1723 Distress
There is a saying that war does not destroy trade.
Going one step further, it can be called capital that cannot be broken by war!
What does it mean?
In fact, the meaning of this sentence is very simple. It means that when a war breaks out, neither the country that started the war nor the country that was invaded will stop its internal and external trade activities.
You still need to do the business you need to do, but the risks you will take will be greater than usual!
The Pengeo Empire launched a despicable war without declaring war. They were the destroyers of world peace and the creators of the shadow of war.
But this does not mean that they do not need to import goods, nor does it mean that they will not export goods.
At any time, as long as both parties to the trade are willing to take greater risks than usual, no one will stop their legitimate trade activities.
Not just ordinary trade activities, any capital activity is allowed, as long as it is still within the legal scope!
In Pengeo, people need to import, and the main resources and rough parts come from its subjects.
There are also some goods from other countries, and they even import some things from the Federation, but of course they will not directly identify themselves.
They would register a trading company in a neutral country, then purchase these goods, and then resell them and transport them to the empire.
This kind of thing is not only done by Pengeo, but also by the federal people.
Just because everyone is at war, we can't stop making money, right?
Doesn’t this conform to the principle of pursuing interests in the capital world? !
Everything that is not in line with the principles must be wrong, so war does not destroy trade, nor does it destroy capital!
During this period of time, the businessmen of Pengeo have been worrying about one thing.
Obake also has the same troubles.
He is a businessman from the Pengeo Empire, an honest businessman.
In this terrifying and powerful empire, not all businessmen are qualified to be called "capitalists". To a certain extent, the title of capitalist is exclusive to the upper echelons of the empire.
Obak is just an ordinary businessman, running the steel business.
He would buy ore, then smelt it, and finally sell the metal ingots to factories that needed it, such as some large heavy industry companies owned by imperial nobles.
Those people are capitalists, he is not.
He is just a poor, insignificant "small workshop" that provides purified materials for the big guys.
It is worth mentioning that this small workshop provides jobs for 4,000 people in the Pengeo Empire!
Some people called Oback a steel tycoon, but after learning the news, he took the initiative to apologize to those steel giants. He told those people that he had not thought so and would not do that!
He has always kept a low profile and his business is good. The war has promoted the consumption of various metals, but recently he has encountered a trouble, that is, there is not enough ore.
In the Pengeo Empire, more than 70% of the mining areas that have been discovered and are being mined belong to the nobles and the imperial royal family.
The ore produced from these mines will be given priority to the steel mills owned by the royal family and nobles of the empire.
Ordinary steel plants like Oback can only purchase ore from some private mines.
However, after the war broke out, large steel plants increased their production capacity, and ore from private mines must be given priority to these large steel plants.
In addition to being able to buy a small amount of ore, merchants like Oback's main source of ore still comes from imports.
Imports from surrounding dependent countries and imports from overseas.
There are quite a few metal ore veins distributed in this world, especially in some inconspicuous small places, which often contain amazing mineral vein resources.
In the easternmost part of the Southern Continent, some small countries only have a population of one or two million, but their per capita income is very high.
The reason why it is high is because it is rich in various ores. For such a common small country that relies on selling resources, their only job is to hire people to dig out the ores and then sell them!
This is also the main area that affects international ore prices. For example, some areas that are rich in ores in the world have huge output and control the prices in the international market quite well!
They have no political stance and are almost all neutral countries. Some small countries don't even have an army!
Obak had a pleasant cooperation with them in the past, but as the war continues to this day and the defeat of the Nagalir battlefield.
Things that were just troublesome for him before have become troublesome now!
To put it simply, you can’t buy the same ore with the same money!
Because the Austrian dollar was depreciating rapidly, when the Pengeo Empire launched a full-scale war, it was actually defeated on the battlefield of Nagaril, even though they still occupied the eastern region of Nagaril.
But everyone who knows them knows what this means!
If the federal people can drive them from the central area of Nagaril to the eastern area, they can naturally drive them out completely. This is just a matter of time and determination!
The Nagaril war launched by Pengeo is not favored by people. No matter how well they fight in Amelia, they cannot hide the fact that they have no good way to deal with the federal people!
This also led to the decline of Ao Yuan!
People will not just hold the currency and bonds of a country that has a high possibility of failure. When these people cannot see the future, they will sell these things at a relatively reasonable price that can save some of their principal. Lose!
We all know that the so-called market and volatility are the changes in the transaction price of a commodity. Now that more and more people are selling Ao Yuan and Pengeo national bonds, these two commodities have become worthless, and the prices will naturally With the scale of the sell-off and people's disapproval, it continued to decline.
In the past, you could buy ten kilograms of ore for one dollar, but now you need to spend more than one dollar!
Maybe it’s more than ten cents more, maybe it’s twenty or thirty cents more. It seems that such a small amount of money is not conspicuous, but when converted into a proportion, it is amazing enough!
In the past, money could buy ten cars at once, but now it can only buy seven and a half cars.
But those large domestic heavy industry companies don't care about the cost of Obake. They only make purchases based on past prices.
You don’t have to sell it, no one is forcing you to do this.
Although the Pengeo Empire was a feudal society ruled by the royal family, the royal family was relatively enlightened.
Their initial focus on the Federation was not to start a war with the Federation, but to understand the Federation's social system.
Most powerful countries have realized that the feudal government is being eliminated by history.
Perhaps in the past, when society was not developed enough, people did not explore nature and the world enough, and when people's education level was still low, it played a great role.
But now, it has been eliminated!
Gaevra's reforms affect Pengeo who have the same system. They will not reform to the end like Gaevra did at once, they will do it bit by bit.
Forgiving the people is the first thing to do!
If you think the price is too low, you don’t have to sell it!
There are so many people in the steelmaking factory in Obak that just paying wages every month is a huge expense!
What troubles him most now is that there are less and less ores to buy, but there are more and more metal ingots in the warehouse!
Large heavy factories don't need it, and small-scale enterprises can't use so much, and it's difficult to afford the higher and higher prices. In short, the current situation is not ideal.
Oback once thought about stopping the work, but the local city hall told him that the work could not be stopped no matter what, and the city hall would help him find sales.
In fact, he did go to the city hall and sell some metal ingots, but the price of ore outside was getting higher and higher, which gave him a very scary feeling.
Maybe if he keeps doing it, he will go bankrupt!
The depressed Obak came alone to the club he often went to. In the Pengeo Empire, the club was a very unique place.
It's like a bar, café and salon all in one.
Just buy a drink, find a place to sit, and chat with everyone, or just sit.
Obak was an acquaintance here. As soon as he sat down, he found someone talking about a similar topic to him.
The situation that everyone encounters is basically the same. All resources that rely on imports are "skyrocketing", but the domestic price system keeps them at domestic prices, which is a headache for many businessmen.
In fact, Obak is pretty good. There are also some companies that specialize in providing spare parts to large enterprises. They all have signed contracts. They can't increase prices. Not only can they not make money, but they also have to lose money, not to mention the monthly salary. It’s enough to give them a headache for a while!
So everyone is talking about this topic.
Obak found a relatively nearby chair and sat down.
There are no sofas here, just chairs.
"...So this is the best way, even though it looks a bit...you know, we have no other way!"
He heard someone saying something intermittently that he couldn't quite understand, but he realized that this might be the solution.
He couldn't help but move closer and looked for a familiar person, "What's going on?"
People who knew him well looked at Okba for a while and felt that he was a trustworthy person, so they whispered to him what the person in the crowd had talked about before.
"He suggested that we convert our money into federal sol or the currency of some neutral countries as soon as possible. However, the currency stock of neutral countries is limited. If we hold too much, it will eventually lead to the collapse of the monetary system."
"So our main target is Federal Sol!"
"We can open some accounts in some neutral countries and deposit money in those accounts. The exchange rate of the Federal Sol is very stable. We can use it to buy what we need, and then ship the things back..."
After listening to this, Obak kept nodding. This is indeed a good idea, but at the same time, he also has a question that needs to be answered, "But what we get is still Ao Yuan, which actually does not improve anything!"
His friend pouted towards the crowd, "He is talking about this issue..."