Chapter 654 - Currency Weapon
In the early morning of the next day, the merchants of Federation went to the market. They leaned against the quiet stalls, grinning at the angry Qingshan merchants.
Although they belonged to different chambers of commerce, they were all linked with the same name – Gear Chamber of Commerce.
Liu Jin, the sales of the Gear Chamber of Commerce, joined Gear Chamber of Commerce due to his relationship with the boss, Liu Hong, but because of his sales ability, he quickly received the unanimous approval of the Chamber of Commerce shareholders and was repeatedly appointed with important tasks.
At this moment, as one of the masterminds behind the dumping, he leaned against the door of a grocery store belonging to the Gear Chamber of Commerce while looking at the depressed market with ridicule on his face.
To be honest, although he was in full control to win this trade war, he was still anxious.
After all, NAC was a violent institution. If it can’t win economically, it may flip the table and he wouldn’t be able to do anything about the fact. While the consequence would cause great damage to NAC’s influence and reputation, Gear would also suffer some losses.
Boss Liu Hong judged that Jiang Chen would not sacrifice the influence of the entire NAC for the market of Qingshan. But as one of the masterminds, he, too, was uncertain.
The honest militia guarded the entrance to the market and used their eyes to signal that the local businessmen on the verge of rebelling were not to cause trouble.
Although they became aware of some of the insider information and also despised the actions of Federation merchants, they were powerless as soldiers. Their task was to maintain the security of the market, not financial order.
With the decline in the price of nutrient supply, the land price of Golden River Farm plummeted and dropped 30% in three days.
Federation dumped its two-years of hoarded nutrient supply in a few days. Although they lost nearly a million crystals from this move, they would reap ten times the reward as long as they could quickly change the crystals into land!
There weren’t many nutrient supplies on the truck behind them. But it didn’t matter; no one was willing to buy this stuff anymore.
The price of B-grade nutrient supply had fallen to one crystal for ten. Grade C, D, E nutrient supply synthesized by mutant flesh and blood no longer had a market.
The current situation was that, for every ton of mutant fruit produced by farmers, the net loss was 10 crystals. For every tone of B-grade nutrient supply the processing plant produced, the net loss was 1100 crystals.
The nutrient supply processing plant in Hongcheng had been completely shut down and about 600 workers had been laid off.
The decline in the price of nutrient supply brought down the prices of a series of commodities such as rifles, bullets, protective gears and medicines. However, the result didn’t improve the lives of local people. They lost all their purchasing power. The reason for the price decline was simply due to the reduction in crystals flowing in the market.
These cheap necessities were bought by merchants from other areas, and 80% of these necessities flowed to Federation.
Soon Qingshan would be in recession. People would start to realize that while the price of products were cheap, they just couldn’t afford it…
However, these Federation merchants didn’t get to enjoy their success for too long.
Just after the market opened up, Zhao Corporation raised a sign.
[Exchanging B-grade nutrient supply credit, one credit in exchange for ten nutrient supply.]
B-grade nutrient supply accounted for the largest percentage in the food consumption market. With the raw material being mutated fruits, the raw material was more stable than the other grades. Its price dictated the movement of other nutrient supply grade prices.
As for the credit system, the people of Hongcheng certainly were no strangers to it. In areas under NAC’s control, as long as a signal was available, it was possible to access their bank account in the Sixth Street and interact with other accounts for payments, collections and other operations.
In addition to digital currency, the Sixth Street Bank also issued banknotes for merchants to use in other regions. Therefore, in areas outside of NAC, it was also possible to see the notes being used. The merchant fleets heading east all recognized the value of the note.
At present, the accepted exchange rate between credit and crystal was 1 to 5. In places further, the rate was 1 to 4 or 2 to 5. However, in Hongcheng, the standard exchange rate was used.
Under normal circumstances, the price of a B-grade nutrient supply was 0.5 crystal, the current market price was 0.2, exchanged into credit, it was 0.04.
What is the Zhao Corporation thinking?
A nutrient supply purchased at a price of 0.1 credit. Is it trying to artificially inflate the price of the nutrient supply?
Liu Jin was in disdain.
It was too late to do anything. Even if they ate all the losses and bought all the products available in the market, it would still be futile. The survivors would be happy to sell their nutrient supply at 0.1, but would they be willing to buy at a price of 0.1?
And they already reached the goal of boosting the value of crystal. Disregarding the fact the survivors here had yet to adopt to the credit system. Even if everyone recognized the value of the credit system, crystals would still remain the strongest currency.
Unless NAC transported crystals by truckloads from other places to here and forcibly injected them into the market. Or else, no matter what they do, it would be futile.
“Boss, Boss Liu.”
“What is it?” Liu Jin, in a cheerful mood, looked at one of his pawns.
He was in a good mood. He was about to lead Gear Chamber of Commerce to launch the first attack in monopolizing Hongcheng’s nutrient supply market!
However, just as he was fantasizing what kind of praises the Gear Chamber of Commerce would award him with, his pawn while trembling, handed him the newspaper.
“This is?” Liu Jin frowned and took the newspaper.
“The newspaper from the Sixth Street…a scanned copy from our merchant fleets.”
Liu Jin opened the newspaper and slowly scanned the contents of the newspaper. However, when he saw the headline, his heart suddenly sunk.
[Ten mutant farms in Wanghai all announced an increase of production simultaneously. The value of crystal could experience the biggest drop in a single quarter.]
[Sixth Street raised the official exchange rate between credit and crystal from the original 1:5 to 1:10!]
At the same time, NAC announced that because of the overcapacity of crystal ranches, crystal was in a state of oversupply at the Sixth Street. In order to encourage investors to use credit with more stability, all real estate transfer in areas covered by NAC signal must be settled by credits.
If crystal must be used, a tax would be imposed on both buyers and sellers…
Seeing this while also witnessing more people gather around Zhao Corporation’s shop, Lin Jin was sweating profusely.
[It’s just shameless to directly manipulate the exchange rate!]
Not just that. The combination of moves made by the NAC directly prevented the possibility of purchasing real estate assets from the bankrupted survivors. In just the past five days, the crystals they hoarded by dumping nutrient supply suffered astronomical loss.
Now, even if they hauled trucks full of crystals, no one would be willing to trade with them. Unless they paid a higher price at a exchange rate of 1:15 or even 1:20 to sell their crystals, or else no one would use their credits to exchange for the depreciating crystals.
Gear was now “stuck” with crystals!
[It’s all over…]
Liu Jin dropped down on the ground. He felt dizzy. He pushed away his pawn who was trying to help him up, stormed into the store, and took out a phone from the drawer.
He must get in touch with his boss.
At the moment, Liu Hong, the owner of the Gear Chamber of Commerce, was sitting in an office chair, staring blankly at the ceiling of the office.
The loud phone rang in the office, but he didn’t want to pick it up.
Just half an hour ago, the wealth of the Gear Chamber of Commerce shrunk by half, and shareholders were blowing up his phone with phone calls.
He already considered all kinds of situations, including the NAC accepting losses by purchasing the nutrient supply in the survivors’ hands at a premium. He also considered NAC breaking the free trade agreement and learning from Empire in terms of imposing high tariffs on foreign businessmen. That way, they’d avoid the depression of the market at the expense of raising the cost of living for locals.
However, he did not consider that the NAC would actually leverage the currency itself.
And this move directly handicapped the Gear Chamber of Commerce.
So sudden that it completely caught him off-guard.
After a long silence, Liu Hong silently took out a cigarette from his pocket and lit it up. He rarely smoked in the office. Although he was the most powerful man in Federation, he had strict control of himself. But now… he wanted to relax.
Liu Hong closed his eyes, leaned back against the chair, and began to think about the next countermeasures.
However, what made him desperate was that he couldn’t think of any good measures. If NAC was set to push the new currency into Hongcheng, even if Gear Chamber of Commerce controlled even more crystals, it could not fight back against the currency.
Wait for the value of crystal to return to normal? They couldn’t wait…
Just then, his secretary opened the door and walked in.
Looking at the gorgeous figure in her suit, it was the first time Liu Hong felt bored and annoyed.
“What is it? I said let me have some time alone.”
“Boss…” Secretary Xiaoru gulped.
“Hurry up,” Liu Hong pinched the cigarette and said impatiently.
“Our third largest shareholder, through Federation’s stock exchange, sold her shares to NAC,” Xiaoru said quickly.
For a moment, Liu Hong’s eyes turned red, and he suddenly stood up and grabbed the collar of his secretary.
“What did you say! That bit*h Wu Qian sold her shares to NAC?!”
“Ye…yes.” Xiaoru trembled and answered while gasping for air.
Liu Hong let go of the secretary’s collar and sat back in the office chair.
Xiaoru was coughing as she tried to gain her breath back. Inadvertently, the corner of her eye spotted her boss.
She was surprised.
The savvy business leader instantly aged by a decade…