Doomsday Code

Chapter 160 Fear of Finance

"bank?"

Chen Cheng nodded.

However, the next moment, Huidun asked curiously:

"Bank, I know this silver is silver coins, but what does this bank mean? And why is it not called a gold bank? Isn't a gold coin much more valuable than a silver coin?"

Hearing Huidun ask such a question, Chen Cheng was stunned at first, and then he realized that in this world, even the currency custody business such as flying cabinets has not yet matured, so how could they possibly know about banks.

There was no other way Chen Cheng could only explain to Huidun bit by bit.

Of course, before that, Huidun also gave orders to Torre, asking him to take people to seal the entrances and exits of Huidun's territory first.

Of course, Huidun had thought of the reason, which was that the beast tide had just passed, and in order to prevent there from being any more monsters roaming outside, he closed the road for the safety of others.

After finishing all this, Huidun sat down and listened to Chen Cheng explain to him what banking and finance are.

He had a vague feeling that what Chen Cheng wanted to tell him this time was very important.

Then Chen Cheng began to explain the banking institution in words that Huidun could understand.

Banks are financial institutions established in accordance with the law to engage in monetary and credit business. They are the product of the commodity-money economy reaching a certain stage of development.

After listening to Chen Cheng's long and somewhat profound explanations, Huidun just felt that this bank seemed very awesome, but as to what was so awesome about it, Huidun was still a little confused for a moment.

Chen Cheng actually felt that using so many professional terms was a bit like talking to a cow, so he decided to use something simpler.

"As for the bank, to put it bluntly, with this thing, Huidun Territory can not only get through the disaster relief easily, but also it will not affect the economic development of Huidun Territory afterwards.

And when the banks really develop, then even if you really want to do something like the story I told you, and purge the court, you won’t have to worry about money.”

Chen Cheng's explanation was much simpler, and Huidun had never expected that there was such a powerful organization.

"Hey, you have such a good idea, why didn't you tell me earlier?"

Huidun patted Chen Cheng's shoulder with a look of joy on his face and scolded him with a smile.

However, Chen Cheng just chuckled twice in response.

Seeing that Chen Cheng did not look very happy, Huidun put away the smile on his face and said:

"You can ask for any conditions you want, as long as you can help me build this bank."

Chen Cheng sighed and said:

"Then I wonder if you, Count, can give up your short-term interests first."

When Huidun heard what Chen Cheng said, he thought about the conversation Chen Cheng had just had with him, and then he knew what it meant.

"You mean to say that the bank's start-up capital is in exchange for my business."

Chen Cheng nodded and said:

“If you want to open a bank, besides the reputation of the founder, you also need a bank guarantee, otherwise the bank cannot be opened at all.

I didn't mention this before because I was too poor then, but now the business with the Stowe family is very profitable, and I can use this asset as a start-up deposit to establish a bank, and now I have surplus gold coins that I have to invest in it except for daily expenses."

At this point Chen Cheng sighed and said:

“If there hadn’t been this beast tide, to be honest, I wouldn’t have even proposed this proposal because the risk is too great and the bank might have collapsed before it even opened for long.

And now because of the beast tide, we have no choice but to take advantage of the fact that the merchants are all in the city, and use inducement and intimidation to get them to pay for the first installment of funds for our bank. And it just so happens that these disaster victims are the best source of consumers. "

After saying this, Chen Cheng also revealed to Huidun the bloody side of finance. Those businessmen who originally operated in good faith had to forcibly transfer the risks because of the needs of the banking industry.

“And after this, Tophis will probably want to tear my flesh apart, because these debts will have to be charged to the administrative agencies of the Wisdom Shield Territory in the future. Otherwise, the bank will have too many non-performing assets, and even if we are strong, we will not be able to avoid bankruptcy.

Moreover, banks and businessmen have no obligation to provide disaster relief. Only the government has the obligation to provide disaster relief.”

Huidun clenched his fists. At this moment, he also felt the horror of the bank.

After Chen Cheng finished saying these unpleasant things, he smiled and said:

"But these are only temporary. Once the supplies from the capital arrive, the bad debt can be cleared. Besides, by then the bank will have signed a financial cooperation agreement with those merchants, so this most difficult first step will have been smoothly passed."

However, Huidun did not act as excited as before, because after listening to Chen Cheng's words, he felt fear about banks. According to what Chen Cheng said, if this thing really develops, the most deaths will not be caused by traditional wars, but by this invisible financial war.

The banks and the businessmen behind them would impose a comprehensive blockade on a place or a country. At the same time, they would use the large amount of money accumulated by the banks' ability to absorb deposits to provide low-interest loans, and then they would make large-scale acquisitions of industries in that place or country.

Huidun didn't dare to think about it anymore.

Huidun looked at the harmless-looking boy who was drinking tea from a teacup. Only at that moment did he truly understand what kind of devil he had encountered.

"You really are a devil."

At a moment Huidun couldn't help but speak out his true feelings.

However, Chen Cheng smiled and said:

"Count, you should know that everything in this world has two sides. You can't just see the dark side I told you about. You should also see the good side.

For example, disaster relief, territory construction, people's livelihood development, etc., these are all benefits that banks can bring in the future.

Moreover, the disadvantages I mentioned before will not disappear if I don’t point them out. Even if I don’t set up this bank, I believe someone will think of it in the future.

We are one step ahead of humans and we also know the harm of this thing, so we can find a way to control it and prevent its bad side from ever appearing in this world.

Therefore, after a bank is established, a regulatory department must be established. All future financial activities of the bank must comply with the rules. The regulatory department can monitor any local bank other than the central bank at any time and anywhere.

And once any illegal or irregular behavior is discovered, the most severe punishment will be imposed on it.”

After saying that, Chen Cheng stood up and patted Huidun on the shoulder.

At this time, the servants outside also reported that Brutus wanted to see him.

Chen Cheng asked the attendant outside to take Bryusto to the reception room first, and Huidun would go to see him later.

The servants outside did not leave immediately, and at this time Huidun also spoke:

"Do as he says."

"Yes."

Huidun sat back on the sofa, and then said to Chen Cheng a little embarrassedly:

"I'm sorry, just now... you are right. If you didn't say these things, these problems would still exist. It's just that the people before didn't summarize these things like you did. I still have a lot to learn from you in the future."

Chen Cheng looked at Huidun, and then said:

"I have a lot to learn from you, too."