"Of course, Ursus reconnaissance troops entered my defense zone, I drove them away, and that sparked a small-scale battle," the general acknowledged.
After all, now that the council has summoned him, the matter is essentially exposed. Denying it will only waste all the advantages he gained.
"Invaded the defense zone, but that's not what we received. Instead, you launched a preemptive attack on the Ursus army..."
"Is that so?" The general shook his head. "There are still a large number of guerrillas operating in the east. This is something you and I both know, and we have no way to command those guerrillas." After Sami adopted a policy of non-resistance, the guerrillas and people in the east had already become alienated from the Sami government.
The hearing then continued for a considerable period. Ultimately, a conclusion could not be reached. Therefore, similar hearings and questioning sessions will continue to be held over the next few days.
"Sigh... today is finally over." It was noon when he arrived and late at night when he left. Even General Fells, who had been in good physical shape during his time in the army, felt physically and mentally exhausted.
What could be more exhausting for a patriot than the fact that the entire nation's top leadership is selling out the country, only the buyers are different?
It's a situation where you're the only one left fighting in the entire country, while the rest of the people either surrender or flee.
"General, your car is ready." "Hmm, let's go back to the hotel. We'll need more for the next few days..." The general suddenly stopped, a sense of crisis honed on the battlefield making him lunge to the side.
A Dragonfire Bullet struck the vehicle, and before he could roll into cover, the sound of an Ursus Crossbow bolt rang out, a steel bolt the thickness of a thumb piercing the general's thigh. Then a second Dragonfire Bullet tore half of his body apart.
"No!" The adjutant ran towards the general's position with all his might, but it was too late; the injury was beyond repair.
A day later, at Saint-Germain Castle, the protesters demanded, "Who did this? Give me an explanation!"
The young emperor slammed a newspaper on the table that claimed Colombia had sent a combat force to garrison the Sami region under the pretext of protecting them. The head of the Imperial Guard in front of him remained silent for a long time before saying, "Your Majesty, we did not do this."
"That's it?" The Emperor took a deep breath. "What I need is evidence, solid evidence—ironclad evidence that will prevent us from facing international condemnation and allow us to smoothly annex Sami, not your 'I didn't do it' statement."
"Of course I know it wasn't you who did it, nor was it any of the guards. I didn't give any orders, and no one else did!"
You're saying this was all a Colombian scheme? Of course I know they played a disgraceful role. But what I need is evidence, evidence that Colombia did it!
The fact that a pro-war general died in front of the council, killed by Ursus weapons, undoubtedly makes people think that Ursus orchestrated the assassination in order to annex Sami, which makes even the pro-Ursus councilors feel insecure.
And those pro-Colombian congressmen immediately went to their masters for help, while Colombia...
Colombia immediately dispatched its elite marines to Sami, stationing them in the capital, citing the need to maintain order and protect its citizens.
“Uh…” The head of the inner guards remained silent. He had no evidence, absolutely no evidence!
"Alright, you can leave now. Notify the other guards to cease all non-essential activities and await my orders. If there is a next time, then..." The emperor didn't explicitly state his threat, but everyone understood that he no longer trusted these guards.
Meanwhile, on the Sami front, a black-haired crossbowman asked, arms crossed, "I heard those Colombians have come too. What's going on? Is there some treasure here?"
To her side, the forest ranger quietly maintained his crossbow. "How's the reconnaissance going?"
"It's terrible. The Ursus people have temporarily halted their activities to avoid provoking Columbia, but with General Fels' death, our supply lines have been completely cut off, the militia have been disbanded, and all troops have been ordered to remain in place until the killer is found."
The crossbowman paused for a few seconds, then said, "A bunch of bullshit!"
"Our supplies can last for three days. In three days, we must find a way to get new medicine and fuel. Food is still sufficient, but fuel is not enough."
Food is indeed plentiful here. The reason for this abundance is not because food is easy to obtain, but because there are already very few people left. After several fruitless battles, most of the people who consumed the food have died, while there is still a lot of food stored up.
However, the pressure on fuel and medicine was too great. Using medical spells, heating and mobility all required fuel, and even some weapons required fuel for maintenance and ammunition production. As for medicine, it was almost completely exhausted due to the large number of wounded soldiers in the battle.
"Has the support from the north also been cut off?"
"It's cut off..." the forest ranger said succinctly. The support from those unknown northern allies had also been cut off. Perhaps the Ursus people had increased their patrols on the border, or perhaps they had exposed themselves.
“So now we can only rely on ourselves…” The forest ranger put the simple arrows he had made into his quiver. “I’ve already chosen our target: an Ursus transport convoy. They’re not many, but they’re equipped with a lot of advanced weapons. It’s going to be a tough battle. Anyone want to join?” The forest ranger looked at his men.
"It seems no one has dropped out. When do we make our move?"
"tonight!"
Chapter Two: Avalanche
Chapter two
Monday in Lungmen was another uneventful day. The increasing number of unemployed people on the streets did not affect the mood of bankers and financiers. Their focus was on the numbers representing money and the high interest rates brought about by deflation.
Due to deflation, setting up factories to sell goods becomes a foolish investment, as the profits from goods are incomparable to the interest on money.
It can be said that when a batch of raw materials is purchased, the company already incurs a loss. Selling the goods will result in another loss. Only a few companies that do business with Kazdel have managed to survive because they receive income in hard currency and then pay for the goods in hard currency.
However, with rising interest rates and savings rates, and the factory owners choosing to hold onto their money and wait for it to appreciate, these factories are also on the verge of closing down. They are only holding on now because of the hefty default penalties.
If they close down before fulfilling Kazdel's order, the compensation will be multiplied dozens of times due to deflation, a loss they cannot afford.
However, these people no longer accept additional orders from Kazdel, since it is unprofitable and they will even lose a lot of money. These production cuts have led to more unemployment, and the high unemployment rate has caused everyone to instinctively start saving as a precaution. After all, they may lose their jobs one day and starve to death if they don't save money.
The Guard Bureau did everything in its power to keep the protesters and unemployed workers out of the new and core city areas, so that the gentlemen could enjoy coffee in their lavishly decorated offices in high-rise buildings without being met with a massive horde of displaced people swarming into the city like cockroaches.
The situation in the new urban area is slightly better, since the Xia Group is currently recruiting on a large scale, and most of the skilled workers who are confident in their skills and abilities have gathered there.
However, the Xia Group is not recruiting quickly; they adjust the number and type of recruits based on actual needs.
In addition, the group itself does not have much circulating currency, and salaries are mostly distributed in the form of various vouchers and ration cards. Considering the welfare and benefits of the entire group, the place is still very crowded, requiring the Guard Bureau to deploy a considerable number of police officers to maintain order and control the entry of people.
More than half of the shops on the busiest commercial street have closed down. Some of them are unable to make enough profit to pay wages and cannot sell their goods. Others simply cannot find manufacturers to supply them. Only those high-profit industries can barely survive.
The once bustling streets are now almost deserted except for rows of unemployed people and beggars holding job-seeking signs.
Every shop had a sign that read "Closed" or "Closed," and some shops had even been robbed and burglarized, with their damaged doors and windows exposed, like empty eye sockets on a skull's face, exuding a deep sense of death.
Several stray dogs, formerly pets, wandered the alley with red eyes, searching for any food they could find, and they themselves became a food source for some homeless people.
However, none of this concerned the men. Inside the bright and clean office, a board meeting was being held to discuss increasing the holdings of Ursus currency.
After all, news had already spread that the young emperor had borrowed large sums of money from nobles to obtain supplies and that the Xia Group had used hard currency as collateral to borrow money from nobles.
As financially astute bankers, Lungmen Bankers naturally wouldn't miss this opportunity, discussing the impact of these actions on Ursus currency and Lungmen Dollar, and whether they should increase or decrease their holdings of Ursus currency.
The reason for proposing to sell is the Xia Group's borrowing of money itself. Since they dared to borrow money from Ursus with hard currency as collateral, it means that they firmly believe that the Ursus currency will depreciate in the future. At the same time, they used the money to purchase supplies, and continuing to increase their holdings may pose some risks.
The rationale for proposing to increase holdings is that they could learn from the Xia Group and borrow money from Ursus to increase their holdings, rather than directly exchanging LMD for acquisitions.
Moreover, even if it's an exchange and acquisition, it's not without profit, because the emperor borrowed a large amount of supplies, and he would need to repay it with money later.
Therefore, by increasing one's holdings of Ursus currency and then lending money to the emperor so that he can repay the debt with supplies or hard currency, one can cash out at the peak and leave before the tsunami, provided the timing is right. It can be said that there are both risks and rewards involved.
The last suggestion was to wait and see, since the Xia Group wasn't always victorious.
Moreover, there has been no bad news from Ursus recently. The emperor has acquired a large amount of resources and funds to invest in industrial reform and construction in the core area of Ursus. This is a long-term investment and does not seem like a short-term profit-making scheme.
The three parties argued fiercely at the meeting, each with their own calculations and plans. After several hours of debate, the proposal to increase holdings of Ursus currency gradually gained the upper hand, mainly because the young emperor was exchanging it for various supplies and hard currency.
Rather than currency, in other words, the Ursus government itself has no more currency to release.
The massive influx of goods and hard currency into the market will trigger further deflation, leading to continued rampant currency appreciation, although it will certainly depreciate in the future.
On this point, everyone trusts the Xia Group's investment acumen—but in the short term, they can at least make a profit.
After all, finance also has long-term and short-term investments. As long as you sell all the newly acquired currency before the emperor's massive buying leads to increased deflation and currency appreciation, you're good to go. Besides, their buying behavior itself will also exacerbate deflation and cause currency appreciation.
"We have decided to increase our holdings of Ursus currency by 600 billion and are also preparing to increase our holdings of Colombian pesos by 400 billion, while selling approximately 380 billion LMD as a hedge, as the LMD is currently at its peak and unlikely to appreciate further."
After reaching a consensus, each node naturally begins to implement the board's decisions, and similar decision-making meetings are being held in Lungmen and almost every country, resembling a financial industry carnival.
There's no need to develop markets, no need to spend time and effort investigating whether companies are profitable, no need for investment. You can simply play number games in the office, and the money in the account will keep increasing as if it's giving birth to offspring, or even the money will generate money on its own.
Even the longest ball must come to an end, and even the most extravagant feast must eventually come to a reckoning. But no one expected that day to come so soon.
The news of Colombia's entry into Sami came as a shock to everyone. First, the Colombian dollar plummeted. Why would Colombia's entry into Sami cause its currency to depreciate?
The reason is very simple: war costs money. Whether it's the government printing money or major corporations believing they can gain greater profits by invading Sami, it's all the same.
This means that the interest income from the Colombian dollar is less than the gains from the invasion, and the military will convert a large amount of currency into cash to collect resources, which will naturally lead to devaluation.
And these are just the scenes seen by retail investors. In reality, financiers see an even more terrifying future: if war breaks out, it is very likely to enter a wartime economic system. Once a wartime economic system is entered, Colombian money will be no different from waste paper.
Even though Colombia is a highly capitalist country, it is unlikely that it would be fully rationed under a wartime system, but it at least illustrates one thing—a situation where there is more money than goods is inevitable.
Even if Colombia and Ursus remain calm and no further war breaks out, it will still affect financial market information to some extent, leading to a sell-off.
Of course, these are still within the range of controllable risks, as long as the two countries don't lose their minds and start a high-intensity war.
If handled well, this level of sell-off could actually be a quick way to make a killing. However, the second piece of news that followed stunned everyone: some radical officers in the Sami military rebelled, and the Colombian garrison and the Sami government forces were quickly engulfed in war.
Furthermore, in order to cut off the Sami rebels' supplies and economic aid, the Sami government declared a state of war nationwide, with all supplies being centrally distributed by the government. This caused the Sami antler currency (because it was printed with a stag's head) to plummet at an alarming rate. The Sami people immediately chose to spend all their savings, since the money would soon be useless.
They had to scramble to buy food, fuel, and other necessities before the last batch of stores were notified to close. When precautionary savings and investment savings collapsed and were flooded with liquidity, the Sami dollar became worthless in just one day, and countless investors who had invested in this currency lost everything.
This was just the beginning. As the Sami dollar quickly became worthless, financiers instinctively began selling off their Sami dollars and snapping up Colombian pesos and the most valuable Lungmen pesos. The difference between the private exchange rates and the official counterfeit versions of the two currencies reached an unbelievable level.
"The avalanche has begun," Kal'tsit said, putting down her newspaper in Kazdel. "Now, no one can stop it..."
When the Lungmen coin reaches its extreme deflation, Lao Wei and Da Yan will inevitably have to loosen monetary policy. Otherwise, a currency is not only worthless when it becomes worthless paper, but it is also worthless when it becomes an expensive decoration that no one can use.
Will Ursus and Colombia go to war?
“Definitely. Even if they restrain themselves at first, as things progress... they'll have no choice but to fight,” Kal'tsit said. “Alright, have we tossed our LMD yet?”
"Everything has been disposed of. The new salary system for employees and the payment and recycling system for Kazdel coins have also been established. Doctor, we have built the walls."
Rhodes Island's AI assistant replied, "Now, what's the next step?"
The professor looked out the window at the southern plains and the gradually bustling town, and after a long while said, "Look, the floodwaters outside the city are raging..."
On Tuesday, Sami Antlers became completely worthless, and any token with value that could be used to buy things became highly sought after.
When hard currency becomes sought after, the appreciation trend of LMD begins to slow down. At this time, in order to prevent the local currency from experiencing a terrifying plunge in value, the Colombian, Ursus, and Sami governments will prioritize the use of LMD when purchasing combat and defense materials.
After all, the way governments operate is different from that of businesses and banks. They don't need profits. The need to maintain the stability of their own currency far outweighs the need to pay out their own currency to preserve the interest income from holding Lungmen Dollars.
This raises two questions: LMD begins to depreciate, while Ursus and Colombian dollars begin to recover slightly. What will LMD bankers do in this situation?
The obvious choice would be to sell some of the Lungmen Dollars and quickly exchange them for these two currencies, which had depreciated and then rebounded.
Their plan is to wait until these two currencies depreciate again due to war or a Cold War confrontation, then cash out at the peak and buy back slightly depreciated LMD, and continue to earn LMD interest.
It was just a very classic, common, and trivial operation that no economist or financial expert would bother to consider.
Ursus, Saint-Germain Castle. "Let the Twelfth Army take action," the Emperor said with a smile, looking at the letters from the nobles urging him to repay his debts. The Ursus currency was beginning to depreciate slightly.
Moreover, with the LMD (Longmen Dollar) expected to be released into liquidity in the future, coupled with previous events, its value may appreciate, which the nobles are naturally eager to do.
In the current situation of currency devaluation, every extra dollar the emperor pays back will soon become a two-dollar profit for them.
However, due to the unclear situation and the fact that the nobles were not as financially as the professional bankers in Longmen, the letter only subtly reminded the emperor that "it's time to pay back the money," without breaking off relations.
"Repay the money, of course we will repay the money," the emperor casually tossed the stack of flowery words into the trash can. "What's the rush? We'll repay you, not a penny less..."
"Has the money borrowed from Xia Group and Rhodes Island arrived in your account?"
"We've arrived, Your Majesty, and they've almost spent it all..." That's why the Ursus currency had a slight devaluation earlier, since some people were spending money recklessly and buying idiots.
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