Chapter 249: Watching the Theater, Making Money, and Profiting from It
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Hardy was having breakfast while Elaine, clad in a pearl-colored lace pajamas, read the newspaper to him. As a professional host, Elaine delivered the news with practiced ease.
"The seven member states of the League of Arab States have assembled 43,000 troops and declared war on Israel," Elaine read aloud.
"The Egyptian army has entered Palestine from two directions. The First Brigade is advancing towards Tel Aviv along the northern coastal route, while the Fourth Brigade is heading towards Jerusalem via Bir Sheba and Hebron."
"The Syrian army, with two mechanized brigades, has captured several Jewish settlements around Lake Tiberias and is engaged in fierce battles with Israeli forces."
"The Jordanian 'Arab Legion' has surrounded the Jewish Quarter in the Old City of Jerusalem, and the Lebanese army has taken control of the Malekia border post in the north."
"The Iraqi army, equipped with armored vehicles and aircraft, has occupied key locations and is advancing towards the Jewish city of Hedra."
In just three days of fighting, Israel faced repeated defeats and was on the brink of collapse. Hardy thought the situation might prompt more intense lobbying by Jewish leaders with Congress and President Johnson.
With the outbreak of the Middle East war, President Johnson had cut short his national lecture tour and returned to the White House to address the crisis. Israeli representatives and various other forces were beseeching Johnson for increased support. Johnson, ever the opportunist, was keen to leverage the situation.
The following day, at the United Nations Security Council, the US representative proposed a 36-hour ceasefire between the warring parties. The Soviet Union supported the motion, accusing the Arab nations of initiating the conflict, but the UK opposed it, favoring continued support for the Arab nations due to its historical interests in the region.
As Hardy reflected on these events, he smiled. He recognized that global politics often boiled down to self-interest, whether it was the US backing Israel or the UK supporting Arab nations.
Hardy had anticipated this shift and understood that while Johnson's re-election campaign might be supported by Jewish promises, he could not single-handedly sustain it. His role was to maintain his support steadily.
The phone rang, and it was Giannini calling.
"Hardy, you were right about the war in the Middle East. The situation for the Jews looks dire, and they might not last long," Giannini said.
"They'll hold on," Hardy replied. "They've waited over two thousand years for this moment; they won't give up easily. Besides, there are many supporters ready to back them financially."
Giannini asked, "What are your next business moves?"
"Financial investment, private equity funds, and the insurance industry," Hardy said. "I see great potential in these areas."
Giannini was particularly interested in Hardy's mention of the insurance industry. With Johnson's national health insurance plan on the table, the proposal would impact the insurance business significantly. Giannini was concerned that this would affect Bank of America's interests.
"Are you considering supporting Johnson's health insurance plan?" Giannini asked.
"Perhaps. But I'm exploring ways to balance both interests," Hardy responded.
Giannini saw an opportunity to persuade Hardy to influence Johnson against the insurance plan, but he decided against pushing too hard, not wanting to appear overly commanding.
Later, Hardy received a call from Andy with news that someone was buying cargo ships in large quantities.
"Who's buying?" Hardy asked.
"Jews," Andy replied.
Hardy realized that with the ongoing war, Israel needed substantial supplies and was willing to pay top dollar for transportation. The price for ships had more than doubled since Hardy had bought them, and now he could sell them at a premium.
"Increase the price: $800,000 for Liberty ships and $1.2 million for Victory ships," Hardy instructed. "Sell them slowly, and make sure they know we have what they need."
In the afternoon, Hardy turned on ABC TV to follow the latest developments in the Middle East. Reports indicated that Israel was in a precarious position, and the call for Jewish support worldwide was growing.
The phone rang again, and it was Andy, confirming that the deal for the ships had gone through. The total was $48 million, paid in full.
Hardy thought to himself that the Jews were indeed wealthy and would likely buy more supplies. He quickly contacted Colonel Adam Beach.
"Beach, check if the Jews have ordered weapons from the military," Hardy directed.
Beach soon called back, confirming that there were substantial orders. Hardy saw an opportunity for his own materials.
"Contact the Jewish buyers. Offer them our weapons at a competitive price," Hardy instructed Beach. "They're in a hurry and have the funds."
Beach agreed and set to work.
Hardy felt a sense of satisfaction. He wasn't the cause of the war, nor could he stop it. His role was to watch the unfolding events, make strategic moves, and profit from the situation.
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