Darkstone Code-Chapter 765 - 0763 What to do if you have no money?

The panic of bank runs came swiftly, though these events were not entirely "unforeseeable".

The Empire’s shift in development focus inevitably directed a large cash flow towards the Amelia Region, coupled with the Empire’s implementation of the "currency purification policy" in Amelia, converting idle foreign currencies held by the populace into the Empire’s currency, the Fla, ensuring a singularity in currency.

This policy itself had no issues, and could even bring great convenience to the Gafura Empire’s governance in this region, but it also created new problems.

The local currency of Gafura was diminishing, spontaneously creating a new territory of approximately eight million population; if each person holds one hundred Fla, then Gafura’s local cash would decrease by eight hundred million.

Doesn’t seem like much?

Indeed, if a nation can’t even allocate eight hundred million Fla, that nation is either very small or on the brink of collapse.

Gafura is neither small nor showing signs of impending collapse, but the local people of Amelie Province don’t merely possess only a hundred bucks on them.

Some might hold less, but many hold more than a hundred, along with large capital cash flows, merchants’ capital inflows, and bank capital inflows, the local resembles a middle-aged man with pallid skin, revealing an unhealthy posture.

The scarcity of local cash is indeed reflected in various aspects, for instance, the Gafura government procrastinates and even attempts to evade fulfillment of foreign war bond seekers.

For example, local large quantities of products are being forcefully dumped worldwide through negotiations, including to the Federation.

These phenomena actually point to a single issue, currency tension.

The best way to resolve currency tension is to print money, but printing money causes the exchange rate to fall, and the Fla-to-Sol Foreign Exchange rate has dropped to its historical lowest point, while presently Gafura still holds large volumes of import trade.

The extractable resources on Gafura soil have nearly been exhausted, resources are scarce, Amelia is rich in copper mines, but only copper mines.

Military enterprises are major consumers of various metals; a battleship alone, with its assorted metals and ammunition prepared, forces Gafura to import large amounts of metallic ores from abroad.

Considering multiple factors, so in the short term, the Gafura Empire’s government has not considered issuing new currency but plans to maintain the current situation for a while until stability returns, thereafter increasing currency issuance.

Of course, there’s also the matter of His Majesty the Emperor wanting his portrait printed on the currency, though the ministers disagree to a certain extent.

The scarcity of cash has always existed; now it’s merely an explosion.

Since the onset of the bank run storm, it’s already the third day.

Within these three days, be it the Minister of Finance, the Emperor of the Empire, or other ministers, they all strive as much as possible to calm the matter.

However, some matters aren’t resolved simply by an official announcement, especially those that concern each individual’s interests, people tend to become more irrational and impulsive.

The Gafura Financial Index indeed began to plummet as Lynch had envisaged, as major companies cannot withdraw funds from banks, they must hold ample cash to counter risks amid this abrupt financial upheaval.

Where does the cash come from?

Answer: From the stock market.

Days ago, they were purchasing liquid stocks; now they are selling them off.

Coupled with debt-driven companies being pursued incessantly by banks demanding repayment, these companies also began selling various assets they held.

This resembles a calamity, a flood; to survive, one must climb higher ground, regardless of whether it’s stepping on others’ shoulders or their own, in such circumstances, they no longer possess the right to choose.

All that remains is the instinct to survive.

Some cry bitter tears; naturally, there are those who celebrate making money.

The red wine in the glasses gleams scarlet, as if just released from human chests, regardless of men or women, they indulge in dancing, heedless of the bold fashion of known socialites roaming among different company.

The entire house is filled with a peculiar odor, composed of the scent of alcohol, tobacco, various incense, some body odors, and rampant hormones.

Lynch stands by the second-floor railing chatting, within merely a moment, he witnesses some men leading one or multiple women disappearing from the hall.

After amassing inconceivable amounts of money, people’s greatest desire is indulgence.

Obviously, it’s merely an edge aristocratic group, consisting of minor nobles, yet it possesses unparalleled allure.

Count merely disclosed the news that they plan to host a celebratory soirée, and endless calls came to his desk, seeking invitations, hoping to partake in the ball.

In front of the financial disaster, power must yield to wealth.

"To Lynch!"

Suddenly, Count on the first floor raised his glass, his face revealing an extreme admiration almost frenzied, exaggeratedly describing, it’s like his eyes shining while gazing at Lynch.

Everyone in the room raised their glasses, looking at Lynch standing in the second-floor corridor, Lynch also raised his glass, smiling and nodding to greet everyone.

Jenia was a bit emotional as she put down her glass and looked at Lynch, "They respect you and admire you greatly."

Lynch had a somewhat deserved smile on his face, not overly reserved, "If I can make everyone earn money, then I’m a god!"

Not humble at all, this statement might make people think he was arrogant, yet Jenia felt it was just as it should be. Lynch exuded a charm she had never witnessed before, a kind of charisma unrelated to power.

She exhaled softly, leaning forward with her arms pressed against the railing, "What do you plan to do now?"

"Is that a direct quote from His Majesty?", Lynch asked nonchalantly.

Jenia turned her head to look at him, her expression somewhat peculiar. Lynch was unlike anyone she had ever known. She had never met anyone like Lynch.

Even though they had interacted for several months, she felt she didn’t truly understand this man at all.

"Aren’t you angry?", she asked, "Generally speaking, men would be quite furious in such a situation."

This was her opinion and also that of most people. Having an intimate and ambiguous partner suddenly test them on behalf of others could lead to a sense of betrayal and disdain.

Even the closest of people would find their relationship strained in such a scenario.

But Lynch did not.

"Why should I be angry?", he countered.

This retort left Jenia momentarily dazed; maintaining her posture, she shook her head after two seconds, "I don’t know, but I feel like it might hurt you."

Lynch answered swiftly, "I’m not that fragile, and you won’t hurt me."

"Is it because I can’t get into your heart?", out of nowhere, Jenia asked a question she hadn’t anticipated.

After asking, she felt a bit regretful, "Sorry, I didn’t intend to..."

Lynch raised his hand to stop her from continuing, "What you said isn’t completely right, but not entirely wrong either."

"A person’s life is very short, too short. Several decades add up to just a few tens of thousands of days. It seems like a lot, but it isn’t."

"Every time we go to rest signifies another step towards our end. We’re all heading toward death, so why complicate things for ourselves on this path?"

Lynch swirled his glass slightly, "I enjoy being with you, and I believe you do too. But we’re adults living in this society; besides moving forward, we need to do things to sustain our lives, and we have our own responsibilities."

"Don’t let unhappy things influence our happiness..." he slid his glass to clink it with Jenia’s, and they both took a sip.

Whether she understood Lynch’s words or had her own realization, Jenia became more straightforward.

"His Majesty asked me to inquire on how to resolve the current issue," she admitted, thinking it would be difficult to articulate the question directly, considering how to ask it indirectly.

But now, she didn’t seem burdened anymore.

Responsibility is responsibility, happiness is happiness.

Everyone tried to explain, to release statements, but it was futile.

Almost all banks were in distress, which meant the social and economic order suffered great and devastating damage.

If the problem wasn’t addressed soon, the economic order of the Gafura Empire could collapse.

The Emperor found himself without any viable solutions, and this wasn’t the time to declare more currency issuance, so he had to seek Lynch’s advice.

Lynch pouted lightly, his tone relaxed, "The panic over bank runs and savings is simply people worrying that banks are out of money. As long as banks can provide the money, these issues can be resolved."

Jenia watched him closely, "The problem is banks currently can’t provide the money unless we use the treasury’s funds."

She was actually lying. The treasury was also out of money now.

The Bail Federal signed off on a slew of military projects, and so did Gafura, along with a new battleship construction plan, all requiring vast sums of money.

The treasury couldn’t come up with the funds necessary to quell this turmoil, and His Majesty the Emperor wasn’t sure how much money was needed to fix the current situation.

If he blindly used funds that couldn’t solve the problem, it would be money wasted, and the situation would deteriorate further. Feeling lost control over the situation, he could only turn to Lynch for answers.

Lynch’s answer was straightforward, so simple that it left Jenia unsure if he was brushing her off.

"When I want to buy something but don’t have enough money, I would borrow from others..."

"The same goes for nations!"