Chapter 2101: Drumming

In the next two weeks, Colofa, Maria, Antron, and Oromy continued to investigate in Midgard. Qiao An did not participate in the whole process, but was entrusted to take them to the "Prime Abyss" to visit the magic crystal mining area.
After returning from the magic crystal mining area, Antron found Qiao Ann in private and asked whether there was any banknotes issued by the Imperial Central Bank in Midgard, the so-called "Imperial Gold Banknotes."
"Friends around me have more or less exchanged some gold bills. My mentor, and a respectable countess, even exchanged millions of real gold and silver for gold bills. It can be seen that the Imperial gold bills are in Mead. It’s still quite popular in Gard."
Qiao An didn't have the nerve to tell Antron that he also took out one million gold duga-almost all of his wealth, and Professor Moriarty bought the gold banknotes on his behalf. He was considered one of the big players in this game.
"I also just learned from Mr. Holden that the gold banknotes issued by the Empire can also be exchanged in overseas colonies like Midgard, and the Midgard people’s enthusiasm for gold banknotes is no less than that of the Empire. Investors in the capital, but I wonder if you have noticed a strange thing." Antron smiled mysteriously.
"What's the weird thing?" Qiao An didn't know.
"The Central Bank of the Empire has issued hundreds of millions of gold bills over the past year, and the face value of the gold bills circulating in Midgard will not be less than 30 million. The Midgard people hold such a huge amount. Gold bills, but have you seen people buying and selling goods with gold bills in the market or in the shops?

Qiao An was stunned for a moment and frowned: "I have seen it before, but in most cases, people still use gold, silver and copper coins for transactions in accordance with the old habit. Very few people actually take out gold money to buy things."
"The main purpose of the Imperial Central Bank’s issuance of gold banknotes is to reduce currency costs and improve fiscal revenue. At the same time, it should also be recognized that the promotion of banknotes will bring convenience to ordinary people. It is obviously necessary to carry a stack of banknotes when traveling or doing business. It is more convenient than cumbersome metal coinage, not to mention the trouble of wearing out and inadequate color of banknotes. However, why such convenient banknotes are not widely used in the market?"
Antron smiled and continued: "In fact, shortly after the imperial government launched the gold banknotes, our Far Eastern government also initiated similar paper currency reforms. Now most Far Easterners have converted their gold and silver assets into The difference between banknotes is that we Far Easterners really use banknotes as money, and all aspects of our daily life are changed to using banknotes for payment. In Midgard, people have not yet developed the habit of using banknotes. Isn’t that surprising? ?"
"It's really weird." Qiao An had to admit that Antron's observations were very insightful. "Personally, I don't mind switching to banknotes, but the place I usually consume is whether it is on campus or off campus. People still use gold and silver coins in the same way, as if paper money does not exist at all. In this atmosphere, if I insist on using paper money, it will look weird."
"So, what are the reasons why people do not use banknotes for transactions in reality?" Antron continued to ask, "If people do not trust the purchasing power of banknotes, how can the imperial gold banknotes be heated in Midgard? Hey, the current price on the trading market has greatly exceeded the face price?"
Qiao An scratched his head, vaguely feeling that ordinary people and gold banknote holders are not the same kind of people at all. The latter holds large amounts of gold banknotes, not for consumption and shopping, but for the purpose of speculative appreciation.
"Mr. Antron, I don't know much about the financial industry and I can't answer your question for the time being, but my mentor is very good at gold banknotes. If you think it is necessary, I can ask him for his views."
"Then trouble you, Dr. Vader, it's better to arrange for me to have an interview with your mentor." Antron said gratefully.
Qiao An took out the "communication stone" and found a secluded place to establish a "higher mind connection" with Professor Moriarty, and relayed Antron Yangbo's questions.
"Joan, your intuition is correct. Midgard has a population of hundreds of thousands, most of whom have not even touched gold bills. Of course, they would not use such banknotes for daily transactions."
"Only a very small number of the wealthy class in the crowd understand the rules of the game in securities trading, and have the capital to buy gold banknotes as a financial asset, not just currency."
"This type of investor, of course, including myself, buys gold banknotes to wait for appreciation, sell at high prices, and earn the difference between buying low and selling high. The price of gold banknotes has risen all the way over the past two years. Holding gold banknotes means As assets rise, who is willing to pay the restaurant bill with this'chicken that lays golden eggs'?"
"The result is that gold bills only circulate in the small circle of securities speculators, but they are completely out of touch with the lives of the general public, so you can't see the traces of gold bills in the daily trading scene of goods and services."
"Teacher, if gold bills are only hyped in a small circle, wouldn't it become a game of'drumming and spreading flowers'? Once the big players in this circle, such as you, refuse to play anymore, the entire game is bound to collapse. Gold bills are used as gaming chips. It will also become a pile of waste paper." Qiao An said worriedly.
"Haha...My student, you are very smart. You have seen through the nature of the gold bills. In fact, the day of the crash will come sooner or later. Not only we know this, but other players also know it well. Everyone has a common purpose. At the moment when the value of the gold banknotes rises to the highest point, end the game before other players, sell the gold banknotes in your hand, and leave the market for a profit."
"The question is, who can accurately determine the market price of gold banknotes?" Professor Moriarty sighed, "The answer is cruel. Only the dominant players in this game are qualified to sound the'fugitive' The horn', small and medium-sized players can only their ears to make a run away. As for the retail investors, they are just lambs to be slaughtered."
"Tutor, what level of player are you in this game?" Qiao An asked curiously.
"As far as Midgard City is concerned, of course I can be considered a big player, but compared with the old world investment institutions that bought a lot of gold banknotes and have official backgrounds, I am just a little shrimp."
The word "official background" reminded Qiao An of the Kolas government behind the "cloud network" and then of the "Far East Central Bank" where Antron Yangpo worked.
"Teacher, do you think there is such a possibility? The Far East Central Bank purchased a large amount of imperial gold banknotes through an agency, speculated on the appreciation, and then suddenly sold it, then the consequences..."
The more he thought about the consequences, the more terrifying, Qiao An couldn't help but shudder.