“Swire Group would certainly not give up such a market investment, which means that the low prices in the surrounding area will soar. So I used these plots of land as collateral to tender to Rembitton’s businessmen. To be honest, I had a cheaper way, but that was too…shameless.”

An even cheaper way is to exchange the compensation for goods instead of money, and then place an order with a shell company that has been registered through multiple intermediaries. The other party then uses this order as collateral to obtain a large amount of goods from various retail and manufacturing industries in Longmen at a price slightly lower than the order price.

Because the profit margin of the orders is there, those newbies will definitely not let such a huge purchasing intention pass them by. However, when the time comes, Lao Xia will directly breach the contract, declare that shell company bankrupt, and compensate them for whatever assets are involved. As for the things that have been distributed and these hundreds of billions, well, what does your Zhou Shuren (Lu Xun) have to do with me?

Not to mention that the old city plan itself can be used as a basis for making a fuss. If he chooses to pay the penalty for breach of contract halfway through, then the old city, which has already been mostly demolished, will be completely wasted if it is not rebuilt.

Even if the people at Swire Group and Rembitox have to swallow this spitout and pour hundreds of billions into it, otherwise this thing will really be ruined.

All the expected profits and investments have now gone down the drain—far more devastating than the loss of the ten million tons of sugar that Lao Xia pledged—not to mention that they might not even get their hands on that ten million tons of sugar. [A repeat of the US's actions against Ukraine]

“Because of the money borrowed by Swire Group, what I borrowed was not only the 40 billion in tangible currency, but also the market confidence and reputation that Swire Group invests in. When they lent out this 40 billion, they were also lending out this intangible asset.”

"And this intangible asset can be used as money. So, even borrowing money can be used as money, do you understand?" "No—" The white rabbit's eyes were practically spinning.

"Simply put, Swire Group lending me money means they believe I can repay it, and their belief that I can repay it means they believe the land can make money, and the fact that the land can make money means it is valuable."

"It's like Swire Group is guaranteeing the future value of this land. Moreover, I chose Rembitox as the builder because they can't transport workers and building materials from Rembitox. They have to recruit workers locally and buy building materials locally."

In other words, in order to cope with the huge consumption of materials, machinery and manpower required for the renovation of the old city, other companies in Longmen will also choose to sacrifice short-term interests and start expanding and recruiting people ahead of time.

At this time, I was also able to use this method to pledge the old town area, which was borrowed from me and did not yet belong to me, to order a large amount of building materials and supplies from them..."

"The Lungmen government absolutely does not want to see the debt collapse, because when it comes to debt settlement, 40 billion is definitely not enough to pay out. Perhaps Swire Group can make money from those 10 million tons of sugar."

But he's also a business; why should he use already-earned profits to cover his losses? Therefore, as long as the Lungmen government doesn't want to see this desperate situation, they will do everything in their power to ensure I don't go bankrupt.

"Because only if I don't go bankrupt can the old city redevelopment proceed. Only if the old city redevelopment can proceed will the old city have value. Once the old city has value, Swire Group will invest. And Swire Group's investment means that the part of the old city area that I mortgaged will appreciate in value. After the appreciation, its value will be basically equivalent to the debt I owe."

"In other words, I didn't actually spend a single penny, but I increased the value of the entire area, and this inexplicably added value is the money I paid out."

What's even more interesting is that, although the land value has increased, this is a long-term benefit. Therefore, to truly realize this profit, they need to continue investing money, and this money has absolutely nothing to do with my debt.

"What if someone isn't so rational?" White Rabbit knew that not everyone was rational. What if someone went to bet on horse races, causing a cash flow problem and demanding immediate payment?

Or what if Rembitox changes its policies, forcing these businessmen to breach the contract even at a loss?

"Then I'll go bankrupt..."

"Hey, what about the 40 billion?"

"I used it all to buy Talulah's Reunion Movement products. It's all gone from my left hand to my right hand, and it's already in my pocket."

It's not good if you use your own money to buy your own products, and then the company is left with nothing but a bunch of your own futures contracts.

"I borrowed the money in the company's name, not my personal name. So, once the company's assets were gone, all that was left were a bunch of orders I provided myself."

"Furthermore, I've tampered with the contract a bit. If they can't spot it, not only will I not have to return a single penny of the 40 billion, but I'll also make an extra profit."

"This is the game of money, and the power of money. Money itself has no meaning and no power, but when it flows, no one can compete with it."

"Even force won't work?"

"No, unless your goal in risking your life is to live in the sewers, you can steal the money, but you can't steal the power that generates it. And if you cut off that power, it means the value of your struggle and fight is practically zero..."

"Not to mention, whether it's the military or gangs, what is their purpose in using force? Is it to cut off the entire flow of people and then go to the fields to grow food themselves? Or are they just like a bunch of bandits, grabbing whatever they can and eating it?"

Old Xia sighed, "That's why I'm not inclined to use force. Force can destroy, but it's extremely difficult to build..."

"Slaughter all the rebels, then leave behind a bunch of subservient slaves? Enjoy the worship of a group of primitive slaves and feel smug? Or take on the responsibilities of the entire society yourself? I'm not that naive..."

"I understand, roughly." The white rabbit nodded. "So, what's next?"

"Wait for them to send over the renderings, then pick the most expensive and trendiest one. Anyway, it's not like I'm the one paying for it in the end," Old Xia said, shrugging.

"Wait a minute, I've realized that you absolutely have to pay back those ten million tons of sugar."

“Yeah, I’ll pay them back. Let them come to the snowfield and come to me for it—” Old Xia squinted. “I paid them ten million tons of sugar, and then they got looted by Talulah’s Reunion Movement on the way. What does that have to do with me, right?”

"So, you never intended to give candy in the first place?"

"Nonsense, don't talk like those people from the Primordial Era think I'd give it to them. This 40 billion isn't the price of sugar, it's the price of my ability to procure sugar in Ursus. You still have a lot to learn—"

"Ah, I now think the people who invented these things should be hung on the streetlights. They are even more despicable than those nobles."

"That's right. So you have to control money, not be controlled by it. Once you're swallowed up by money, your only fate will be to become a streetlamp."

Xia Lin said seriously, "You need to understand that money, or capital, is a tool. It should depend on what you use it for, not on what it controls you to do."

"I can use the old city as a pawn to mobilize capital from the entire Lungmen region, and even neighboring countries, and then leave them with a mess. When they've cleaned it up, I can fleece them again, even by changing locations repeatedly, just with different names but the same old tricks. As long as they have greed, they'll keep being fleeced by me..."

"However, this means nothing to me. LMD or the capital that LMD represents is meaningless to me, who is not a native of Terra.

So I chose another method. Although it was also a way to get something for nothing, in this cycle, I didn't spend much money, yet everyone benefited.

Lungmen gained a new commercial district, the Guard Bureau achieved good public security, the infected and the poor found jobs, Rembitox merchants opened up the Lungmen market and made profits from land resale and even from operating their own businesses, and Swire Group not only did not want the 40 billion debt, but also wanted to invest in Lao Xia again.

Because in this virtuous economic cycle, the locals who have contributed purchasing power are creating value and consuming goods, which is where the profits lie for Swire Group, the largest retail giant in Lungmen.

"Ah, this is so complicated." "Yes, I didn't expect you to learn it in a day or two. This is a very big subject. But you have to remember what I'm telling you today: you are the one holding the money, not a puppet under the command of money."

“I understand.” The white rabbit nodded seriously, looking out the hotel window at the old town undergoing a massive redevelopment. “Money, or what you call capital, can be used for construction, or it can be used for destruction…”

"That's not all, but that's the content of the second lesson."

Victoria, Swire Group headquarters, "The younger generation is truly formidable—" The eldest cat looked at the brightly lit Victoria Harbour, "Is Beatrice still unwilling to come back?"

"Yes, Miss, she..."

"Let her be. Hmm, get me connected to Commander Wei's communications."

Lungmen, Imperial Guard Bureau, "Char Siu Cat!!" Chief Chen stormed into the police station, his face flushed red with anger.

"Huh?" The new police officer, Swire, looked completely bewildered, then saw Xiao Chen pull out two designer lipsticks and a bottle of setting spray from his bag. "Pink Dragon, you use this brand too!?"

"You took the wrong police bag!" This caused Old Chen to pull out two lipsticks and a bottle of setting spray from the bag instead of handcuffs and weapons when he caught a pickpocket on the bus. At that moment, not only passersby, but even the pickpocket who was caught couldn't help but laugh.

Of course, he was then beaten black and blue by the still-undrawn Chixiao sword, which led to Lao Chen being called over and scolded by Lao Wei.

[Referring to a fight among some thugs, where one of them pulls out a magical transformation wand from a Balala the Fairies cartoon character from his backpack—they're instantly out of the game.]

"Ahem, Officer Swire, please come to my office."

"Yes, sir!" The arrival of their superior ended their argument. Soon, the little tiger strode out with an air of authority, "Pink Dragon, from now on you have to call me 'Commander'."

"what?"

"Now I'm the head of the 16th District Guard Bureau, hehehe—"

"Uh..." Old Chen hesitated for a moment, then tentatively asked, "Do you know where District 16 is?"

"I don't know, I don't care about that, it's alright. Looks like I'll be sitting on the throne of the Guard Bureau leader before you, Pink Dragon. It seems the higher-ups have some good judgment after all—"

"Ah, right—" Old Chen watched Shi Huaiya leave with sympathy. District 16 is the 16th urban area module of Lungmen. It is not the sixteenth, but the sixth of the first batch, namely the old city area, commonly known as the slum.

That area was off-limits to the Royal Guard, and almost no officers were willing to go in, resulting in a chaotic security situation where gangs were the true rulers of the area.

Although there's a strange company developing and updating plans there, judging from Uncle's expression, which looks like he'd eaten shit, Old Chen also thinks it's definitely one of the biggest quagmires in Longmen.

However, why did Lao Wei let her go? What if something happens? Swire Group is not someone to be trifled with.

"Old Wei!" He burst into Commander Wei's office and saw the old man sizing him up, unconsciously letting out a loud "tsk" sound. "What do you mean? Why did you..."

"It was her father and grandfather who made the request. As for the reason, that's not your business, Inspector Chen. That's a matter for the Lungmen Commercial Bureau."

After seeing Old Chen off, Old Wei continued to smoke his pipe and read the documents. "That old cat really has guts, and he's really willing to go all out."

Why is 10 million tons of sugar only worth 40 billion LMD instead of 70 trillion? Even if we could get it, do you think the sugar price would still be the same after 10 million tons were sold?

Are they treating this like a video game? Are all items sold at the same price in stores? Given Lungmen's consumer market, if ten million tons were dumped, sugar prices would collapse instantly—

They didn't even need to dump it; just the news that Swire Sugar had acquired ten million tons of sugar spread, and sugar prices immediately plummeted.

[PS2]

The culture of powerful cultivators brought about by gangsters is truly insidious and has far-reaching consequences.

Chapter Three: Nothing to Do But Enter the Tiger's Den

third chapter

The renovation of Longmen's old town is not something that can be done overnight. Currently, the main work involves the basic removal and clarification of electricity and pipelines, as well as the measurement of each block. The contractor from Rembit is working very efficiently.

After all, the sooner the project is completed, the sooner they will receive the payment for the project. Such a huge amount of upfront funding is a considerable burden for them.

However, since Lao Xia has indeed made this thing's prospects quite good, after all, his goal is not to win twice by deliberately sabotaging and then taking advantage of others.

Rather, they genuinely intend to turn the entire old town into their corporate branch and a large distribution center in Longmen, which necessitates relinquishing a portion of their profits.

Even Swire Group is considering increasing its stake in Xia's Agricultural Investment Group, which currently has only 5 registered employees and mostly relies on civilian staff from the Rhode Island office, through additional investment.

After all, in order to leverage Swire Group's intangible credit assets in a certain sense, Lao Xia had signed a share exchange and shareholding increase agreement with the other party. Swire Group's willingness to hold his shares was not for the sake of the old town, but for the purpose of controlling sugar.

This is a very dangerous balancing act, as Swire Group can mobilize funds at any time to increase its shareholding through additional investments.

However, Lao Xia can also play the capital game at any time, fake increasing production, raising prices, and using non-existent sugar as equity to take back shares, or even increase his holdings in Swire Group.

"So, Yelena, the new lesson is that they are willing to invest in you and pay money for your ideals not because they actually agree with them, but because they think it can make money."

Furthermore, what you need to be constantly wary of are not the upstream suppliers who want to take money from your pocket, nor your business rivals, but these guys who seem to be your friends..."

"This lesson is called 'Angel Investing'."

"I don't think even the devils of hell could be more evil than this," the white rabbit said, unwrapping the candy. Now she could barely make out the general meaning of the pile of agreements, shares, numbers, and reports.

"But you certainly don't have unlimited sugar, do you?"

“Swire Group doesn’t have unlimited funds either. In comparison, they are under greater pressure because every Lungmen Dollar they invest means that the profit and value that Lungmen Dollar should have generated is being taken by me. It’s a meaningless waste of money on competing with me to gain control faster. I can’t possibly come up with that much sugar when it comes time to settle accounts. But there’s something called… leverage—”

"Ah, so you just went through all that on paper and didn't actually produce anything. In fact, the sugar you had was even reduced because you used it to generate revenue and aid General Hrag, yet the company's money inexplicably increased? Where did the extra money come from?"

"It's grown in a field of韭菜 (leeks, a metaphor for inexperienced investors)." Old Xia spread his hands. "It's a disguised zero-sum game. The company's money hasn't increased by a single penny; what has increased is the money we represent. And because the money we represent has increased, those韭菜 will invest real money to create this extra money—"

"Chinese chives?"

"Yes, there's always another crop after another. To be honest, many of these leeks have a very good attitude; they'll even hand you the sickle themselves."

For example, these contractors in Longmen. Old Xia did spend a considerable portion of his 40 billion. The reason he didn't go all-in on empty-handed investment is because a true empty-handed investment means that the leverage ratio has skyrocketed. If one link is not dealt with properly, the whole thing will collapse and blow up in his hands. If he runs fast, he can still make a profit, but if he runs slow, he will blow himself up.

Moreover, Lao Xia really wasn't there to engage in financial plunder; he was genuinely using financial tools to carry out construction.

Therefore, Lao Xia also genuinely paid the project funds and partial deposits to those Rembit companies that lacked cash flow and confidence.

In addition to demolition compensation, some equipment that was difficult to purchase on credit, and even, in a sense, he did indeed invest his own money into it, which involved multiple intermediaries, resulting in nearly two-thirds less sugar cubes, refined starch, and canned meat products than the original shipment weight, as well as the initially mined pure source stones.

Most importantly, there are also the Originium generator sets that Lao Xia himself manufactured, which are necessary for the energy system renovation of the old city. These may seem like they are free, but they can actually be used as a new source of capital.

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