Ernak - Ch. 48
- Thread starter MangaDex
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Currency exists because gold(or whatever is the standard of money) is hard to move around.
Credit/Bonds exist because Currency can be hard to move in large numbers(think 1 million gold coins).
But when times are unstable, laws are slow to update, and banks are unable to exert influence across multiple countries, trading bonds from one bank to another is not possible: only Currency is accepted.
Because of that, Currency itself is a very important commodity for cash transactions. Since monsters limit both the production and distribution of it, Currency gets additional value on top of what it represents simply because there's a high demand and not enough supply.
So Rblade was in some trouble due to lack of physical currency, which Fullgold had in surplus. That was a weakness which Fullgold exploited, baiting them with the solution to their problems in order to crush them.
Credit/Bonds exist because Currency can be hard to move in large numbers(think 1 million gold coins).
But when times are unstable, laws are slow to update, and banks are unable to exert influence across multiple countries, trading bonds from one bank to another is not possible: only Currency is accepted.
Because of that, Currency itself is a very important commodity for cash transactions. Since monsters limit both the production and distribution of it, Currency gets additional value on top of what it represents simply because there's a high demand and not enough supply.
So Rblade was in some trouble due to lack of physical currency, which Fullgold had in surplus. That was a weakness which Fullgold exploited, baiting them with the solution to their problems in order to crush them.
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@trexfulan
Comparing to real life, in a very simple fashion, it's the difference between actual gold ingots (saved in countries treasury) and paper bills the citizens use for payments.
One has a set value, the other has none in itself.
Comparing to real life, in a very simple fashion, it's the difference between actual gold ingots (saved in countries treasury) and paper bills the citizens use for payments.
One has a set value, the other has none in itself.
@trexfulan
The State needs to print money. If they print money, it devaluates unless the have more gold in their reserve.
FullGold has a lot of gold and wanted to trade for more political power.
RBlade made a 15 billon gold trade with the State for long term interest <- That's the last arc setting. FullGold trying to stop this to get power and eat RBlade
Now FullGold angry, bulling with corrupted judicial system. Any questions?
The State needs to print money. If they print money, it devaluates unless the have more gold in their reserve.
FullGold has a lot of gold and wanted to trade for more political power.
RBlade made a 15 billon gold trade with the State for long term interest <- That's the last arc setting. FullGold trying to stop this to get power and eat RBlade
Now FullGold angry, bulling with corrupted judicial system. Any questions?
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