Technology invades the modern world

Chapter 395 This is a tragedy
Lin Ran was very familiar with the life of John Morgan Sr.

In this timeline without him, the other party worked on Wall Street for more than 20 years, until the 1990s.

Because of his Morgan surname, he never worked at the grassroots level; his lowest position was VP.

Even though he failed in the struggle for the Morgan family's leadership in the 1990s and retired early, becoming a complete playboy, his instincts and experience remained.

In addition, the Morgan family profited handsomely from Soros's actions in Asia and Europe during the 1990s.

Soros only drank the soup, while Morgan ate the meat.

This operation on 4V was comparable to a precise surgery; each move was not fatal, but it precisely drained blood.

"Professor, our teamwork is a bit too perfect. I feel we should have met sooner."

If we had met sooner, we might have achieved even greater successes.

John Morgan Sr. held up a glass of water and remarked with emotion.

When you're winning big, even drinking water tastes like whiskey.

He thought Lin Ran was a wonderful person; he only had to state his general requirements, and Lin Ran could provide just the right amount of assistance.

Whether it was sending signals outward through the Chinese Academy of Social Sciences, banning pineapple exports under the pretext of agricultural products, or making appropriate statements and actions at the final stage, he only mentioned a general effect to be achieved. Lin Ran grasped the necessary actions and degree for this effect quite well.

John Morgan Sr. thought to himself, if he had had such an ally back then, why would he have followed Soros? He could have started his own business.

Lin Ran thought to himself, "Yes, we met in the 60s. Back then, we were truly perfect partners. We did an excellent job in working together to drain America's coffers."

This refers to the privileges enjoyed by Washington bureaucrats and American oligarchs during the Vietnam War, who profited immensely by supplying American troops.

“Professor, I was too naive in the past, even at my age, I was still too naive in many things,” John Morgan Sr. continued.

Lin Ran raised an eyebrow: "Oh? You? Old John, naive? I can't believe you could be associated with that word. It's as ridiculous as a tiger in the forest saying it doesn't like to eat meat."

John Morgan Sr. said, "Anyone with eyes can see that this action was orchestrated by Wall Street. I even went to Taipei in person to make it clear that they cannot use administrative means to interfere with financial independence."

Lin Ran chuckled: "Heh, the idea that we can't use administrative means to interfere with financial independence is actually a way of saying we're going to harvest your wealth and you can't resist."

John Morgan showed no embarrassment whatsoever: "Professor, we can do it that way, but we can't say it like that."

In short, we've made it clear that we're going to rip them off badly. I know they won't dare to resist, but at least they should be able to show some anger, right?
Do you know what their first reaction was?

Lin Ran replied without hesitation, "Of course I know. Their first reaction will definitely be, 'Did we do something wrong? Did we offend Washington? We'll fix it right away! You want a larger budget? Okay, we'll increase it. You want to buy more weapons? Okay, we'll buy them! You want to increase TSMC's investment in America? Okay, we'll do it right away."

John Morgan's expression stiffened after hearing this: "Professor, you're absolutely right, that's exactly how they react."

Even the conditions you proposed were exactly the same as what they said at the time.

I finally understand why not a single White House official objected when I proposed such a deal.

It turns out they all knew that no matter how we treated them, they would never refuse to be a porcupine in America.

This has truly opened my eyes; I never imagined there were places like this in the world where we could have whatever we wanted.

John Morgan Sr. spoke as if he had discovered a new continent, a new continent with gold mines waiting for him to mine, his eyes gleaming with greed.

Lin Ran felt somewhat uncomfortable, but more than that, he felt sorrow.

His discomfort quickly vanished, and he knew that what he had done was necessary to prevent similar incidents from happening again.

Lin Ran picked up his water glass, took a small sip, and the water seemed to have taken on a hint of the spiciness of whiskey.

Looking at the undisguised greed on old Morgan's face, the sorrow in his heart did not dissipate, but instead grew stronger.

“Old John, the complexity of this land is beyond your imagination.” Lin Ran’s voice was soft, but it carried an indescribable heaviness. “What you see is just the tip of the iceberg. You think they are lambs to be taken at will, but in reality, they have long been used to playing this role. It’s not that they are incapable of resisting, but that they have chosen not to resist.”

Old Morgan shook his head dismissively: "Professor, I don't like hearing you say that. What do you mean by 'getting used to it'? It's the art of survival. They're smart. They know the cost of resistance and the benefits of compliance. Look, we've only scratched the surface of their problem, and they're already eager to offer more. For them, this kind of deal is nothing more than paying to avoid trouble."

Lin Ran didn't refute, but just laughed self-deprecatingly: "Pay money to avoid trouble? If a place is always eager to give you money every time you go there, would you still think it has dignity? Would you still think it is an independent individual? You would only think it is an ATM that you can use at will, a fat pig that you can slaughter at will."

Morgan's eyes burned even brighter: "Professor, this is what I mean by naiveté. Are you feeling sorry for them? Are you uncomfortable with our resounding victory? Isn't this what we've always been pursuing? We're all trying to maximize our profits. They cooperated willingly, so we naturally accepted it. What's there to be sad about?"

Lin Ran put down his water glass, leaned forward slightly, and said in a serious tone, "Old John, you only see their obedience, but you ignore the price behind it. A place that has lost its dignity and self becomes extremely vulnerable. Today you can take whatever you want here."

Lin Ran did not continue speaking.

Morgan's smile gradually faded. He looked into Lin Ran's eyes, trying to find a hint of a joke, but in the end he only saw seriousness and depth.

“Professor, you don’t seem happy,” old Morgan said. “Are you having second thoughts?”

Lin Ran shook his head: "I have no regrets. Because I know that in order to prevent such a tragedy from happening again, I must uncover it myself. Only when everyone sees that behind so-called freedom lies such a naked exchange of interests, such an ugly reality, will they be able to wake up."

John Morgan Sr. said, “Professor, first of all, it’s not ugly; it’s superb art. It’s no different from any other craft.”

Lin Ran felt somewhat helpless. This was why he felt like an unmelting block of ice when he was in the White House. Although he was being trained in the White House, his core thinking was still Chinese and rooted in China.

Even though the target this time was someone else, Lin Ran couldn't truly remain ruthless and cold-blooded in the face of everything that happened.

Whether it's a perfect artistic performance or a bloody massacre depends on your perspective. Even though Lin Ran is the screenwriter, he can't completely ignore the victim's perspective on this event.

“Players will certainly see it as art, but the pieces themselves will hardly see it as art,” Lin Ran said.

John Morgan said calmly, "Professor, we are players, not pieces. When you are a piece, you need to find a way to become a player."

I've always felt that European politicians clearly have the opportunity to be chess players.

Ukraine was the pawn; they should have been the players. But as the game progressed, Ukraine became the player, and Europe became the pawn.

John Morgan Sr.'s tone was full of disdain for Europe.

He continued, "Professor, I think you're overthinking it. This is something politicians need to consider."

Washington was well aware of Yanjing's plans, and Yanjing was also well aware of Washington's plans.

Big T is different from the Donkey Party and its ilk; he's even different from the previous Elephant Party members.

He only wanted to accumulate enough capital for his family during this term, whether political or financial, and he didn't care about eroding America's past reputation.

I used to think, "If we treat them like this, would they still be willing to be porcupines?" I doubt there's such a place in the world.

Even with Russia, we can cheat them once or twice, but not a third time. The third time, Russia resolutely chose to leave America's embrace.

But in that region, we betrayed them in the past, and now we're using these same methods to exploit them, and they're still willingly accepting it, wondering if they haven't done something right. A pig is only truly deadly when it's thin and covered in thorns.

I used to think the White House bureaucrats had abandoned them, but now it seems I didn't understand. They seem to have been ideologically imprinted; America has become a kind of faith in that region.

John Morgan Sr.'s eyes widened as if he had discovered a priceless treasure. Could there really be a place in the world where Americans could have whatever they wanted? This was too perfect.

With the "cooperation" of John Morgan Sr. and Lin Ran, the situation developed as they had predicted.

In April, under the precise manipulation of Wall Street financial capital, the Taiwanese stock and bond markets continued to decline.

Although TSMC's stock price has rebounded somewhat, related stocks in the entire semiconductor supply chain have continued to decline, and panic has spread in the market.

While trying to appease the public, 4V urgently sought solutions, only to find itself trapped in an inescapable predicament.

As May progressed, Morgan's harvesting activities became even more ferocious.

He ordered his funds to continue shorting industries closely linked to the local economy, including shipping, electronic components, and tourism.

The combined effects of the additional comments have led to a surge in short selling as global regional comments have increased, with 4V comments exceeding those of their direct industry competitors, Japan and Korea.

Most importantly, the entire region, from businesses to individuals, has lost confidence in the economy, believing that their economy is doomed.

Although John Morgan Sr.'s actions may not seem fatal, each one was like a precise scalpel, cutting and bleeding the arteries of his economy.

Every time the authorities try to stabilize the market by releasing positive news, short sellers immediately counterattack after the news is released, rendering all efforts futile.

In June in Tokyo, Japanese Finance Minister Katsunobu Kato and John Morgan Sr. met at a private club, where they tacitly discussed their upcoming collaboration.

That's right, America's adoptive father gave her a severe beating, and the Japanese older brother also got a share of the punishment.

"Mr. Morgan, your methods this time are truly eye-opening." Katsunobu Kato picked up his teacup, gently blew on the steam, and looked at him with admiration. According to America Lobbying Agency, this old guy had been retired for many years, so how come he has come back with such sharp and direct methods?

Katsunobu Kato was more worried than anything else. If you can do this, does it mean you can do this to us? Does it mean that seeing Japan become too powerful, you're going to have another Plaza Accord?
With his signature smile on his face, old Morgan said, "Minister, this is just normal fluctuation in the financial market. We follow market rules. Their economic fundamentals have some problems, and we just saw the risks in advance."

“Risk? Mr. Morgan, you know very well that it’s not a risk, it’s something you created yourself.” Katsunobu Kato’s voice became serious: “In just two months, their stock market lost more than 20 percent of its market value, and many high-quality companies have become your possessions. If we hadn’t been prepared in advance, Japanese companies would have suffered huge losses as well.”

“So you should thank me more.” Old Morgan raised an eyebrow, his tone smug. “We’re helping Japan mitigate risks so you can invest more safely.”

And we've made the porcupines even more porcupine-like, haven't we? They're now more dependent on America and more willing to spend money on weapons.

Katsunobu Kato did not respond, knowing full well the unspoken meaning behind Morgan's words.

America's financial capital's gains in 4V have made them even more eager to prove their loyalty to Washington and more willing to follow America's strategic plans, including purchasing more weapons.

Short selling is one round of bleeding, using tax revenue to buy weapons is another round of bleeding, the ongoing lobbying negotiations are the third round of bleeding, and forcing the other side to spend real money to invest in America is the fourth round.

After four rounds of bloodletting, no country can withstand it.

Katsunobu Kato felt that the Americans' methods this time were really too vicious, much more so than forcing Japan to sign the Plaza Accord back then. He really couldn't figure out how the other side had offended Washington. More importantly, there was also the shadow of Beijing behind it, which made Japan even more panicked.

If Washington and Beijing reach an agreement, what if Japan becomes the next target for exploitation? Can Japan withstand it? Probably not.

The president knew that he could gain unprecedented power through lobbying. Similarly, John Morgan Sr., the Special Assistant for East Asian Affairs, with his background with Morgan and Adams and the looming shadow of China, also became the most powerful Special Assistant for East Asian Affairs in history. After four years, his position in Tokyo would not be much weaker than MacArthur's.

The influence of those above on those below is always rapid.

America's actions had both advantages and disadvantages for Japan.

The advantage is that America's influence in East Asia has been strengthened, while the disadvantage is that Japan's influence in 4V is being weakened.

“Mr. Morgan, we all know that this action has been tacitly approved by the White House,” the Finance Secretary stated bluntly. “But do you really believe that this kind of deal, which sacrifices allies, is sustainable? Today you can take whatever you want from them, but what about tomorrow? If you need Japan's auto manufacturing industry, what will you do? Continue to cooperate with China, or take direct action against us?”

Morgan's smile finally vanished, and he looked coldly at the Finance Minister.

He knew that the other side had seen through the true nature of this operation: it was not just a financial exploitation, but a strategic geopolitical maneuver.

“Kato, you’re overthinking it.” Old Morgan’s voice deepened. “We are allies, we share common interests, and everything we do is to ensure our shared future. Japan is far more important than them.”

Katsunobu Kato did not respond; he knew that old Morgan's words were both a promise and a threat.

Katsunobu Kato felt he was facing one of the most complex international relations challenges since taking office, a situation that no minister in the past had ever experienced.

This reminded him of his colleague, Akazawa Ryo, who was negotiating with Bessant when Big T actually came into the negotiation room and bluntly said, "I want this and that, and you have to give me this and that."

I've never encountered a scene like this before.

Katsunobu Kato felt incredibly unlucky to have encountered such a once-in-a-century special situation.

“Kato, as I said, the White House’s strategy is to secure our shared future,” Morgan Sr. said, his tone carrying an unquestionable authority. “Japan also needs to become a bridge between us and China, a bridge for technology exchange.”

Katsunobu Kato sat upright, his hands clasped together, sensing that the main event was about to begin.

America can have any demands of 4V, so surely she can't have no demands of Japan, right?

What exactly are the conditions this unprecedentedly greedy East Asia assistant wanting to set?
"We have communicated extensively with the White House and our semiconductor companies."

Japan is permitted to export semiconductor technology to China, primarily focusing on a few non-core areas that are important to China.

Morgan paused for a moment, then began to list:
"The equipment and materials for mature process chips, which refers to semiconductor manufacturing equipment for 28-nanometer and above processes, such as older models of machines used for photolithography, etching and deposition, are a step forward for China, but they are already one or even two generations behind TSMC's most advanced 3-nanometer or even 2-nanometer processes."

Regarding some advanced packaging technologies, in the back end of chip manufacturing, we have agreed to allow Japanese companies to provide some advanced packaging technologies to China. These technologies can improve chip performance, but cannot fundamentally change the chip's integration and computing power.

For non-cutting-edge chip design software, we will relax export controls on certain EDA software, but only for the design of chips using non-cutting-edge processes, such as the Internet of Things and automotive electronics. The most advanced EDA tools, especially software for processes below 7 nanometers, will remain under strict control.

In terms of semiconductor production line automation and inspection technologies, Japan can provide China with non-core technologies for production line automation and quality inspection. These technologies can help them improve production efficiency, but cannot break through the core technology bottleneck.

Finally, there are a few semiconductor materials that allow Japan to export certain non-core semiconductor materials to China, such as special compound semiconductor materials used in communication equipment and some industrial applications. These materials can help China achieve self-sufficiency in some specific areas, but they are not critical in high-performance computing and artificial intelligence chips.

“These technologies,” Morgan Sr. concluded, “can help China achieve self-sufficiency in some non-critical areas, alleviating some of their problems. At the same time, they can also bring huge profits to Japanese companies and revitalize your semiconductor industry chain.”

After hearing this, Katsunobu Kato's face lit up with joy. He knew that this was not only about using Japan as an intermediary to provide China with useless technology, but also about loosening restrictions on Japan's semiconductor industry.

However, he had some doubts: if too much of this "chicken rib" (a seemingly useless or unappealing item) is given out, then it won't be "chicken rib" anymore.

With so many technologies, once China masters the 28nm lithography machine, given China's production capacity, will other countries' semiconductor industries still have a chance?
The amount of useless food you gave me is enough to make a big meal.

He was starting to wonder if it was John Morgan Sr. acting on his own initiative. "Are you the Special Assistant for East Asian Affairs in Washington or the Special Assistant for East Asian Affairs in Yenching?" Kato was filled with suspicion.

(End of this chapter)