What's wrong with building a steel torrent in a dungeon?

"Our real purpose is this..." As she spoke, Fran put a banknote in Katarina's hand.

"Is this...Yena currency?"

Chapter 400: New Colony

Holding the Viennese coins that could be seen everywhere in the port of Biesund, Catalina was confused.

Vienna coin, what does it have to do with the treaty?

Huang He explained: "I don't know if Miss Catalina still remembers. In our treaty, we did not require the other party to pay with magic crystal coins, but with Vienna coins."

"Yes, but what's the difference?" Catalina said, "Now the Magic Crystal Coin and Vienna Coin are basically at a one-to-one ratio, so it doesn't matter which one you use to pay."

"Miss Catalina, do you know the origin of the magic crystal coin?" Huang He did not answer Catalina's question, but continued to ask

"I know a little bit about it." Catalina said, "This currency originated from the Demon World Invasion War. In order to coordinate the resources of various forces, the Holy Alliance at that time promoted the magic crystal coin. It seems to be a fusion of many circulating precious metals. After that, various countries will use magic crystal coins as circulating currency in transactions."

"That's basically right." Huang He said, "Magic Crystal Coin is the currency circulating throughout the main plane. However, because it is expensive to make, the value of a single Magic Crystal Coin is very high, and it is not particularly convenient in daily communication. So after the war, many countries chose to issue their own currencies."

"For example, the Roll currency we used before." Catalina said.

"Elves are no exception." Huang He said, "Their currency is called Holy Light Coin, and the exchange rate with Magic Crystal Coin is about eighty to one, but Holy Light Coin is only popular within the Elf Empire. If you really want to calculate, the exchange rate between Holy Light Coin and our Vienna Coin is also about eighty to one."

"That is to say, when the elves pay the compensation, they must convert the Holy Light Coins into Vienna Coins, and then pay us?" Catalina lowered her head to calculate, and then said: "This means that they have to use this price to purchase Vienna Coins, or to purchase Magic Crystal Coins."

"That's right in theory." Huang He said, "But unfortunately, the price is not fixed. When a thing is bought in large quantities in the market, you think it will happen."

“It’s going to be expensive.”

"That's right." Huang He said, "In this way, the price of Vienna Coin to Holy Light Coin will also increase... It was originally 80 to 1, and it is likely to soar straight up."

"Then they can buy Magic Crystal Coins instead." Katarina said: "The exchange rate between Magic Crystal Coins and Holy Light Coins should be about the same."

"That's not necessarily true." Huang He said, "Holy Light Coins are mainly made of copper and iron. Their value is floating compared to Magic Crystal Coins made of precious metals. However, because the Elf Empire has a good reputation, even if the price of copper and iron falls, or even if the elves make shoddy products, it will not affect the use of Holy Light Coins. This is because the Elf Empire uses its powerful national strength to guarantee the value of Holy Light Coins."

"However, with the defeat, the elves' national strength dropped sharply. The finances are stretched to the limit." Katarina said thoughtfully: "They can no longer guarantee the value of the Holy Light Coin. At the same time, in order to pay this huge amount of money, the Elf Empire will inevitably mint Holy Light Coins on a large scale. This has further exacerbated the depreciation of the Holy Light Coin."

"Under this situation, it is clear that no one is willing to use real gold and silver to exchange for the depreciating Holy Light Coins. The 80:1 exchange rate with the Magic Crystal Coins cannot be maintained no matter what."

She knew very well how much wealth difference there was in this transaction.

"But this is only our first step." Fran said, "Our second step is to let the Vienna currency circulate throughout the Elf Empire. With such a huge indemnity, even if the Elf Empire mints currency on a large scale, it is impossible to pay it all off. They must borrow money and sell various assets."

Katarina said, "If it were in the past, there would definitely be a lot of forces willing to lend money to the Elf Empire. But now... the Elf Empire is even planning to default on the Dwarf Empire's arms costs. In this situation, no one will lend them money."

"Except us." Huang He said, "But when we lend them money, we will only give them Vienna coins. When they repay the loan, they will have to continue to exchange Holy Light Coins for Magic Crystal Coins, and then exchange them for Vienna coins. But at this time, the price of Vienna coins has skyrocketed, and the elves have to pay double the price to repay the loan."

After hearing this, Catalina couldn't help but gasp.

This is the real killer move.

The elf obviously didn't think of this, because McMahon didn't argue with him about the payment currency at all, and he fell into the currency trap that Fran had prepared for him without knowing it.

Seeing Katarina's shocked expression, Fran said, "Are you surprised? This is only our second step."

"There's a third step?"

"Yes." Fran smiled and said, "When the price of Holy Light Coins gets lower and lower relative to Vienna Coins, it also means that Vienna Coins are becoming more and more valuable in the Elf Empire. We can use Vienna Coins to purchase a large number of industries in the Elf Empire. Mines, fields, ports... We call this bargain hunting."

Bargain hunting!

This is to use the cheapest method to pack up all the industries in the Elf Empire and take them away. With a set of combined punches, a large amount of wealth in the Elf Empire was taken away without bloodshed.

In comparison, the traditional colonial method of plundering wealth and oppressing the people's labor is simply too weak.

Catalina took another look at the note in her hand.

This note, which is marked with 100 Vienna coins, probably costs less than 100 Rolls. But it is this cheap currency that will become the greatest weapon against the Elf Empire.

And Katrina knew it well.

The elves had no concept of paper money, which meant that in future transactions in the free trade zone, they had to exchange Holy Light Coins and Magic Crystal Coins for these papers. Both Holy Light Coins and Magic Crystal Coins were essentially precious metals, and throughout the process, the precious metals stored in the Elf Empire would continue to flow.

Take stacks of paper and exchange them for real money.

This business can make much more money than paying compensation from war.

Of course, with Catalina's imagination, this is probably all she can think of.

But Fran knew very well that once the Elf Empire was forced to tie itself to the Vienna Coin, the entire Elf Empire would become a company of the City of Orila. If the City of Orila wanted to extract wealth from the elves, it only needed to slightly fluctuate the currency and issue a little more Vienna Coin to extract a large amount of physical wealth from the Elf Empire.

This is the real killer, this is the most profitable way. It is more profitable than reselling arms and industrial products, and there is almost no cost.

Financial colonization is a new form of colonization where neither blood nor knife is seen.

However, Fran was also very clear that this method would have a negative impact on Aurora City because it made money too quickly.

Once they have tasted the sweetness, a large number of chambers of commerce, scholars, and researchers will abandon the real industry and devote themselves to short selling. At that time, no one will be willing to study technology down to earth and open factories to produce products. This will eventually shake the foundation of the city of Orila.

Moreover, Fran didn't want the city of Vienna to become a vampire dependent on other forces.

Fran wants to cheat... to make money, but she doesn't want to make money from ordinary people. She will make money from whoever has money in the Elf Empire.

The elven nobles have exploited the elven empire for hundreds of years, and it is time for them to return all the ill-gotten gains. She will use this money to develop industry and build the elven empire, making the elves an important force against theocracy.

But just as Fran was still imagining a bright future, a guard came over and said to everyone, "City Lord, there is a group of elves outside asking to see you. They say they are the Queen's secret messengers."

"Secret messenger?" Fran frowned. "Isn't McMahon the messenger of Lucy Antiriel? How come there is another secret messenger?"

But after thinking about it, Fran felt relieved.

As the proud queen of elves, Lucy Antiriel certainly didn't want to lose face at the ceremony. I'm afraid she came here to continue to argue about the program of the ceremony, and even pay a higher price to cancel the program.

It was a pity that her wishful thinking was doomed to fail, and it would be useless no matter how many messengers she sent.