Episode 131 — Wealth Drainage, or the Invisible Chains of Dep

The report Volg brought in should have been the spark for a grand celebration.

"The heavy hitters on the demon side are buzzing over the 'rumors of wealth' we’ve leaked. They’re extremely motivated to trade."

The very enemies who were at our throats three years ago were now starting to wag their tails at the scent of gold coins—it was a resounding success that symbolized Felsen’s rapid growth.

However, the expressions of the group gathered in the living room were uncharacteristically grim. A sense of caution and tension made the air feel heavy.

"Mr. Zect. This is indeed wonderful news. But..."

Gustav spread a chart on the table: "Correlation Between Currency Circulation and Price Index in Felsen," prepared by Argo. It showed a curve where the cost of daily necessities was rising slowly but surely.

"The new city, the Gala-Mon Factory, and the expanding industrial zones... the foreign currency they’re earning is overflowing to the point of bursting our vaults. If we carelessly release this money into the market, prices will skyrocket and the people’s lives will be ruined. We are essentially holding a high-pressure cooker on the verge of exploding."

(Good. Gustav has finally graduated from the medieval amateur mindset that 'more money equals more happiness.' The moment money enters the market, it turns into heat. If you can't sense that, you aren't fit to lead Felsen.)

I leaned back in my lazy throne and took a sip of my flat cola. The lukewarm sweetness seeped into my overworked brain.

"Mr. Zect. I share the same concern," Argo added, pushing up his glasses and presenting his cold, calculated results.

"If we begin full-scale trade with the Magic Race territories now, even more foreign currency—'new money'—will flow into Felsen. They will seek our gold coins in exchange for their rare magical resources. If we become the 'sellers,' wealth will accumulate here even further. That would be an act of madness, like throwing more wood into a cooling system. Won't connecting with the demons only accelerate the 'inflation bug'?"

(Argo, you’re quick with the math as always. But you’re missing one thing. I never had any intention of 'selling' to the demons in the first place.)

I shifted my recliner up slightly and stared out the window toward the unseen demon lands with sleepy eyes.

"Argo, Gustav. You two still see the Magic Race territory as a 'market.' But to me, it’s something else. To me, that place is a 'giant drainage pipe' and 'external backup storage' to vent Felsen’s excess heat."

"Drainage...? Storage...?" Both of them tilted their heads in unison. I added fresh ice to my cola, making the glass clink.

"Listen. Right now, Felsen is a massive engine that’s generating too much heat. We’re keeping the money locked in the vaults to force it to cool down, but we can't keep that up forever. We need to 'vent' that overflowing wealth outside. That’s where the demons come in."

I drew a thick arrow on the table pointing from Felsen to the Magic Race territory.

"We buy up massive amounts of high-value resources that can only be sourced from their lands—magical metals, high-purity mana stones, rare herb seeds. And we do it at a 'special premium rate,' significantly higher than the usual market price. We physically vomit the excess gold sleeping in Felsen’s vaults into the demon lands."

"What...?! You’re saying we should intentionally take a loss? To give away our wealth voluntarily...?"

Gustav was speechless. The basic rule of business is to buy low and sell high. My proposal to do the exact opposite made his medieval common sense scream in protest.

"It’s not a loss. It’s the process of 'draining the moisture' from the market. In my world, there’s a technique called 'Open Market Operations' where a central bank buys and sells assets to recover excess money from the market. This is the same thing. We physically reduce the amount of currency circulating in the territory to prevent the flood known as inflation. We protect the value of Felsen by letting the gold flow out."

(Of course, I don't plan to keep buying at exorbitant prices forever. At first, we let them taste the 'sweet nectar' to burn the resource routes and the habit of gold dependency into their very bones. After that, we gradually bring the prices back to a reasonable level—right on the line where it won't break the market. Besides... physical assets are more resilient during a crisis than simple coins. It's the same logic as people buying gold when a currency becomes unstable.)

"And the magical resources we acquire? We let them sit in Felsen’s warehouses under heavy guard. They don't rot, and they don't lose value. This becomes our 'physical backup' if Felsen’s currency value ever wavers. We suck the resources out of the demon lands and push our inflation-triggering gold coins onto them instead. Don't you think it’s the ultimate trade?"

Inside Argo’s eyes, formulas were being reorganized at high speed. His shock gradually turned into a deep, cold shiver.

"I see... We offload the 'currency load' onto the Magic Race territory while we stockpile physical assets that won't lose value. By lowering the currency density of our own market, we perfectly control the rise of prices. Mr. Zect, you are treating the economy itself as a weapon."

"Weapon is such a nasty word. But there’s no doubt this is the most effective 'defense patch' we have."

I drained the rest of my lukewarm cola and turned to Volg.

"Furthermore, once the demons have Felsen’s gold, they’ll have no choice but to depend on Felsen’s markets—the special zones and the casinos—to spend it. Felsen currency is just a bunch of metal discs if you aren't on good terms with Felsen. We’ll rewrite their brains to realize that it’s more rational to sell resources and enjoy the fruits of civilization than it is to fight and steal."

(An economic version of Mutually Assured Destruction, where China and the U.S. hold each other’s debt so that if one collapses, the other is in trouble... I’m going to recreate that in this world. Once they’re bound by these chains, the demons won't be able to point a sword at Felsen anymore. If they destroy us, their own wallets turn into trash.)

"Paying them is what suppresses inflation, stockpiles resources, and builds the ultimate wall. Gustav, this is the spec for 'Felsen Economy 2.0.' So... are you in?"

After a long silence, Gustav slapped his knees with trembling hands. His eyes held both the resolve of a lord and a deep awe for the man named Zect.

"Paying... becomes the ultimate defense and stability. The blueprint you’ve drawn has turned my anxieties into groundless fears. Understood. Let’s implement this 'Golden Drainage Pipe.'"

"Heh. You’re as wicked as ever, Boss. I like it." Volg, listening from the window, let out a daring smirk. "Those demons will be happy to haul their rare resources over, never knowing they’ve been integrated as components in Felsen’s massive system. I’ll tell my spies to spread the word: 'Felsen is arrogant and running out of resources due to its rapid growth. They’re suckers who will buy anything as long as they can throw money at it.'"

"I’m counting on you, Volg. Ugh... just explaining that wore me out. Tama, can I go back to sleep now?"

"Meow. (Sleeping again? Well, good job, I guess.)"

Tama let out an exasperated cry and lightly scratched the hem of my pajamas.

The OS known as Felsen had just crossed the wall of its borders, recognized the massive external device that was the Magic Race territory, and begun synchronizing into a single, stable network.

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