The Highest Level Son of a Chaebol Family - Chapter 352



Only Noblemtl

352. Japan is in an uproar!

The newspapers and broadcasts were all ablaze with the headlines, “Iran’s revolution and the halt in oil production.”

Japan was turned upside down by the news from the Middle East.

Every day, newspapers and broadcasters focused on news from the Middle East.

Every other day, a news special on the Middle East was broadcast, and the front pages of newspapers were filled with articles from the Middle East.

Is it because we suffered so badly from the last oil shock?

The whole world, including Japan, was paying attention to the direction of the Islamic Revolution in Iran.

Because it was unclear what impact this would have on the future of the oil-producing countries of the Middle East.

“Japan’s oil supply is at risk!”

When you turn on the television, you see a hastily scheduled talk show with experts gathered around a table and talking loudly.

“Do you remember the oil crisis that swept the world due to the fourth Middle East war?”

“At that time, Middle Eastern oil-producing countries raised crude oil export prices by 70% and reduced supply to put pressure on the United States, which supported Israel.”

“As a result, the price of crude oil, which was only $2.90 per barrel, soared to over $12. It has quadrupled in just one month.”

“The Middle East could send a huge shock to the markets if it cuts oil production by just 5% per month, rather than through an embargo.”

“Thanks to this, the gates of hell have opened wide for the global economy. In Europe alone, the growth rate has plummeted by two to three times compared to the previous year.”

“Japan was also one of the victims.”

The experts’ words began to get faster and faster.

“Japan’s dependence on crude oil from the Middle East amounts to 77.5%.”

“Do you remember what the inflation rate was during the last oil crisis? It was a whopping 20% ​​per year.”

“It can be said that the Japanese economy has effectively ended its period of high growth, recording -1.2% growth for the first time due to the so-called ‘mad prices.’”

“The heavy and chemical industry was the core of the Japanese economy after the war, but the oil crisis caused this heavy and chemical industry to become the target of restructuring.”

As the sighs of experts grew louder, the viewer ratings soared.

“Not only large corporations but also small and medium-sized subcontractors are expressing fears that they may go bankrupt.”

“The rumor of delisting sounds ominous. There are so many Japanese companies on the global market cap rankings.”

“As soon as we heard about the halt in oil production in Iran, the inflation rate jumped to 10% in just two months.”

“The government is completely unable to respond. It is helpless.”

“This is really a big deal. It looks like this winter in Japan will be very harsh.”

In the end, bitter words came out of the experts’ mouths.

“It is urgent to come up with government-level measures.”

A citizen who was standing in front of the broadcasting station and watching television with them could not hold back and started swearing.

“If this continues, we might really have another oil crisis.”

“Wasn’t there a commotion like this in the Middle East a few years ago?”

“Oh, seriously, how am I going to survive this winter? I don’t have much money saved up.”

The repercussions of the Iranian oil production disruption have spread far and wide.

The sound of wailing erupted from the scene.

“If this continues, the factory will have to stop operating!”

“Bank loan interest rates are going crazy, and they are demanding loan repayments!”

“How much has the rent gone up there? It’s to the point where we have to vacate all the factories and offices!”

“If we continue like this, won’t we go bankrupt?”

“Should we go ahead with restructuring and lay off employees first?”

“There is no answer, there is no answer!”

Eventually, large-scale restructuring began across most of Japan’s industries.

“Did you just fire me because I’m a female employee?”

“I still have a long way to go until retirement, what do you mean by retirement for the elderly?”

“You got fired because you were hired mid-career? What kind of company is this? Is changing jobs a crime?”

“Wow, how come the union only protects regular employees? Are you saying that irregular workers aren’t even people?”

Those who were fired were extremely excited and could not hide their anger.

They took to the streets carrying pickets.

“The government must guarantee job security for workers!”

“Guarantee it! Guarantee it!”

“The company must pay the overdue wages and retirement benefits!”

“Pay me! Pay me!”

“If we keep going like this, we’ll all die! I want to live like a day laborer, working from hand to mouth!”

“I want to live! I want to live!”

Police were mobilized to respond to protests by angry workers.

Acrid smoke rose from every corner of the street and sirens wailed.

Why, why, why!

Even securities firms that display stock prices on one wall have started to display risk warning lights.

“oh my god!”

“How could you fall so low?”

Japan’s stock market was also turned upside down.

“What the hell! The oil industry is going downhill one after another!”

“No matter how much oil production decreases, it’s the same. If it has fallen this much, it’s time for a rebound!”

“If this continues, I’ll end up like a piece of waste paper. I’m screwed, I’m screwed!”

“I thought the big companies would hold on strong… … .”

“Ha, is there chaos in the country? There is chaos both inside and outside.”

Every day is different, every hour is far away.

The Japanese stock market began to plummet endlessly.

On the other hand, when the oil crisis occurred, a market emerged where prices soared without end.

It was the real estate market.

“Wow, Tokyo building prices are crazy! How can anyone afford these?”

“I woke up one day and the prices went up again?”

“The already expensive land has become a real gold mine.”

“Because real estate prices are going up, rents are going up like crazy too!”

As inflation soared due to the oil crisis, liquid assets flocked to safe assets.

The most representative safe asset was real estate.

“Yes, when the stock market is unstable, you should buy real estate!”

“I originally said to bury the remaining money in the ground!”

People rushed to borrow money from banks and buy real estate.

Abnormal rise in asset values, overheated economic activity, reckless money supply, and even credit expansion.

“I’ll give you more money! Sell me that building!”

“I’ll add a premium! I’ll buy that land!”

“Double!”

“I triple!”

Real estate prices are overvalued relative to their value.

People flocked to the bank.

The same goes for real estate agencies.

Before we knew it, the sales office was filled with long lines, leaving no room to stand.

“I’ll put it up for auction.”

“Auction? How can a real estate agency that isn’t even an auction house be holding an auction right now?”

“If you don’t like it, get out. There are only a few items, but there are a lot of people who want to buy them, so it’s right to sell to the person who offers the most money.”

“If you’re not going to bid, get out! I’m willing to buy, so just name the price!”

The real estate bubble started to burst like crazy.

* * *

It was Christmas Eve, but no carols were heard.

A heavy silence fell over the Japanese Prime Minister’s Office.

Everyone had a nervous look on their face.

“Attention.”

The Japanese prime minister glanced around at the political and business leaders gathered in the conference room.

On one side of the table sat the leaders and executives of each political party, including the leader of the Liberal Democratic Party.

On the other side of the table, the chairman of the Japan Business Federation and other heads of large corporations sat.

High-ranking administrative officials above the level of vice-minister were divided into departments and sat in rows on the left and right.

“If things are going this way, we should consider this a second oil crisis.”

The Japanese Prime Minister opened his mouth heavily.

“I guess you can guess why I called you?”

No one could answer easily.

Each case is different.

This was no ordinary matter.

So, they just kept an eye on each other, and no one took the initiative to take up arms.

The Japanese Prime Minister looked at them with cold eyes.

“Japan’s dependence on Middle Eastern crude oil stands at 77.5%.”

That was the problem.

“If there is a disruption in the supply of oil, Japan will be shaken. I called them to discuss how to respond to this.”

No one opens their mouth.

The Japanese Prime Minister pointed out the leader of the Liberal Democratic Party.

“What does the Liberal Democratic Party think?”

“Learning from the lessons of the last oil crisis, our Congress has enacted laws mandating private petroleum reserves and limiting petroleum use.”

“so?”

“So, how about we introduce price control legislation to limit wage increases and stabilize consumer prices?”

“Tsk. It seems like the Congress only thinks about regulating the people through laws.”

The Japanese Prime Minister clicked his tongue.

“What does the Ministry of Trade, Industry and Energy think?”

“We will strengthen policies to promote energy conservation and promote energy resource diversification.”

“What about energy resource diversification?”

“We will contact other oil-producing countries to reduce the problem of crude oil supply.”

“Okay. Then which country should we contact first to sound out its opinion?”

“First of all, if we talk about oil-producing countries outside of the Middle East, then the Soviet Union and… … .”

It was just then.

The door, which had been knocking like a woodpecker, opened wide without permission.

The Vice Minister of Foreign Affairs ran up to me with a pale face and shouted.

“Ouch, we’re in trouble!”

“Why? What happened in the Middle East again?”

“It exploded in the Soviet Union, not the Middle East!”

“what?”

The Deputy Foreign Minister lifted the paper with trembling hands.

It was an urgent report that came from overseas.

“They say the Soviet-Afghan war has broken out!”

Immediately after the Iranian Revolution, the Soviet Union, another oil-producing country, supported the pro-Soviet regime in Afghanistan.

Then the war broke out.

“So what that means is that the Soviet Union’s crude oil production and exports have also been disrupted?”

In other words:

“They say crude oil prices are rising further.”

The faces of the major figures in politics and business gathered here all turned pale.

“What if it was a place that was relatively unaffected by the Iranian Revolution?”

“It would be around Saudi Arabia and the United Arab Emirates.”

“The Ministry of Foreign Affairs is negotiating with those two countries… … .”

Just then, there was another loud knock on the door and the door opened wide without permission.

This time it was the Vice Minister of Economic Planning.

“We’re in big trouble!”

“What else is the problem?”

“Ugh, the bank presidents might come running and declare bankruptcy… …!”

Suddenly? The bank?

The faces of the heads of major corporations in the financial world turned pale.

There is no business person who has not borrowed money from a bank.

He was so anxious that he forgot he was in front of the Japanese Prime Minister and shouted.

“Which bank is worried about going bankrupt?”

“Sumitomo Bank, Aichi Kangyo Bank, Fujisan Bank, Mitsubishi Banking Corporation, Nomura Investment Bank, Sanwa Bank, Tokyo Kai Bank, Mitsura Bank, etc.”

There were more than one or two.

Most of them were global financial institutions ranked among the top companies in the world by market capitalization.

The expressions on the faces of the key figures in politics and business gathered here changed for a moment.

“What is all this all of a sudden?”

“Why are all these great banks going bankrupt at the same time?”

The Japanese Prime Minister could no longer stand it any longer and jumped up from his seat.

“If those banks collapse all at once, our Japanese economy will be completely destroyed!”

A danger warning siren blared in my head.

Everyone had only one word in their heads.

The Vice Minister of Economic Planning wiped his face with trembling hands.

“It is said that those banks borrowed short-term funds from an investment company with conditional repayments to secure the funds needed for real estate loans.”

“so!”

“They said that due to the oil crisis, the conditions have been met and they have been notified that the principal and interest will be recovered immediately.”

“oh my!”

Everyone cried out in unison.

“How big is the loan anyway!”

“It is said that this amount is unmanageable for the banks. It even exceeds the Japanese government’s annual budget… … .”

Everyone’s mouths were wide open.

“Do you know how much the Japanese government’s annual budget is, and how can you say something like that?”

“Why wouldn’t I know that? I’m the Vice Minister of the Economic Planning Agency of Japan.”

“No, is there a company that can lend that much short-term money?”

The Vice Minister of Economic Planning swallowed hard.

“This is JH Investment.”