Golden Spoon Investor

January 25, 1994, Washington, D.C., USA

President Philip Davidson sat with his staff on a sofa in the Oval Office, located at the western end of the West Wing of the White House. Outside, dark clouds loomed as if it would rain at any moment.

President Davidson sat with one leg crossed, his expression stern, as he listened intently to Huckley, the Chief of Staff.

"The aftermath of the signing of NAFTA has led to a significant departure from our core supporters, particularly in the Rust Belt."

"Is the situation really that bad?"

Secretary Huxley, dressed in a brown suit, responded in a subdued tone.

"If this continues, even Pennsylvania and Tennessee, where incumbent legislators are barely holding on, are in danger. We could easily lose the Senate to the Republicans."

Ben Wood, a middle-aged man who had served as campaign manager during the last presidential election and was now a senior White House adviser, sat on the sofa opposite Davidson. Adjusting his glasses, he added:

"The House is in even worse shape. Even Jimmy, the Speaker of the House, is in a precarious position."

President Davidson frowned.

"I know Jimmy has a strong local base, having won 15 times in his district, Washington's 5th. Why is he struggling?"

"That's evidence the situation is dire," Huxley replied.

"Ugh."

Wood continued gravely, meeting Davidson's irritated gaze.

"If this trend persists, the House leadership that has been intact since the 1952 election could be overturned for the first time in 42 years."

"This is maddening," Davidson muttered, his face clouded with frustration.

Wood suppressed a sigh as he observed the president's growing frustration.

'I warned him that NAFTA would be politically devastating, but he pushed ahead anyway.'

Davidson's first term began on a high note, winning reelection by a landslide and securing control of both the Senate and the House for his party. But in just two years, a series of missteps had shifted the political winds.

As the president addressed him, wood, dispelling his distractions, met Davidson's eyes.

"Wood, isn't there a solution to turn this around?"

Annoyed at being left to clean up the mess, Wood concealed his frustration. He needed to focus on winning the election, so he laid out his prepared strategy.

"The urgent task is to regain the trust of Midwestern workers—our core constituency that has eroded."

"Everyone knows that. The issue is how."

"There is one way."

Davidson, previously indifferent, leaned forward, his interest piqued.

"What is it?"

Huxley also sat up attentively.

"We need to highlight the ongoing trade negotiations with Japan."

Davidson's face fell.

"Isn't that already underway?"

"Yes, but we need to escalate it and make it a major issue."

"I doubt that will make much of a difference," Davidson replied sceptically.

Wood countered earnestly, "Why do you think the Midwest blue-collar workers turned against us?"

Davidson, reluctant to admit fault, responded stiffly.

"Are you suggesting my support of NAFTA caused this political backlash?"

While tempted to agree outright, Wood, a seasoned political operative, softened his critique.

"It would've been better to delay your signature until after the elections, but I understand it was a necessary decision for the country."

Davidson's stern expression relaxed slightly.

"Still, it's undeniable that the exodus of factories overseas has cost workers their jobs."

"Ugh."

Davidson groaned at the painful truth.

Wood pressed on.

"Republicans are exploiting this, framing the White House as the culprit that 'stole American jobs.'"

"Damn those GQP bastards!" Davidson snapped, using the derogatory acronym for "Grand QAnon Party."

Wood calmly continued, "The more they amplify the job issue and link it to NAFTA, the more the election narrative will work against us."

"What do you suggest we do?" Davidson asked irritably.

"The best way to counter an issue is with another issue."

Huxley, catching on, interjected, "Are you saying we should overshadow the job issue with the trade dispute with Japan?"

"Exactly."

Wood's smile deepened as Davidson mulled over the idea.

"Can it work?" Davidson asked hesitantly.

"Among those hardest hit by NAFTA are auto workers, correct?"

"Right." Davidson nodded.

Wood continued, "We can frame Japanese automakers, who are gaining market share in the U.S., as the culprits behind the Rust Belt's decline. This will shift public attention away from NAFTA."

Davidson slapped his knee.

"Brilliant—divert the blame to Japanese automakers!"

Huxley, however, voiced concern.

"Japan, alongside South Korea, is a key ally in East Asia. Straining relations could cause diplomatic complications."

Davidson hesitated, but Wood pressed on confidently.

"Japan is known to yield under pressure. Look at the Plaza Accord in '85—eventually, they'll concede."

In the mid-1980s, as the U.S. trade deficit continued to grow, the government convened finance ministers from France, Germany, Japan, and the United Kingdom at the Plaza Hotel in New York. The nations agreed to a forced devaluation of the U.S. dollar and an appreciation of the yen and the German mark, a pact that became known as the Plaza Accord.

The yen's rapid appreciation severely impacted the competitiveness of Japanese companies, triggering a prolonged economic slump often referred to as Japan's "Lost Decade."

Despite this historical context, President Davidson hesitated, unable to make a swift decision.

Wood, sensing the president's indecision, pressed forward with his argument.

"Mr. President, you must consider not just the immediate midterm elections but also your re-election. Showing strength now and regaining the support of blue-collar workers in the Midwest will undoubtedly work in your favour."

While the midterm elections were critical, President Davidson's foremost concern was securing his re-election.

He understood that trade tensions could strain relations with Japan, a key ally. Yet, if it bolstered his chances of winning another term, he was willing to accept those risks.

"If we intensify the pressure just until the elections and then negotiate a resolution, we can avoid long-term damage to the alliance."

Davidson finally relented.

"Alright. Discuss the details with Commerce Secretary Vincent and report back."

Just then, a knock interrupted their discussion. A female staffer in a two-piece suit entered the room.

"Excuse me, Chairman Monroe of the Federal Reserve is here. Should I send him in?"

Davidson, remembering his appointment with Monroe, turned to Wood.

"It seems we're out of time. Let's wrap this up for now."

"Yes, Mr. President. I'll take my leave."

Wood stood up and exited the room.

Davidson took a sip of coffee, leaning back for a moment of respite. Then he addressed the staffer waiting by the door.

"Send in Chairman Monroe."

"Yes, Mr. President."

A moment later, a man in his mid-60s with black-rimmed glasses and a modest stature entered the Oval Office. It was Chairman Monroe, head of the Federal Reserve.

"Welcome, Chairman Monroe."

"I hope I'm not intruding on your busy schedule, Mr. President."

"For you, Chairman, my schedule can wait."

Davidson smiled warmly, standing to greet him and motioning toward a sofa.

"Please, have a seat so we can talk."

"Thank you."

Monroe exchanged a brief nod with Huxley before settling into the left-hand sofa. A staffer quickly cleared the table and brought over a fresh cup of coffee for the chairman.

Davidson leaned back, clasping his hands.

"With the FOMC meeting next Tuesday, I imagine you have much to prepare. What brings you here today?"

Monroe's expression turned sombre as he leaned slightly forward.

"I wanted to inform you in advance that we plan to decide on a rate hike at this FOMC meeting."

"…!"

***

At the Same Time – Newark Liberty International Airport, Newark, New York

Under a clear, cloudless sky, a sleek Gulfstream IV business jet with a white fuselage came to a stop on the wide tarmac.

As the door opened, Seok-won, casually dressed in a cashmere coat and sunglasses, emerged, descending the stairs alongside a model-like blonde stewardess.

Waiting nearby was Landon, who approached with a cheerful smile.

"Welcome, boss."

After a warm handshake, Seok-won glanced at the dazzlingly clear sky.

"They said it would snow heavily, but it looks like it stopped."

"It seems even the heavens know you've arrived and decided to clear up," Landon joked.

Seok-won chuckled.

"The Pacific crossing wasn't too tiring, was it?"

"Not at all. It's much easier flying private." Seok-won gestured toward the jet behind him.

"You should consider getting your own. Isn't it a hassle to rent one every time?"

"I might if this next deal pans out."

Landon looked momentarily surprised before bursting into laughter.

"Buying a private jet like it's a sports car—now that's ambition!"

"To do that, we need a big win first."

"Of course, boss."

As their driver loaded luggage into the limousine, Landon continued, "I've reserved the penthouse at the Plaza Hotel for you, as usual. Shall we head there?"

Seok-won nodded slightly and stepped into the backseat of the limousine with Landon.

As the limousine glided through Manhattan, Landon turned to him, his tone more serious now. "Boss, I have to say, the markets are buzzing with speculation. Everyone's waiting to see our next move."

Seok-won smirked, the corner of his lips curling upward. "Let them wonder. The more unpredictable we seem, the more advantage we gain."

Landon chuckled. "You certainly know how to keep them on their toes."

The limousine finally arrived at the Plaza Hotel. A doorman hurriedly opened the door, greeting them warmly. Seokwon stepped out, his calm yet commanding presence immediately drawing attention.

"Check in and get settled," Landon said. "I'll have everything ready for tomorrow's meeting."

"Good," Seokwon replied before heading into the grand lobby.

TL/n -

The North American Free Trade Agreement (NAFTA), signed in 1992, was a landmark trade pact designed to foster economic integration and cooperation between Canada, Mexico, and the United States. It aimed to create the world's largest free trade zone at the time, eliminating trade barriers and promoting investment across the three nations.

The agreement went into effect on January 1, 1994, during the presidency of Bill Clinton, after Congress approved it in 1993.

NAFTA led to the outsourcing of jobs to Mexico, where wages were significantly lower. Industries like textiles, apparel, and electronics were particularly hard-hit.

Manufacturing-heavy regions in the Midwest and South, often called the "Rust Belt", experienced significant job losses as factories relocated to Mexico.

***

The FOMC stands for the Federal Open Market Committee, a key component of the Federal Reserve System in the United States. It is responsible for setting monetary policy, primarily by influencing interest rates and controlling the money supply to achieve economic goals such as price stability, full employment, and sustainable economic growth.

The FOMC meets regularly (typically 8 times per year) to evaluate economic and financial conditions.

***

The term GQP is a satirical or critical reinterpretation of the traditional acronym GOP (Grand Old Party), which refers to the Republican Party in the United States.