The Economics of Prophecy

"I have another concern. This huge transfer of funds is causing disruption to the kingdom's economy."

said Volker with a sinister face. It is good that the story is premised on the issue of bonds. But that leaves us with one last problem.

I know very well. Money in this world is not a purely intermediary, but an entity, that is free to stretch according to the size of the economy. In other words, when taken from a place, it is lacking in that place.

In a way, it's the same as the product "Something". Currency in the form of precious metals is closer to barter, even if it is a means of exchange.

By analogy to a commodity called food in plain sight, all food is sent to the army across the river to starve the people in a country that is lacking.

And most of the kingdom's gold coins are thrown there by this new urban construction and the battle against demonic worms. In other words, if the noble possessions become almost this claim. Even if the assets on the books of the nobility remain unchanged, there will be less gold coins freely available to the nobility.

When that happens, large merchants who are commercially available to their noble counterparts will no longer be able to do so, small and medium-sized merchants who are offering goods to large merchants will no longer be able to do so, and artisans and peasants who are offering raw materials will no longer be able to make goods.

In other words, the lack of gold collapses the economy from top to bottom.

I know that, so the look on the faces of the guild leaders is also stiff. If you look at the two faces, you can tell, but they are somewhat prepared for this tragic itself.

It sucks for my purpose, too. The kingdom's economic growth, which is now taking off exactly, crumbles. And if it ever gets big at the speed of this world, it could even take two or three generations to recover. It concerns the existential significance of the new city.

"We also have measures regarding that. In fact, this bond is also a setup for it."

So naturally I am thinking of measures. Meer's gaze got me up.

"As far as currency imbalances are concerned, they can be resolved by establishing a kingdom-approved market to trade this bond"

I went. There will be no annual interest payments, etc., so get your hands around here.

"In other words, buying and selling this bond provides the means to return it to gold coins."

"Are you saying that bonds can be exchanged for gold before they are redeemed... but it would be the same that gold coins themselves are lacking"

"No, it's important in itself that there's a market like that. This will result in this bond being as liquid as gold coins. This means that it will be possible to conduct business in the form of bonds and commodities, commodities and exchanges of claims, rather than bonds and gold coins. In short, a paper testimony called bonds circulates as a means of exchanging value as do gold coins. This would, in theory, be the same as an increase in the amount of gold coins issued."

Let credit play its part in money, not precious metals. "If you don't have gold, you can pay with the gold painting Kami." I'm talking about the level of rioting that would have happened if it hadn't been for this kind of thing.

"Is there just a market, and that's all the value on paper?

Doubtful. Of course I can't do that alone.

"First of all, the earlier royal credibility. And it's impossible without the help of the state. Especially..."

I saw Volker.

"With the help of the Minister of Finance, who collects taxes."

I figured Volker would maximize his vigilance. I wouldn't have swayed my emotions too much for Meer's pale explanation. What's the difference if it's me...

"I want the Honourable Minister of Finance to give me the ink that this bond may be used to pay taxes as well as gold coins. Of course, it should only be used to pay taxes for more than five years later. Otherwise, the borrowed funds will disappear as a drop in tax revenues."

Whatever currency is, it has value if there is a guarantee that it will receive it. To say the extreme, it's not worth it to say that you can't eat gold, you can't live in it, you can't wear it, so you don't need anyone.

But I have the confidence that gold can always be exchanged for food. In other words, the assurance that the person with the object will ”accept” it as a consideration is making Kim Kim Kai.

If the same conditions are met, the role of gold can be played by seashells, stones or, depending on what you do, by the bulbs of tulips.

But naturally, you have to have a lot of people to receive it. For example, if only a very small number of farmers receive gold as consideration for food, the rest of the money becomes worthless once the farmer has finished selling the food. In other words, fierce gold food exchange competition begins, resulting in a collapse in the price of gold "Kin".

Gold "Kane" becomes excessive over food "Things". I mean, inflation.

So it's taxes. Being able to pay as a tax means that the state will receive this bond. This has also been the backing for the credit of banknotes in previous lives.

"Our merchants reduce the demand for gold coins by exchanging this bond against the backdrop of the bond market in the Kingdom. The common people and small merchants should use the same currency as before."

said Chairman Kenwell. Representatives of the rest of the guild also indicate their agreement. If successful, it expands, while economic activity is damaged by currency shortages. It is a monetary policy that responds to the battle against demonic worms and the enormous expansion of the economy: the new city.

"You didn't hear that much."

Greenesias stared at me for the first time.

"Prime Minister, I would definitely ask you, Minister of Finance, to invest in this bond as well. Because it creates credibility again."

"That's the only way."

Grinisias just sighed at my words.

Volker moves his eyeballs left and right. The bureaucrats in the back are also bothering. However, the atmosphere is not the result of distrust earlier. Because my eyes are running blood.

... That's crazy. Something's starting to make me feel like I'm acquiring politicians with unpublished stocks. Well, there's no deal in this world that's not insider.

Guild Chiefs A long discussion began with Merchant Side and Politician Side. The bureaucrats who were holding back have arrived at Meer.

Now, if you lose, it's over, so I guess nobody told you, but there's a root problem if you even think about my purpose. In that in order to make this possible, we need a victory that is extremely close to the battle against the demonic worms.

I just have to do something about it, but it's a hell of a pressure.

◇ ◇

"Hey Meer. Are you glad I said no?

On the way home, I asked Meer.

"What are you talking about"

"No, the advisory agreement between the transport guild and the construction guild......"

After that, Meer had been brought up with those stories by the two guild representatives. Only when you have time, the other side just comes out and answers some questions. So the reward is promised.

Of course, it's too easy considering Meer's abilities and the value of her knowledge. It is not the amount of a child's allowance.

It should be noted that the Vinder Chamber of Commerce is not supposedly off-limits. I'm the reason...

"Where are you in such a free time"

"Yes, it is."

The reason I'm busy with Meer is my side job, so I can't say anything.

"I have to think of something to thank you for, Mr. Ricardo."

My father said. You're absolutely right. Meer is a shareholder of Vinder. In other words, Vinder's profits are also in the form of distributions to Meer through shares. But the burden on her now is not talking about catching up on that level.

"Tell me if you want anything. I'll do anything I can."

I said. Meer trembled.

"Then there is one"

"Tell me."

I got a little nervous.

"When seniors go to a new city, take me too. I don't want to leave a message in Wang Du."

"What?"

Is that a reward? No, in the first place......

"Well, as much as I'd like to ask from this side. It's going to be moving its headquarters over there."

I had a glimpse of the chairman of the Central Garden Establishment Preparatory Committee. My father snorts.

"There's nothing I can do without Meer. That's not why it's so..."

"No, that's fine. I won't let you go across the Great River alone. Remember, seniors."

I said it in a tone that Meer wouldn't let me say whether or not. I nodded. Meer gives a horrible look.

"Okay, Meer. I need to ask Ricardo something."

It's been a long time since Euphilia has looked at me with a creepy eye.

"What is it, Grand Duke? I was wondering if you could explain it in advance and give me some advice."

I gave it back on guard, too.

"So I finally understood the whole story. This is what I mean, a story about how to raise cheap and massive funds for the Lord's plan while counteracting disaster. Well, this is good. Then there's one more thing..."

In his carriage, Euphilia checked left and right to be vigilant around him. And I hid my mouth with a feather fan.

"... aren't we talking about replacing the form of the kingdom's gold flow with the way the Lord thought"

... No, it is. You're going to say that. Even my father has a troubled face. Partly speaking, a major reform of converting precious metals into substantial banknotes is not possible at this time.

No, I didn't mean to do anything.

"We needed it to fight disaster, so we had no choice, right? You said you needed it to save the kingdom's economy."

After I said that, I lurked my voice.

"Besides, you were haunted by the way you used your increased tax revenues, weren't you? Big shareholder. You said it wasn't healthy as a merchant to sigh ahead of a pile of gold and silver coins."

The two sighed.

"... it's all for the kingdom, not for the survival of the world."

Euphilia said as she gave up. Because it's not pre-built, it's totally true.

"Senior, you look bad."

"Ricardo might as well be disconnected from the Chamber of Commerce after all."

My father went looking at Euphiria. 79 percent of the voting rights in these two. There's been a crisis of dismissal. Bad, the stock option system also distributes shares to employees to work for the majority............

Yeah, no. I don't see a future where employees take my side.