"Frank, 'red-haired' John, and Prime Minister Mueller...... How bold you are! Roland wiped a cold sweat and secretly exclaimed: "It's just a group of crazy gamblers!" ”

What is the value of the assets that the Imperial Government claims to be "100% paid" for the assets that are actually used as collateral for the issuance of the banknotes?

The results of the "miracle" detection show that the collateral of the Imperial Gold Banknote is less than 15% of the face value of the banknote scheduled to be issued!

According to the Imperial Government's real banknote issuance reserves, the gold banknotes will be issued in a very fragile environment to maintain circulation, fragile to the point of walking a tightrope! As long as one out of every eight people goes to the bank with a gold bill and asks for a magic crystal, the fragile monetary system will immediately fall apart!

Does this work?

Wouldn't it be too risky?

If it were on Earth, in a relatively mature environment for the development of the financial industry, such a risk might still be within the range of bearing, but in the world of Vares, in an environment where people have been using real money as currency for thousands of years and are generally suspicious of paper money, the Imperial Government obviously cannot call it a steady monetary reform, but even closer to a "Ponzi scheme"!

After Roland's divination, he got up and silently cleaned up the altar, and the premonition of disaster hung over him like a lingering cloud.

……

Since the return of the holy city of Assan, although Roland has been very busy, he has not relaxed his attention to the dynamics of the government and the opposition in the holy city, and Frank has launched a series of reform plans, especially the focus of his attention.

Frank's land reform, serf reform, and tax reform, although not as he wanted, generally went in a good direction, but when the time came for May and Frank began to implement monetary reform, Roland really couldn't sit still.

From his position, he did not want the Imperial Reform to succeed or to fail, and it was better to maintain the status quo, which would be in the best interest of the Far Eastern government. Frank's first three reforms had their pros and cons, but on the whole, in line with Roland's expectations, the currency reform was really playing with fire, and if it was frustrated, the chain reaction would cause all of Frank's previous efforts to be wiped out, and the situation of the Assanian Empire would take a sharp turn in the direction of Roland's expectations.

A sick tiger, although dangerous, is within a controllable range; A dying mad cow is not only more dangerous than the former, but its behavior is completely unpredictable and will cause even more harm.

Roland didn't want to see the Asshan Empire transform from a sick tiger into a mad cow, so he planned to do his best one last time to try to make amends.

On the same night that he learned that less than 15% of the Imperial banknotes were in reserve, Roland wrote a letter to Palatina, reiterating that there were huge problems in the Imperial authorities' plans for issuing money.

In order to avoid a recurrence of the old story, Roland told Palatina not to show his letter directly to Frank, but to convey his views on her behalf, persuading Frank to abandon the original plan and instead issue banknotes with state-owned land with relatively more stable market prices and higher transaction costs, so as to avoid the systemic risk caused by the fluctuation of the price of the magic crystal.

The next afternoon, Roland received a reply from Palatina. Not surprisingly, Palatine relayed his advice, and Frank laughed and did not intend to accept it.

In her reply, Palatina said a few words to Roland. Frank's refusal to accept his advice caused Palatine to be sincerely disappointed in His Highness the Crown Prince for the first time, even though she couldn't tell why she was willing to believe Roland's advice. In addition, Paladine also implicitly revealed to Roland in the letter:

"Frank seems to be in a hurry to prove one thing – he doesn't need to listen to you to be successful."

Palatine blames John Lauer for sowing discord and ruining the friendship between Frank and Roland. But Roland knows in his own heart that Frank has the kind of character in his bones that he can't see that others are better than him, even if there is no John Lauer in the middle, he will still have the mentality of the above other signs.

After receiving Palatina's reply, Roland had no choice but to abandon all illusions, admitting that the matter was now irreparable, and that the Assanian Empire was destined to embark on that path of self-destruction.

Faced with the grim reality, Roland decided to change his diplomatic strategy against the empire after some deep introspection.

If you try your best to save a mad cow and end up not curing it of its madness, what happens next?

Continuing to try a doomed cure?

No, Roland's choice is to decisively ignore the sunk cost and stab it backhand before it goes crazy and hurts people!

At the next day's cabinet meeting, after much debate, Roland finally persuaded his father and the ministers to authorize him to temporarily use the gold and silver reserves in the treasury as "ammunition" for a "financial war".

The next morning, Roland met with Anthony Fogel in the central bank's office, and after a pleasant greeting, he asked him about the issuance of the imperial banknotes.

It was mid-June, and it had been more than a month since the Imperial Gold Notes were issued, and the market response was very dismal.

"The first gold money went mainly to the government departments, especially the Land Bank and the State Farm Preparation Committee, both of which were under the direct jurisdiction of Frank, who went around the countryside with a large amount of money, broke into the landlords' homes, and forcibly ransomed slaves and land, causing a lot of complaints!"

Anthony had just returned from the Holy City the day before yesterday, and he was quite unimpressed with Frank's reforms, and there was much sarcasm in his words.

"The Imperial Government can only use this method of forced buying and selling to promote gold banknotes, and on the black market, banknotes with a face value of 100 gold dugas can be exchanged for 80 gold coins, and there is no market for it."

"The Imperial Government did not try to repay the national debt with gold money?" Roland asked.

"Why not, the Imperial Treasury held a so-called 'debt restructuring meeting' just last week, convened the main creditors, including my father and Mr. Goodman of the Weinstein family, and offered to redeem the bonds with gold money, and also gave a discount of seventy-five percent, but of course there is no need to talk about it, a fool will accept such a whimsical deal, what is the difference between this and fraud?!" Anthony cursed angrily.

"That is, the imperial creditors insist that the government repay the national debt with real money?" Roland asked.

"As it should be!" Anthony replied calmly.

Roland turned the pen in his hand and muttered: "From an outsider's point of view, I think it's not a good thing that the relationship between creditors and debtors is too stiff after all, the imperial gold banknotes are first guaranteed by government credit, and then promise to fulfill the magic crystal, and the magic crystal is a high-quality asset with great appreciation potential. ”

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