The wave of bank runs came very quickly. In fact, it wasn't as if these things weren't foreseeable.
The shift in the empire's development center would inevitably lead to a large amount of cash flowing to Amelia. In addition, the empire implemented a "currency purification policy" in Amelia, using the empire's currency to exchange for the idle currencies in the hands of the people to ensure the uniformity of the currency.
There was no problem with this policy. It could even be said that this policy brought great convenience to the Guevra empire's rule over the region, but it also created some new problems.
Guevra's currency was decreasing. A new territory with close to 8 million people appeared out of nowhere. If everyone held 100 frats, then Guevra's cash would decrease by 800 million.
It didn't seem like a lot.
Indeed, if a country took out 800 million frats of currency, then it was either very small or very close to being finished.
Guevra wasn't small, and it didn't look like it was going to be finished. It was just that the people in Amelia didn't only have 100 frats on them.
Some people might have less, but most people still had more than 100 frats. In addition to the large amount of cash flowing in from the capital, merchants, and banks, the locals were like malnourished middle-aged people who had lost their "blood". There was an unhealthy attitude under their skin.
The lack of cash in the locals was actually manifested in various aspects. For example, the Guevra government was delaying the payment of foreign war bonds as much as possible, and even wanted to renege on their debts.
For example, a large number of local products wanted to be forcefully sold to the world through negotiations, including the Federation.
In fact, all of these phenomena pointed to the same point, which was a tight currency.
The best way to solve this problem was to print money, but after printing money, the exchange rate would fall. The foreign exchange rate of frats to sol had already fallen to an all-time low. At the same time, there was still a large amount of import trade in Guevra.
Almost all of Guevra's resources that could be mined had already been mined. Amelia was rich in copper, but that was all.
Military enterprises were big users of all kinds of metals. The various metals used in a battleship, as well as the ammunition prepared, forced Guevra to import a large number of metal ores from foreign countries.
Due to many factors, the Guevra government didn't consider issuing new currencies in the short term. Instead, they wanted to maintain the status quo for a while, and after everything stabilized, they would start issuing new currencies.
Of course, this also had something to do with the fact that His Majesty wanted to print his face on the banknotes, but the ministers didn't agree.
Qian Huang had always existed. Now, it was just a complete explosion.
It was already the third day since the outbreak of the bank run.
In these three days, the finance minister, the emperor, and the other ministers were all trying their best to calm this matter down.
However, some things were not necessarily effective just because an official announcement was made. Especially when it concerned everyone's interests, people would become more blinded and impulsive.
Just as Lynch had predicted, the Geffra Financial Index began to plummet. The major companies couldn't withdraw money from the bank. If they wanted to ensure that they could withstand the risks of this sudden financial crisis, they had to hold a large amount of cash.
Where did the cash come from?
A: From the stock market.
Just a few days ago, they had bought back the floating shares. Now, they were dumping them.
In addition, some companies that were operating in debt were being closely followed by the banks, demanding that they pay back their debts. These companies also began to sell all kinds of assets in their hands.
This was like a disaster, a flood. If they didn't want to die, they had to climb higher. Whether it was stepping on the shoulders of others or stepping on the shoulders of their own people, under such a situation, they no longer had the power to choose.
What was left was only the instinct to survive.
Some people were crying, and naturally, some people were celebrating. Celebrating making money.
The red wine in the glasses was bright red as if it had just been released from people's chests. Regardless of whether it was men or women, they were dancing to their hearts' content. Those famous social butterflies didn't care about their bold dressing style at all. They were constantly wandering among different people.
The whole house was filled with a strange smell. It was a combination of alcohol, tobacco, various kinds of incense, body odor, and some overflowing hormones.
Lynch stood by the railing on the second floor and chatted with someone. In just a short while, he had already seen some men and one or more women disappear from the hall.
After making an incalculable amount of money, what people wanted to do most was indulge.
Obviously, this was just a marginal aristocratic group, and it was full of marginal aristocrats. However, it had an unparalleled attraction.
The little Earl just revealed this news that they were planning to hold a celebration party. Then, there were a lot of calls to his desk, hoping to get an invitation to attend the party.
In the face of financial disaster, even power had to make concessions for wealth.
"To Lynch!"
Suddenly, the little Earl on the first floor raised the wine glass in his hand. His face revealed a kind of crazed worship. To describe it in an exaggerated way, when he looked at Lynch, his eyes were shining.
Everyone in the room raised their glasses and looked at Lynch standing in the corridor on the second floor. Lynch also raised his glass and nodded with a smile.
She put down her glass and looked at Lin Qi. "They respect and admire you very much." Lin Qi nodded his head.
Lynch had a natural smile on his face. He was not so reserved. "If I can make everyone earn money, then I'll be God!"
He was not modest at all. His words should have made people think that he was an arrogant person. However, Genia felt that it should be so. Lynch was full of a kind of charm that she had never seen before. It was a charm that had nothing to do with power.
She exhaled softly and leaned forward with her arms on the railing. "What are you going to do now?"
"Are these Her Majesty's original words?"
Lynch asked calmly.
Genia turned to look at him with a strange expression. Lynch was different from everyone she knew. She had never seen Lynch like this.
Even though they had been together for a few months, she felt that she didn't understand this man at all, not at all.
"Aren't you angry?"
She asked. "Generally speaking, men would be very angry when faced with such a situation!"
This was her opinion, and it was also the opinion of most people. When a member of the opposite sex, who had an intimate relationship with her, suddenly helped others test her, it would make her feel like she had been betrayed, and she would feel ashamed of being betrayed.
No matter how close a person was, when faced with such a problem, the relationship between the two would instantly turn cold.
However, Lynch did not do that.
"Why should I be angry?"
He asked rhetorically.
This rhetorical question made Genia unable to think straight. She kept her head turned to look at Lynch. After two seconds, she shook her head. "I don't know, but I think it might hurt you."
Lynch answered quickly. "I'm not that weak. You won't hurt me."
"Is it because I can't enter your heart?"
Inexplicably, Genia suddenly asked a question that she did not expect herself to ask.
After asking, she regretted it a little. "Sorry, I didn't want to …"
Lynch raised his hand to stop her from continuing. "You're not entirely right, but not all of it is wrong."
"A person's life is short, too short. A few decades, a few tens of thousands of days. You think it's a lot, but it's actually very little."
"Every time we go through hibernation, it means that we're one step closer to the end. Every one of us is walking towards death, so why should we find things to make things difficult for ourselves?"
Lynch swirled the wine glass in his hand for a while. "I like being with you, and I believe you do too. But we're all adults living in this society. In addition to moving forward, we also need to do things to maintain our lives. We also have our own responsibilities."
"Don't let unhappy things affect our happiness …" He moved the wine glass in his hand horizontally and clinked it with Genia's. The two drank some wine together.
Genia did not know if she understood Lynch's words, or if she had her own thoughts, but she became straightforward.
"His Majesty asked me to ask how we can solve the current problem."
She thought it would be difficult to ask this question directly, and even thought about how to ask in a roundabout way.
But now, she did not seem to have so many burdens.
Responsibility was responsibility, and happiness was happiness.
Everyone tried to explain and make announcements, but it was useless.
Almost all the banks were in trouble, which also meant that the social and economic order had been greatly damaged.
If this problem was not solved, the economic order of the Gefra Empire might collapse.
The Emperor really did not have any good ideas, and this was not the time to announce an increase in currency. He could only ask Lynch for advice.
Lynch pursed his lips and said in a relaxed tone, "The bank run and the savings panic, to put it simply, people are worried that the banks have no money. As long as the banks can take out the money, these problems can be solved."
Genia looked at him without blinking. "The problem is that the banks can't take out the money now, unless we use the treasury funds."
In fact, she was lying. The treasury did not have much money.
Right now, the Bailey Federation had signed a lot of military projects, and the Gefra Empire had also signed a lot of military projects. There was also a plan to build a new battleship. All of these cost money, and a lot of money.
The treasury could not take out the money to solve this crisis, and the Emperor did not know how much money was needed to solve the current situation.
If he blindly took out some money and could not solve the problem, it would mean that the money was wasted, and the situation would worsen. He felt that he had lost control of the situation, and could only ask Lynch.
Lynch's answer was very simple, so simple that Genia did not know if he was being perfunctory or not.
"When I want to buy a product, but I don't have enough money, I will borrow from others …"
"It's the same for the country!"