Chapter 61: Enemy of the Empire Dieter Schmidt had traveled to the Kanilan Republic on business, tasked with a covert mission: importing cutting-edge equipment for the munitions factories in Southern Hermes.
The groundwork was already laid. He had established a network of shell companies across various Western nations, splitting equipment orders under different aliases and weaving the transactions into a complex web of triangular trade through third-party countries.
No intelligence agency would find it easy to untangle such a chaotic flow of capital and goods.
"...Wow."
Inside a VVIP reception room at the Kanilan Stock Exchange (KNSE), Russell—one of the exchange's many vice presidents—let out a hollow laugh as he faced Dieter.
The chart spread out before him displayed the investment results from the past few months: a curve trending upward in a near-vertical line.
"This has to be a new record. An absolute record."
Russell clapped, his expression one of pure wonder.
The various tech stocks Maximilian had invested in had achieved staggering returns in a short period. The profits ranged from tens of millions to hundreds of millions per stock.
"However, personally, I strongly recommend reinvesting. Kanilan's stock market is currently in the midst of an unprecedented, historic boom. It's what we call 'securities invincibility.' There is no end to Kanilan's technology, and its potential knows no bounds. This is a nation built solely for corporations, after all."
Russell confidently pushed forward a prospectus for a new investment product.
"To that end, I recommend these: 'Collateralized Debt Obligations,' or CDOs. Think of them as a gift set—we've bundled bonds from several blue-chip companies, handpicked by our firm, to maximize returns while diversifying the risks of individual companies."
Dieter didn't even glance at the document, which was wrapped in all sorts of pretentious jargon.
"Even with a large principal, a minimum return of 30% is guaranteed. Honestly, you're losing money by not buying this right now. Money is practically printing itself."
This was Kanilan's golden age. Money overflowed in the streets, and rumors of such wealth drew in capital from nations across the continent. Everyone in Kanilan believed, without a shadow of a doubt, that they would be richer tomorrow than they were today.
"We don't sell this product to just anyone, either. Only to big players like you, Mr. Di Mateo..."
However, Maximilian had pointed out the shadow behind that brilliance—the bubble that would dissolve the moment it touched water. Now, even in Dieter's eyes, the darkness behind the numbers was becoming visible.
"No. I am looking for a product to hedge against the possibility of these CDOs faltering."
It was a form of counter-betting—a derivative product that allowed for what the people of Kanilan called a 'short' position: betting on a price drop.
A flicker of confusion crossed Russell's face.
"The CDOs... faltering?"
"Do you not have such a thing?"
"No, we do. But... a risk insurance for CDOs..."
Russell pulled out another set of documents.
"Several insurance companies in Kanilan sell insurance products that cover the risk of default on CDOs."
To put it simply, it was fire insurance for a luxury mansion that everyone was certain would never catch fire. If one purchased the rights to that insurance, the policyholder—Maximilian—would collect the payout if the mansion burned to the ground.
Furthermore, these risk insurance contracts could be signed for several times the face value of the securities.
"You'll likely have to deal with the insurance companies directly. Shall I put you in touch?"
If no fire broke out, the premiums were merely a sunk cost. But the moment the mansion burned, it would yield a massive windfall of cash.
Similarly, if the securities did not default, they would simply be throwing away insurance premiums every year. But if Kanilan's economy collapsed and the securities became worthless scraps of paper...
Maximilian would receive astronomical sums from various insurance companies.
"Yes. Please do."
The insurance industry was the backbone of Kanilan. In a nation where corporations effectively ruled, even public services like the police and healthcare were tiered based on insurance grades. At the apex of it all sat 'Kanilan National Insurance.'
In other words, the moment one held the leash of the insurance industry, they would gain significant control over the nation of Kanilan itself.
"I mean, I can set it up if that's what you want, but why on earth...? I'm telling you, Kanilan has reached escape velocity."
Russell looked like he couldn't understand it at all.
Dieter gave a short reply.
"It is my employer's wish."
"Ah, that gentleman who came by last time? Personally, I really don't recommend this. I see what you're thinking, but there are many people who harbored doubts like yours who are no longer with us. Many, many, many of them."
It wasn't that no one else had thought of this. There might have been a truckload of them.
Doomsayers who overestimated the risks of CDOs.
"They really are all gone. Some even jumped in front of trains."
However, if one failed to get the 'timing' right, it was their own life that would meet its doom.
"It's fine."
Maximilian predicted Kanilan's crisis would hit next spring. From Dieter's perspective as the financial manager, this was an investment made with surplus profits anyway.
Even if it failed, they would only lose the profits and the principal—though the scale was massive—so it was a risk well worth taking.
"Hmm. What scale are we talking about?"
"All the cash we have on hand. For as much as possible."
Russell let out a dry laugh.
"Well, the insurance companies will certainly love you. Regardless, you must adhere to the contract period. If there's no default, you'll blow through your entire fortune on premiums within three years. Are you sure about this?"
Dieter nodded. Russell immediately donned his professional broker face and made a call.
Callbacks came from almost every insurance company within five seconds, their representatives shouting over each other to be the first to arrive.
"Haha. They say they'll be here in three minutes. They're even offering to create products that don't exist yet."
In Russell's eyes, this was a sucker who thought he was smart. A fool who thought, I made hundreds of millions in less than a year, so I must be a genius, and the whole world will move exactly as I think.
In short, it was a path to sending a total idiot to hell. Then again, it was because of people like this that the market stayed afloat.
"As for the brokerage fee this time... I'll only take half."
Since he had made a tidy sum in commissions thanks to them, he intended to show this much courtesy to a one-time client.
* * *
A peaceful afternoon. The office of the Sentinel Knights.
—I believe we can gather quite a few contracts by next spring.
Dieter brought good news from Kanilan.
"Good work."
—Also, the insurance companies asked if we'd be willing to buy more if they designed more related products.
"Ah, of course. Tell them yes."
The insurance companies in Kanilan were trying to sell us insurance that didn't even exist yet. They had gone blind, dazzled by the immediate performance metrics.
—Will it be alright?
"Naturally. Just trust me. I've been reading a lot of academic journals lately."
Academic journals were neatly organized on my desk. I was putting Priya's lessons into practice—the advice to always keep one's body and mind pure—while also reading everything I could, based on my past-life experience that reading is the best hobby.
Furthermore, I wasn't just studying economics; I was learning Professor Arnold's magic theory, Professor Emilton's history, and even various languages of the Eastern Union.
"Kanilan will collapse by next spring at the latest."
The technological failure of a Keystone company.
In a corporate state, the moment corporate progress fails, trust and investment collapse like dominoes. The entire nation of Kanilan will be at our beck and call.
"Return safely."
—Yes, sir.
Knock, knock—
Just then, an administrative officer entered.
"Sir Knight."
He held out a letter with a somewhat grave expression.
"It is a letter from the Agency, a direct organ of the Imperial Intelligence Agency."
I took it without a word.
...
The Imperial intelligence organization, commonly referred to as 'the Agency,' was located beneath the Imperial Palace. While investigations, operations, and minor interrogations by agents took place outside, the interrogation of important witnesses or nobles had to be conducted here at headquarters. The entrance itself was separate from the palace, but this was done to fully utilize the oppressive atmosphere of the Imperial Palace.
I had been requested to appear before them.
"Sir Maximilian, this way."
Was it to interrogate me? Or for something else?
However, as an Ebenholtz, I had no reason to be intimidated. I must never be.
The Agency had a hyena-like habit of snapping at anyone who looked weak.
"It won't take long."
An imperial butler bowed to me and opened a door. It was a place marked with a plaque that read [Reception Room].
I stepped inside.
The interior was a clean office, where two investigators sat facing a desk. Their appearances were ordinary, but if they were the ones receiving an Ebenholtz, they must be quite high-ranking.
In military terms, they would be at least colonels.
"Ah, it's a pleasure to meet you, Sir Maximilian."
One of the investigators pointed to an empty chair.
"Please, have a seat."
I sat down quietly.
"It's nothing else, but... the Intelligence Agency and the Imperial Family were very deeply impressed by your handling of the Head-Eater case, Sir Maximilian."
As was customary, it began with words of respect.
"Therefore, as a Department Head of the Agency, I have a favor to ask."
"If it's a favor, you should have come to the Knights' headquarters."
"...Ah, my apologies. We wanted to do so, but we were concerned about information leaks."
"Information leaks from the Sentinels?"
The Department Head gave a bitter smile at my response.
"Almost every matter in the Empire is reported to the Knights. In particular, the Sentinel Knights have the authority to view almost all Imperial records. We have no choice but to be suspicious."
"You're saying there's a mole among the Knights? Is that it?"
"I didn't go quite that far."
"No. That is exactly what you are saying."
I must not fall for the Agency's characteristic tactic of blurring the point and confusing the subject.
At the very least, I must never let these people take the initiative.
"The Agency suspects the Knights. How interesting."
The Department Head's eyebrows twitched at my assertion.
"Yes. If I had to put it that way, then yes. And this is the reason we asked you to come here, Sir Maximilian."
He pushed a document forward. Inside were the personal details of a man named 'Arnold von Eschenbach.'
"Mage Arnold will be appearing before the military soon. This is because the military has detained one of his disciples."
Arnold.
I knew that name. It was a name anyone with a modicum of education in the Empire couldn't help but know.
"I would like you to attend as an observer and monitor, Sir Knight."
I looked at the Department Head. He met my gaze and spoke.
"His ideology is dangerous."
"Dangerous?"
"Yes. He is someone who will surely become an enemy of the Empire. Please read the following documents."
I turned the pages.
They were Arnold's unpublished articles and letters obtained from somewhere.
The unpublished articles dismantled the fallacy of Aranian racial purity—a concept the Empire held sacred—and argued that biological distinctions between races were effectively meaningless.
The letters contained sharp criticisms of how the Empire's rigid system was hindering its own development.
"What do you think, Sir Knight?"
Before my regression, Arnold was one of the sages the Empire had destroyed.
A genius who sought to open new horizons for human intellect by breaking down the boundaries between science, magic, and magical engineering. He researched magical engineering that restructured mana particles, and that research was recognized as a philosophy that delved into the origins of the world, beyond mere academics.
However, an intellect that was too far ahead of its time was not understood within the Empire's old framework; instead, it was deemed a threat...
"From where I stand, it is truly a lamentable state of affairs."
And so, he was being judged as a 'lamentable state of affairs' by a mere investigator of the Agency.
I gathered the documents and replied.
"...It truly is."
The Imperial Palace has many ears. This meant this entire conversation could be relayed to the Emperor.
"However, as you know, this man has immense authority in the academic world and a vast following, so there is nothing we can do on our own."
The Department Head smiled and leaned toward me.
No matter how powerful 'the Agency' was, they couldn't just touch Arnold, an orthodox noble with deep connections in the university world, at their whim.
"To bring down an enemy of the Empire..."
An enemy of the Empire. In fact, in the future, Arnold would become a part of revolutionary thought.
Even the revolutionaries learned their scholarship from Arnold, and there were likely already many members of the revolutionary group who had studied magic under him.
"We need something far more elevated than a mere mage..."
I stared intently at the investigator who was asking for my help.
"We need the will of Ebenholtz."
It seemed the Empire's full-scale internal crackdown was about to begin.
* * *
"...What?!"
Anton snapped his head up, demanding confirmation. Adria, a high-ranking knight, bit her lip as she answered.
"Maximilian has departed for the military headquarters."
Maximilian had gone to the military to interrogate Arnold.
That was the only fact they had grasped so far, but Anton, uncharacteristically frantic, rushed out of his office. He ran down the hallway and ran into Chiron, who was drinking coffee.
"Hmm? Vice Commander Anton. Where are you going in such a—"
"My apologies!"
He brushed past him, went down to the parking lot, and got into a car.
Arnold had been an academic friend with whom Anton had shared intellectual pursuits since their youth, and at the same time, he was Anton's greatest source of worry.
He possessed a very progressive intellect. He held insights that pierced through the era. He had the boldness to speak them out to the world without hesitation, and he had the staunch support of his family to back him up.
At one time, Anton had admired him, but the times had changed.
Every word he uttered could now return as a blade aimed at his own throat, under the crime of 'ideology.'
"I'll drive."
Adria, who had followed him, got into the driver's seat. Anton threw himself into the passenger seat and ran his hand roughly through his hair.
Arnold was a strong man, but this time, his opponent was the worst possible match.
Maximilian, the direct heir of Ebenholtz.
Despite having barely entered his first year, he was a more fervent imperialist than anyone else. He was an authoritarian noble who had wiped out a major of the Imperial Guard and his faction simply because they challenged him, and who had pressured a judge to legally execute two innocent immigrants.
If Arnold made even a single slip of the tongue in front of him...
That one sentence could lead to total ruin.
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