Creating America: My campaign manager was Roosevelt

Chapter 180 System Vulnerabilities

The applause in the auditorium still echoed, crashing against the walls like a tide.

Leo stood in the center of the dance, holding a thick stack of gold-embossed certificates and checks.

He has presented more than a dozen awards, facing more than a dozen young faces, some excited and in tears, others nervous and stuttering.

Every child in the room would hold his hand tightly, saying the same old "Thank you, Mayor," and "I will try my best to repay Pittsburgh." This is normal.

Under the halo of power, obedience is instinctive.

"The next winner."

Ethan Hawke stood in front of the microphone and read out the names on the list.

"Marcus Thorne."

"From Carnegie Mellon University, with a double degree in Mathematics and Computational Finance."

A thin figure stood up from the crowd.

It wasn't until he stepped onto the dance floor and stood under the spotlight that Leo could clearly see what the young man looked like.

Marcus Thorne was about nineteen years old, very thin, and had pale skin.

He was wearing an obviously ill-fitting, cheap suit with sleeves that were too short, revealing a white shirt underneath.

These are the kinds of clothes you can buy in charity stores or Walmart's discount section.

He wore thick-rimmed black glasses, but his eyes behind the lenses showed no trace of the excitement one would expect from an award recipient.

Leo had checked his background information.

Marcus's father was a former Allegheny Steel worker who lost his job five years ago due to a work injury. Most of his compensation was taken by lawyers and intermediaries, leaving the family in extreme poverty.

This boy was able to afford Carnegie Mellon University by taking out student loans and writing odds algorithms for underground casinos.

Leo smiled and extended his hand, handing over the certificate and the $20,000 check.

"Congratulations, Marcus."

Leo spoke in that approachable, politician's tone.

"Pittsburgh is proud of a genius like you."

According to the procedure, Marcus should have accepted the check, said thank you, taken a group photo, and then left the dance.

But Marcus didn't accept it, nor did he shake Leo's outstretched hand.

"Mr. Mayor."

Marcus's voice was soft, yet exceptionally clear.

"I applied for this scholarship because I needed the money, and I'm very grateful. But before I take the check, there's something else I need to tell you now."

The atmosphere froze for a moment.

Ethan Hawke stood to the back, his brow furrowing instantly.

His intuition told him that this bookworm probably couldn't say anything nice.

This kid might complain about unfair distribution, accuse the city hall of putting on a show, or even say something crazy that would make tomorrow's headlines.

He subconsciously took half a step forward, ready to step in and smooth things over, or simply ask this ungrateful brat to leave.

"Mayor..." Ethan began.

Leo raised a hand, stopping Ethan's movement.

He looked at the thin boy in front of him.

Marcus's eyes held fear, an instinctive dread of authority.

$20,000 is a huge sum of money for him, enough to change his life, but what he is doing now could very well cost him that money and even offend the most powerful person in the city.

But he still stands here.

Behind this tension, Leo saw something even more intense.

Ambition.

This isn't a cynical nerd grumbling; this is a genius struggling at the bottom, demonstrating his worth to those in power. He's gambling.

He bet that Leo Wallace wasn't a naive bureaucrat who only listened to flattery; he bet that he had enough chips in his hand to offset the offense and even get something more valuable than a scholarship.

He was seeking asylum, and he was also seeking opportunity.

Leo smiled.

He liked that look in his eyes.

"Let him speak."

Leo spoke to Ethan in a calm tone, with an encouraging undertone.

He looked at Marcus with great interest, his eyes filled with expectation, not reproach.

Leo asked, "Is there anything you need to tell me?"

The boy took a deep breath, and the stiffness caused by tension dissipated from his body.

"Because I discovered a problem."

Marcus pushed up his thick, black-rimmed glasses and looked directly into Leo's eyes.

"This summer, I worked as an unpaid intern for two months at the city hall’s financial department’s data center, and I had access to view the post-operation logs of the Pennsylvania Industry Alliance Trust system."

"Your initial design was well-intentioned: to reduce transaction costs and facilitate the flow of goods between cities using electronic tickets. Erie's steel could be exchanged for Pittsburgh's machinery, and Pittsburgh's workers for Scranton's cement."

"However, your algorithm model has a core logical flaw."

Ethan suddenly looked up, his face showing surprise.

Marcus speaks very quickly: "The current model is based on an idealized assumption that trade flows between all cities are relatively balanced, or at least complementary, but the data tells me that the opposite is true."

"Pittsburgh is the absolute core of this alliance and the sole issuer of these credit notes. In other words, you are not only the rule-maker, but also the central bank of this monetary system."

"The current situation is that the second phase of the recovery plan is running like crazy. You're buying steel from Erie, cement from Scranton, and glass from Johnston."

"Trucks loaded with supplies kept pouring into Pittsburgh, and Pittsburgh paid them with electronic receipts generated within the system." "In the short term, it looks great; factories in those cities are up and running, and the data looks good. But have you ever considered what they can do with these receipts?"

"What does Pittsburgh export? High-end healthcare, university education, and financial services. But Erie's steel mills don't need heart surgery, and Scranton's cement plants don't need computer science master's degrees."

"This led to a disastrous result: Pittsburgh was trading credit for goods. You were printing money like crazy to buy their resources. And they were hoarding huge amounts of Pittsburgh notes that they simply couldn't spend."

Marcus extended a finger and drew a downward curve in the air.

"If cross-city settlements exceed $500 million in the fourth quarter, which will happen next month based on the current growth rate, the tipping point for one-way flow will be breached."

"Eli and Scranton will have tens or even hundreds of millions of dollars in notes in their accounts, but their cash flow will dry up. Notes are, after all, notes, not real money."

"They know this; those mayors and factory managers aren't fools. They're putting up with it now because they have no bargaining power. They're so desperate for orders that they're resorting to desperate measures."

"But this can't last."

"Once their cash flow dries up, or they find that their notes are starting to depreciate on the secondary market, panic will erupt instantly. They will sell their notes or demand that Pittsburgh pay them in dollars."

"At that time, the so-called alliance of equality that you have built will reveal its cruel nature."

"This is not mutual assistance at all; it is Pittsburgh's financial colonization of the surrounding declining cities."

"You are sucking their blood to nourish the heart of Pittsburgh."

"This would destroy political trust within the entire Rust Belt alliance, which is more damaging than any partisan attack."

Marcus paused, seemingly considering whether his next words would be too offensive.

"And, Mr. Mayor, even more terrible things are yet to come."

"When they start dumping their bonds, who will buy them? Who has the capacity to absorb such a massive sell-off of hundreds of millions?"

"According to your design, the ultimate liquidity provider for these notes is a pool of funds headed by St. Cloud Capital."

“I have no doubt that St. Cloud has enough funds to pay out.” Marcus’s voice lowered. “I’ve also studied their balance sheet; a few hundred million dollars is just a number to them.”

"But...could they use this to manipulate these cities?"

Marcus's gaze sharpened.

"When Erie and Scranton are kneeling at St. Cloud's doorstep begging for help due to cash flow problems, will they seize the opportunity to acquire prime assets in these cities? Will they demand control of local water, electricity, or public transportation?"

"Where will your executive power be then? Will the political alliance you've painstakingly built become a plaything in the hands of capital?" "This is not just a financial crisis, Mr. Mayor; it's a power grab from finance to administration."

"Although you previously promised these mayors that the notes could be exchanged for dollars at any time, I can't imagine what will happen when that day actually comes, when panic spreads, and when capital bares its fangs."

Hearing this, Leo finally understood why the boy had hesitated so much when accepting the award.

Leo quickly went through the logic in his mind.

The child is right.

He did indeed lay the groundwork for this centripetal force when he initially laid out the blueprint for this alliance.

He was the mayor of Pittsburgh, and he sat on a chair in City Hall.

Leveraging its status as a core city to draw resources from surrounding areas to support local recovery was a politically intuitive choice. But he didn't expect the tipping point to come so quickly.

What he wants is a sustainable ecosystem, a flying geese structure with Pittsburgh leading the way and other cities following.

Pittsburgh eats the meat, allies drink the soup, and everyone survives.

It is definitely not the kind of vicious bloodsucking that would drain allies dry in a short period of time and cause the entire system to collapse.

At the same time, a surge of anger exploded in Leo's chest.

The team that maintains this system day and night, watching the system closely, sees hundreds of millions of tickets flowing through their hands.

But no one warned him.

No report was placed on his desk pointing out this impending tipping point.

Is it simply because they're incompetent? Not even as good as a sophomore in college? Or are they just used to reporting good news and hiding bad news?

Leo's eyes turned cold.

Things aren't that simple.

The ultimate guarantor for this system is St. Cloud Capital.

If these cities experience a payment crisis and their financial chains break down, who will be the biggest beneficiary?

It is Saint-Cloud, who has cash in hand and is ready to enter the market to harvest cheap assets.

His finance team is full of elites from Wall Street.

Can't they see this vulnerability?

They could absolutely see it, but they chose to remain silent.

Behind this silence may lie the will of capital.

The entire team may have already been infiltrated and even controlled by Saint-Cloud without anyone realizing it.

Capital never truly submits to power; it only pretends temporarily before turning against it.

A moment of relaxation can lead to a deadly trap.

If it weren't for this boy named Marcus standing here today, tearing the truth out.

Leo will likely have to wait until next month, until the entire Rust Belt Alliance falls apart, to realize he's standing on the edge of a precipice. He controlled his facial muscles, not letting his murderous aura leak out in the slightest.

Leo laughed and said, "You're right."

Leo readily admitted it.

"This was our oversight."

Leo looked at the thin boy with a hint of consideration in his eyes.

"So, Marcus, now that you've spotted the signs of an impending system crash, you should already have a firefighting plan ready. Tell me, how will you patch this vulnerability?"

This time, Marcus didn't rush out his answer as quickly as before.

He was silent.

He looked down at his worn-out leather shoes.

After a few seconds, he raised his head again, his eyes showing a more serious expression.

"I have no idea."

Marcus continued, "I have theories. Maybe we can introduce a dynamic exchange rate mechanism, or maybe we can build an automated lending pool algorithm. But those are just mathematical models, based on assumptions under ideal conditions."

"The real financial system is far more complex than code. Without knowing the level of funds in St. Cloud Capital's pool and without having access to the real-time settlement data between these cities over the past few months, any model built out of thin air is irresponsible speculation."

"I need data."

Marcus stared directly at Leo.

"I need to see the raw, unedited logs, to see the true trajectory of fund flows. Only by grasping these can I calculate exactly where the tipping point is and come up with a truly feasible stop-loss plan."

Leo nodded.

This is not a bookworm who only talks the talk; he is a technocrat with a deep respect for reality and a high level of professionalism. He didn't try to fool himself with fancy jargon; he chose to speak the truth.

"A very good answer."

Leo handed over the certificates and checks he was holding.

"Marcus, you deserve this money. Take it and improve your life."

Marcus took the item, his hands trembling slightly.

Leo turned his head and looked at Ethan standing behind him.

"Ethan."

"Yes, boss."

"Take him away." Leo pointed at Marcus. "Starting tomorrow, place him in the Treasury's special analysis team, reporting directly to you. Give him data access so he can see everything he wants."

Ethan glanced at the still somewhat bewildered boy and nodded.

"clear."

Marcus took a deep breath, bowed to Leo, and then followed the staff to the back.

As Leo watched Marcus's figure disappear behind the curtain, the smile on his face vanished instantly.

He beckoned to Ethan, signaling him to come closer.

Ethan moved closer.

Leo's voice was very low, so that only the two of them could hear it.

"There's one more thing, Ethan."

"Once we get back, have Sarah cooperate with you immediately. I need a list."

"A list?" Ethan asked, puzzled.

"A list of all key personnel currently responsible for the operation and maintenance of the Pennsylvania Industry Alliance Trust System."

Leo's eyes turned cold.

"I need to know who hired them, which companies they worked for before, and their resumes."

"in particular……"

Leo paused for a moment, his tone revealing a chilling killing intent.

"Find out which of them has any connection with St. Cloud Capital."

"After the meeting, I want this list on my desk."

Ethan nodded, sensing a hint of urgency in Leo's tone.