Chapter 473: Interest Tide

Everyone present was not a human being. When they saw that Evans's opinion seemed to move Ethan, they all vaguely guessed a possibility.

If the guess is correct, the lord wants to deal with Duke Arsinoe.

As for why, they don't know, and they don't need to know. For them, as long as Ethan shows this willingness, that is enough.

So they all agreed with Evans' proposal.

Seeing everyone's sudden enthusiasm, Ethan frowned slightly, faintly aware of something wrong.

I thought to myself: Do all these people see that I have a grudge against Duke Arsinoe? Where did I show my flaws? never mind! No matter!

"Since you all agree, then...Evans, let me leave this matter to you!"

"Yes! Lord! I will definitely handle this! It's just..."

Ethan saw Evans' troubled expression and knew that he needed help.

So he took out a warrant from the drawer, signed it, stamped it, and handed it to him.

"I didn't fill in the number of people, you can write it yourself, and then just use this warrant to go to the Knight Embiid to ask for people.

Also, the family's passenger ship, the Hope, is also under your control. "

Evans happily took the order and promised: "Lord, within a month, I will find out information that satisfies you."

Ethan nodded, and then continued to say to everyone: "No matter what the final result is, considering that the other party is going to harvest the wealth that originally belonged to Maro City, we will definitely not be able to accept it.

So, I want to ask you, is there any way to stop him in advance? "

As we all know, each duchy is actually a relatively independent kingdom.

It was obviously impossible to prevent a duke from issuing banknotes within his domain.

Therefore, everyone fell into silence after hearing Ethan's question.

However, after hesitating for a while, Papalia still stood up.

He smiled and said: "Master, even if there is a war, it is probably impossible to prevent Duke Arsinoe from issuing banknotes in his territory.

Therefore, it is impossible to completely prevent him from harvesting wealth.

However, we can change our thinking to solve this problem. "

Everyone present was extremely envious when they saw that Papalia could call Ethan his master.

Because they can only call Ethan the lord, this means that Ethan only has an employment relationship with them.

And being able to use the title "Master" means that you are already a retainer and a true confidant of Ethan.

At the same time, it also means a bright future, and it also means that aristocratic title that is out of reach for ordinary people.

If an ordinary person can take that step, it often means that the next several generations will be protected.

And they worked hard just to take that step.

However, this step is really difficult!

For example, right now, no one has thought of a solution, but someone has already taken the lead, and that person is a noble. How can anyone survive?

Ethan didn't know what everyone was thinking. Seeing that Papalia had a solution, he asked, "How to solve it?"

"Master, if we want to figure out how to solve it, we have to start with a banking phenomenon." Papalia replied after pondering for a while.

"Then you say it and I listen!"

"Okay, Master!" Papalia nodded: "That's right, Master should know that there is no interest in saving money at Iris.

Not only not, but they also have to pay for their storage.

However, since the establishment of our bank, its business and functions have completely overlapped with those of Iris.

In addition, we are the issuer of banknotes and have better credit than them. It can be said that we crush them in all aspects of our business.

This put them on the verge of bankruptcy, so in order to grab the deposit business, they began to provide interest on deposits. Although the amount was not much, what was unexpected was that they did attract a large amount of spare money.

This relieved their financial pressure and gave them a chance to breathe.

After my father discovered this situation, he also began to provide interest to attract deposits.

Due to the competition between the two parties, the interest rates were raised higher and higher until both parties could not bear it.

In the end, everyone reached a synchronized agreement to cut interest rates together, and this ended the war.

During this period, my father discovered an interesting phenomenon.

When the interest rate is higher than 1.25%, every 0.5 basis point increase can absorb a relatively fixed amount of funds.

And when it is reduced by 0.5 basis points, a relatively fixed amount of funds will be released.

At first, my father never understood why this happened, so he began to study the phenomenon in depth.

In the end, he came to the conclusion that if the return from running a business is lower than the interest income, or if the investment risk is much greater than the interest income, then people will choose to save money and earn interest.

But if the interest rate is too low, they will still be willing to invest their money in business even if they take risks, just for a higher rate of return.

This relationship between interest and the market economy is what my father calls the ‘interest tide’.

He believes that if the 'interest tide' can be properly controlled, then the local economy can be controlled.

I'm wondering if we can use the 'interest tide' to solve the matter in the Duchy of Arsinoe.

Suppose, if we provide a reasonable interest rate to the people in the Duchy of Arsinoe, can we absorb a large amount of deposits?

Although we have to pay a little interest in the early stage, it can attract a large amount of deposits, and the deposits are all real money.

Then we will use some means to make the banknotes issued by the Duke of Arsinoe bankrupt.

Then we will promote the banknotes there as a harvester.

In this way, we can avoid the wealth there being harvested by the Duke of Arsinoe at a very low cost.

At the same time, it can also tighten the circulation of funds in the market there.

Once the liquidity is tightened, it will inevitably lead to difficulties in production and operation in the region. Coupled with the harvest of the Duke of Arsinoe, many industries will definitely not be able to operate until they are sold at a low price.

At that time, we can go to buy the high-quality assets there.

For example, their most famous minerals and supporting processing industries.

After we have finished buying the bottom and the Ma Yuan has completed the promotion, we will lower the interest rate and force all the money that eats interest to invest in business.

In this way, with only one "interest tide", we can harvest two or three waves of wealth from them.

Of course, since we have no bank in the Duke of Arsinoe's territory, this matter can only be operated through the Iris Club, so the benefits that should be shared should still be shared.

However, it does not affect the overall situation.

At the same time, it can also completely disrupt the plan of Duke Asino. "

After Ethan heard this plan, he was confused.

It's not that he didn't understand, but this plan is too similar to the previous life of the US dollar harvesting the world.

In the past life, the United States often played this trick. First, the Federal Reserve raised interest rates, sucked all the money in the world, and made it difficult for other places to operate.

When other places can't operate and go bankrupt, they will cut interest rates again, and spend a lot of dollars to buy high-quality assets in other countries.

As the interest rate rises and falls, it silently harvests the wealth that other countries have accumulated for decades.

Now that he suddenly heard a local native talking about this, Ethan was a little dazed for a while...