Modern Villainess: It’s Not Easy Building a Corporate Empire Before the Crash - Ch. 8 - The Lady's Flight (5)

[MangaDex]

 

[SiliconSignatureSwissChair]

Unfortunately, due to the volatile issue of the American Government Shutdown, delays occurred to the release of this chapter.

Furthermore, due to Brexit complications, Chapter 8.5 will be delayed to December. We humbly apologize for the inconvenience.

 

[Kageura002]

As a Former Geography student.
I don't understand a single bit about this economic lessons.

 

[Cobaltzero]

As a Former Geography student.
I don't understand a single bit about this economic lessons.

TL: DR version
Money is made up numbers and with a moderate amount of idiocy, you can loan yourself into debt when "trust" in you or the currency is low.
The Hokkaido bank lent a metric shitton of cash to people and when those people couldn't pay it off, the bank had to shoulder the debt instead...

 

[Nesiax]

This is very interesting topic
can't wait to see what would happen

what does Runa means in the last page ?
She would take the loan and go into debt just to take over the bank ?

 

[Kageura002]

The Hokkaido bank lent a metric shitton of cash to people and when those people couldn't pay it off, the bank had to shoulder the debt instead...

I do understand a little bit about bad debt since I have many friends that work in Leasing Finance. And I do have some friends that become bad debt themself.

 

[RonRay]

This is the first chapter I fully understand, I feel Like I am INTELLIGENT 🙂

 

[rh75]

I wonder how the mangaka would explain how 'digital currency' would work since more central banks are looking at replacing fiat currency with it.

It's also nice to see that the FMC doesn't know everything about banking and money.

 

[xanon]

I'm enjoying the story, but I have to admit, this is one of the few groups where I actually read the credit pages.

 

[ciera]

Thank you

 

[Wildtale]

I could not manage to read the credit/explanation page after reading all that. I'll have to come back for it when my brain is less scattered.

Regardless, this is interesting stuff. They neglected to mention how printing/minting money leads to inflation, and that one doesn't have to get involved in all this headache of debt and such through good money management, but whatever.

 

[sdarkpaladin]

And this is why everything went to shit the moment the US dropped the Gold Standard in favour of fiat currency!

Every other currency was pegged to the USD, which was pegged to the Gold Standard.

When the Gold Standard was abolished, it allowed the feds to print an unlimited amount of money!

What?

It's time to eat my medicine?

But, I'm in the middle of...

Alright, alright, I'll go take my meds.

 

[Istvan90623]

And this is why everything went to shit the moment the US dropped the Gold Standard in favour of fiat currency!

Every other currency was pegged to the USD, which was pegged to the Gold Standard.

When the Gold Standard was abolished, it allowed the feds to print an unlimited amount of money!

What?

It's time to eat my medicine?

But, I'm in the middle of...

Alright, alright, I'll go take my meds.

That's really a problem for countries that has their debt in USD. For example the massive Japanese debt is in Yen, so the Central Bank could print enough to cancel it out.

 

[Derpthenerd]

SSS my beloved, best scan group

 

[sdarkpaladin]

That's really a problem for countries that has their debt in USD. For example the massive Japanese debt is in Yen, so the Central Bank could print enough to cancel it out.

Well... they could, but that'll lead to inflation, etc. That was probably one of the chief reasons for being in the anti-fiat camp.

That, if a currency is not tied to anything tangible, the value it holds will also not be very tangible and might lead to valuation fluctuations due to the mood swings from the market.

Japan printing money will probably tank the value of the JPY to foreign currencies causing imports to increase in price.

Since Japan is a resource-poor country, that means that most of their goods will increase in price, causing inflation in costs.

Seeing as how Japan's economy has always been emphasizing on maintaining prices of goods, I'd say doing that will not go well for the government's numbers. (Which... is happening right now since the JPY tanked, Kishida's numbers also tanked with it)

Though I was just memeing. I'm just a random guy with basic economics knowledge. I cannot say with any certainty that I understand the ramifications of any of the actions taken or alternative options. (e.g. Gold Standard vs Fiat)

Well... not without diving deep into more research anyways. Which is way too much for a passing comment.

 

[eng1]

Well... they could, but that'll lead to inflation, etc. That was probably one of the chief reasons for being in the anti-fiat camp.

That, if a currency is not tied to anything tangible, the value it holds will also not be very tangible and might lead to valuation fluctuations due to the mood swings from the market.

Japan printing money will probably tank the value of the JPY to foreign currencies causing imports to increase in price.

Since Japan is a resource-poor country, that means that most of their goods will increase in price, causing inflation in costs.

Seeing as how Japan's economy has always been emphasizing on maintaining prices of goods, I'd say doing that will not go well for the government's numbers. (Which... is happening right now since the JPY tanked, Kishida's numbers also tanked with it)

Though I was just memeing. I'm just a random guy with basic economics knowledge. I cannot say with any certainty that I understand the ramifications of any of the actions taken or alternative options. (e.g. Gold Standard vs Fiat)

Well... not without diving deep into more research anyways. Which is way too much for a passing comment.

The currency would tank anyway if the bank collapsing triggers a chain collapse. Overall the cause of the inflation is too much currency on the market relative to the value. As long as a large amount of money that is printed stays dormant and moved slowly, they can minimize the immediate inflation and stretch it out. Then if she can earn enough foreign currency knowing the future she can pretty much cancel it out

 

[Manchura]

TL: DR version
Money is made up numbers and with a moderate amount of idiocy, you can loan yourself into debt when "trust" in you or the currency is low.
The Hokkaido bank lent a metric shitton of cash to people and when those people couldn't pay it off, the bank had to shoulder the debt instead...

oh hey, 2008 was predictable

 

[rluka]

Though I was just memeing. I'm just a random guy with basic economics knowledge. I cannot say with any certainty that I understand the ramifications of any of the actions taken or alternative options. (e.g. Gold Standard vs Fiat)

Well... not without diving deep into more research anyways. Which is way too much for a passing comment.

Without deep knowledge about it too, I think a bit reason Fiat being loved is because it allow the value to be not tied to anything tangible, and thus it's easier to create more money/value.

For example, like Runa explained how banking system can print money out of thin air "create new value" based on the deposits.

So it allows economy to move and grow faster without having the safe speed limiter called gold reserve. And it also made foreign currency speculation easier.

By the way, how does converting non-liquid assets (such as real estate) into cash through bank loan works in gold standard system?

what does Runa means in the last page ?
She would take the loan and go into debt just to take over the bank ?

Yes.
Runa doesn't have the cash right now, and by the time her assets grow big enough, Hokkaido Bank is already in its grave.
The place she can get quick money to pay off all the debts without much question asked is from the government. No other financial institutions would be crazy enough to lend her money for bailing out a dying bank, if they even have that much money to lend out.

 

[Oeconomist]

As a Former Geography student.
I don't understand a single bit about this economic lessons.

The author doesn't actually understand much of it either.

 

[Oeconomist]

I wonder how the mangaka would explain how 'digital currency' would work since more central banks are looking at replacing fiat currency with it.

A digital currency created by a central bank would be a fiat currency. The digital currencies that they propose dispense with coins and with bills, requiring every exchange of currency to be effected by a change in accounts stored on computers. And the reason that central banks are investigating these schemes is so that all monetary exchanges can be tracked.