Chapter 462: Raising a Question
Those who have never suffered from hemorrhoids will never understand the pain of defecation—just as no one understands the anxiety caused by unrest in Allia better than Emperor Gephra.
After his initial rage, the Emperor had cald down, sitting in his vast study, contemplating the Defense Minister’s proposal. He no longer resisted it as strongly.
He could tolerate the Federation defeating his invincible navy in a sea battle; they were rely petty villains who used underhanded tactics to steal the outco.
He could afford to laugh for a while, confident that once Gephra’s submarines and anti-submarine technology were perfected, the seas would remain Gephra’s domain.
But stability in Allia could not be ignored. That region would be the key to breaking the stalemate.
Ten or twelve years from now, a new war would engulf the world again. Only a stable Allia could support Gephra’s invincible fleet and his lofty ambitions.
Still, he could not agree too easily. If he appeared to accept too readily, it would suggest he and Gephra had no alternatives. The vile Federation scoundrels would exploit this for more demands.
He needed to coordinate with his ministers in a performance—letting them persuade him gradually, showing reluctance, agreeing unwillingly, and always appearing ready to change his mind.
Only then would the Federation understand that it was not him begging for help, but that his ministers had been convinced by their sincerity.
Though anxious and worried inside, he knew this was not the ti to show it.
While the Emperor pondered how to use the Federation to resolve Allia, Mr. Herbes was entertaining friends in Nagaryll.
International bankers had many acquaintances, most of whom were also international bankers. Calling them bankers was only partly accurate—they were more like financial firms handling large-scale business, essentially the sa kind of business as the Fox family, but with larger capital and higher profit demands.
“This place reeks, Herbes!” complained the last guest to arrive. “Do these damned people never bathe? I can guess where this sll cos from. My god, how do they tolerate it?”
He looked at Herbes and the others, shocked. “Don’t you find it foul? Or is my nose broken since I stepped off the ship?”
Herbes handed him a drink and gently soothed him. “Soone told
our brains can filter out odors we dislike—but it takes ti, you know?”
“See, I and others have blocked out the sll. We don’t notice it anymore. You just need ti. Relax, it’s not so bad!”
The guest took a sip; the alcohol cleared his mouth, making him feel sowhat better. “I’m not going to get used to this stench. When you finish, I’m leaving imdiately!”
“That’s your right…” Herbes returned to his seat. “I’ve gathered you all because I have a huge deal I can’t handle alone and hope you can help.”
At the ntion of business, the bankers focused on Herbes.
Postwar reconstruction and the Federation’s financial turmoil had left much capital without a place to go.
So chose projects with long payback periods and low returns. Others had money flowing with nowhere good to invest.
These bankers, used to making huge gains in days or weeks, looked down on reconstruction projects because they took too long.
Real banks liked those projects—they sought stable returns and didn’t mind long durations. For them, longer was better.
But international bankers like Herbes dealt mainly in short-term capital flows—loans, currency exchange—quick money with less risk. They struggled to focus on construction investnts.
That Herbes could gather everyone ant the project was substantial—like a rainstorm hitting the long-dry Nagaryll plains, animals rushing out to feast.
No interruptions ca as Herbes spoke on. “You may have heard the na Lynch. The developnt rights to this province beneath us belong to Lynch’s Blackstone Group. He holds authority here.”
At this, soone interjected, “Wait, Herbes, you know we’re not interested in investing in construction. If you’re trying to get us to fund Lynch or his projects, I don’t think it’s wise.”
Herbes showed no displeasure. Calmly, he listened, nodded, and smiled warmly, approachable. “I haven’t finished. If you hear
out, you won’t think that way.” ????????Β????
“…Sorry, please continue.”
He nodded and went on, “Recently, Lynch spoke with . We know the Federation’s developnt here involves hiring many local workers—that’s part of their diplomatic agreent with the local governnt.”
“They need massive quantities of Valier currency monthly to pay these workers. The Federation rchants consu much Valier, distributing it to ordinary people.”
“So Lynch asked to borrow so Valier from
for certain operations.”
“Borrow?” another interrupted, “Forgive my rudeness, Herbes, if they need Valier to pay workers, we can exchange it. Why borrow?”
Herbes expected the interruption. He introduced these points to provoke questions and keep the conversation flowing. “That’s the real project I want to discuss.”
“Lynch believes Valier will rise sowhat on the foreign exchange market soon. The Federation’s developnt will drive rapid growth in Nagaryll’s industries, which boasts so of the world’s cheapest labor.”
“In other words, with sufficient infrastructure, they can unleash incredible productivity, raising Nagaryll’s national strength, which will reflect in Valier’s exchange rate.”
“I’ve observed Valier steadily appreciating recently, so Lynch wants to boost Valier’s value further. His demand is large—not just for paying workers, if you catch my aning.”
Everyone understood now: currency speculation. Due to international politics, Valier will rise. If an individual or group suddenly absorbs large amounts of Valier, circulating cash reduces, causing a cash shortage in Nagaryll-related regions.
Currency is a commodity reflecting purchasing power. It obeys supply, demand, and market forces. Less circulating Valier combined with positive prospects will push its price up.
Moreover, Valier’s appreciation suits Nagaryll’s full-scale developnt, helping save costs on imports.
Hearing this, the bankers’ interest stirred. One asked, “Sounds reasonable. Since Valier will rise, why does Lynch want to borrow rather than exchange?”
Others shared the doubt. If Valier is set to rise, exchanging now is more profitable.
For example, 100 Federation Sols could buy 10,000 Valier. If the exchange rate settles at 1:80, then it costs only 8,000 Valier to buy back the original 100 Sols, earning 2,000 Valier profit.
But borrowing ans paying back.
If Lynch borrows Valier and repays with another currency, and interest is lower than Valier’s rise, why give up profits?
If Lynch borrows and repays Valier plus interest, does he have too much money?
Unless Valier’s price stays stable—its value when borrowed equals that when repaid—only then would he not be a fool.
But would Lynch be a fool?
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