Semi-Coercive Imperialist

Dieter Schmidt had come to the Republic of Canilan on a business trip. His purpose was to secretly import cutting-edge equipment to be used in the military factories of southern Hermes.

Most of the work itself had already been completed. Numerous shell companies were established in various western countries, and equipment was ordered under different names. The transactions were intricately entangled in the form of triangular trade via third countries.

No intelligence agency would easily be able to trace such a chaotic flow of funds and materials.

“……Hiyah~”

VVIP reception room of the Kanin Stock Exchange (KNSE).

Russell, one of the many vice presidents of KNSE, let out a hollow laugh as he faced Dieter.

The chart laid out before him showed the investment results of the past few months drawn in a nearly vertical upward curve.

“It’s probably a record. A new record.”

Russell clapped as if in awe.

The various tech stocks invested in by Maximilian had yielded staggering returns in a short period. The profit per stock ranged from at least tens of millions to hundreds of millions.

“However, personally, I strongly recommend reinvesting. These days, Canilan’s stock market is experiencing an unprecedented golden age in its history. The so-called invincible securities marke. Canilan’s technology has no end, and its potential has no limits. It’s a country solely for corporations.”

Russell confidently handed over a new investment product brochure.

“Thus, I recommend this thing called a ‘Collateralized Debt Obligation (CDO).’ It’s like a comprehensive gift set made by bundling bonds of various high-quality companies selected by our securities firm. The risk of individual companies is diversified, and the return is maximized.”

Dieter didn’t even glance at the document wrapped in all sorts of pompous phrases.

“No matter how large the principal is, a minimum return of 30% is guaranteed. It’s a loss not to buy now. I’m telling you, money literally duplicates.”

This was Canilan’s golden era. Money overflowed in the streets, and the rumors pulled capital from countries across the continent. Everyone in Canilan believed without a doubt that tomorrow they would be richer than today.

“We don’t sell this product to just anyone, you know. Only to big investors like Mr. DiMateo……”

But Maximilian had pointed out the shadow behind the splendor, the bubble that would dissolve the moment it got wet, and now even Dieter’s eyes had caught the darkness behind the numbers.

“No. I’m looking for a product that hedges against the potential collapse of Collateralized Debt Obligations.”

It was a kind of reverse bet. A derivative product that enabled one to bet on a price decline, known in Canilan as the ‘short’ position.

A trace of puzzlement crossed Russell’s face.

“CDOs collapsing?”

“Is there no such product?”

“No, there is. Risk insurance for CDOs……”

Russell pulled out another set of documents.

“Various insurance companies in Canilan sell insurance products to hedge against the default risk of Collateralized Debt Obligations (CDOs).”

Simply put, it was like buying fire insurance for a luxurious mansion that everyone was sure would never catch fire. If one purchased the insurance rights, and the mansion was burned down, the insurance payout would go to the policyholder, Maximilian.

Furthermore, this risk insurance could even be contracted for several times the face value of the securities.

“You’d probably have to visit the insurance company side. Shall I connect you?”

If there was no fire, it was an expense. But the moment a fire broke out, it would yield an immense amount of cash.

Similarly, if the securities didn’t default, it would just be annual insurance fees down the drain. But if Canilan’s economy collapsed and the securities became worthless pieces of paper.

Maximilian would receive astronomical sums from various insurance companies.

“Yes. Please do.”

Canilan’s insurance industry was the backbone of the country. In a nation practically ruled by corporations like Canilan, even public systems such as police and medical services were provided differentially based on insurance grades, and at the very top of that system was ‘Canilan National Insurance’.

In other words, once one held the leash of insurance, they could exert considerable control over the country of Canilan.

“I mean, if you really want it, we can set it up, but seriously, why would you want something like that…… I’m telling you, Canilan is on the right track.”

Russell wore an expression of utter incomprehension.

Dieter gave a brief answer.

“It’s the President’s will.”

“Ah, the gentleman who visited before? Personally, I really wouldn’t recommend it. I get what he’s thinking, but many people who held such suspicions, people like your group, have already left this life. Very, very, very many.”

There were some who had similar thoughts. Maybe a truckload of them.

Doomsayers who overestimated the risk of CDOs.

“They’re really all dead. Some even jumped in front of trains.”

However, if one fails to catch the most crucial “timing” it will only be the end of their own life.

“It’s fine.”

Maximilian predicted that Canilan’s crisis would come in the spring of next year, and from Dieter’s standpoint as the one managing the finances, it was an investment made from surplus profit anyway.

Even if it failed, it would only eat into the profits and the principal, though the scale was quite large, it was a risk well worth taking.

“Hm. How much volume are you looking for?”

“All the cash we have. As much as possible.”

Russell let out a hollow laugh.

“Yes. The insurance companies will be pleased. In any case, the contract period must be honored, and if there is no default, you will have burned through your entire fortune within three years just in fees. Are you all right with that?”

Dieter nodded. Russell immediately put on the face of a securities broker and made a call somewhere.

Almost all insurance companies called back within five seconds, shouting over one another that they’d be right over.

“Haha. They say they’ll be here in three minutes. Even offering to create products that don’t exist.”

From Russell’s perspective, this guy was a sucker who only thought he was smart. A moron who believed, “I made hundreds of millions in under a year, so I’m a genius, and the whole world will go just the way I think.”

In short, it was a one-way ticket to send a sucker bastard straight to hell. Still, it was thanks to idiots like this that the market stayed afloat.

“As for this brokerage commission, well. I’ll only take half this time.”

He’d made a sweet cut in fees thanks to this, so he figured he’d at least show this much courtesy to a one-time client.

***

A peaceful afternoon. Office of the Sentinel Knight Order.

─We’ll probably be able to collect quite a few contracts by next spring.

Dieter brought good news from Canilan.

“Good work.”

─Also, the insurance companies asked if we’d be willing to buy more if they design new related products.

“Ah, of course. Go for it.”

Canilan’s insurance companies were even trying to create non-existent insurance products to sell to us. They had gone completely blind from the immediate results right in front of them.

─Is that really all right with you?

“Of course. Just trust me. I’ve been reading a lot of academic journals lately.”

On my office desk, the academic journals were neatly arranged. I was both putting into practice Freya’s lesson, to always keep both body and mind in order and, based on my experience before Regression, reading as much as possible under the belief that reading is the best hobby.

On top of that, I wasn’t just studying economics, but also Professor Arnolt’s magic studies, Professor Emulen’s history, and even various languages of the Eastern Union.

“Canilan will collapse by next spring, no matter how long they drag it out.”

The technological failure of a keystone company.

The moment a company’s advancement fails in a corporate nation, trust and investment will collapse like dominos, and the entire country of Canilan will be groveling at our feet.

“Return safely.”

─Yes, sir.

Knock knock-

Just then, an administrative officer entered.

“Sir Knight.”

With a somewhat serious expression, he handed over a sealed letter.

“A letter from the agency directly under the Imperial Palace’s Intelligence Bureau.”

I silently accepted it.

…….

The agency commonly referred to as “the Organization” is the Empire’s intelligence organization located beneath the Imperial Palace. The investigations, operations, and minor interrogations by informants are conducted externally, but the interrogations of important witnesses or nobles are always held at this headquarters. While the entrance is technically separate from the palace, it is deliberately positioned to fully exploit the pressure of the Imperial Palace’s presence.

They had requested my attendance.

“Sir Maximilian, this way please.”

Was it to interrogate me? Or for something else?

However, as an Ebenholtz, I have no need to feel intimidated. I must never allow myself to be.

The agency had the nature of a hyena, the weaker one appears, the more eagerly it bites.

“It won’t take long.”

The Imperial butler bowed to me and opened the door. It was a place marked with the nameplate [Reception Room].

I stepped inside.

The interior was a neat office, with two investigators seated across a desk. Though their appearances were ordinary, the fact that they were here to receive someone like me, an Ebenholtz, meant their standing was quite high.

In military terms, they were probably at least colonel-level.

“Ah, it’s a pleasure to meet you, Knight Maximilian.”

One of the investigators gestured toward an empty chair.

“Please, have a seat.”

I sat down quietly.

“It’s nothing much… but regarding the recent Brain-Eater incident, both the Intelligence Bureau and the Imperial Palace were deeply impressed by you, Knight Maximilian.”

As was customary, it began with words of respect.

“Thus, as a department chief of the agency, I have a favor to ask.”

“If it’s a favor, you could’ve come to the Knight Order instead.”

“…Ah, my apologies. We would have liked to, but there was a risk of information leakage.”

“Information leakage from Sentinel?”

At my reply, the department chief gave a wry smile.

“Almost all affairs of the Empire are reported to the Knight Order. Especially the Sentinel knights have clearance to view nearly all documents within the Empire. Naturally, we’re compelled to be cautious.”

“You’re saying there’s a spy among the knights? Is that it?”

“I didn’t say it in such terms.”

“No. That’s exactly what you’re implying.”

One must not fall for the typical tactics of the agency, blurring the point and confusing the subject.

At the very least, never surrender the initiative to these bastards.

“The agency suspects the Knight Order. Fascinating.”

At my firm remark, the department chief raised an eyebrow.

“Yes. If you want to put it that way. And this is the reason we asked you to come here, Knight Maximilian.”

He handed over a document. Inside was the personal information of a person named “Arnolt von Eschenbach”.

“This time, Wizard Arnolt will be appearing before the military. That’s because one of his disciples has been detained by them.”

Arnolt.

I knew his name. In the Empire, it was impossible for anyone with even a modest education not to know it.

“We’d like you to attend that event as an observer.”

I looked at the department chief. He met my gaze and spoke.

“His ideology is dangerous.”

“Dangerous?”

“Yes. He will certainly become an enemy of the Empire. Please read the following documents.”

I flipped through the pages.

They contained an unpublished article by Arnolt and what appeared to be private letters obtained from somewhere.

The unpublished article questioned the falsity of the Empire’s sacred Aran pureblood ideology, and argued that biological distinctions between races were essentially meaningless.

The letters contained sharp criticism on how the Empire’s rigid system was obstructing its own progress.

“Sir Knight, what do you think?”

Before Regression, Arnolt was one of the sages destroyed by the Empire.

A genius who sought to break the boundaries between science, magic, and magi-technology, attempting to open a new horizon of human intellect. He researched magi-technology that restructured mana particles, and his work was recognized not just as academic, but as a philosophy that delved into the foundations of the world.

However, such a forward-thinking intellect could not be understood within the old framework of the Empire, and was instead deemed a threat…

“To me, it is truly lamentable.”

And now he was being called “lamentable” by a mere investigator from the agency.

I gathered the documents and replied.

“……Truly, it is.”

There are many ears in the Imperial Palace. That meant this entire conversation could be relayed to the Emperor.

“However, as you know, this man has significant academic authority and a broad base of respect. We can’t touch him easily.”

The department chief leaned in with a smile.

Even for the agency, it would be reckless to lay hands on a traditional noble like Arnolt, who had deep connections within academia.

“To bring down the enemy of the Empire-”

Enemy of the Empire. In fact, Arnolt would later become associated with revolutionary thought.

Even the revolutionaries had learned scholarship from Arnolt, and there were probably already many revolutionaries who had studied magic under him.

“To achieve something far greater than some mere wizard…”

I looked steadily at the investigator who was asking me for help.

“We need the will of Ebenholtz.”

It seemed the Empire was about to begin a serious internal purge.

***

“……What did you say?!”

Anton abruptly lifted his head and asked again. High-ranking knight Adria bit her lip and answered.

“Maximilian has appeared before the military.”

Maximilian had gone to the military to interrogate Arnolt.

That was all the information currently known, but Anton, unusually flustered, left his office with a sense of urgency. As he was rushing down the hallway, he came across Chiron, who was drinking coffee.

“Hmm? Deputy Commander Anton, where are you-”

“Sorry!”

He passed by immediately, went down to the parking lot, and got into a car.

Arnolt had been Anton’s academic friend, someone with whom he had shared intellectual pursuits since youth, and at the same time, he was Anton’s greatest source of concern.

He possessed an extremely progressive intellect. He carried insights that pierced through the times. He had the boldness to voice them openly to the world and the solid support of a powerful noble family to back him.

There was a time when Anton admired him, but those times had changed.

Now, every word Arnolt uttered could be considered a “thought crime” and could return to him as a blade aimed at his own throat.

“I’ll drive.”

Adria, who had followed shortly behind, got into the driver’s seat. Anton threw himself into the passenger seat and ran a rough hand through his hair.

Arnolt was a strong man, but this time, his opponent was far too dangerous.

Maximilian, the legitimate heir of Ebenholtz.

Barely into his first year, he was already a purist imperialist like no other. He had annihilated a Lieutenant Colonel of the Imperial Guard and his faction simply for challenging him, and pressured a judge to have two innocent immigrants executed legally, a noble of pure authority.

If Arnolt made even a single slip of the tongue in front of him…

That one sentence alone could lead to total ruin.