Chapter 18 (1/2)
Published
at 3rd of April 2019 03:29:43 PM
Chapter 18
“… Now then, KotaWhat are you going to do?”
Grin
Carlos keeps looking at Kota interestingly while he finally changed his expression
“… You daentle personAfter all, he was ‘good natured’ enough to not get angry i summoned
“… Did the mask finally come off? Good, that face is what I wanted to see…”
Kota revealed his eaze that was likely to kill a person if it could, caused Carlos who didn’t really know the ‘nor for a moment
Sorbania’s deposit certificate
Some exception exists, but most country only have one currencyThe United States of America had their Dollars, japan had their Yen, European Economic Union had their Euro–
That bill hat called as ‘Legal Currency,’ and it was money that one used to pay taxes or conduct trade in specific countryOne cannot pay using Dollars in japan, and the reverse also the same
“Sorbania certificate cannot be distributed within Terra”
“Why not?”
“Because Terra prohibits the distribution of Sorbania deposit certificate”
“Hah… Do you really want to test it? Shall I distribute it for real and see whether merchants in Terra would leave?”
Currently, Terra had been trading in both white gold coins and the deposit certificateIt was true that the certificate was a ‘legal currency,’ but that didn’t mean they only used that alone to tradeThe certificate was used sial basis thereIt was just a paper of proof having ‘deposit’ At most, they could only ask people to use itAfter all, it was akin to a private sector puts on circulation freelyThat hy, if Sorbania distributed their deposit certificate, as long the ree to use it, then Terra won’t have the power to stop itIt was Terra ould be in trouble if they confront theto do? Didn’t you say it yourself? Terra is a poor territoryCan such territory stop a world renown econo its own deposits certificate?”
“But, Terra has its own charm too…”
“Oh pleaseShould I also steal those ‘charm’ as well?”
“—khu! That is…”
“Relax, I’? Do you think I was serious just now?”
When one thinks about it properly, there was no merit for hi at it, there see Sorbania distributed their deposit certificateSorbania white gold coins and Flaold coins were issued at the saold coins had the same valueIf one thinks about the ‘distribution’ alone, it was only different in design, whether using Terra certificate or Sorbania certificate the value was the same
“… But still, you cannot…”
Kota bites his lips
A currency with the same value circulated, we call them standard systemThere were a lot of standard systems, such as the Gold Standard or Silver Standard, but it was basically a systerees with the value of each currency
“If we allow Sorbania deposit certificate to be distributed within Terra, Sorbania certificate would be do”
The key here was the issue of convenience
“When that happens, the value of Tera’s certificate would be weakBecause, of course, they would prefer using Sorbania certificate where it could be used inTera certificate where it could only be used in Tera”
“I guess you’re right”
In the standard system, one cannot issue ‘banknotes’ more than the deposited collateral… Or rather, it should not be doneIn the end, by appearance, the certificate distributed by Tera did not exceed the nuold coins deposited in TeraBut if people want to exchange all the deposit certificate into white golds coins, Tera won’t be able to repay theAfter all, it is a ‘poor territory’…”
There was never a huge aold coins stored in TeraAfter all, it was a ‘poor territory’… – But that was fine, ironically, in Terra which was a poor economic territory, it still can meet the demand of the distributed certificate by itself
“… So, what are you getting at?”
‘assassination’… That word floated inside Kota’sin the futureTo do that… Making the distribution of the certificate mandatory is essentialBut if Sorbania certificate is around, Tera certificate would ended up losing its value”
In that situation, ould happen to deposited white gold coins? Or to be more precise, would people still choose Tera to deposit their white gold coins, or using Sorbania certificate and deposit their white gold coins in Sorbania
“… That is why I cannot let you distribute the certificate”
Soold certificate would end up cost thite gold certificate overnightThat was called inflationIt happens when the value of things goes up, and the value of oes downThe opposite of that was deflation, the value of things fell, and the value of money rises
Inflation and deflation were mostly dependent on people’s deold coin because someone will buy it with that price, but it will also becoold coin if there was someone ould buy it even if they had to pay moreThat indicates people ‘had more money to spend’ With such leftoverbeing madeThe landlord who sold the land, carpenters who built the building thenon how much profit they made, it caused the econoeration to say that Tera econoreat for them if stable inflation continues to accelerate
“… However, because of that, Tera cannot be overrun by foreign currency”
The central bank of each country would try to adjust howdistributed, in the name of the monetary policyWhen there was a surplus in distribution, they would absorb the hso, they would stabilize the price and avoid confusion in the econontyIf Sorbania currency ended up circulating, that nty had been deprived, and the econo with Sorbania’s economyAnd Tera would have no control over it
As a side note, the branch expansion progra in Tera, which had become ‘fiscal policy,’ Whether what they did could be called the governes the government job was open for delicate debate but in Tera… Erika, Kota, and E both of themThere was no independent central bank
“You’re too naive, KotaNo matter what you say and do Kota, Sorbania deposit certificate will be distributed in TeraThere is no way for you to avoid it”
‘No about starting lower your head, and beg?’, That hat Carlos said…
“… Alright then”
I wonder how long it had been…
“… I will allow the distribution of the Sorbania deposit certificate”
Saying so, Kota bows his head
“… What’s this? Aren’t you quite understanding personI thought you would bow and say ‘Please don’t distribute Sorbania certificate in Terra'”
“Would you actually do it if I asked it?”
“I wonder…”
“…This has ended into stale…”
Whether or not Kota lowered his head, the Sorbania certificate would be still distributedWhich mean, it was already hopelessIf that was the case, then he should bow his head quicklyLowering one’s head is free after all
“… However, Tera will also equally being allowed to be distributed here as wellAlso, ill take theTera certificate, is that fine with you?”
“Sure, do as you like”
“Furthermore, since we accepted Sorbania certificate, Tera Certificate would have the saht?”
“Of courseIsn’t that obvious? After all, Sorbania white gold coin and Flaold coin had the saard those as our agree?”
“No, nothing…”
“…”
“…”
“… There you go, wearing theabout, I wonder?”
Probing each otherOne would wonder how many times they did that today
“… Fine then… If you want to play it that way”
Carlos said that while sighingAnd lean his back to his chair
“… Is that so? If that the case then, we close the agree discussion you both have…”
Suddenly a voice echoes from Kota’s back
(The Snake, The De Bride)
“Sonia?! Didn’t you see I have a guest right now? Don’t come in however you like!”
“I’ discussion you both have, so I unintentionally…”
“Are you eavesdropping since the beginning?”
“No wayI just happen to pass by…”
Not ‘forceful’ but ‘Strong-Minded’
When she turned her gaze at Kota, she had ih nose and small lipsHer facial proportion was very ideal, stretched to her shoulder her wavy loose blonde hair, just like her ‘eyes’, her ‘fiery’ red dress looked great on her
“… This person is?”
“… SoniaYou should introduce yourself first”
“Please pardon my rudeness, Kota Matsushi+ro-sa of Sorbania, Carlos the FirstPleased to meet you”
She quietly picked the red dress and bowed gracefullySeeing that figure, Kota instinctively replied…
“… I’I’m a merchant from Yameto, now a residence in Rondo de Tera, my name is Kota Matsushi+ro”
“Yes, I knowThe rumored ‘The De me too much, I’m not that bad… After all, I’m just an ordinary person”
“Oh my! To call yourself an ordinary person… Aren’t you the one who led my father by the nose?”
“… Far frolanced at Carlos
“… Sorry, KotaShe’s a bit of a tomboy you see… Always like to meddle with ht nowHurry up and leave the roo a bitter expression, Kota relaxed his expression a littleSouess even the ‘snake’ eak against his daughter
“Oh my? I also want to join the talk…”
“Are you idiot? Listen here, this is a talk that a woman or a child should not join”
“Mou! Father isSonia puffed her cheek, Kota almost breaks into a s led by the nose like right now!”
Kota expression remains hardened
“… What do you mean?”
“Nee~, Kotsa at Kota, s
“Tera deposit certificate is backed by the Flaold coinSorbania deposit certificate is backed by Sorbania white gold coinAht”
“I like Fla e at scenery, like in the Hero poem”
“… Is that so?”
“But you know, I like Sorbania white gold coin more than that… Sorbania is aon a great sea, isn’t that great?”
“… What do you want to say?”
“Ah, please pardon meWhat I old cointhat she showed a beautiful smileAnd evil, yet innocent sather in SorbaniaBut that wealth is a restricted wealth that cannot be redistributed…”
Standard systeold standard, then the guarantee was gold, if it were a white gold coin, then the collateral would be a white gold coinWhat happens if all white gold coins gather in a single country, Sorbania? Then Tera won’t be able to issue any certificateIn other words, because the de the econoative for Tera econoht, Kotsama?”
Then what about Sorbania? Sorbania who forced Tera to deflate would have inflation and need to continue old coins being depositedOtherwise, the white gold coin standard cannot be maintained
“If we cannot maintain our standard, then we need to stopStill, Sorbania should be able to cover itAfter all, it is the peerless Sorbania Kingdom”
‘But… What about Tera?’, she asked
“It is impossible for Tera, no? The certificate that cannot be traded with ‘white gold coin’ Then that means, Tera certificate has to turn into a scrap of paper, yes?”