I have a debt of 3 trillion, and my creditors are begging me not to die.

Chapter 289 Yang Chen Joins Forces with Wall Street and the Federal Reserve to Hunt Down Hedge Funds in Japan
The bald eagle spokesperson's words quickly spread around the world, and Yang Chen also posted another Weibo post in response to her statement.

"As a defeated nation, what sovereignty does Japan have? According to the Potsdam Declaration, China, the United States, the United Kingdom, and Russia, which inherited the international legal status of the Soviet Union, all have the right to station troops in Japan. Shikoku, Ryukyu, and Tokyo are all occupied and administered by China, while the Osaka region is jointly occupied and administered by China and the United States. As an international convention without time limits, the Potsdam Declaration still has international legal force today. Therefore, Japan is not a sovereign state, and the statement of the US spokesperson is completely unreasonable. Otherwise, the US would..." The presence of Japanese troops in Japan is illegal, and it also denies the Potsdam Declaration and the justice and victory of the global anti-fascist struggle. Is that what the US spokesperson meant? As for South Korea, who doesn't know that their president bows and salutes the US military commander? They don't even have wartime command authority, so where does their sovereignty come from? If the US recognizes these two countries as sovereign states, then their military presence is an act of aggression. Give the US spokesperson another chance to do their research, coordinate their statements, and then talk about whether these two countries are sovereign states.

Yang Chen's Weibo post quickly sparked heated discussions among netizens.

"Mr. Yang, you're very knowledgeable about history. I checked, and the Potsdam Declaration does indeed stipulate that the Soviet Union occupied Hokkaido, the United States occupied Honshu, the United Kingdom occupied Kyushu, and China occupied Shikoku, Ryukyu, and Tokyo, and together with the United States, occupied Osaka. The post-World War II international order was based on conventions such as the Potsdam Declaration. Anyone who dares to oppose the Potsdam Declaration is opposing the world order and the victory and justice of the anti-fascist war."

"Huh? We still have such power? Then why don't we station troops there? Holy crap! Thank you to our ancestors for building up our international standing."

"If that's the case, then bullying Japan and South Korea wouldn't count as bullying, since they aren't sovereign states. At least Japan is confirmed to have no sovereignty."

……

Yang Chen's Weibo post was translated into dozens of languages ​​and posted on foreign websites, quickly causing a huge uproar, with netizens in Japan and South Korea collectively breaking down.

A South Korean netizen commented: "That damned Yang Chen shouldn't spout nonsense. We are a sovereign nation. The US is just our hired bodyguard; they have no right to interfere with our sovereignty. The president's bow is a personal matter, not a national one. As for the issue of wartime command, that's a historical problem; we can't say we lack sovereignty because of that. Yang Chen is absolutely despicable; I really want to kill him!"

A netizen from Japan commented: "I'm devastated. I specifically checked the Potsdam Declaration, and it's really as Yang Chen said. We've been completely divided up by the US, England, Russia, and China. Now only the US has troops stationed here. According to the declaration, China, England, and Russia also have the right to station troops and manage their respective occupied territories. We're finished. With our current strength, we have no ability to tear up the Potsdam Declaration. We're just fish to be eaten by those four at any time. Sigh..."

Netizen Da Mao: If Mr. Yang hadn't said that, I wouldn't have known that the Potsdam Declaration stipulated this. So, does that mean Hokkaido belongs to us? If Japan dares to mention the Northern Territories again, we will send troops directly to Hokkaido. If they dare to resist, that would be a denial of the Potsdam Declaration, and then the five permanent members of the UN Security Council can do their thing.

A netizen from the White-headed Eagle commented: "Who would have thought this would involve historical issues? Japan is in this situation, and they still dare to act so arrogantly. I truly admire their courage. Please don't be offended; our spokesperson hasn't studied history and doesn't understand these things. Yang Chen's shorting of Japan and South Korea has nothing to do with us. Some idiots shouldn't be presumptuous and make a fool of themselves, lest they bring trouble upon themselves."

An English netizen commented: "Fuck! We also have the right to station troops in Japan, right? Then why don't we station troops there?"
French netizens: I disagree with this. Four of the five permanent members of the UN Security Council are allowed to station troops in Japan. Why are we not allowed to?
A German netizen commented: "You surrendered so quickly. If it weren't for the need to cultivate a major power in Europe to counterbalance us, you wouldn't even qualify as a permanent member of the UN Security Council, let alone want to station troops there. Please understand what international needs and diplomatic maneuvering are behind your identity and international standing."
The following day, at the Bald Eagle's routine meeting, reporters asked the spokesperson various questions regarding Yang Chen's Weibo post.

The spokesperson said helplessly, "He's right, that's indeed the case based on the Potsdam Declaration. What I said yesterday was only out of respect for Japan and South Korea, not to really acknowledge their sovereignty or deny the Potsdam Declaration. However, we have received requests for help from Japan and South Korea. We have very good relations with these two countries, so naturally we will help them. Our attitude will not change."

While the spokesperson was saying things wouldn't change, BlackRock CEO Manny Pacquiao was humbly making a phone call to Yang Chen.

“Mr. Yang, why aren’t you taking us? You know how we feel about you. The official stance doesn’t represent our stance,” Pacquiao said.

Yang Chen said with a smile, "What you said is really interesting. The official attitude doesn't represent your attitude, but you don't dare to go against them. However, it's not that we can't cooperate again, it just depends on your performance."

Pacquiao immediately asked excitedly, "Mr. Yang, tell us how you want us to perform? Just tell us, and we guarantee to complete the task."

“I really hate your spokesperson. You guys stand up and criticize her, then replace her, and I’ll take you along on this operation. I can’t guarantee you’ll make more, but we can definitely earn a few hundred billion Eagle Dollars,” Yang Chen said.

Hundreds of billions of Eagle Dollars, who wouldn't be confused by that?

Pacquiao quickly replied, "No problem! Whatever Mr. Yang says, we'll do. It's just scolding her and replacing her, right? We'll get it done right away! Mr. Yang, just wait and see the news. Bye, I'll contact the other CEOs immediately to coordinate!"

Yang Chen smiled and said, "Okay, I'll wait to see the news."

Capitalists will do anything to make money. Pacquiao contacted other investment bank presidents and discussed the matter. He immediately publicly berated the spokesperson and demanded that the spokesperson be replaced.

The United States is a financial nation, and the status of Wall Street investment banks is beyond doubt; they are a force to be reckoned with, on par with the military-industrial complex.

They demanded a change of spokesperson, making it impossible for the spokesperson to remain in their current position.

The next morning, Yang Chen saw the news that the Bald Eagle had changed its spokesperson.

Pacquiao couldn't wait to call Yang Chen, and he said happily, "Mr. Yang, have you seen the news? Can we come with you now?"

Yang Chen smiled and said, "I see, I can see your sincerity. Then let's share the money in the Sakura Country's Agriculture and Forestry Treasury."

Pacquiao quickly asked, "What do you mean? Please enlighten me, Mr. Yang."

Yang Chen explained the rules of the game to Pacquiao.

Yang Chen's plan to short Japan and South Korea was finalized as early as December of last year. Sihai Investment had already begun serious preparations at that time, conducting thorough research on the economies and financial sectors of Japan and South Korea.

Sakura National Agricultural and Forestry Bank has a hedge fund that specializes in making money through arbitrage on hawk bonds.

Under normal circumstances, the returns on Bald Eagle bonds fluctuate very little, usually only a few tenths of a percentage point. This means that if you invest 100 yuan, you can only earn a few cents, which is obviously not worth it.

So the hedge fund manager came up with a solution: leverage.

You might only earn a few cents on 100 yuan, but with 60 times leverage, you could earn several yuan, which would be a very considerable return for bond funds.

Yang Chen accurately identified the potential risks of this operation: if the yield on Eagle Bonds surged by more than 1 percentage point, the fund would be liquidated.

According to publicly available data, this hedge fund currently holds Eagle Bond options worth approximately 660 billion Eagle Dollars.

只要10年期鹰债收益率超过4%，30年期鹰债收益率超过5%，这只基金的660亿鹰币财富就会灰飞烟灭。

Because the yield and price of Eagle Bonds are inversely related, the higher the yield, the lower the trading price of Eagle Bonds. As a result, the 60x leveraged Eagle Bond futures held by this fund will be liquidated due to the sharp drop in price.

According to Yang Chen's plan, the Dragon Kingdom will sell off a portion of Eagle Bonds to induce an increase in Eagle Bond yields. Once the 10-year and 30-year yields reach their predetermined values, the Bald Eagle will come forward to intimidate the world into prohibiting the buying and selling of Eagle Bonds, or else they will retaliate.

At this point, liquidity in the Eagle bond market will dry up, and even if the island nation wants to save the fund, it will be powerless due to the lack of liquidity in the Eagle bond market.

It would be even safer if the US could directly pressure the Japanese government not to intervene.

After hearing Yang Chen's plan, Pacquiao laughed heartily.

“I’m really excited about this. I think it can work. If we really do manage to take all 660 billion Eagle dollars from them, the Federal Reserve, Wall Street, Mr. Yang, we’ll split that profit three ways. How about that?” Pacquiao said.

Yang Chen said with a smile, "Okay! My main goal is to teach Japan a lesson. I don't care how much I earn. We'll split it equally among the three of us as you said."

Pacquiao quickly replied, "Okay, okay. Thank you, Mr. Yang. I'll arrange it right away and contact you again once it's done. You should also quickly communicate with the Chinese government to prepare to sell some of the Eagle Bonds. Haha..."

"Okay, I'll contact the relevant departments. I'll hang up now, let's work together," Yang Chen said with a smile. After hanging up, Yang Chen immediately contacted Qian Lai, the head of the State Administration of Foreign Exchange, through relevant personnel.

Qian Lai said happily, "Chairman Yang, why did you call me? This is quite a surprise."

Yang Chen laughed and said, "You don't visit the temple without a reason, and you don't call without a reason, haha... How much Eagle Bond do we still hold?"

"There are probably still 8350 billion Eagle Dollars left. What is Chairman Yang planning to do?" Qian Lai replied.

Yang Chen said, "I'm planning to mess with Sakura, which will also give you a reasonable opportunity to sell your Eagle Bonds."

"Oh? What do you mean?" Qian Lai asked.

Yang Chen then told Qian Lai about his plan to join forces with Wall Street to hunt down the hedge fund under the Japan Agricultural and Forestry Bank, and assured them with great certainty that the White Eagle would contact them to sell some of their Eagle bonds, at which point they could take the opportunity to sell some of their bonds as well.

Qian Lai laughed and said, "Chairman Yang is really playing big! I'll report to my superiors, and if they agree, there won't be any problem."

"Okay! Give me a call when you have the results. I need to make sure all the preparations are complete before I can start," Yang Chen said.

Qian Lai quickly replied, "No problem! Chairman Yang, wait for my news."

Qianlai hasn't responded yet, but Wall Street is already prepared.

It was already 4 a.m. in New York. Pacquiao was still awake and called Yang Chen again.

“Haha… Mr. Yang, I’ve got everything sorted out on my end. The Federal Reserve has contacted your State Administration of Foreign Exchange, requesting them to sell some of their Hawk bonds to raise the 10-year and 30-year yields to your target levels. I hope you can also communicate with your State Administration of Foreign Exchange and make sure they cooperate with our actions,” Pacquiao said.

Yang Chen smiled and said, "Okay, I'll communicate with them right away. We'll only sell a portion of the Eagle Bonds, we absolutely won't buy any. You control the other countries and ensure the Eagle Bond market dries up, then our plan will succeed. If the situation isn't optimistic, then we'll have to rely on your deterrent power to threaten the Japanese government into giving up. You need to remember every step I've said. Opportunities are fleeting, so don't delay our business and let the Japanese government make money instead."

Pacquiao laughed heartily and said, "Mr. Yang, rest assured. We, the Bald Eagle, are only helpless against you and Russia. We have other countries completely under our control. If we say one thing, they absolutely dare not say another. As long as there are no problems on your end, this matter is settled. Russia's influence in the international financial market is negligible. Haha..."

Yang Chen smiled and said, "Okay, it's settled then. Let's welcome the good news together."

Yang Chen and Pacquiao both laughed happily, and then they hung up the phone.

In the evening, Qian Lai called Yang Chen.

"Chairman Yang, it's all settled. We've initiated the plan to sell off Hawk bonds. The Federal Reserve has requested that we sell Hawk bonds to push the yield on 10-year Hawk bonds above 4% and the yield on 30-year Hawk bonds above 5%. Is that correct?" Qian Lai said.

Yang Chen quickly replied, "That's right! These are the minimum requirements. You can sell as much as you see fit. But don't sell too much, lest our Dragon Coins appreciate too much, which would be detrimental to foreign trade."

“Understood! We will handle it carefully. That’s settled then, let’s get started,” Qian said.

"Okay, thank you," Yang Chen said with a smile.

"No need to thank me, we all look forward to Chairman Yang achieving even better results this year. Haha..." Qian Lai laughed loudly.

This is absolutely true. Leaders at all levels are watching Yang Chen closely to see what achievements he can make this year. His achievements are directly related to the achievements of Jiangcheng City, which in turn are directly related to the status of the fifth municipality directly under the central government, as well as the major issues of planning and development of the southern coastal region in the coming decades.

If Jiangcheng becomes the fifth municipality directly under the central government, it means that the country will have to pour a lot of resources into it. This is a plan that will take anywhere from 10 years to 30-50 years, so it must be handled with utmost care.

As China sells off its Eagle bonds, Eagle bond yields continue to rise.

At this moment, Seita Kuraki, a hedge fund manager under Sakurakoku Agricultural and Forestry Bank, noticed something amiss and quickly called Ichiro Kimura, the head of the foreign exchange management and investment department at Sakurakoku.

"Mr. Kimura, have you been dumping Eagle Bonds on a large scale?" Seita Kuraki asked anxiously.

Kimura Ichiro quickly replied, "No! How could we dare to sell Eagle bonds now? The Bald Eagle is even pressuring us to continue buying. We've also noticed that some people are selling Eagle bonds, and judging by the scale, it should be China or England selling them."

Seita Kuraki said anxiously, "We've leveraged our Eagle Bond options by 60 times. If the yield continues to rise, we risk being liquidated. Please contact England and China immediately to find out which of them is selling Eagle Bonds and persuade them to stop. Please help me."

Ichiro Kimura quickly asked, "How much money do you hold in Eagle Bond options?"

“With over 10 trillion Sakura Coins and 60x leverage, a margin call would result in a loss of 660 billion Sakura Coins. This is far too high a price to pay, so please, Mr. Kimura, help me!” Kuraki Seita replied.

Kimura Ichiro was taken aback. 660 billion Sakura coins! That's the wealth that would take countless people in Sakura Country many years to accumulate.

"Sigh...you guys are really too greedy! How could you add so much leverage?" Kimura Ichiro scolded.

Kuraki Seita explained, “Bond market yields are inherently less volatile. To make money through arbitrage, we definitely need leverage; otherwise, the profits wouldn't even cover electricity and labor costs, and how could we continue operating? We’ve always operated this way without any problems. This time, I don’t know what happened, but suddenly someone precisely targeted us. I suspect it’s Yang Chen’s doing. You can contact the relevant departments in China directly to confirm. If it’s confirmed, please persuade them to immediately stop selling Eagle Bonds, no matter what. Thank you.”

Kimura Ichiro sighed and said, "If it really was Yang Chen who did it, then you can just wait to die. He's taking revenge on us, so why would he stop and spare your lives now?"

"Go ask them first, and we'll talk about it when you have a result. Please," Kuraki Seita said impatiently.

Kimura Ichiro had no choice but to quickly hang up the phone and contact the Chinese side.

Kimura Ichiro quickly received a definitive answer: it was indeed China that was selling off its Eagle Bonds.

As for his request?

Will Dragon Kingdom care about Sakura's request?

Moreover, since Yang Chen was in charge this time, it was even less likely that he would accept their request.

Ichiro Kimura immediately called Seita Kuraki and said, "It's confirmed now. It is indeed China that is dumping Eagle Bonds. We asked them to stop selling, but they refused. You're doomed, there's no hope for you."

"No! You have to save us! You need to start the process of increasing your holdings of Eagle Bonds immediately. Buy as much as they sell, and you must stabilize the yield on Eagle Bonds. Just one day, just one day is enough. Is that okay?" Kimura Seita said excitedly.

(End of this chapter)