The royal family of Ongji showed an astonishing attitude towards the independent floating islands in their own territory.
If the incompetence of recent generations is not included, it may be traced back to the period when Wengji founded the country.
The territory of Wengji was not created by fighting, and the royal family cannot trace it back to before the last Three Realms War.
It is a disorderly area formed by a group of kobolds who were forced by Fatel to live on the north shore of Luna. They later joined the bear people. In order to reduce conflicts, they jointly elected the current royal family.
From here, it can be seen that the Ongi royal family is not the ruler of any kingdom, but just the leader of the tribal alliance.
In the mid-term, the Ongji royal family made some efforts and achieved basic kingdom status, including normalizing taxation and stationing troops in other places. However, it still lacked dominance outside the coastal areas. After the floating island, it even wanted to control but had no strength. .
There are always pros and cons to everything. From the perspective of the royal family itself, this generation of kings is not bad.
First of all, at least the income has not been reduced at all due to the floating island. Instead, because the hands are not stretched far, the administrative expenses are extremely limited, and everyone is willing to maintain a certain amount of tax payment in order to save face.
[In view of the general environment,
Secondly, Wengji's banknotes, because they signed a gold mortgage guarantee agreement with the Phoenix Kingdom without hesitation during the floating island period, are much more stable than the new Fartel currency. Based on the purchase price of the Phoenix Kingdom's goods, the currency value has almost remained unchanged.
In other words, the Ongji royal family has substantial power to print money. This not only ensures the quality of life of the royal family, but also relies on it to control many floating islands and prevent them from going too far.
This is possible thanks to the magical properties of money.
The Phoenix Kingdom controls the entire penal colony and may have the highest average productivity in the entire three realms. However, it is not large enough, and the Phoenix King is relatively conservative in currency issuance. The overseas circulation of Phoenix coins has always been relatively limited.
But everyone needs money to do business. In this turbulent period, the big investors are reluctant to move their gold inventories. Naturally, they need an alternative currency, and Wengji New Coin naturally has the conditions for circulation.
The Wengji New Coin has a problem that many people can see. After the trade deficit with the Phoenix Kingdom continues for a period of time, gold needs to be paid to maintain the stability of the currency.
If this happens, the royal family's gold reserves will be exhausted sooner or later, and one day Wengji banknotes will suddenly become useless paper.
But most nobles don't know that the current trade between the two countries is in surplus!
There are also efforts made by the royal family, mainly through restricting shipping trade and currency redemption.
In the floating island era, air transport almost became the only form of trade. Unlike the previous distribution method, it was easier to be controlled by the royal family.
Through diplomatic efforts, Ongi and the Phoenix Kingdom reached an agreement:
1. The Phoenix Kingdom’s import of goods to Wengji, the trade value of the capital region cannot be lower than the total volume of other regions.
This one requires Wengji to export currency, but it can be recovered a lot by earning the price difference through secondary transactions.
Second, for the aircraft sold to Wengji, the capital area cannot be less than half.
Weng Ji naturally also wanted to completely monopolize its own shipping capacity, but the Phoenix Kingdom did not agree, and they actually could not come up with any effective deterrent means. This is easy to understand from the perspective of the Phoenix Kingdom. After all, shipping capabilities are too concentrated, which is not conducive to maintaining a relatively affordable shipping price.
This agreement can ensure that the Phoenix Kingdom maintains sufficient coordination capabilities to stabilize the trade deficits of other regions with the Phoenix Kingdom without intentionally causing mischief.
Currency redemption is a more direct means of risk control.
In the gold price guarantee agreement, the threshold for replenishing gold is the stock of Wengji Xin coins in Phoenix Bank for that month. This stock is piled up by the trade deficit.
Redemption is also very simple. You can directly ask the Phoenix Kingdom to pay new coins and start some special trades to prevent the bank's banknote stock from increasing. This is currently mainly achieved by selling struvite.
And while the transaction was going on, it was discovered that
A strange "loophole" appeared, at least in the eyes of the Ongi royal family.
According to the currency insurance agreement, in the two years after it was signed, the Ongji royal family paid two additional gold payments. The reason was not that the stock touched the insurance limit, but that the approximate total amount of money needed was gradually figured out through the operation of new coins.
The total amount of gold deposited by the royal family in Phoenix Bank is 30 tons, and the corresponding balance is 3.3 billion Singapore dollars, including a 2‰ currency exchange fee.
This currency exchange fee applies to both parties. Whoever wants to exchange the currency pays the money. Generally, the merchant in need pays it himself.
But if the total stock of new coins in Phoenix Bank continues to be low, the bank will need to find the royal family to exchange coins to ensure smooth trade with the Wengji area.
2‰ may not seem like much, but a bank transfer can cost hundreds of millions, and the handling fee is not a small amount.
The Phoenix Kingdom doesn't know why it needs so much struvite. Anyway, by transporting struvite, it has made an extra million in the past year by collecting handling fees. Of course, because the dealer lacks new coins, he can only pay for products and Phoenix coins, and will not return the mortgaged gold.
The Wengji royal family even realized in recent transactions that the so-called currency has no necessary connection with precious metals such as gold, silver, and copper. What determines the value is just whether it can buy things.
Phoenix coins can definitely buy Phoenix Kingdom's industrial products, and there is no doubt about its value.
On the contrary, as long as Wengji maintains the current currency price unchanged, even if it cannot provide any irreplaceable substitutes, it will generate more and more currency holders outside the trade between the two countries.
The existence of these holders can increase the total supply of Wengji new coins, and the first step in supplying this part of the currency will bring benefits to the royal family itself, or can it be called seigniorage?
From this perspective, the Ongji royal family's sensitivity to currency is far greater than that of Fatal VI. It does not even need to be in the future. At present, few people outside Fatal's territory use Fatal's new currency because the fluctuations are too great.
Also on the premise of understanding the secret of currency, the Wengji royal family did not want to spend any money on those guys below who tended to be independent.
Even the act of arming themselves on these floating islands is tantamount to taking the initiative to help the royal family withstand the thunder of the northern demon clan.
What really makes the royal family care about is the air transport capability. With a strong enough air transport capability, they can manage to deliver new coins to more people through the trade of basic products, and they will have more money available.
In response to this demand, the royal family has recently started new negotiations with the Phoenix Kingdom, hoping to directly undertake an aircraft production system from the Phoenix Kingdom.
For this, you can pay a certain price, and you will make money in the long run anyway.
As for research and development by oneself... in the view of the Wengji royal family, it is a waste of money and time.
Fatel seems to be taking advantage of this, and I don’t know if it can be put into production.
