Thousands of sparks

Chapter 159 Financial Crisis
The early morning in Oberalbin is gradually becoming noisy.

Humans may be the strongest creatures in the world.No amount of shock can stop them from resuming their daily lives.Even though the city is still in ruins everywhere, those living in Upper Albin still choose to return to their original lives.

Living well is the most powerful response every ordinary person can make to a ruthless fate.

Gone is the empire's long history of oppression and exploitation of the colonies.The taxpayers who collected taxes by extortion in the market all the year round, and the gangsters who collected protection fees disappeared.

Dussandre didn't actually do anything particularly helpful to the business.He's just trying to control the situation and restore peace and order to all of Newsale.

Commerce is one of the important economic pillar industries in Newsail, but its significance is mainly reflected in the distribution of materials.These merchants who buy goods for profit will send the goods to the city for sale with extremely high efficiency-even more efficient than the use of army trucks by the New Saal Department of the Interior.

Now Dusand is mainly focusing on agricultural production and the restoration of heavy industry.At most, he would add some opinions on the financial field-he really didn't know much about the financial field, so he could only try to ensure the stability of Newsale's most profitable industry.

Just don't bother Newsale, who is struggling to recover.

However, there is little point in expecting "Let's not cause trouble".This group of "geniuses" in the financial system has absolutely no awareness of "don't make trouble for Your Excellency the Consul". Their ideas are very simple.

Make money.

As long as you can make money, money is the boss.What bullshit consuls, what control production system... Do these things have anything to do with our financial system?

As long as you can make money, as long as you can make money.The group of great minds in the financial system didn't even think about how it would end after something happened.

Du Sande met such a wise man in his office.To be honest, if it weren't for the fact that he didn't have a gun at hand, Dusande really planned to shoot the beast in front of him first.

"Anyway, that's the situation now." The president of the Royal Bank of Newsale, who was wearing a fine formal suit and an embroidered handkerchief worth at least fifteen pounds, said to Dusand in an almost arrogant tone, "We The bank must obtain a special withdrawal authorization of at least 200 million gold pounds within five days, otherwise we will not be able to pay depositors May interest."

Du Sande listened to Mr. President's request very seriously, and then asked his own question: "What does this have to do with me?"

"This fund should be paid to our bank by the Colonial Office according to the regulations." Mr. President explained, "but you are now the supreme ruler of New Saal, and this fund should naturally be paid to our bank by you .”

Mr. President still retains some basic IQ, he never mentioned the word "royal" to Du Sande at all.But his IQ seemed to stop there - at least Dusand didn't hear that the president had asked him to support 200 million gold pounds to save the bank.

Just listening to the other party's tone, Du Sande even had the feeling that his son, who was hopeless in the future, was asking him for five gold pounds for pocket money.

So, Du Sande raised his voice again and asked, "What does this kind of thing have to do with me?"

Nusaar is now in a state of waste, and the treasury is so poor that even goblins have to cry when they go in.More than half of the rations of the residents are sent by the Federation or even the Empire.The routes with other colonial planets have not been restored until now, and the limited smuggling routes have been confiscated by Du Sande—the goods transported by these smuggling ships have changed from alcohol and luxury goods to industrial equipment , strategic materials, and other materials urgently needed by Newsail.

The property seized from the governor's house has almost been completely exhausted. In order to continue to buy the goods that Newsare urgently needs, Dusand even used the confiscated assets that his father seized from the house.At this time, Dusand had to lament that the mining industry was really profitable—the cash left by the mining consortium in Newsail was ten times the governor’s entire property. If the value of movable property such as mining equipment was included, the mining consortium The total assets of the Newsail branch may reach about fifty times the property of Mr. Governor.

If it weren't for these "receipts", the Newsale government would have gone bankrupt long ago.

"Your Excellency the Consul, you may not have understood what I said." The bank president took out a handkerchief and wiped the sweat on his forehead and said, "Our bank needs 200 million gold pounds, and we need it right away." Yes. Without the 200 million pounds, we will not be able to pay the bank interest for this month. This will directly lead to bank credit failure, and then there will be a run on the bank..."

Du Sande looked at the bank president with a mentally retarded look, and asked for the third time, "What does this have to do with me?"

It's not that Dusande is expressing his dissatisfaction with some rhetorical technique. He really doesn't understand that the bank's credit failure has led to the bank's bankruptcy. You, a president, are not in a hurry. Why should I be in a hurry?
The Royal Bank of Newsail is not quite the same as the banks on Earth. This is not because of the backwardness of Newsale's banking thinking, but because of the differences in the social structures of the two worlds.

In the empire, it is impossible for most people to have enough money to deposit in the bank.

Not only do the poor have no money to deposit in the bank, they may never have any relationship with the bank throughout their lives.Not to mention getting loans, the poor don't even know what banks do.

In this case, what the bank is engaged in is essentially a "broker" business.Some customers with a large amount of cash entrust their funds to the bank for management at a certain interest rate, and the bank is responsible for lending the money at the interest rate specified by the customer.Under this business model, the bank's profits basically come from the entrustment fees paid by both depositors and lenders.

Instead of making profits through the difference between deposit and loan interest rates like banks on earth.

That's why Dussande asked this question-the rich people deposit in your bank, and the borrowers are also big factories or big companies.They run...then they run.Anyway, it will not cause any social chaos. A group of very rich and rich people run on the bank, and the society will not be chaotic.

"Your Excellency the Consul..." The bank president tried to use a strong tone to increase the weight of his words, "Our bank is the currency issuing bank of Newsea! If our credit goes bankrupt, who will issue currency in the future?"

"Residents in Sunset Plaza mostly buy processed meat from a butcher named Alder." Dusande said "unanswered questions", "When this butcher named Alder because of some When the reason fails to work, the residents of Sunset Plaza can only eat meat with hair?"

The bank president looked at Dusand in disbelief, and it took several seconds before he seemed to confirm that he was not having a nightmare—the young consul's lordship seemed genuinely about to let Newsa The Royal Bank of Seoul is bankrupt!

"This will have a huge impact on the economic activities of the entire Newsale!" The president threw away the embroidered handkerchief in his hand and shouted loudly, "Your Excellency, the bank must not fail, otherwise everyone will be concerned about the financial situation." Lose confidence in the pound! If people lose confidence in currency, the entire human civilization system will collapse in an instant..."

"What does currency confidence have to do with you?" Du Sande glanced at the governor who was yelling at him, then put down the dip pen in his hand, and asked with great interest, "Your hair The right to currency was granted by the government of Newsail, and now you are going to be run out of money by wealthy businessmen to the point of bankruptcy—I just need to grant the right to issue currency to another bank? I’m not interested in how your losses are formed, anyway, and I have nothing to do with you. You don’t even have basic risk management and control capabilities, and you deserve it for the collapse of a bank like yours.”

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The president of the bank walked out of Dusand's office in a daze, and after gaining some inner satisfaction through slandering people, Dusand called Escobar, who had been promoted to the chairman of the New Salle Internal Affairs Committee.

"The Royal Bank of Newsail may be going bankrupt. Such a big bank can't even pay 200 million pounds in interest." In order to save everyone's time, Dusand informed Escobar straight to the point In this case, "the right to issue currency should be in the hands of the government, not to these banks set up for profit."

Du Sande said this out of emotion. After learning about the operating mode of the Imperial Bank, he deeply felt that these banks established for profit were too unreliable——lending money to others for their own useless money. The money pays interest, and if it is said to go bankrupt, it will go bankrupt... How can the currency issued by such a bank have any credit at all?
Instead of this, it is better to simply take back the right to issue currency and hand it over to the central bank for non-profit-making purposes to issue currency.

"Other issues can be put aside for later." Escobar raised a point that Dusand did not notice after a moment's consideration, "The Royal Bank of Newsale's business is very complicated, and he and many other small and medium-sized Banks have close capital transactions. If Royal Bank of Newsail fails, many other small and medium-sized banks may also declare bankruptcy-this will still have a great impact on society. How on earth are thousands of employees going to live after the failure of so many banks alone would result in a large number of bad debts. This could be fatal to Newmarket's now fragile economy."

Dusande ordered the table, "I invited you here for this purpose - giving money is not a good way to solve the problem. There is a problem with the Royal Bank of Newsail, which is a risk but also an opportunity. Take advantage of this At this moment, check all the current financial systems in Newsale, and then...we have to start to resolve major risks."

"Since there is an opportunity, it is better to completely control the financial system in the hands of the government." Escobar's ideas are a little more radical than Dusand's, "This may also guide those idle funds to participate in the reconstruction of Newsail Come."

(End of this chapter)