novelraw Chapter 739 - 739 739 A Battlefield Without Gunpowder Smoke
Chapter 739 - 739 739 A Battlefield Without Gunpowder Smoke
739: Chapter 739: A Battlefield Without Gunpowder Smoke 739: Chapter 739: A Battlefield Without Gunpowder Smoke In today’s world, it’s hard for truly powerful nations to break out in war, because once they start, the scale is too large, the losses too heavy, and no one can bear it.
So powerful nations engage in a different sort of warfare, namely financially and through trade.
Sometimes, to destroy a place, you don’t need airplanes or artillery; simply destroying the local economy is enough.
To wage a financial and trade war, currency is the most powerful weapon.
Therefore, this can also be called a currency war.
One thing that international financiers like to do is to strike at a particular locality’s currency and make a fortune from it.
Now, these international financiers have set their sights on the currency of Star Country.
To target a place’s currency, there must be basic conditions: first, the place does not have much foreign exchange reserves; second, the economy of the place is overheating.
Of course, having these two conditions is still not enough.
Every location has different circumstances, and specific conditions need to be analyzed in detail.
Gu Fan now heard that one of Boss Lei’s Leida Funds had joined the ranks to strike at Star Country’s currency.
This shows that Boss Lei’s position could get involved in such big actions.
Naturally, Boss Ding also invested some money in the Leida Fund, in the hope of making a fortune.
Gu Fan had been observing the condition of the star coin.
In the past few years, star coin has not appreciated much against international currency.
This means that international financiers have been very cautious in collecting star coins.
The first reason is to prevent star coin from appreciating.
Because if the star coin appreciates, it will increase the cost of collecting star coins.
The second reason is to hide their intentions from Star Country so that they can stay prepared.
“Is it coming?” Gu Fan knew that as soon as international speculators made a move, it meant that they have collected enough star coins.
At this moment, Boss Ding came over, looking somewhat tense.
Even though he trusted Boss Lei, he couldn’t help feeling anxious.
After all, these international speculators had their own agendas, and how this operation would unfold is still uncertain.
Boss Ding asked Gu Fan, “Can you analyze the current situation?”
In response to this, Gu Fan stated that he was just a fledgling and didn’t dare to comment on the movements of international speculators, for fear of being wrong and embarrassing himself.
“Gu Fan, don’t worry.
Just speak your mind.
It’s only me and you in the company.
Even if you’re wrong, there’s no need to feel embarrassed.” Boss Ding continuously encouraged Gu Fan, also giving him the courage to speak up, “International speculators have been collecting Star Coins for some time.
I think even if Star Country reacts a beat late, they should have noticed something by now.
The financial defense awareness of a place can’t be this bad.”
Boss Ding nodded, “That’s right.
Star Country will certainly defend its currency.
But the question is whether they can defend it?”
Gu Fan also didn’t think it would hold up, “With Star Country’s small size and population, the demand is insufficient, and the goods exported from foreign trade are too singular.
It seems the economy is booming now, but actually, it’s very problematic.
That’s why international speculators are focusing on Star Country.”
“Well then, let’s look at the stock market of Star Country.” Boss Ding gave a slight smile, then asked, “Gu Fan, what do you think the international speculators will do next?”
Gu Fan opened the stock market of Star Country and noticed it was rising quite well.
He was worried for Star Country, “The economic structure is so fragile, they’re not controlling foreign exchange, but allowing foreign capital to come in freely.
They’re practically insane!”
Gu Fan scratched his head, “Collection of star coins generally involves nothing more than exchanging international currency for star coins, or using assets as collateral to borrow star coins.
Once enough star coins have been collected, it’s time to attack.”
Boss Ding sighed, “Many places have a poor economic structure.
They hope to introduce foreign capital to develop their own economy, but they don’t understand how to control the inflow and outflow of foreign exchange.
It’s a foolish act.”
In response, Gu Fan had a different view, “Some places just have no other choice.
Their economic potential is too poor.
They’re bone poor.
If they control foreign exchange, then foreign capital won’t come in, making development difficult.
They can only rely on foreign capital to develop their own economies and quickly become rich.
Even if they get hurt later, it’s better than being poor before.”
After hearing this, Boss Ding gave a bitter smile, “It’s like gambling on Qi.”
“It’s not just simply gambling on Qi.” Gu Fan looked at the stock market of Star Country, his brow furrowed, “My understanding is to bring in foreign capital, start factories, produce goods, increase job positions, and increase people’s income.
Because of the factories, the goods of this place increase, and an increase in goods means an increase in wealth.
Because there are more factories, there are more job positions, people’s income will increase, people can buy these goods, and the wealth that people hold will increase.”
Listening to Gu Fan’s understanding of wealth, Boss Ding had an enlightened feeling.
He couldn’t help but pat Gu Fan on the shoulder, “Kid, it seems like you didn’t waste your college education.
Keep going.”
Gu Fan mused for a moment, “Foreign capital enters Star Country to build factories, helping its people increase their wealth whilst earning a lot of star coins.
Meanwhile, Star Country earns a lot of international currency from their goods in foreign trade.
So when foreign capital leaves, it exchanges star coins for international currency.
In plain terms, the flow of currency realizes the flow of goods.
The flow of goods lets people’s wealth increase bit by bit.
But if Star Country’s foreign trade takes a hit and can’t earn international currency, the star coins will depreciate, and they will be abandoned by foreign capital.”
Boss Ding nodded, “Yes, the foreign capital eventually wants to earn international currency, not star coins.
In recent years, Star Country’s foreign trade has been weakening, and their exported goods are singular.
Other places are demanding fewer goods from Star Country, and Star Country’s market is so small with insufficient domestic demand, leading to an economic downfall.”
Having said that, Gu Fan was baffled, “It’s really a financial and trade war.
In a battlefield without smoke, I wonder if Star Country’s economy can still control foreign exchange in time?”
“Whether it’s in time or not, there’s only one outcome left.
If it were me, I’d definitely still have hope and struggle, and not directly initiate foreign exchange control.” Boss Ding sighed, then looked back at the empty company, much like himself, knowing that success is unlikely, but still struggling.
In response, Gu Fan agreed that if Star Country rushed into foreign exchange control before anything happened, it would be like telling the world that there’s a problem with Star Country’s financial system.
Gu Fan saw that Star Country’s stock market was still rising, he knew it wasn’t a good omen.
The stock market was blooming without economic support, and the seemingly prosperous market would eventually be beaten back to its original form.
As the saying goes, the higher you stand, the harder you fall.
But there was one thing that Gu Fan was confused about.
Although Boss Lei was very successful in business and was chased by many people, and was a famous tycoon, he was still restricted to domestic territory.
Boss Lei did not yet have the qualifications to stand on the same platform with those international financiers and plot together.
Could there be someone else standing behind Boss Lei?