Chapter 121: The Beginning of the Unemployment Wave

Time has passed and will never return; the past can only be reminisced.

Humming a tune that left Goodman perplexed, Carter, with mixed emotions and a sense of regret, bid farewell to the bank's employees. Feeling rather disheartened, he made his way home dejectedly.

In January 1980, from the day his gold contracts were fully sold off, all the excitement no longer concerned Carter. Attending classes, humming songs, stamping a few rejection marks on loan applications, and briefly reviewing reports from diligent part-time workers—this was how his uneventful days passed.

And so, January 21st arrived. Gold prices hit a peak of $850 per ounce, while silver, seemingly in agreement with its good brother gold, broke through the $50 per ounce mark on the same day.

"Alas, what a pity."

On this same day, Carter received the processed funds. After deducting $5 million for investment in Julian's new company and various other repayments, he was left with a hefty sum of over $28.24 million. Looking at the day's gold price, which had risen more than a hundred dollars above his selling price, Carter turned off the TV in frustration.

The joy of sudden wealth was largely overshadowed by the vexing gold price.

As gold and silver prices soared, Paul Volcker, the Federal Reserve's chairman, could no longer sit idly by. The surging prices of silver and gold seemed to mock him directly.

To Volcker, who was determined to combat the persistently high inflation rates of recent years, the skyrocketing gold prices were a direct affront. And let's not forget its accomplice: silver.

Feeling deeply that the dignity of the Federal Reserve was being trampled by these two commodities, Volcker finally lost his patience.

Since gentle measures didn't work, it was time for more aggressive tactics!

Just days after the prices of silver and gold both broke records, the Federal Funds Rate, which had seen only modest increases of 0.1% or 1%, made a significant leap, surpassing the 14% cap and reaching about 16%.

The threefold increase in the Federal Funds Rate was no small matter!

On the afternoon the Fed's rate hike policy was announced, Carter once again met Mayor's chief secretary Laura at school. It was obvious what she was here for.

Without bothering to ask Laura her purpose, Carter followed her to the mayor's office. As soon as the door opened, Carter was hit by a cloud of smoke that made him cough.

"Wow, Uncle Robert, how many cigarettes have you smoked?!"

Waving his hands in front of his nose, Carter squinted towards the man with a cigar behind the desk.

"Sorry, I didn't notice. I'll open the window; have a seat first."

Benjamin smiled apologetically and didn't mind Carter's somewhat impolite gesture. He opened the window and then walked over to sit beside Carter.

"I heard you have a habit of offering cigarettes to everyone you meet. Today, let me return the favor. Here, try my cigar."

"Thanks!"

Carter accepted the cigar from Benjamin without any embarrassment. Offering a cigarette in exchange for a good first impression and a softened attitude had proven useful in many situations.

Taking a puff of the cigar, Carter immediately began to cough.

"This cigar, Uncle Robert…"

It burned his throat! Even though cigars aren't meant to be inhaled deeply, this one was harsh.

"It's very poor quality, isn't it?"

Benjamin laughed, stating the obvious.

Indeed, the cigar was terrible! Comparing it to the ones he had tried from Carlos, this one was several notches worse.

"Even this poor-quality cigar costs 21 cents now. If you can't stand it, smoke your own. Don't force yourself."

Seeing Carter's strange expression, Benjamin smiled, assuming Carter couldn't tolerate the low-quality product. He didn't realize Carter was wondering if someone had leaked his financial secrets.

"Remember our last conversation? Unfortunately, the worst-case scenario has happened, and it's even worse than we expected. Yesterday, Mayor Reberton of Pearson called me. Their unemployment rate has risen to 11%."

"In a city of over 13,000 households, 1,400 have lost their jobs and their income. He asked if Douglas had any job openings to help them."

"We're not doing well ourselves; how can we help them?"

Carter was anxious, quickly dismissing Robert's unrealistic idea. Helping the people of Douglas was one thing, but helping another city with 1,400 families was too much.

"Don't worry, I didn't agree to Reberton's request. Our situation isn't great either, and that's why I asked you here."

Calming Carter down, Robert continued:

"Thanks to you, things in Douglas aren't as bad as they could be. Your recent hiring of thirty part-time workers has saved thirty families. But it's not enough. Our unemployment rate has also exceeded 3%, and just this morning, the cotton mill in the west announced a 30% layoff."

"That's nearly 600 more people unemployed."