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The Ring That Defies The Heavens (Web Novel) - Chapter 2947: Exploded
Chapter 2947: Exploded
This chapter is updated by NovelFree.ml
Translator: 549690339
“Has someone started selling?”Sitting in his office, Jiang Fei’s lips curled into a cold smile.
“The timing is perfect!”Jiang Fei held a stack of reports in his hand. Among them, the most eye-catching was the loan situation of the various banks.
The entire gamma dimension was immersed in a fake economic boom. Because they had never come into contact with all of this before, no one knew that all of this was fake, everyone was excited about their increasingly bulging wallets.
Only Jiang Fei knew that all of this was nothing more than a big pie that he had drawn for these people.
In Jiang Fei’s world, there was an old saying — Labor creates value!
This saying was not false at all. Only real labor, real creation, and real economic development were the only correct means to pull the economy up. Financial behavior never created value, it was just moving value.
Everyone was speculating on Moon Crystal Crafts and futures, but no one thought about where the money came from? Who created its value? Of course not. It was just a transfer of funds. With the help of a small number of Moon Crystal Crafts and futures orders, the funds were transferred from one person to another, from many people’s hands, to the hands of a few people.
There were indeed people who made money by relying on lunar spirit crystal handicrafts and futures. However, the money they earned was not the value of the lunar spirit crystal handicrafts or futures themselves. Instead, it was the money in the pockets of other people. More people became the receivers.
Where did these people’s money come from? Without the support of the real economy, could it be that the money was created out of thin air?
That’s right! The money had really been created out of thin air through Jiang Fei’s little tricks! And the name of this little trick was called leverage!
In the beginning, the 20 banks each only had around three billion in capital reserves. Together with the funds flowing through the market, this was all the money in the entire gamma dimension, if they only relied on these funds to hype up the Moon Spirit Crystal artwork and futures, the market would not be so hot.
However, after Jiang Fei introduced the concept of leverage, all the major banks began to take action. With 30 times the leverage, the originally 60 billion funds suddenly became 1,800 billion! Logically speaking, such a large amount of money invested into the market was bound to cause inflation.
However, Jiang Fei had already prepared the moon spirit crystal artwork as a publicity item. As a result, the majority of the 1,800 billion funds were invested into the Moon Spirit Crystal artwork and futures market, as a result, there was not much free money circulating in the market. As a result, the impact on normal goods in the market was not very obvious.
The price of goods was relatively stable. In addition, everyone had more and more money in their wallets. This kind of illusion made everyone think that the economic situation was good. Until the bank lent all the money out.., they did not have more money to put into the market. At this time, the crisis appeared.
Because the common people were all lending money to buy Moon Crystal Art and Futures, in their view, the Moon Crystal Art and its futures would continue to rise, so no one was worried that the loans would not be repaid, because there were always buyers taking over.
However, now that the banks had no money in their hands, the funds that had been inflated by thirty times their leverage had already been released. It was impossible for them to lend money to new investors!
Without the support of loans, how would new investors take over? At this time, Jiang Fei’s agent, the little girl, began to spread negative news. Although most of the people who were addicted to it were unwilling to believe it, there were always a few people who were clear-headed.
After these clear-headed people began to sell the moonspirit crystal artwork and its futures, more and more people began to see the situation clearly. Because these things were already so expensive that no one could afford to buy them, therefore, many people did not hesitate to lower their prices to throw away their futures orders or the stock of the artwork.
Previously, we had said that the common people were born to be strange. The more expensive they were, the more they would buy. The cheaper they were, the more they would sell!
When the common people saw that the spot and futures prices of Arts and crafts that had been skyrocketing began to drop, they immediately panicked. More and more people began to sell, and the market instantly collapsed!
In just one night, the price of the Moon Spirit Crystal Arts and crafts that had been hyped up to 50,000 a piece was instantly cut in half. The price of the futures orders plummeted, and even the average price was less than 20,000.
But the more it was like this, the more no one came to take over the orders. This caused the prices of the handicrafts and futures to fall again and again. In the end, they directly fell below the cost price. The spot price of each handicraft was even less than 2,000 crystals per month, and those futures orders were like a piece of waste paper. No one was willing to take over no matter how much money they had.
The collapse of the spot and futures of the handicrafts directly caused a large number of hyped up people to go bankrupt. And these people all borrowed a large sum of money from the bank. After they went bankrupt, they naturally had no way to repay their debts, therefore, in order to not bear the loss, the bank immediately found barrack and Mondoric as guarantors and demanded them to pay off their debts.
However, at this time, Mondoric and barrack had already divided the insurance policies in their hands. Almost all the financial groups in the entire gamma space were involved. This kind of debt relationship, which was nested step by step, was instantly detonated.
A 1.8 trillion financial bubble. Even if the entire gamma space was squeezed dry, it would not be able to stop it, let alone barrack and Mondoric, who were extremely rich, after all, the entire Gamma Space’s economic capacity was only a few tens of billions.
The Gamma Space’s economic system collapsed in an instant. The smile that was originally on everyone’s face disappeared. Almost everyone in the gamma space was burdened with a huge amount of debt. It was unknown how many people had jumped off the building in despair, it was unknown how many families had been broken into pieces in despair.
“Am I going too far…”Jiang Fei looked at the bleak scene on the street. He looked at the reports that kept coming in like a report of a disaster. He could not even bear it.
However, things had already progressed to this point. Even Jiang Fei himself could not turn back. He could only continue. After the disaster, he would help these people recover a little. However, to Jiang Fei.., his most important task was to help the three-dimensional world get rid of the gamma space’s restrictions. As for the rest, that was secondary.
“Boss, the magistrate would like to invite you over!”Anita rushed into Jiang Fei’s office.
“Yes! I’ll go right away!”Jiang Fei nodded. When the crisis broke out, he knew that the magistrate would definitely summon him. Because at this time, the magistrate must be even more panicked than him.
