Flight of Lady Part-4

Chapter 10

"Are you in your right mind, My Lady!?"

In the face of Ichijou's outraging concern over my intention to acquire Hokkaido Development Bank, I responded with a nonchalant shrug. "Perhaps I'm not entirely sane. Nevertheless, Ichijou, could you enlighten me on why the idea of acquiring Hokkaido Development Bank might be perceived as madness?"

While this discussion unfolded, Tachibana kept a thoughtful silence. Ichijou, now somewhat composed, locked eyes with me who is anticipating some form of clarification, and inquired, "from where should I begin?"

"From the beginning. I'm not entirely sure if this is correct, either. If I receive a proper explanation and it turns out to be a mistake, I will retract this proposal."

Ichijou cast a gaze in my direction, sighed audibly, and extracted a hundred-yen coin and a ten-thousand-yen bill from his wallet. Placing both tender forms before me, he posed a question, "Allow me to inquire, Milady. Are you aware that these currencies can be utilized for acquiring goods? Now, could you tell why these monetary units can enable transactions?"

"It's quite a complex question you've brought up... because Money has value, right?"

"Milady, you've captured the essence flawlessly. It's accurately defined as the 'Visualization of the shared illusion of value.."'

"The Visualization of the shared illusion of value.?"

While I repeated those words, Ichijo attempted to take out more bills and coins from his wallet, addressing Tachibana in the process. Seemingly short on funds, he asked, "Tachibana-san, do you have a five-hundred-yen coin?"

"If one is sufficient!"

Arranging on the table a ten-thousand-yen bill, nine one-thousand-yen bills, one five-hundred-yen coin, and five one-hundred-yen coins, Ichijou continued his explanation.

"We understand that this ten-thousand-yen bill, these notes, and this coin hold the some value. But, for instance, if an extraterrestrial unfamiliar with Japan were to see these, could they comprehend that they possess equal value? This, Milady, is the essence of the visualization of the shared illusion of value."

"Ah, I see." I nodded, expressing my understanding. Ichijou then returned the five-hundred-yen coin to Tachibana and put the money back into his wallet.

"Now that we've acknowledged the core relationship between money and value, let's explore how we determine this value. In understanding the concept of value, there are several rules to consider. However, the most fundamental and crucial rule is that the value of money is intricately tied to its existence in relation to others."

As Ichijou explained, I tilted my head, and he promptly pulled out a hundred-yen coin from his just-folded wallet, placing it in front of me.

"If I were alone, it wouldn't be an issue for me to insist that this hundred-yen coin is worth ten thousand yen, right?"

"Ah !"

I clapped my hands unintentionally. The existence of value relies on the presence of others.

"Let's assume, Milady, that you are present here. If I were to insist that this hundred-yen coin is worth ten thousand yen, wouldn't you say something like this: 'Isn't this just a hundred-yen coin?' So, which one of us do you think is correct?"

Seeing Ichijou's smile, which clearly indicated that he was up to something, I took a moment to think. Nevertheless, since I was the one who asked in the first place, I decided to entertain Ichijou.

"Isn't it me? After all, it says one hundred yen."

With a smile as if he had been waiting for this, Ichijou countered me in his trap.

"The correct answer is, 'neither is correct.'"

"Huh? Isn't a hundred yen just a hundred yen?"

"Milady, is that hundred yen really worth a hundred yen?"

"?"

Wearing an expression of confusion in response to his discourse, I witnessed Ichijou extracting a ten-thousand-yen bill from his wallet. In a choreography of unfolding and returning money, he situated the ten-thousand-yen bill adjacent to the hundred-yen coin and asserted.

"Please think carefully, Milady. Do you truly believe that this piece of paper holds the same value as these one hundred coins?"

"..."

I fell silent.

This represents the revolutionary and fundamental idea in modern economics – the essence of trust.

"We are conversing under the premise that this is one hundred yen ¿"

"To be more exact, our trust relies on the assurance offered by a third party, namely, the Bank of Japan – or, in simpler words, the government. This encapsulates the core of modern societal currency, recognized as fiat currency*."

[T/N- Credit Currency]

Ichijou stopped there as it seemed he reached half of lecture ,he continued.

"I feel a bit thirsty. How about a coffee break?"

"I prefer grape juice!"

"Understood. I'll have it prepared, so please wait."

Tachibana exited the room. Unbeknownst, I, gradually engrossed in the unfolding lecture, fleetingly pondered that had I been privy to such insights in my previous life, my ultimate fate might have been different. Nevertheless, as Tachibana and Aki-san arrived with beverages and confections, my stomach audibly expressed its hunger.

"Indeed, it's your preferred pudding, Milady."

"Hooray! Pudding♪"

Ichijou who was enjoying the coffee resumed the lesson at that moment.

"Milady, that pudding looks delicious. If you don't mind, would you sell it to me for a hundred yen?"

"I won't sell it for a hundred yen! This pudding has much more value!!"

Wanting to buy the pudding for a mere hundred yen is no laughing matter; I strongly decline. The homemade pudding by the maid is not only tasty but also comes with a hefty price tag. Noticing this, Ichijou effortlessly takes out a ten-thousand-yen bill.

"Well then, would you sell this pudding for ten thousand yen?"

"Ugh!"

Despite my current refined demeanor, my past life as an ordinary person stirred a visceral response to the value of ten thousand yen, eliciting a subtle chuckle from the trio.

"Lady, we appreciate your high regard for our pudding. Ichijou-sama, please don't trouble the young lady much."

Ichijou raises his hands in surrender at Aki-san's remark, and I join in with a innocent appeal. In response, everyone shares a laugh.

"I won't eat it, but could you lend me a bit of that pudding for a moment?"

"…Okay don't dare to eat it."

Ichijou places a ten-thousand-yen bill in front of me and brings the pudding to his side. This act likely signifies that I sold the pudding to Ichijou for ten thousand yen.

"Now, The expenses of ten thousand yen to secure this pudding wasn't for personal indulgence but rather with the intent of reselling for profit. Tachibana-san, would you contemplate acquiring this young lady's pudding for twenty thousand yen??"

Sipping black coffee, Tachibana glances at the pudding and responds casually, "I'm not a fan of sweet things."

In a well-executed theatrical manner, Tachibana states his dislike for sweets, leaving Ichijou looking genuinely troubled. At this point, I understand the role that pudding plays.

"Troublesome indeed. I don't particularly want the pudding, and if left untouched, it will spoil, making it unusable for sale. So, Milady, would you buy back this pudding?"

"For a hundred yen, I'll take it♪"

I pick up the hundred-yen coin from the table and hand it to Ichijou. He accepts my hundred yen, returns the pudding, and then continues with the shameless act.

"Although I managed to dispose of the pudding, my wallet is now missing ten thousand yen. If my wife sees it and asks, 'What did you spend ten thousand yen on?'—cue marital discord, right?"

This is the essence of bad debt. The desire of the buyer influences the price, and if a buyer isn't found, the price drops. It illustrates the difference between book value and market value.

"In this scenario, I, who somehow acquired money through dubious means, handed ten thousand yen to Ichijou, preventing a marital crisis."

"Exactly. Milady, even with a ten-thousand-yen pudding, it can lead to a marital dispute. Non-performing loans like land and stocks involve much larger sums."

Now, with a serious expression, Ichijou declares. Being on the forefront of the bubble and its collapse, his words carry weight.

"Even the second-class Regional Bank, Far Eastern Bank, had non-performing loans that amounted 45 billion yen. And it's after various disposals, Far Eastern Bank's bad debt could have approached nearly 100 billion yen at its peak. Hokkaido Development Bank is a lower-tier city bank. Undoubtedly, its bad debt amount should be a level above Far Eastern Bank."

So can trillions of funds could be secured? If there was time, it might be possible through the IT bubble. However, Hokkaido Development Bank is set to collapse in autumn due to a market sell-off. Clearly, time is running out.

"In that case, we only have one option."

While eating pudding with a serious expression, I boldly proclaim.

"BOJ( Bank of Japan) Special Loans. Devise a plan, move the Ministry of Finance, to secure BOJ Special Financing (Loans).