Chapter 513 Financial War(2/4)
Qige was stunned for a moment and asked:
"We have so much money, why are we still borrowing it? How big of a deal do you want to do?"
“It’s easy to borrow money only if you have money! Banks will only lend large sums of money to rich people.
The richer you are, the easier it is to borrow money, but those who are short of money will not be able to borrow it.
Her Majesty Ernie and I studied Bracada's financial system together.
Bracada actually overdrawn a lot of future money to spend on construction, which allowed Bracada to maintain its superficial prosperity.
And the source of everything is the [Bracada National Treasury].
[Bracada National Treasury] can be simply regarded as the central bank of Bracada.
In the early days, the [Bracada National Treasury] carried out economic businesses with high interest rates and high returns.
For example, you can lend money to pseudo-legends who are expanding their land, help them build cities, and then slowly draw interest and principal from the income after the city is established.
Another example is that during the war, merchants' assets were used as collateral to lend money to overseas merchants to purchase goods. After the merchants came back from the transaction, the interest and principal were repaid in one go.
Most of those who borrowed money from the [Bracada National Treasury] in the early days had high social status, and if they were not careful, they could easily go into bad debts.
In order to maintain their own development environment, [Brakada National Treasury] and [Thunder Church] cooperate with each other.
[Braccada National Treasury] provides [Thunder Church] with high tax revenue, and [Thunder Church] protects [Braccada National Treasury] to develop businesses that can obtain high profits.
Therefore, in the early days, [Brakada National Treasury] became a subsidiary economic institution of [Thunder Church], and in turn, [Thunder Church] also became a favorable support for the [Brakada National Treasury].
By the way, [Thunder Church] is a powerful organization that controls the highest theological power, the highest political power, and the highest military power in Brakada.
Therefore, the cooperation between [Brakada National Treasury] and [Thunder Church], in the simplest and most straightforward terms, is:
Money and power cooperation.
[Quan] utilizes rights to ensure that [money] flows towards [Quan].
【Money】Use your rights to ensure that you can earn more money stably.
Later, with the issuance of Titan coins, the status of the [Bracada National Treasury] became more and more important.
Gradually, the [Bracada National Treasury] has more functions.
Such as deposits and withdrawals, small loans for everyone, etc.
Heroes have space backpacks and can carry unlimited gold coins and resources. Therefore, even if there is interest as an attraction, the enthusiasm of Bracada's heroes for deposits is quite limited.
Therefore, the [Bracada National Treasury] stipulates that if you want a loan, in addition to the collateral, you must deposit a certain amount of gold coins as a guarantee.
This seems to be a strange situation.
Only those who are short of gold coins need a loan, but a loan requires depositing gold coins. Isn't this a joke?
In fact, when the hero makes a deposit at the [Bracada National Treasury], he deposits gold coins.
But all they loaned out were Titan coins.
For example, if a hero deposits 10,000 gold coins and then mortgages assets worth 100,000 gold coins, he can get a loan of 200,000 titan coins from the [Brakada National Treasury].
Relying on Bracada's official reputation as a guarantee, Titan coins have the same purchasing power as gold coins in Bracada.
It is precisely because of the existence of the [Bracada National Treasury] that Titan coins can replace gold coins and become the mainstream currency in Bracada."
Mixue Bingtang took a breath and continued:
“It is precisely because of this system that the wealth of Bracada is inevitably concentrated.
When the business scale reaches a certain level, those who want to engage in business will not be able to compete with rivals with abundant capital without borrowing money (financing).
And the source of all financing will point to the [Bracada National Treasury].
[Bracada National Treasury] did not purchase any property, but just continued to borrow money, and it was able to continuously obtain huge profits.
But this system also has a big drawback.
What I want to do is to take advantage of this shortcoming to penetrate the [Brakada National Treasury] and make Titan Coin lose its credibility."
Hof smiled and said:
"The existence of Titan coins will pose a great threat to the normal circulation of gold coins.
This is also something the God of Wealth cannot allow.
Therefore, we, Wealth Church, also provide Bingtang with the greatest support.
Bingtang's plan is no longer just a matter between Qige you and Bingtang.
This is war, a financial war between our church of wealth and Bracada."
Financial war…
In the real world, financial war refers to wars, strategies, tactics and campaigns that are conducted and implemented in the military or non-military fields using monetary funds and financing methods to strive for the interests of the country or the group.
The outcome of the financial war not only determines the life and death of commercial entities (enterprises, chambers of commerce) and the success or failure of the military, but also determines the strength and decline of the country and the nation.
There are countless examples of countries being destroyed due to defeat in financial wars.
It seems that the Wealth Church is getting serious.
From this point of view, it is no accident that Mixue Bingtang became the God of Fortune just one year after coming to Yasha World.
What the Church of Wealth is looking for should be Mixue Bingtang’s ability in business.
"I see."
Qi Ge asked softly:
"Then what happened to the request you mentioned before?"
Michelle Bingtang blinked and said with a smile:
"I need to use your goblin tavern and use your identity as His Majesty Agede to endorse me.
I'm going to start buying the factory in Bracada.
This war between Brakada and Negan caused many city lords to lose their money.
You destroyed those factories to pieces again.
Many city owners are unable to resume factory production and are putting their factories up for sale.
I can buy a lot of factory shells at the broken price."
When Qi Ge heard this, he immediately understood:
"Most of the production lines in those factories have fallen into the hands of the Church of Fortune and Moriel.
Once you buy the shell, you can resume production at the factory at an extremely low price!"
"That's right!"
Michelle Bingtang smiled proudly:
"Once the Titan coins leave Bracada, they are just a pile of waste paper.
Only by converting Titan coins into various products of real value can you get considerable gold coins.
Moreover, with these factories as cover, we can recruit goblins in Bracada unscrupulously and constantly transfer goblins to the Chosen City.
In addition, we can also use these factories as collateral to the [Bracada National Treasury] to loan out more Titan coins.
The loaned Titan coins are used to invest in other industries, and then used to continue to mortgage, and more Titan coins are loaned out.
Use leverage to leverage new levers and continuously expand the industry.
Then, the physical output of the industry is secretly delivered to the Church of Fortune and the City of God’s Choice.
Borrow Bracada's chickens to lay our eggs.
It doesn't matter if I lose the money, I never thought about paying back the principal in the first place.
If something goes wrong, I will run away immediately!
We ate the eggs and left the rotting dead chickens for Bracada to clean up.
If everything goes well and the market is built big enough, the credibility of Titancoin will be destroyed in one wave.
Even if it doesn’t go well, this move can act as a major earthquake that causes a financial tsunami!”
After the plan was finished, Michelle Bingtang and Huo Fu both showed proud expressions on their faces.
"Hiss~"
Qi Ge took a breath of cold air.
"You are good and bad, you are trying to punish Brakada to death."
"Just tell me whether you like it or not?"
Qi Ge was shocked: "I like it!"
"Hey hey hey!"
Michelle Bingtang narrowed her eyes and let out a cunning laugh.
To be continued...