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Goblin Dollar (5)
At that, Ricardo expressed his doubts.
"Are you saying that you're creating nonexistent money and giving it to Baron Frank? Is that what you're saying?"
His counterpart was Ismail, the leader of one of the three great noble families of the empire.
And his temporary assistant to help him with his work.
Since there was no need to hide what had already been openly discussed at the guild meeting, Rockefeller replied with a smile.
"More or less, yes. That's why I said that."
Ricardo couldn't hide his astonishment.
Creating money out of thin air.
And deceiving everyone while doing so.
'I was right. They planned to create nonexistent money and help Baron Frank with it.'
"Are there no problems with doing this?"
Ricardo's financial knowledge was only slightly better than that of an ordinary person.
So he couldn't easily predict the outcome of Rockefeller's actions.
Because his financial knowledge was insufficient.
At that question, Rockefeller burst into laughter.
"Hahaha! Of course, there are problems. How could there be no problems if we're printing nonexistent money and spreading it in the market?"
"What kind of problems will arise?"
"Are you curious?"
"Yes, a little."
Rockefeller, who had been stroking his chin for a moment, smiled and explained what Ricardo was curious about.
"If you remember what changes came to the empire after the War of Flames, you'll probably find the answer you're looking for."
When the War of Flames broke out, the imperial royal family created Bastard Dallants to supplement their insufficient war funds.
They couldn't create the money they wanted with just gold, so they mixed in copper and created counterfeit gold coins.
And the result was a rise in market prices.
"Are you saying... the market prices will rise?"
"Simply put, yes. Before the War of Flames, it took one Dallant to purchase a steel sword at the blacksmith's. However, after the war, the price of steel swords increased due to the circulation of Bastard Dallants. Do you know why this happened?"
"No, I don't know the details."
Rockefeller continued.
"The actual value of the steel sword was fixed at one pure Dallant, but when copper was mixed into the Dallants, the value of the Dallants decreased relative to the steel sword. So how would the two change to equalize their value, since the value of the steel sword was fixed?"
"Well, more Dallants would be needed. If they were pure Dallants, there would be no problem, but they're not."
"That's right. That's why market prices have risen overall. The market prices have risen in proportion to the number of Bastard Dallants that were created."
Ricardo finally seemed to understand, nodding his head.
"I get the general idea."
"Simply put, the value of the existing Dallants has decreased. And if you apply this to my work, you can easily predict what will happen later."
Ricardo thought to himself as he nodded.
'The prices will skyrocket. Depending on how much the bankers, including the interest, have deceived the empire.'
"I have a question."
Rockefeller didn't avoid the question.
"Please feel free to ask."
"If we continue like this, there will be too many Goblin Dollars in circulation. Won't that create even bigger problems than before? I know that Bastard Dallants only contain 30% copper, but Goblin Dollars..."
Rockefeller shook his head.
"The problem won't be that bad. From the beginning, there's a limit to the amount of Goblin Dollars that can be issued."
"A limit?"
"Yes, there's a limit."
Rockefeller continued.
"Goblin Dollars are an extension of the promissory notes we've been using. However, these promissory notes aren't just printed on any paper; they require a special paper made by the Sinclair family."
"Ah... then there would be a limit."
"Of course, the supply of that paper is limited. That's why there's a limit."
Rockefeller then showed a meaningful smile.
"And the one who monopolizes that paper is me. All the paper used for the promissory notes is exclusively traded between the Sinclair family and me, using my authority as guild leader."
"That means you monopolize the Goblin Dollars..."
"That's right. So the situation you're worried about probably won't happen. You were just worried about that, right? What would happen if there were many bankers like me, recklessly printing Goblin Dollars? Wouldn't market prices skyrocket?"
"Yes... Honestly, I was worried about that."
"There's no need to worry about that at all. I have to provide that special paper in order for other banks to recklessly print Goblin Dollars. But if I don't give them the paper, they won't be able to print Goblin Dollars. Because I already have a monopoly on it."
The more they talked, the scarier he seemed.
He alone could control the supply of Goblin Dollars circulating in the market.
"Even so, won't problems eventually arise?"
"Of course, problems will arise in proportion to the amount of Goblin Dollars I've created excessively. The value is created out of thin air and diluted with the actual value, so of course, prices will rise. However, since I control it, the problem will not be immediately apparent and will appear very slowly."
The following words were important.
"And that level of problem will pass without incident due to the ignorance of the public. And later, they will think, 'Why did the prices keep going up?'"
Rockefeller shook his head.
"There's no fault with them. The fault lies with us, who deceive them."
"Is it okay to deceive them?"
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That’s not quite correct, the value of the money supply has to match the value of production. Inflation will only happen of they print too many Dollars compared to the value of the economy.
ReplyDeleteThere was mad foreshadowing earlier about counterfeiting
ReplyDelete