Darkstone Code

Chapter 440: 0438 This is capital


Lynch had once asked another person, a child, this same question.

The child answered him — dreaming of it even.

He was very curious about how Herbs, this Kingdom's Prince, would respond.

He didn't wait too long; Herbs quickly regained his composure after a brief moment of astonishment, nodding his head. His extra expressions subdued as he knew what attitude and emotions to maintain at different moments.

"Of course, I like money and want more of it. So, Mr. Lynch, do you have any good business opportunities to share with me?"

Lynch liked the unabashed greed on people's faces, which was much better than those who pretended to be upright. However, people like this were also harder to deal with.

Those who constantly hide their deepest desires are not doing so to prevent others from discovering their desires but because they cannot resist the caution or even attacks from others once their desires are discovered.

They don't dare to expose themselves, fearing harm. But those who never conceal their desires aren't so easy to deal with.

They are unabashed because even if you know their greed and desires, you can't do anything about them, so they don't need to hide their true selves at all.

Herbs was such a person; his identity, status, and the money in his hands allowed him to show his true self without worrying about the prying eyes of others.

This is why some wealthy people appear so "open and straightforward," because they don't need to care about the opinions of ordinary people. In their eyes, ordinary people aren't even human.

Would you care about the opinion of a dog regarding your actions?

Lynch took out a banknote from his pocket, placed it on the table, and pushed it forward.

Herbs watched Lynch's earnest and calm face for a moment before his gaze shifted to the banknote in front of him. He picked it up with his clean fingers.

"A banknote!", He glanced at Lynch, who slowly nodded, and Mr. Herbs' attention returned to the banknote.

He flipped it back and forth several times and even shook it, "If I'm not mistaken, this is the local currency of Nagariel. Honestly, it's not worth much..."

Herbs shook his head while placing the banknote back, "I don't see any business opportunity in this, but I'm very interested in that Nagariel United Development Company you're involved in. If you'd like, I can purchase some of your shares at a premium."

There are actually many local specialties in Nagariel, like spices, furs, and animals, which have good sales internationally, especially spices. These don't require a lot of cost, and the profit speed isn't slow.

Previously, people wanting to buy things from here would first contact Pretton Trading Company, which would provide them with a quote. Of course, they could also bypass Pretton Trading Company and directly contact the local natives.

But from now on, things have changed. The Nagariel United Development Company has taken over Pretton Trading Company's operations and does it more stringently.

Given the Federation Navy's level of activity in the East Ocean, even if the Nagariel United Development Company hasn't shown its power yet, people know it's an unavoidable place.

It's an internal high-level monopoly interest group that outsiders can't join, let alone interfere with. The only way is to acquire some shares from certain shareholders to join the board in a dependent relationship.

If Lynch is willing to sell some shares, Herbs is willing to pay a high price. Just the annual allocation from the equity distribution could potentially allow him to earn back the money spent within a year.

Lynch shook his head, "The situation within the United Development Company is far more complicated than you think, as for this..." He casually picked up the small piece of paper, "It's about to appreciate."

"Appreciate?", Herbs paused after hearing this, then laughed mockingly, saying, "Impossible. We all know the value and purpose of the Nagariel United Development Company's existence. In this case, I would rather believe that there will be a significant uptrend in Federation Sol soon than believe that Nagariel's currency will appreciate."

"So, because it's being exploited by you, its currency becomes more valuable?", Herbs shrugged, "Sorry, I'm accustomed to speaking the truth."

It's apparent to the discerning that Nagariel is currently a place the Federation uses to leech off, and in this situation where Lynch says Nagariel's currency will appreciate, it's simply a joke, giving Herbs a very peculiar feeling.

He couldn't tell whether Lynch looked down on his professional competence or if Lynch himself was a fool?

Lynch could roughly sense the strange smile in Herbs' eyes. He turned his head to look out the window, just about to take a sip from his coffee cup, but he placed his raised hand back down.

A layer of dust was floating on the coffee surface, possibly due to many people gathering outside, raising dust.

"See that, countless people." Lynch said, Herbs followed his gaze to look into the distance, but he didn't respond. He was waiting for what Lynch would say next.

Lynch pulled out a pack of cigarettes, lit one for himself, "We can't possibly send all Federation people here to work, probably only a part of them. And you know, the Federation Union and various laws have put the working class on a pedestal!"

The Bail Federal has the most comprehensive labor-related laws, which creates a misconception among those not in the know, making them believe that the working class has risen up and can contend with capitalists.

So when Lynch mentioned this, Herbs naturally nodded. After all, the Federation workers' benefits are top-notch in the world, and they are protected by laws and the Workers' Union.

"We not only have to actively prepare various materials and bear the heavy transportation costs of machinery, but we also have to pay a large sum of money to these people's wages..."

Lynch took out a few more banknotes and placed them on the table. "So is there a way to give them a little less money?" He withdrew one from the pile.

At this point, Herbs had already caught up with Lynch's train of thought and blurted out, "Make the Galil appreciate and pay off in domestic currency at the forex rate."

His eyes widened, for he finally understood why Galil would "appreciate".

"Whoever came up with this method, I must say, is a scoundrel!" Herbs tapped his pipe on the stand.

Lynch, unbothered, smiled and nodded in greeting, "Thank you for the compliment, Mr. Herbs..."

This is a shameless little trick. No one has used it before, but the nature of finance and capital remains unchanged, regardless of its appearance.

That's why Mr. Herbs immediately guessed the truth.

Suppose a Nagariel worker needs a daily wage of one hundred Galil. Paying one million Galil a day for ten thousand people does not profit capitalists at all.

But Lynch provided a possibility. He didn't directly pay in Galil, or he would pay in Galil as the wage settlement currency, but not saying it was one hundred Galil per day.

Their daily wage is one Federation Sol. Assuming the exchange rate is one Federation Sol for one hundred Galil, one Federation Sol automatically becomes one hundred Galil during payment.

But if the Galil rate is pushed up, for instance, to one Federation Sol for eighty Galil, Federation merchants still have to pay a daily wage of "one Federation Sol" to these people. For ease of accounting, as Federation Sol is not the legal tender in their country, the first column's legal currency takes precedence for settlement.

All they need to do is pay local workers eighty Galil based on the current real-time rate!

From their perspective, without hurting their interests, labor cost savings of twenty percent are achieved. Isn't that simple?

Just by pushing the Galil exchange rate slightly, the Federation developers can significantly alleviate financial pressures. The more Galil appreciates, the more benefits the Federation merchants can gain from it.

This is indeed shameless and despicable, but this is finance, this is capital.

Herbs couldn't help but pick up that worthless little piece of paper again. As an international banker, he realized the wealth contained in it.

Once the Galil appreciates, the most direct wealth change occurs in the exchange rate market, followed by chain reactions in countries trading with Nagariel.

The appreciation of the Galil means they will gain more benefits in imports, which is precisely what Nagariel currently needs. This is no longer a simple pure financial capital game; it involves geopolitical, international political, international financial, and world capital operations.

With a pipe in his mouth, Herbs felt that the small piece of paper in his hand weighed a thousand pounds.

After a while, he pursed his lips and put the money down. "With just you and me, this thing is impossible."

Lynch slightly shook his head, "Many people will get involved, including the Nagariel United Development Company, the Nagariel United Kingdom, and even the Federation Government will promote this matter."

Staring at Lynch, Herbs suddenly found this young man a bit frightening, but this fear came and went quickly. The fleeting illusion made him unsure if he even feared this young man for a moment.

"Now that you've told me this, I could just ditch you and do it alone. So what do you want from me?" Herbs put his pipe on the table, pulled out a handkerchief to wipe his lips, "I have a moral aversion. If you provide me with information, then I must assist you."

"Is there something I can do for you, or is there a business we can cooperate on?"

Lynch nodded, "I want to borrow a large amount of Galil."

"A large amount?" Herbs did not ask Lynch what he wanted these worthless banknotes for; he didn't want to know. What he wanted to know was how much Lynch planned to borrow.

Lynch nodded, "Yes, indeed a large amount. Of course, as a guarantee, I have Gafura Bonds worth billions. I believe they would be happy to cash them."

Herbs gasped, given the current exchange rate, that amounts to hundreds of billions of Galil. Even as an international banker, he couldn't gather that many Galil in a short time.

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