Chapter 7: Even Gentlemen Swear

"Dear Goodman, technically, we've been old friends. Friends help each other out in times of need, but as you can see, the situation outside is chaotic. Prices change every day, and the money we lend out at the bank, it's a losing game. No matter how high we raise the interest rates, we can't keep up with the inflation, especially that damn oil! Those monkeys from the Middle East should be on the gallows!"

Goodman held the phone slightly away from his cheek, trying to protect his ears from Potter's verbal assault, or perhaps his sanity?

"In '73, it was $3 a barrel, now it's jumped to $33. Damn it, doubling in price every year can't keep up with this pace! If I were Carter, I'd teach those damn turbans a lesson. Oh, not your Carter, of course."

"13 points of interest! $500,000! Payback in five years!"

Goodman knew well enough that the Carter Potter referred to wasn't his boss. It was a coincidence that the current president of the United States was also named Carter, though in this case, it was his surname. Jimmy Carter, a president from Georgia. Yet, it was clear that this Georgia native hadn't brought any obvious benefits to Georgia since taking office.

To avoid Potter's incessant rambling, Goodman cut to the chase and laid out his chips. Facing 13% interest, nobody would remain indifferent. After all, this was almost as much as the interest in private lending. Normally, interbank lending wouldn't carry such high rates.

After hearing this, Potter, for the first time in a while, stopped flapping his lips. After a moment of stunned silence, he sighed heavily.

"Damn it, Goodman, you should understand, considering the current inflation rate, 13% is indeed high, but it's only high for now. Do you get my point? If it were for a year, let alone $500,000, even $1 million in cash could be sent to you tomorrow! But for five years, it's 15%! I need 15% interest. If you agree, I'll lend you the money!"

As the saying goes, ask for the moon, but settle for the stars. Goodman had made an audacious request, asking for $500,000, and Potter wasn't naive. Despite being tempted by the 13% interest, he realized that the sudden borrowing of such a large sum from Blake Bank must signify something significant.

Potter wouldn't inquire about Blake Bank's intentions. He knew well enough that even if he asked, they wouldn't tell him. But that didn't stop him from taking advantage of the situation, milking it for all it was worth. Even if he lost, $500,000 could easily be offset by Blake Bank's assets, not to mention what would be left of the Douglas market after Blake Bank went bankrupt.

Don't think $500,000 was small change. In the booming U.S. economy of the '70s, despite inflation, the purchasing power of the dollar remained strong. In 1979, the median household income in the United States was only about $7,000. $500,000 was almost equivalent to the entire annual income of over 70 middle-class families in America. Excluding living expenses, and subtracting those without savings accounts, on average, this $500,000 represented the savings of more than 500 middle-class families.

Why the hell wouldn't you go for it?!

Even though Carter's bottom line was 15% interest, when Goodman heard this number, he almost burst out cursing. A gentleman, a gentleman, I am a gentleman! He silently recited a couple of lines to calm himself down and took a couple of deep breaths to regain his composure:

"Mr. Potter, 15 points of interest is too high! There has to be some rules to bargaining, right? 14 points, no more!"

"Impossible! 14 points of interest wouldn't even keep up with the current inflation rate five years from now!"

"Bullshit, even ten-year Treasury bonds are only yielding 11.61%! We're only borrowing for five years, and you're asking for 15%? Jews wouldn't even be this greedy!"

"Fuck, I'm a Jew! 14.5! Take it or leave it!"

"14! Plus $200,000."

As it turned out, the so-called "gentlemen" from abroad, when it came to bargaining, were just as likely to curse. And this wasn't just Goodman and Potter, small-town bank workers, even members of state and even congressional legislators, would pound the table and curse when arguing over interests.

Of course, Carter couldn't see any of this for now.

In Mrs. Mary's principal's office, Carter, who had just been pointing fingers and talking about the Fed, and mentioning $500,000, was now signing his name on the unequal treaty provided by Mrs. Mary with a face full of frustration.

As the price for early departure, Carter, in addition to completing his homework on time, had to come see Mrs. Mary once a week. Mrs. Mary would personally assess his learning outcomes, and if he failed, then sorry, he would have to stay at school!

Signing this agreement, Carter almost wanted to shout "A gentleman would rather die than yield!" Then he would overturn Mrs. Mary's violent rule. But after carefully comparing his own small frame to Mrs. Mary's son's, Carter gave up on the idea.

Isn't it strange? A school principal, yet her child was a mafia boss.

"All right, you can go now. Carter, remember what you promised! Hurry up and have lunch, you still have classes in the afternoon."

"Okay, Mrs. Mary."

After leaving the principal's office with a dejected air, Carter took out his car keys and handed them to Jenny:

"You drive back first; I'll have lunch at school."

The schedule at Elmond School was very tight; the first afternoon class usually started at 1:10. Not just at Elmond, but most high schools in the United States had similar schedules, and each class break was only about 5 minutes, barely enough for students to change classrooms, let alone take a bathroom break. So even though they got out early, they still had a lot of classes every day.

"Never mind, I'll walk back. You still have to go to the bank in the afternoon."

Jenny pushed the car keys back into Carter's hand and hugged him again before leaving. Carter didn't insist, after all, this lady, more politely called a full-time housewife, less politely, was unproductive.

But that was okay for now, as the phenomenon of women entering factories and social work hadn't appeared in the United States for long. Before, American households were similar to ancient China, with men working outside to earn money while women managed the household and looked after the children. After the establishment of the People's Republic of China, Chinese women were liberated earlier than American women.

Idle as he was, walking back home would give him some exercise. Although her figure was already well-maintained.

Watching the lady leave his sight, Carter turned and headed towards the cafeteria he remembered.

Ah, the long-lost student days.