novelSusiti Chapter 78 The Visible and Invisible Hand, and Liu Bang
Chapter 78 The Visible and Invisible Hand, and Liu Bang
Zuixianju, located in the West Market of Xianyang.
This used to be the most luxurious restaurant in the Qin Dynasty, but these past few days, business here has changed. No one is ordering food or drinks anymore; everyone is crowding into the lobby like a group of sharks smelling blood, staring at a blackboard in the center.
On the blackboard, rows of numbers were written in white chalk.
"It's gone up! It's gone up again! 'Heilong No. 1' has reached 120 yuan per share!"
The crowd erupted in a frenzied cheer.
The man standing on the table was none other than Liu Bang, the "Magistrate of Xianyang City". He was dressed in a silk robe and held a folding fan in his hand (although summer had not yet arrived, he felt that this made him look very "capable"). He looked down at the crowd with a ruddy complexion.
Liu Bang had already made a name for himself in Xianyang, serving as the "Magistrate of Xianyang," responsible for various matters including attracting investment for the Epang Palace. Upon hearing that the Qin Dynasty was planning to build a railway, the astute Liu Bang immediately sensed an even greater business opportunity. Leveraging his status and influence, he engaged in new "financial" activities under the guise of "private financing for the Qin railway."
"Everyone! Please quiet down!"
Liu Bang gestured with his hand down, his posture resembling that of a modern-day pyramid scheme lecturer.
"What you're holding isn't just a piece of paper with a dragon pattern on it! What is this? This is the future transport capacity of the Daqin Railway! This is the right to profit from the black gold of the Hedong coal mines!"
He casually grabbed a beautifully crafted "stock certificate" (actually just a piece of cardboard stamped with Liu's private seal, on which was written 'Daqin Railway Phase I · Black Dragon Stock'), and began to ramble on:
"Just imagine, when the train whistles, gold pours in! Once the railway is completed, coal will be transported to Xianyang in an endless stream, and every shovel of coal will contain a copper coin from you! We don't need to farm, we don't need to fight, we can just lie at home and money will fall from the sky! That's called—passive income!"
"Brother Liu Ji! I'll buy! I'll sell my cow, give me ten shares!" Fan Kuai squeezed through the crowd and slammed a heavy bag of copper coins onto the table. He no longer sold dog meat, feeling that making money that way was too slow.
"Good! Brother Fan has good judgment! From now on, you will be the railway tycoon of the Great Qin!" Liu Bang tore off a receipt and handed it to Fan Kuai.
The crowd erupted in cheers.
"I'll buy it too! I'll pawn my wife's jewelry!"
"I brought my savings for my funeral!"
In just three days, the copper coins in Xianyang City seemed to have grown legs and all rushed to Liu Bang's "stock exchange center".
In the corner, Xiao He, who was in charge of keeping accounts, was trembling. He looked at the mountain of copper coins, then at the crowd still queuing frantically outside, and whispered to Liu Bang:
"Liu Ji, where are we going to get so much profit? The railway has only been laid for ten miles, and not even a single coal cinder has been transported back yet. You're promising the first batch of buyers a 30% monthly interest rate—where will that money come from?"
Liu Bang chuckled and whispered in Xiao He's ear, "Old Xiao, you're still too naive. We don't produce coal, but we do produce 'leeks' (a metaphor for exploitation). Use the money from the later buyer to pay the interest to the earlier buyer, and what's left is ours, isn't it?"
Xiao He's face turned deathly pale: "What... what if no one buys it after this?"
"How could no one buy?" Liu Bang pointed to the pairs of greedy red eyes. "As long as greed exists, this game can go on forever."
---
Xianyang Palace, Imperial Study.
Ying Zheng looked at the secret report presented by the Black Ice Platform, and then at a "Black Dragon Stock" bill in front of him.
"One hundred and twenty coins?" Ying Zheng sneered. "This worthless piece of paper can buy two shi of rice? When did my Qin Banliang coins become so worthless?"
Wang Jianguo stood to the side, looking at the stock chart, and helplessly pushed up his glasses.
"Your Majesty, this is a classic 'financial bubble.' That lad Liu Bang, without any formal instruction, combined 'robbing Peter to pay Paul' with 'stock speculation.'"
"rob Peter to pay Paul?"
"It's about using new investors' money to pay interest to older investors," Wang Jianguo explained. "He's peddling a future return that doesn't exist. When everyone believes this piece of paper can appreciate in value, it's like gold; when confidence collapses, it's just worthless paper."
Ying Zheng tapped his fingers lightly on the table: "Jianguo, you said the market could automatically adjust prices. Why isn't it working now?"
"Your Majesty, the market can indeed regulate, but that's under ideal circumstances," Wang Jianguo said solemnly. "Right now, this 'invisible hand' has gone mad; it's pushing the Qin economy to the brink. If we allow the bubble to burst, tens of thousands of families in Xianyang will be ruined, and social unrest is imminent. At this time, Your Majesty needs to extend that 'visible hand.'"
"A visible hand?"
"State intervention." Wang Jianguo wrote these words on the blackboard. "Your Majesty, we can't just arrest people directly; that only treats the symptoms. We need to use legal and regulatory means to put a rein on this mad bull."
A fierce glint flashed in Ying Zheng's eyes: "I will not only trap it, but also make it spit out every last bit of grass it has eaten, with interest."
---
The next morning, an imperial edict was posted all over the streets and alleys of Xianyang.
However, this imperial edict was not for killing anyone; rather, it was an edict concerning the establishment of the **"Great Qin Financial Regulatory Bureau"**.
The edict was extremely obscure and difficult to understand, filled with strange terms such as "risk reserve fund," "price limits," and "capital verification." These terms were translated by Wang Jianguo from modern finance, and although somewhat awkward, they were still somewhat understandable to the ancients.
Liu Bang, who was counting money in Zuixianju, felt a chill run down his spine upon hearing the news. Although he didn't understand the words, he instinctively sensed danger.
"Quick! Throw it away! Throw away all the stock you have!" Liu Bang shouted to Xiao He.
However, it was too late.
A group of court officials in black surrounded Zuixianju, led by Court Official Li Si. He held a brand-new copy of the "Great Qin Financial Regulatory Law" in his hand.
"Liu Bang, receive the decree." Li Si looked at him with a forced smile. "According to the new law, anyone publicly issuing bank drafts must deposit 50% of their funds as a 'risk reserve fund' with the Shaofu (the department in charge of the national treasury). Your 'Black Dragon Stock' has a total market value of ten million coins. Where is your five million in reserve funds?"
"Five...five million?" Liu Bang was dumbfounded. He had spent all his money on extravagance, dividends, and land purchases, leaving him with at most a few hundred thousand in cash flow.
"No?" Li Si scoffed. "Then the second rule has been triggered—'circuit breaker.' Given the excessively high risk, effective immediately, all trading in 'Black Dragon Stock' is suspended, all funds are frozen, and assets are liquidated."
"when--!!!"
With the sound of a gong, the "exchange" outside Zuixianju was forcibly shut down.
The stock market investors, who were still dreaming of getting rich, were instantly brought to their senses.
"Trading is stopped? What about my money?"
"My house is still inside!"
"Liu Bang! Pay back the money!"
Panic spread like a plague. Liu Bang, who had just been revered as a god of wealth, instantly became a rat that everyone wanted to kill.
The "price limit" mechanism has been activated, but in reverse.
On the black market, the price of "black dragon stock" plummeted from 120 coins to 10 coins, then to 1 coin, and finally became so hard that it was considered worthless even for wiping one's bottom.
Fan Kuai looked at the handful of scrap paper in his hand, then let out a scream and fainted.
---
Xianyang Heavenly Prison.
Liu Bang, dressed in prison clothes, sat on a pile of straw, looking utterly despondent. Xiao He sat opposite him, using an abacus to settle his debts.
"Liu Ji, the calculations are complete." Xiao He sighed. "After deducting the frozen assets, you still owe the national treasury 3.2 million coins. This is only because His Majesty is merciful and didn't charge you with fraud, only 'mismanagement'."
"Three million two hundred thousand..." Liu Bang lay on the straw, "Kill me. Even if you chop me into mincemeat and sell me, I wouldn't be worth that much."
At that moment, the cell door opened, and Ying Zheng walked in, followed by Wang Jianguo.
Liu Bang jolted to his feet, knelt on the ground, and kowtowed: "Your Majesty, spare my life! This humble subject was only momentarily confused; I wanted to help the country build roads!"
Ying Zheng looked down at him: "Road construction? All the money you spent on it went into your own pockets and the pockets of those speculators. And the road? All I see is ten miles of muddy puddles."
"This humble subject...this humble subject will go fix it right away! This humble subject's hundred-odd pounds of flesh will just stay on the construction site and won't leave!"
"Hmph." Ying Zheng sneered, "With your meager strength, you couldn't cultivate it all in a hundred years."
Wang Jianguo stepped forward and handed Liu Bang a document.
"Liu Ji, His Majesty values talent. Although you are greedy, cunning, and unscrupulous, you are indeed a business genius. The ability to amass all the money in Xianyang within three days is something most people cannot achieve."
Liu Bang was stunned: "Mr. Wang, are you... praising me?"
"I suppose so," Wang Jianguo said, pointing to the document. "This is a 'labor reform contract.' From today onwards, you are the 'Operations Officer' (in debt version) of the Daqin Railway Bureau. Your task is not to build roads, but to 'make money'—legally make money."
"Go talk to the merchants from the Western Regions, and talk to the Yue people from the south. Sell them the silk, porcelain, and glass marbles from Qin, and earn back their gold to fill that 3.2 million hole in your pocket."
"If you earn enough, you'll be a hero of the Qin Dynasty; if you don't, you can go lay tiles on the Great Wall."
Liu Bang took the contract, looked at the densely packed clauses, and tears welled up in his eyes.
This isn't a contract, it's a servitude contract! And the kind where you have to count money for your boss until your hands cramp up.
But it's always better to be alive than dead.
"This humble subject... obeys the decree! This humble subject will definitely swindle... oh no, earn it back from the Western Regions!"
---
Stepping out of the prison, the sunlight was blinding.
Ying Zheng took a deep breath and looked back at the dark prison cell.
"Jianguo, you're right. Greed is human nature; you can't kill it all. Instead of killing it, we should put a bridle on greed and make it work like a millstone."
Wang Jianguo nodded: "That's the power of capital. Used well, it's the most diligent donkey; used poorly, it's a man-eating tiger."
"However..." Ying Zheng changed the subject, "what about the common people who lost money under Fan Kuai's command?"
"Your Majesty, rest assured," Wang Jianguo said with a smile. "Although the bubble has burst, the confiscated assets and fines from Liu Bang can be used to establish an 'investor protection fund.' While we can't recover everything, we can get back about 70-80% of the principal. The remaining 20-30% can be considered as 'tuition fees' paid by them, a lesson learned."
Ying Zheng laughed heartily.
"Tuition fees? That's a good word. I'll add a course to the Imperial Academy called 'Guide to Preventing Fraud.' As for the lecturer... let Liu Bang do it part-time."
At this moment, Liu Bang, who was in prison preparing to make his mark (pay off his debts), suddenly sneezed loudly. Little did he know that besides becoming the "Emperor of Hired Managers," he was also about to become the first "Anti-Fraud Ambassador" of the Qin Dynasty.
Above Xianyang, the once-wild "invisible hand" finally retreated obediently under the iron fist of the "visible hand" and began to obediently lay bricks.