Chapter 32 (2/2)
”If the people of these magic guilds can really create real precious metals or precious metals infinitely close to gold, it means that the world's economy will collapse in an instant, and there will be countless wars, especially those who starve to death. I am afraid that the living and cultural standards of the whole continent will instantly return to the oldest chaotic era. In contrast, the disputes that the sage's stone can bring are too childish. ”
Cocoa didn't understand: ”brother president, I can't understand this. I've heard of the sage's stone. It's said that once you get it, you can get the magic element that subverts the power of the whole world. It's an existence that can turn people into gods. But in the president's brother's mouth... Is this even inferior to the gold coins in our hands? ”
Arrow didn't mind asking questions. Instead, he was glad that his members could keep asking questions. As long as he can answer, he will try his best to answer, which will help his family members grow rapidly.
”Coco, Brad, buffy. You should know that although there are many countries in the world, the currencies of each country are also different, and the exchange rates between each currency are also different. Even some countries do not recognize each other's currency. ”
”For example, I have 1000 gold coins in our blue bay empire. Then I took the 1000 gold coins to the hunter Empire next door. Because there is a war between our country and hunter, they don't recognize my wealth. Therefore, even if I bring these 1000 gold coins to their country, I am still equivalent to a poor man. Unless I dissolve these 1000 gold coins and precipitate the gold in them. ”
”But in this way, my wealth will be greatly reduced. Because a gold coin is the value of a gold coin because it is endowed with such value by our blue bay empire. Therefore, gold coins themselves do not need to be made of pure gold. The gold content in the daily currency of our empire is about 15% to 20%, and the other components are supplemented by metals such as iron, copper and silver. ”
”However, there is one thing in this world that can be used everywhere in this world. That's gold. ”
”If I take pure gold from our blue bay Empire to the hunter Empire, then a kilogram of gold can buy things in our blue bay Empire, and I can also buy things equivalent to a kilogram of gold when I reach the hunter empire.”
”Gold is the most basic currency in the world. All exchange rates of all countries are based on gold, which is the real hard currency in the world. Even if you arrive at the dwarf country, the elf country, even if you encounter the legendary dragon, your presentation of gold means that you are willing to buy their things, and the other party will recognize the value of this gold. ”
After explaining the prelude knowledge, arrow looked at Cocoa and continued——
”Therefore, if the magic guild really develops how to make gold, it will immediately devalue the value of gold because its scarcity attribute and stability attribute are enough to serve as the world currency. After a large amount of gold flows into a country's market, it will directly drive the decline of the country's gold value. ”
”The initial consequence is that a large number of assets scattered among the people will start to buy a large number of gold for value storage. But the problem is that a country's economy is fixed at a certain stage. Once a large amount of money is used to buy gold, other funds used to invest in commerce, agriculture, construction and social security will decrease rapidly. The worst part is that many of these problems are not easy to find in a short time. But once the problem begins to break out, it will bring great social unrest. ”
”The reduction of commercial investment will bring a lot of unemployment, the reduction of agricultural investment will lead to insufficient food supply, and the reduction of social security will lead to social unrest and can not be appeased in time. The simplest example is that if you can buy a lot of gold to make money, the number of people willing to beg for food will naturally decrease, the number of soldiers will decrease, and the strength of social stability will decline, so that when you are hostile to other countries, it will lead to insufficient defense. ”
”Of course, this is only based on problems arising within a country. If there is too much gold in this country and the price depreciates, the economies of other countries will naturally find ways to reach in and buy a large amount of gold, and then transport these gold back to their own countries for resale to earn a large price difference. ”
”As a result, the whole world began to flood with gold. After reaching a certain stage, gold was finally completely abandoned and became the world's common currency.”
”Once gold loses its status as the world's common currency, it will be followed by the confusion of international financial exchange rate. Because before that, each country confirmed the exchange rate according to the value of one kilogram of gold in its own country, and then traded with other countries. After losing gold, every country can no longer know how much its money is equal to the currencies of other countries. Therefore, trade exchanges between countries have completely stopped. ”
”There are also many contradictions within the country, because what do we civilians need to know the exact value of a gold coin? For example, a gold coin can buy 1kg of wheat. But if we have a bumper wheat harvest this year, and the wheat I can buy with this gold coin is only a small part of the bumper harvest, won't I lose? If we have a poor wheat harvest this year and people in many places are starving, won't I make a lot of money from the wheat I can exchange for a gold coin? ”
”Since the end of the chaotic era, it took us more than 1000 years to finally determine that gold, an unchanging and extremely stable metal, is the common currency. At present, we have not found the next material that is extremely stable, will not deteriorate, and will be loved by everyone as the standard. Once we lose gold as the standard, our human economic activities will immediately fall back to the pre chaotic era. ”
”According to this situation, it is more terrible to be able to refine real gold than to refine any sage's stone. The stone of sages can only make a person obtain strong power at most, and the person who obtains strong power will have reason and appeal. This person can be restrained by himself or stop acting for some other reasons. What's more, you can seize his sage stone. In a word, there are countless ways. But if the financial system is out of control, even if there is a God in the world, I'm afraid the God can't save our human degradation. ”
”Coco, Brad and Buffy, you three should remember that the most powerful magic in the world is never any powerful magic. Although we often say 'truth is within the range of fist attack'. But also remember, 'the amount of money ultimately determines the attack range of the fist'. ”