pinching the cup handle with her index and middle fingers. With a slight flick of her wrist, she placed the teacup back smoothly onto the rosewood tray.

"We don't need to go to war with anyone."

Satsuki raised her eyes, her gaze sweeping over the crowd from the long table.

"Take a look at our 'allies' around us. At our suggestion, Mitsubishi's Hiroya Iwasaki signed the Rockefeller Center acquisition and is frantically issuing corporate bonds in Europe to hoard dollars. Mitsui's President Yoshino is also very obedient and has begun to withdraw loans from high-risk clients like Matsuura Corporation."

"Moreover, quite a few people smelled the stench in the air."

Satsuki interlaced her fingers, her elbows lightly resting on the armrests of the leather seat.

"Transferring assets, cutting off credit, hoarding cash. Everything they are doing now is perfectly in line with a capitalist's rational self-preservation before a crisis hits."

"When there is less and less oxygen in the room, all intelligent people will instinctively squeeze towards the exit."

"We just need to join them."

"Using the most common-sense and impeccable business practices to exacerbate this ongoing oxygen deprivation."

Endo looked at Satsuki with a solemn expression.

"Does the young lady mean we should continue to conceal our true intentions and follow the market trend to scale back?"

"It's drained."

Satsuki also looked at Endo.

"Executive Director Endo is preparing to cut off all credit terms for external companies from all subsidiaries of the Saionji Group. He demands that all downstream partners in the supply chain immediately settle their outstanding payments in cash. He also orders a halt to any form of bridge financing."

"Uncle Zhengren. Cancel all aggressive short-selling orders in the SIS system. Let our shell funds overseas completely integrate into the money flow of Wall Street's major investment banks dumping shares. Like parasites, silently absorb the option chips that are being sold off."

"President Eguchi. Saionji Construction continues to sing praises of economic prosperity to the outside world, and even participates in several land bidding conferences, making it appear as if it is preparing for long-term expansion. But in terms of actual financial transactions, it delays all necessary cash outflows."

The air pressure inside the strategic room dropped to a low point.

The executives' breathing mingled in the quiet space. They stared at the table, their minds unconsciously rehearsing the ultimate outcome of this series of actions.

As Mitsui withdrew its loans, Mitsubishi transferred dollars, and Saionji frantically repatriated cash, Japan's top-tier financial reservoir simultaneously activated its one-way pumping mechanism.

The available liquidity in the market will be completely depleted in a very short period of time.

Small and medium-sized enterprises and real estate developers burdened with enormous debts and relying on new loans to repay old ones to stay afloat will silently collapse in droves because they cannot borrow even 10,000 yen to save them.

The tragedy of Matsuura Construction will naturally unfold in countless corners of Tokyo.

However, no specific source could be found from the outside world.

They will only see that, from some unknown day, the banks will be closed, debt collection notices from partners will surge, and the land they hold will no longer be able to be converted into cash.

Everything happened in a perfectly logical way.

Satsuki stood up. Her hands hung naturally at her sides as she straightened the hem of her dark blue sweater.

"Since this avalanche is unavoidable..."

"Then let us be the quietest, and heaviest, snowflake in the avalanche."