Once credibility collapses, it becomes worthless, unlike having at least a valuable precious metal anchor there, even if it's diminished.
So, take advantage of this moment when prices have fallen below the bottom and go on a buying spree to buy up all the LMD that everyone else doesn't want. Then, when it automatically appreciates back to its original value due to the gold standard, you can earn at least 200%.
If one were ruthless enough, just as everyone had re-established credit and currency value through savings, interest rate hikes, increased gold reserves, and tightened monetary policy, causing the LMD to regain its value as a 1-ounce gold coin or even slightly exceeding it, one could dump all the shares at once and short the market again, potentially yielding profits of over 1000%, and this is without using leverage.
Interestingly, because precious metals are anchored to value, this game of repeated fluctuations can be played many times until everyone gradually adapts, rebuilds new positions, and the market slowly calms down.
In such turbulent times, as long as you don't capsize, it's not difficult to go in with just one dollar and emerge as a billionaire.
Of course, the premise is that you don't let the waves you create capsize your boat. In such turmoil, the reputation and wealth that Longmen has built up over a hundred years, and everything that it has taken from this trade center, will have to be returned.
It could even affect other countries, where the savings and wealth of countless wealthy and noble families, past tycoons and celebrities, as well as countless ordinary people, would evaporate as if they had never existed.
"Your Excellency Duke Kosiché, do you still want the money? Rhodes Island can pay you back immediately."
"Uh……"
"Using precious metals to repay debts—I imagine you're quite troubled by the worthless paper you have on hand. This is a rare opportunity..."
Kal'tsit said with a smile, "If he wants money, give him some scrap paper; if he wants precious metals, get the Lungmen Dollars from him."
Ursus wants to exchange currency, but Lao Wei probably doesn't have the guts. He can only pretend to be dead and wait for the currency fluctuations to stop. Fortunately, Lao Wei has the backing of the Great Yan royal family. As a country with a trade deficit, Great Yan has a large amount of red gold flowing into the country every year, and its reserves are extremely rich. In a sense, this is also a kind of market endorsement and confidence.
The trade volume and output value of the Great Yan Dynasty are the biggest guarantors of the value of Lungmen Dollars, while Ursus cannot. Ursus's credibility comes from its military strength, and when money becomes worthless, the armies of nobles and warlords are just paper.
If only the Ursus currency had become worthless, they could still scrape together some foreign currency to pay the start-up expenses, take up arms and go to Kyoto to plead their case to the emperor. But now even the Lungmen currency is turning into worthless paper, and it's a miracle that their men haven't mutinied or rioted.
"Uh..." Black Snake had a feeling, well, not a feeling, but that this old cat and her Rhodes Island were definitely plotting something, but what the other party said was the truth, and the money in his hands had become worthless.
If Rhodes Island makes an exception and repays him with precious metals, he can still maneuver. But if Rhodes Island is determined to return him only worthless paper, or even refuses to give him any paper at all and simply defaults on the debt, he will be completely helpless.
Although Black Serpent is not afraid of his subordinates mutinying or rebelling, he can't just kill them all and then sit alone in the ruins ruling over a pile of corpses, can he?
"What do you want?" Black Serpent was certain that the other party had already made a fortune in this deal, but even so, he still had to humbly offer them more benefits in order to complete the transaction.
"A city, Chelbonog..."
"You guys have huge appetites!"
"Of course! Rhodes Island is now the savior of this land. Will you choose salvation or destruction?"
“Your eloquence is far more impressive than your performance on the battlefield, Sir Kal'tsit…” Black Serpent said, looking frustrated. “Fine, I agree, but regarding the exchange rate…”
"What good news are you thinking? Of course, it's the current exchange rate. Don't get me wrong, even at this price, if I have Beatrice publish this exchange rate, there will be nobles who will go bankrupt, even that knight from Chelbonog..."
Why give Black Serpent this opportunity? Because he is the lord of that noble family. If he were to transfer the title, it would be much easier to deal with the Ursus government in the future.
Neither the Doctor nor Kal'tsit intended to actually separate a city from Ursus; they were merely using this opportunity to temporarily borrow it.
Rhodes Island's decision to refrain from profiting from financial turmoil is also part of its preparation for the future global landscape.
Although the floodwaters seem to be rising higher and higher now, they may subside in the future, and some far-sighted individuals have recognized this business opportunity.
However, the doctor and his colleagues had a longer-term vision. This was just the last small period of peace before the war. The flood gradually subsided, and the currency value recovered to some extent due to the standard system. It seemed as if everything had returned to the state before it all began.
However, it was like a final burst of energy for a critically ill patient; the evaporated wealth would never return. Countless nobles and wealthy families were brought down to earth, and the status of ordinary citizens could not be improved further as urbanization came to an abrupt halt. Meanwhile, rural farmers and unemployed workers had completely exhausted their last savings in the previous turmoil.
In other words, if every country is sitting on a lit powder keg, then a large-scale revolution could break out, and workers and peasants could join forces to destroy the aristocracy and capitalists. Whether this could create a new world is unknown, but it could certainly bury the old world.
Alternatively, they could try to get rid of these surplus people, a practice known as diverting attention from external conflicts, and quickly eliminate these civilian officers and military units that were already showing signs of getting out of control, while also plundering foreign wealth to accelerate their own economic recovery.
Moreover, this wave, with the collapse of the Lungmen coin as its peak, also destroyed the barriers that the nobles and common people had previously found difficult to overcome. For ordinary people who had almost no spare money, the financial storm caused by the currency was not as destructive as the Great Depression and unemployment wave caused by the previous deflation.
However, the impact on nobles was enormous. Large amounts of land were sold off at rock-bottom prices to pay off debts, and many families were instantly impoverished. The nobles' superior bloodline and so-called personal strength were meaningless in the face of such a crisis—no matter how powerful they were, they couldn't conjure up money or goods to pay off their debts.
To use force to become a deadbeat and apply Meyer's economics, there must be a prerequisite: the creditor cannot afford to hire more powerful henchmen. In the current dire situation, creditors who still have hard currency can obviously afford to hire top-tier fighters in Terra to collect debts, since even top fighters need to eat, drink, and spend money.
"We are soldiers of the Great Yan Empire, not thugs. Please leave!"
Old Shi, who had been promoted again, raised his teacup to see his guest off. It took some time for news of the tragedy at Longmen to reach the Great Yan Dynasty. However, the Great Yan's economic situation was actually more conservative, and the impact was not significant.
At least the wealthy and noble families won't be greatly affected. They have hundreds of gold and silver gourds buried in their courtyards, which they can simply use to mint precious metal currency.
Moreover, the people of Da Yan have a good habit of saving. Even when money is starting to become worthless, each household still saves some precious metals and valuables.
Moreover, objectively speaking, the Great Yan Dynasty itself was constantly facing a money shortage. In addition to the official currency, they also used other miscellaneous things as money, such as salt certificates, iron certificates (certificates for purchasing large quantities of steel, as salt and iron were state-run), and even high-quality textiles and grain coupons.
This is also why foreign merchants rarely do business directly with Da Yan, but instead choose Lungmen and Lungmen currency.
Because of such a complex monetary system, after completing a transaction, it's impossible to even determine whether you've made a profit or a loss.
This allowed the Great Yan Dynasty to weather the crisis for a considerable period of time. After all, the official currency had become worthless, which meant that the value of the notes that could be exchanged for salt and grain, which were skyrocketing, was also rising. People could simply use those notes as money.
While Lungmen currency was based on the gold standard, the Great Yan Dynasty itself used multiple standards, with salt, iron, and grain all serving as anchors.
Gold and silver are also common precious metal anchors, which, to some extent, have inhibited commercial prosperity.
After all, having so many different currencies and a jumble of base hard currencies makes it difficult to develop businesses, and objectively enhances one's resilience in the face of such crises.
"Tsk..." The lobbyist pulled a stack of new papers from his bag and placed them on the table. They were printed with the anti-counterfeiting mark of Kazdel's bulk delivery vouchers. "In these turbulent times, what could be more reassuring than having food and supplies in your hands?"
“That makes sense. Wait a moment, let us consider it some more…” Old Stone called out to the Kazdel lobbyist who was about to leave, but the latter rolled his eyes and pulled out a stack of Originium Exchange Vouchers. “The price of Originium fuel in the Great Yan has risen considerably. Managing such a large fortune as the Admiral is no easy task…”
"This... I need to think about it. Someone, bring tea. Where did everyone go? The tea is getting cold."
"What is the Admiral still considering? Besides, it is only right to pay back debts. Moreover, it is unacceptable for a child to be carrying gold in the middle of the city. Even if the Admiral does not do business with us, he should still think about his own people!" The last stack of cards was placed on the table; they were agricultural product rationing and supply cards from the Xia Group.
"Honorable guest, please wait! We need to discuss the details of this matter in detail!" I originally wanted to refuse, but they offered too much!
Chapter Four Title: Going Hunting
Chapter Four
In this financial flood, both Da Yan and Kazdel suffered relatively minor losses, with Da Yan's resilience stemming from its unique economic situation.
Kazdel, on the other hand, had built towering breakwaters from the beginning and now watched the devastation outside the city from behind the safe walls.
To avoid creditors resorting to Meyer economics, the Doctor reached a private agreement with the Great Yan Fleet in Moon Harbor. After all, they had very little power within Great Yan, making it difficult to collect debts.
But Boss Shi is different. He's a notorious gangster from Longnan, and his reputation among the local gentry and wealthy is already infamous. He's skilled at extortion, blackmail, and demanding bribes. It would be much simpler for him to handle debt collection on their behalf.
To put it bluntly, the large quantities of Da Yan goods ordered using the appreciated Lungmen currency are now being paid for with the worthless Lungmen currency. The gentry of Da Yan are highly likely to choose to default on their debts and delay the process. They may also refuse to pay the agreed-upon compensation for breach of contract by leveraging their official influence.
At this point, a powerful debt collector is needed to force them to pay up.
Regarding the money, it should be split 50/50 with Old Stone, since Kazdel doesn't need any more money now, and any more would just be icing on the cake. However, as for the goods, it can only be split 20/80 at most, with the Doctor taking 80%.
"Your Majesty, people from the south are crying for the imperial court again," a eunuch whispered. The Emperor of Great Yan didn't even raise an eyebrow, his brow furrowed as he processed various documents.
Although the Great Yan suffered only minor damage, it was still significantly affected by the crisis, with many middle-class landlords and some enlightened landlords going bankrupt due to their investments.
For a highly feudal and centralized country, this was a threat to its rule.
Fortunately, these people are only a minority, but the subsequent cutoff of external food and supplies has made it difficult to withdraw money and grain this year.
After all, during this time of crisis, most of the products that Da Yan mainly sells are not selling well.
In peacetime, the raw silk, tea, exquisite porcelain, embroidery, and various fine furniture, handicrafts, and all kinds of necessary heavy machinery of the Great Yan Dynasty sold very well. But now, in this miserable situation, many factories abroad have closed down and a large number of people are unemployed.
Both the number of people consuming light industrial products and the number of factories consuming heavy industrial products have decreased significantly.
In other words, the border trade revenue of the Great Yan Dynasty has declined significantly. This not only affects the revenue of the imperial court (even if it is not much), but also affects the stability of the Great Yan society. After all, with so many weaving factories in the Jiangnan region encountering such turmoil, single women and the like will definitely suffer widespread unemployment.
At this time, those powerful families in the south actually dared to come to the Dragon Court to demand that the Great Yan seal the border and not allow a single plank to leave the country. Wasn't that just asking for trouble?
Although trade has declined significantly, there is still some degree of recovery. Those who own factories, seeing a possible improvement in the future, are unlikely to kill the goose that lays the golden eggs by selling or destroying their entire factories. However, if the authorities announce a border closure, the trend of reopening in the short term is unlikely, and they would indeed kill the goose that lays the golden eggs.
If the million weavers were to riot, wouldn't the imperial court have to suppress them? If they were to join forces with the old gods' remnants and the church that has not yet been quelled, they might cause chaos in half the country without warning, and I'm afraid my throne would be in jeopardy.
Because of what had happened before, the emperor had recently read several books on financial matters that his ministers considered unorthodox. He was deeply shocked and amazed by them.
"Let them in, and stop with the clichés..." It's not good to keep leaving people hanging like this, and it's also a headache to have those censors criticize them whenever they find something wrong.
However, letting them in did not mean that the emperor was prepared to accept their demands; it was simply to avoid making too much of a scene outside and affecting the face of the imperial family.
"Alright, gentlemen, what's going on now? Let's not talk about what happened a few days ago; even the Grand Secretaries of the court disagreed."
Just kidding. The families behind those high-ranking officials rely on this for their livelihood. How can you expect them to ruin everyone's livelihood just because one family lost money?
"Your Majesty, please punish Governor Shi!"
"Huh?" The emperor was taken aback, a strange expression on his face. "What mischievous thing has Minister Shi done this time?"
The emperor glanced at the memorial that had been submitted earlier and immediately characterized the matter as mischievousness rather than corruption and bribery.
"That arrogant brute, with some note from who-knows-where, is demanding money and grain from our homes. He's even going so far as to rob us of the stones used for pickling vegetables in the kitchen. Countless families in the southern border are torn apart, and many have lost their homes and lives. Your Majesty, if this continues, the country will cease to exist!"
"Forcing people to pay taxes? Is that so?" The emperor was taken aback. Hadn't these people already paid their taxes this year? Could it be that the guy had levied a new tax without authorization?
"He has imposed all sorts of exorbitant taxes on you, and I will punish him severely!" The matter of money and taxes is of utmost importance and cannot be handled carelessly. The emperor does not intend to protect him on this issue, as he has crossed the line.
"This……"
"Your Majesty..." Seeing the strange expressions on these people's faces, the eunuch whispered something in the emperor's ear. After receiving permission, he left the warm room. "Alright, get up and talk slowly. What exactly happened?"
An eerie silence fell over the greenhouse until someone spoke up, "It's just because this year's harvest was poor, and my family was delayed for a while. That unruly brute seized on this as an excuse to force my family to make up for the shortfall, or he would arrest my family and make us do hard labor." This was obviously an exaggeration. He didn't own any mines, and making us do hard labor wouldn't even cover a fraction of the debt. At most, he would just dig up all the hidden gold and silver.
"I see. So you really do owe that monkey something?" The emperor roughly understood. These families probably owed that guy something, but this year the harvest was bad, and they couldn't pay it off in time, so that monkey just went up and robbed them. Well... after all, it's only right to pay back debts. It would be a bit much to dismiss them and investigate them.
"Alright then, I will give him a good scolding. Let's not make things too difficult for you gentlemen at this time..."
After all, it wouldn't look good to be so disrespectful, and it would also damage the imperial authority. At this moment, the eunuch who had left earlier returned and whispered a few words in the emperor's ear, causing the latter's face to darken immediately.
"Alright, alright, you've brought your family matters here. What kind of behavior is this? Get out!" The emperor waved away the people who had come to plead and beg, and several burly generals simply dragged them away.
"I was wondering what was going on. Turns out these good-for-nothings owe customers money for goods and penalties, and even have high-interest loans they can't pay back and are being harassed by loan sharks. It's really..."
"Your Majesty, there's more in here..." The emperor's expression became even stranger, because it seemed that he was also involved in these notes, which meant that Old Shi was still sharing the burden for the royal family.
After all, the royal family owns a number of royal estates. These people obviously didn't receive payment or the payment was worthless, so they were unwilling to pay the raw material suppliers in full. After the managers reported this, he did ask Lao Shi to "investigate" what was going on.
"So it really is true?"
"Yes, Your Majesty, Governor Shi has indeed found out. The overdue payment was sent to the capital the day before yesterday, and you have already reviewed it."
Because he received the money smoothly, he was so happy that he drank a couple more drinks that night. After all, the Great Yan was rich, but the royal family was poor, comparable to the little emperor of Ursus next door.
The reason he's poor is that he has to spend money everywhere. He has a large family business and a bunch of useless people to support. If every member of the royal family were as capable as Old Wei... well, as capable as Old Wei, he wouldn't be able to sleep at night.
Yuegang: "These poor bastards think they can trip me up? I, Lao Shi, have a clear conscience!"
Governor Shi looked righteous and awe-inspiring, if one didn't consider that an hour earlier he had smashed open the mansion of a wealthy family with siege weapons and looted it like a bandit entering the city.
"But, Governor, many of our family members work in those workshops. If we offend them, our families will suffer." If these people close all the workshops in a fit of anger, the impact will be too great.
"It's alright, I've reached an agreement with the people in the south. They'll continue to pay for the remaining goods with hard currency. However, we need to acquire these workshops. Do you have any reliable candidates?"
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