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One thousand six hundred seventy-eight chapters the devil does not understand the economy(1/2)

Wang Wang hurriedly said flatteringly: "Understand, understand, understand! The Siren Witch likes to let us learn things in class when she has nothing to do. Although those things are boring, thanks to those studies, I am hearing some general discussions of the replacement agreement.

Then you will be able to understand what she wants to do."

The giant monster nodded and said: "Even if it is true, exchanging currency with each other is not unacceptable. In order to speed up transactions, it can be considered that this is a very portable method. How can this hinder us elves?

Army’s plan?”

Wang Wang said: "The replacement agreement itself will not cause any problems, but the problem lies in the special circumstances outside the replacement agreement!"

"My lords, please imagine that we humans need to use currency to conduct trade. If the economic levels of two countries or regions are not equivalent, in most cases, the purchasing power of currency will be different."

"To put it simply, for example, in area A, there is a shortage of grain this year, which has caused the price of food to rise. It takes ten gold coins to buy a pound of grain. But in area B, there is a bumper harvest of grain, so the price of grain will rise.

If it goes down, you only need one gold coin to buy a pound of grain."

"In this way, there is an obvious difference in the purchasing power of currencies between regions A and B. If the currencies of the two regions are exchanged with each other at this time, if the exchange ratio is considered to be the simplest and mindless one-to-one, then

It means that one gold coin in area B is equivalent to ten gold coins in area A! In this way, many people will definitely exchange the gold coins in area B for gold coins in area A, causing an economic imbalance between the two regions and causing an economic crisis.

.”

"Then, in order to prevent its money from becoming worthless, region A will require the exchange ratio of region B's currency to region A's currency to become 10:1. Only in this way can the price balance between the two regions be maintained.

.”

The giant monster nodded slightly and said, "It makes sense. But, I still didn't hear the point."

Wang Wang swallowed nervously, looked at the demon leaders present, and said: "The point is that the production capacity of the Kraken Army has far exceeded this simple concept of replacement! The Kraken Witch wants to

What we have done is far more terrible than we can imagine now!”

"My lords, I am just a small person, but because I have also served as the mayor of a small town, I know all kinds of prices more or less. When I heard that the Siren Witch wanted to go to the Lapis Gold Empire, I

When replacing the agreement, I did a little research on the financial data of the Lazuli Empire."

"The Lapis Lazuli Coin of the Lapis Lazuli Empire is a currency made from the ore containing lapis lazuli. The Lapis Lazuli Empire has a large amount of lapis lazuli. It is understandable to use this currency as the currency of domestic transactions. In the past, the Lapis Lazuli Empire's

One acre of wheat can produce about one hundred catties, and the total value is around 1,000 lapin coins."

"But for the Kraken Legion, their output per mu this year has reached 300 kilograms! In addition, this year they occupy the Haize Province area with the most abundant water and land resources and enjoy the advantage of a smaller population. One mu of wheat

The total amount is almost equal to 750 yuan of mermaid coins! If converted into one hundred catties, it is equivalent to only needing 250 yuan of mermaid coins to buy one hundred catties of wheat!"

The more the fox girl listened, the more difficult it became to understand. She seemed a little angry and said, "What's the problem with this? Their food production efficiency has gone up, but the price has become cheaper and cheaper?"

Wang Wang nodded quickly and said: "Yes, it is getting cheaper and cheaper! The Kraken Army has a large amount of cheap and large quantities of food. In this case, if there is a fight between the Kraken Army and the Lapis Gold Empire,

In the case of a currency swap agreement, the superficial result is that both parties possess a large amount of each other's currency. However, in fact, because the Siren Army's material richness far exceeds that of the Lapis Empire, in most cases,

The Lapis Lazuli Empire will use the mermaid coins obtained from the exchange agreement to purchase goods from the Kraken Army, and the Lapis Gold coins in the hands of the Kraken Army will probably not be able to buy much from the Lapis Gold Empire."

"If things continue like this... no, in fact, it won't take a few times at all. Maybe it will only take a month or two. After a month or two, people in the Lapis Empire will find that they are always

I spent the mermaid coins in my hand, but the number of lapin coins I could get back from the Kraken Legion was pitifully small."

"Soon, the Lapis Gold Empire will find that the mermaid coins in their hands have been used up. If they want to continue to buy things from the Siren Legion, they must exchange currency with the Siren Legion again!"

"Of course, the Siren Legion may not kill at this time, because the real goal of the Siren Witch is not to directly destroy the Lazuli Empire, but to control her. As the replacement agreement deepens again and again

, the number of lapis lazuli coins held by the Kraken Legion will definitely increase! And this huge lapis gold coin will become the sharp blade for the Kraken Legion to completely control the Lapis Empire!"

"After accumulating to a certain extent, the Kraken Legion can directly reinvest the Lapis Gold Coins into the Lapis Lazuli Empire, and then begin to purchase the assets of the Lapis Gold Empire. Especially resources such as mines, pastures, and farmland.

In an output-oriented industry, the Kraken Legion will definitely spend huge sums of money to acquire it!"

"My lords, please imagine what the consequences of this will be."

The huge monster's claws slapped the ground again: "I don't have time to guess the riddle, I'll just tell you the result."

Wang Wang's neck shrank, and then he continued -

"This will cause prices in the Lapis Gold Empire to start to skyrocket! Things that may have been purchased with a little money will suddenly skyrocket due to the Kraken Legion suddenly injecting a large amount of currency into the market!"

"For example, a chair here originally sold for ten lapin coins, but suddenly, the Kraken Legion came directly and wanted to buy this chair. The price was whatever I wanted! I carefully opened the price for twenty lapin coins, but the sea monster army came directly and wanted to buy this chair.

The demon army paid for it directly without thinking."

"In this case, if the Siren Army comes to buy it next time, I will definitely increase the price by fifty lapin coins. If it can still be sold smoothly, I will increase the price by one hundred lapin coins!"

"As the Kraken Army continues to inject large amounts of funds, what everyone thinks about is that the price of the goods in their hands will become higher after a while, and they can be sold at a higher price! In this kind of situation

In this case, I may not start selling, I will start to hesitate to sell, start covering the goods in my hands, and then wait for the price to rise again every day!”

"In this way, at this stage, although the number of transactions in the market may not be that frequent, the prices of items continue to rise, until they are completely unaffordable for ordinary people, but they are still still

It keeps going up!”

"From this, it will become a very strange scene. That is, every businessman has hoarded a large amount of goods, and the number of transactions in the market has decreased, but the price has skyrocketed, and ordinary people cannot buy it at all.

Pick up these goods."

"Under such a strange situation, as the mermaid army uses the funds in its hands to directly control the various basic agricultural facilities and mining facilities of the Lapis Gold Empire, the value of the Lapis Gold Coin will become completely out of control and become even

It’s a situation where even the royal family itself can’t afford to buy anything.”

Hearing this, Miss Fox asked curiously: "This sounds really strange. Aren't the lapis coins issued by the lapis lazuli empire? Can't they make more currencies?"

Wang Wang shook his head and said with great regret: "Unfortunately, this kind of thing is difficult to do. The villain also said just now that lapis lazuli coins can only be made after mining lapis lazuli mines. This kind of physical currency itself is

It is impossible to increase the output quantity all at once. But Mermaid Coins are pieces of paper, and the speed at which the Kraken Legion prints such pieces of paper is very convenient and fast. In addition, they can produce a large amount of goods in a short time.

It’s used for selling, so it’s impossible for the supply speed of lapis coins to keep up.”

Miss Fox nodded and said with a smile: "You continue. What will happen next?"

Wang Wang continued: "The price of lapis lazuli coins starts to become outrageous, which will bring about a situation called inflation. And if inflation reaches a certain level, people will feel that it is practical to use lapis gold coins to buy things.

It is too uneconomical. Therefore, the Lapis Gold Empire will inevitably choose another currency to replace their own currency. In that case, it is obvious that they will think of using mermaid coins to carry out their domestic operations.

transaction."

"And once the coinage rights of the Lazuli Empire are firmly controlled by the Siren Legion... My lords, even if our elven army can station troops in those empires, even if we can destroy those countries in an instant, once the Siren Legion takes over

If the supply of mermaid coins to the Lazuli Empire is tightened, the Lazuli Empire itself will collapse immediately!"

"In other words, through this financial method, the Kraken Army has also gained the same strength as our Elf Army that is enough to destroy an empire! Under such circumstances, the deterrence generated by the military power of our Elf Army will be

To be fair, this is an unexpected challenge for us!"

Seeing the human traitor named Wang Wang chattering endlessly, the figure who had been standing next to the giant monster from the beginning snorted, folded his hands on his chest, and said -

"You have always been saying, you, a humble human being, how much knowledge have you learned and are showing off in front of me? If this financial attack is really so terrible, no scholar in the huge Lapis Gold Empire can see clearly what is going on.

A conspiracy? After all, even a little guy like you can say a lot of things."

Wang Wang quickly turned to the figure, showing very flattery and humility, and said: "Dear Sir, how dare I claim to be the smartest in the world? I can also say that there must be someone in the Lapis Gold Empire who can think of these things.

Guess it, think of it. But dear sir, don’t forget what a despicable race we humans are! We are the best at intrigues and doing things that benefit ourselves at the expense of others...human beings!"

The figure was stunned for a moment and stopped talking.

Wang Wang continued: "Again, if someone in the Green Gold Empire discovers the conspiracy of the Siren Legion, will that person really remind those in power? Or unless the Green Gold (Harmony) Emperor himself can detect it,

Otherwise, after those ministers understand the truth, will they really do things that are truly beneficial to their empire for the sake of maintaining the empire itself?"

"My lords, this is a sneak attack and conspiracy launched by the Siren Legion, which is despicable, obscene and dirty, and difficult to describe in words! But no matter how you put it, this is also a financial war. Since it is related to the economy,

It’s related to money, so there must be a way for individual humans to make a lot of money!”

"For example, take the currency swap at the beginning. If someone immediately thinks of everything I just said after hearing this statement, then this person will immediately make suggestions to the people in power in the Lazuli Empire and swear to the death to prevent the agreement from being passed.

? Or can we take advantage of the price asymmetry between the two sides to import a large amount of wheat from the Kraken Legion and then sell it to the Lapis Gold Empire?"

"I just said that the wheat of the Kraken Legion is not only large in quantity but also cheap. After buying it and adding a little difference and then selling it, it can be regarded as a huge profit! Even if one or two people don't do such a thing, then who

Can you guarantee that other businessmen will not do it?"

"It is completely impossible for the merchants of the Green Gold Empire to consider buying large quantities of grain from other countries and transporting it back to their own country for sale at this time. It will greatly affect the farmers in their country. As a result, the grain in the hands of the farmers will be piled up and unable to be sold, and eventually it will rot at a loss.

They would never have thought that in the next year, those farmers who had suffered huge losses might no longer plant food, thus handing over the food security of the entire country to the hands of the Kraken Legion. By that time, the Kraken Army

Once the legion stops selling food at a certain moment, may I ask my lords, can the Elf Army mobilize a large amount of food in time to feed the people of the Lapis Gold Empire? One country can, then there will be a second and third one.

A, a fourth... more than a dozen such countries, can our elven army be able to deal with them?"

"This is just an example of food. Once the currency exchange agreement between the two parties is signed, those in power can use this method to continuously increase their wealth through currency exchange!"

"They don't think about how long it will take for the wealth in their hands to be worthless. There are many people in this world who say, 'If you can make money this way, make more now.' Human beings who can think long-term

They are always rare. Even if such a person appears in the Lapis Lazuli Empire, will such a person be able to stop other people from making money?"

"To put it even more exaggeratedly, even the emperor of the Lapis Gold Empire himself, can he refuse to quickly increase his wealth and enjoy the various supplies provided by the Siren Legion while never being able to

How about a day when you don’t have to worry about the empire’s finances every year?”

At this point, Wang Wang was already out of breath.

And when he finished saying this, the leaders of the demon army in front of him all fell silent one by one.

In terms of fighting ability, none of them would take seriously a human girl who has no fighting ability at all and is not even comparable to an ordinary farmer.

If possible, they could easily kill hundreds or thousands of these ordinary humans. In the face of absolute combat power, there is not much difference between Ariel Garcia, an ordinary human woman, and other ordinary people.

But now, what is before them is a problem they have never thought about before - economy.
To be continued...
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