Chapter 2877: Chapter 2865, financial crisis
Translator: 549690339
“Come, have a seat. I have nothing to do today. Let’s chat,”the consul said to Jiang Fei with a smile.
“Yes, my Lord!”Jiang Fei sat on the sofa opposite the consul, he tried to sit as respectfully as possible, but he did not sit by much standards. After all, he was from the slums. It was normal for him to be a little reserved when sitting opposite the consul. However, if he sat upright.., it would not make sense if he looked like an old bureaucrat.
“Who else is in your family?”The consul asked with a smile.
“My parents died when I was young. I have been living on the streets ever since I was young,”Jiang Fei said. Ralph’s background was indeed quite tragic.
“Sigh! He’s also a pitiful person.”The consul sighed and began to chat with Jiang Fei about family matters.
As they chatted, the conversation was over. As the consul spoke, he changed the topic to current affairs.
“What do you think about the robbery at the Life Building?”The consul asked casually. He really did not intend for Jiang Fei to say anything. He just chatted and casually brought it up.
“To be honest, I do not know much about it. Although I was the head of the Security Department of the Life Building at the time, the floor structure map in my hands only went to the tenth floor. Moreover, the contents of the tenth floor were hidden. Therefore, I did not know that there was an underground 11th floor,”Jiang Fei said.
“Then, when I heard that something happened, you went too,”the consul asked.
“Yes, I went too. There were many safes on the eleventh floor. I don’t know what was stored in them. It seemed to be very important. About a third of the safes were opened,”Jiang Fei said honestly, because these things were too easy to find out. If he lied here, he would be making himself uncomfortable.
“Don’t you know what’s in the safe?”The magistrate asked.
“I don’t know… It seems to be very important. However, they did not tell me. They also told me not to tell anyone about the theft,”Jiang Fei said.
“Do you know about the Moon Spirit Crystal?”The magistrate did not know what he was thinking. Perhaps he really trusted Jiang Fei very much. Perhaps it was because he wanted to nurture Jiang Fei to fight against Colonel Kono, therefore, he actually mentioned the Moon Crystal to Jiang Fei.
“I know. This thing is very valuable. It can be exchanged at the bank at any time,”Jiang Fei said.
“That’s right. Generally speaking, it is like this. The bank relies on a large number of moon crystal as a base to issue paper money. If there is no moon crystal as a guarantee, they will only issue waste paper. No one will admit it,”the administrator said.
“What do you mean?”Jiang Fei pretended to be dumb.
“Think about it. If the bank guarantees that you can bring the notes over anytime and it can exchange them for Moon crystals anytime, would you think that the notes and moon crystals are equivalent? Moreover, it would be more convenient to use the notes. Therefore, you would keep the moon crystals in the bank and use the notes for your daily consumption?”The consul also knew that Ralph, who came from a poor background.., he had never been to school before. However, in order to nurture him, he patiently explained to Jiang Fei.
“That’s right. It’s very inconvenient to buy things with the Moon Spirit Crystal. Moreover, if you buy some small items, it will be very troublesome for others to find change!”Jiang Fei continued to play his role.
“But if the Moon Spirit Crystal in the bank suddenly disappeared and could not be exchanged, what would you do?”The consul continued to persuade him patiently.
“Of course, I have to find the bank quickly. I have to exchange as much as I can. Otherwise, what’s the use of holding that waste paper?”Jiang Fei said.
“Then why don’t you exchange it usually?”The consul asked.
“Usually, the bank has enough moon crystals. When I go, when he has it, then why would I exchange it? “But if he doesn’t have that much, if I don’t exchange it, wouldn’t everyone else have already exchanged it? Wouldn’t the notes in my hand be useless?”Jiang Fei said.
“That’s right. So, when everyone goes to exchange for the notes, wouldn’t the bank go bankrupt?”The administrator asked.
“How is that possible? Since the bank promised that they could exchange for the notes at any time, it means that they have enough moon crystals to exchange for the notes!”Jiang Fei continued to play dumb.
“Sigh, you really need to read more books. When the bank issues notes, they don’t issue the corresponding notes with just one moon crystal. They issue notes that are twice or even three to four times the amount of one Moon Crystal!”The administrator said.
“Isn’t that cheating? If everyone goes to exchange, won’t they be exposed?”Jiang Fei asked deliberately.
“What did you say just now? As long as they promise to exchange at any time, you won’t go to exchange! “Even if someone is willing to exchange, the bank can give it to them. However, after a few days, once you realize that the bank has always been able to fulfill its promise, you will find it troublesome to use the Moon Spirit Princess. You will also exchange them back into notes. Therefore, as long as the bank promises to be able to handle a certain level of exchange, they will be able to issue more notes without a problem,”said the consul.
“If that’s the case, why are you so afraid now?”Jiang Fei continued to ask.
“Now, one-third of the Moon Crystals in the bank have been stolen. If this were to spread out, wouldn’t the people go crazy? Everyone was afraid that they would be too late and not be able to exchange for the moon crystals. Therefore, they would definitely go to the bank to run a bank run. The bank itself was already over-issuing the money. Now that they have lost one-third of the Moon Crystals in the bank, they would definitely not be able to cash in,”said the consul.
“And then?”Jiang Fei asked.
“Then, the bank only has two choices. The first is to continue to redeem the money. When all the moon crystals have been exchanged, they will be bankrupt. The remaining notes will all become waste paper,”said the consul.
“What’s the second choice?”Jiang Fei asked again.
“The second choice is to refuse to exchange or to limit the exchange. This way, although the notes will not immediately become waste paper, they will still depreciate crazily. If you could buy an item, you might not even be able to buy half or one-third of it!”said the consul.
“If that’s the case, then there will definitely be Chaos!”Said Jiang Fei.
“That’s right. So, now you understand why this matter must be kept a secret, right?”asked the magistrate.
“I understand, but the problem is how to solve it?”Asked Jiang Fei.
“The most important thing now is to suppress the news. However, there is no such thing as an airtight wall. Sooner or later, the news will spread out. Therefore, we must take this time to capture the robbers and summon the lunar crystals. When this news is released, the people will be at ease. If they do not focus on the bank run, the bank will be able to continue operating,”said the magistrate.
“Oh! Oh!”Jiang Fei nodded, actually, other than this method, there were other ways to solve this problem. However, those were the ideas of the financial experts in the three-dimensional world. The gamma space was relatively too small, the financial world here was relatively stable. Therefore, they had never experienced a crisis. It was already very good that they could think of these two possibilities.
