Chapter 32 The Value of Gold
Arrow thought to himself, but just as his food was served, hot and ready to eat. Coco, who had been hesitating for a long time, finally looked courageous and spoke: "Brother President, I want to talk to you...... Something about the Merlin Whisperer. Well...... Actually, I want to talk to you more about the organization behind him, which is the magical organization of the True Eye. β
Brad's large potato stew with mushroom soup was served, and he carefully lowered Parfay from his shoulder, scooped a mouthful of soup in front of Parfay, and waited until Parfay ate it with relish before taking a big gulp.
Arrow put down his knife and fork and looked at Coco seriously: "If you want to say, I can listen." β
Coco nodded, and when her little salad was served, the little girl slowly said what she had always feared.
"Actually, you only need to go to the big city and ask around, and you should be able to know these things. After all, even a lowly magician like me can know about them, so it can be seen that they don't want to hide much from themselves. β
"The True Eye, though ostensibly a pure mage's guild organization. But in reality, what they did was more than just a guild organization. β
"Using their powerful magical powers, their guilds have a lot of fighting power. However, what comes with great power is not a good thing for others......"
Great power naturally requires strong restraint. The more powerful the force, the more it needs to be restrained, otherwise this force will run wild.
Arrow could basically guess something from these few words, but it wasn't specific enough.
Brad, who was on the side, lifted his head from the potato cubes and wiped his mouth: "Don't do a good thing? If so many people knew that this guild didn't do good things, wouldn't the empire care? β
Coco shook her head: "I won't care, because no one dares to care." Although I don't know who it is, I heard that behind this magic guild is the care of the upper echelons of the empire. So they are even more blatant, and no one dares to care about it at all. β
"Because there is no one in charge, the members of the True Eyes Guild have almost reached the point where they can occupy the houses of peasants at will, assassinate those who oppose them, and even arrest people for some magical experiments. They ......"
At this point, Coco paused suddenly, but after a second she continuedβ
"I've heard that they will take some newborn children and use their souls and blood together to refine something called 'true alchemy'. This is also the reason why there are many cases of missing children in some parts of our empire, but they have never been solved. β
Airo: "True alchemy? How is this different from ordinary alchemy? β
Coco lowered her head and hesitated for a moment, as if wondering if she really wanted to tell everything she knew in her head. After a while, the little girl finally took a deep breath and said slowly-
"True alchemy...... I don't know very well either, but I listen...... Occasionally, I have heard rumors that it seems to be used to refine real gold, and the gold produced is exactly the same as real gold in terms of color and quality, and can be used as a substitute for real gold. β
Hearing this, Arrow's face changed suddenly. He looked down and thought, but Brad next to him looked very relaxed, and said with a smile: "I'm scared to death, I thought that this magic guild was going to refine some kind of big magic related to powerful demons, immortality, resurrection, philosopher's stones, etc." Alchemy? Doesn't sound like much? β
"If you can refine real gold, it will be much more terrifying than refining some philosopher's stone."
Arrow didn't have the heart to continue eating, he tapped lightly on the table, and said as he thoughtβ
"Some of my magic apprentice classmates in Lao Tengshu once said that the highest level of my life as an alchemist is probably to refine the Philosopher's Stone. But in fact, if you think about it carefully, even if the so-called Philosopher's Stone is terrifying, it is definitely not comparable to real gold. β
"If these people of the Magic Guild can really create a real, or infinitely close to gold, precious metal, then it means that the economy of this world will collapse in an instant, and there will be countless wars due to it, and countless people will die of starvation and death. The living and cultural level of the entire continent may instantly regress to the oldest chaotic era. In comparison, the controversy that the Philosopher's Stone can bring is too childish. β
Keke was a little puzzled: "Brother President, I don't understand this." I've heard of the Philosopher's Stone, which is said to be a magical element that can subvert the entire world once obtained, and is an existence that can turn people into gods. But in the mouth of the president's brother...... Is this thing not even as good as the gold coins in our hands? β
Arrow didn't mind asking questions, he was glad that his members kept asking questions. As long as he can answer, he will try his best to answer, which will help his members grow rapidly.
"Coco, Brad, Parfay. You should know that although there are many countries in this world, the currencies of each country are different, and the exchange rate between each currency is also different. There are even countries that do not recognize each other's national currencies. β
"For example, I have a thousand gold coins in our Blue Bay Empire. Then I took these thousand gold coins to the Hunter Empire next door to us, because there is a war going on between our country and Hunter right now, so they don't recognize my wealth. Therefore, even if I arrived in their country with a thousand gold coins, I would still be equivalent to a pauper. Unless I dissolve the thousand gold coins and extract the gold from them. β
"But then my wealth will be greatly reduced. Because the reason why a gold coin is the value of a gold coin is because we in the Blue Bay Empire have given it such a value. Therefore, the gold coin itself does not need to be made entirely of pure gold. The daily currency of our empire contains about 15 to 20 percent gold, and the rest is supplemented by metals such as iron, copper, and silver. β
"However, there is one thing in this world that can be used everywhere in this world. That's gold. β
"If I take pure gold from our Blue Bay Empire to the Hunter Empire, then one kilogram of gold in our Blue Bay Empire can buy things, and then when I arrive at the Hunter Empire, I can also buy something equivalent to one kilogram of gold."
"Gold is the most basic currency in the world. All exchange rates in all countries are based on gold, which is the real hard currency in this world. Even if you arrive in the land of the dwarves, the land of the elves, even if you meet the legendary dragon, you show the gold to represent that you are willing to buy their things, and the other party will recognize the value of the gold. β
After explaining the prelude knowledge, Arrow looked at Coco, who seemed to understand whether he understood or not, and continued-
"So, if this magic guild really develops how to make gold, it will cause the value of gold to depreciate immediately due to the scarcity and stability attributes that are enough to act as the world's currency. When a large amount of gold flows into a country's market, it directly leads to a decrease in the value of gold in that country. β
"The initial consequence is that a large number of assets scattered in the private sector will start to buy gold in large quantities for value storage. But the problem is that a country's economy is fixed at a certain stage, and once a large amount of money is used to buy gold, other funds used for commerce, agriculture, construction, and social security will be rapidly reduced. The worst part is that there are a lot of problems that are not easy to detect in a short period of time. But once the problem starts to erupt, it can bring great social unrest. β
"Reduced business inputs can lead to massive job losses, reduced agricultural inputs lead to food shortages, and reduced social security leads to social unrest that cannot be appeased in time. The simplest example is that if you can buy gold in large quantities to make money, then the number of people willing to serve as soldiers to beg for food will naturally decrease, and the number of soldiers will decrease, and the stability of society will decrease, so that when you are hostile to other countries, your defense will be insufficient. β
Of course, this is only based on problems that arise within one country. If there is too much gold in this country and the price depreciates, then the economies of other countries will naturally find ways to reach in and buy gold in large quantities, and then ship this gold back to their own countries to resell it to make a large difference. β
"The result is that the whole world begins to flood with gold, and at a certain stage, gold is finally completely abandoned and becomes the world's common currency."
"Once gold loses its status as the world's common currency, then chaos in international financial exchange rates will follow. Because before that, each country determined the exchange rate according to how much a kilogram of gold was worth in its own country, and then traded with other countries from country to country. After losing gold, each country will no longer be able to know how much its money is worth in other countries' currencies. As a result, the exchange of trade between countries has completely stopped. β
"There are also many contradictions within the country, because what do we, the civilians, have to know the exact value of a gold coin? For example, one gold coin can buy 1 kilogram of wheat. But if we have a good harvest this year, and I can buy only a fraction of the wheat with this gold coin, will I not be at a loss? If our wheat harvest fails this year, and people in many places are starving, won't I make a fortune in the wheat that I can exchange for a gold coin? β
"Since the end of the Age of Chaos, it has taken us more than a thousand years to finally identify gold, an immutable, extremely stable metal, as the universal currency. At present, we have not found the next substance that is extremely stable and will not deteriorate, and will be loved by everyone as a standard. Once gold is lost as a standard, our human economic activity will immediately fall back to the pre-chaos era. β
"Judging from this situation, being able to refine real gold is much more terrifying than refining some philosopher's stone. The Philosopher's Stone can only allow a person to gain great power at most, and this person who has gained great power will have reason, will have appeals, and this person can be suppressed by himself, or he can stop acting for some other reason. What's more, there are countless ways to take his Philosopher's Stone. But if the financial system gets out of control, then even if there really is a god in this world, then this god may not be able to save us from the depravity of humanity. β
"Coco, Brad, Parfay, you three have to remember that the most powerful magic in the world is never mighty. Although we often say 'the truth is within the reach of the fist'. But remember, 'The amount of money ultimately determines the range of your fists'. β