Chapter 493: Panic(2)
Chapter 493: Panic(2)
The dwarf factories of Machina declared a simultaneous strike, and the Dwarf Trio, led by Eins, stepped up as the central figures of the movement.
Information of this magnitude could not be contained, even with the censorship of Bourgeois V. Consequently, news that a revolution was erupting in Machina spread like wildfire.
Spies and journalists planted by the Minerva Empire and other nations reported on Machina’s situation in real-time, exposing the reality of the dwarf factories.
Though nearly a hundred years had passed since the abolition of slavery, the fact that human trafficking still occurred—treated with the same disdain as demon worship—was a known shadow. However, the world was horrified to learn that the reality of the dwarf factories was, quite literally, "legal slavery." Numerous scholars criticized the system while simultaneously cheering for the cause.
[Will the Revolution End in Success? Or Failure?]
[Rumors Circulate That the Dwarves Leading the Revolution Met with Xenon...]
Initially, everyone debated whether the revolution would succeed. It was only natural, as the pent-up frustrations of ages had finally exploded, drawing all eyes to the event.
Dwarves were fundamentally known as a jovial race with legendary patience. It was often said that as long as you didn't wound their pride, they were the best people to deal with, second only to the Demon Clan.
But the fact that they had reached their breaking point meant the exploitation in the factories had been truly severe. Scholars were initially delighted, claiming this unprecedented social phenomenon was a goldmine for research, but...
[Foreign Investors Pull Out as Machina’s Political Situation Destabilizes.]
Things began to take an ominous turn. In any country where politics become unstable—especially when revolution or civil war breaks out—foreign investors are the first to flee.
This was common knowledge to anyone with a basic understanding of international affairs, so most weren't overly concerned at first. The real problem came next.
[Production Halts Due to Dwarf Factory Strikes. Not Just Production, but the Entire Supply Chain is Collapsing.]
[Number of Dwarves Fleeing Abroad Increases, but This Alone is Not Enough to Avert Danger.]
[Minerva Empire’s Merchant Groups and Trading Houses in Chaos Over Sudden Disaster...]
It wasn't just that production lines had slowed down; they had snapped clean off. A cascade of problems began to erupt.
The disruption of the supply chain was just the beginning. Merchant groups and trading houses that conducted business through those chains began to go bankrupt one after another.
The Minerva Empire, which had prided itself on being an economic powerhouse with a more sophisticated economic structure than any other nation, was thrown into a panic.
The high-ranking officials weren't fools; they had anticipated some level of disruption and moved to lower interest rates and tariffs to prevent their domestic firms from collapsing. Because they had established institutions and departments to manage finance, they were able to prepare quickly.
[Unemployed Driven into the Streets. Stock Market Shows No Sign of Stopping Its Plunge...]
[Unexpected Calamities Strike in Succession, Paralyzing the Economy.]
[Prices Skyrocket Due to Supply Shortages. Yet, No Jobs to be Found.]
[Minerva Empire’s Financial Department: Lowering Interest Rates is a Foolish Choice. Rates Must be Raised.]
It was all for naught.
The Minerva Empire, and indeed the entire world, had assumed the current situation was merely temporary inflation. Inflation wasn't unprecedented in history, and they optimistically believed they could weather it with their unique economic strength.
However, this incident threatened to bring their painstakingly built tower crashing down.
[Economic Foundation Shaken by Counterfeit Currency Spread by Demon Worshippers.]
[Military Budget Increased Following the Past Ascanal Incident...]
[While Clear Causes Exist, It is Impossible to Discern if They are the 'Root Cause' or Merely the 'Fuse.']
The even greater problem was that the revolution in Machina might not be the "cause," but rather the "fuse."
The Minerva Empire had already been reeling from a series of incidents that had battered its national strength.
First was the Ascanal Incident—the event where an enraged dragon nearly wiped the capital off the map. It was the event officially resolved by the Red Lion, my father, and the army.
But what kind of creature is a dragon? They are the absolute pinnacle of monsters.
For such a monster to suddenly descend upon the capital was more than just a bolt from the blue for the Empire; it was practically a divine punishment. A single breath had leveled countless buildings, and even clearing the dragon's carcass had consumed an enormous amount of national resources.
The aftermath was the same. Fearing a recurrence, the Empire’s leadership funneled even more of the budget into capital defense. To put it simply, it was an event on the scale of the 9/11 attacks. Monsters were already a practical threat, but this had elevated that threat to a whole new level.
[Investors Had Already Withdrawn Once Due to Imperial Power Struggles.]
[Though the Conflict Ceased with Emperor Berit’s Accession, Political Strife Takes a Long Time to Subside.]
Second was the struggle for the throne. The Kingdom of Ters was relatively stable politically due to its "Commoners' Assembly," but the Minerva Empire was different. Most of the power was concentrated solely in the Emperor. While this was ideal when stable, the mere fact that a conflict had occurred was a major setback. If the Minerva Empire had possessed a Commoners' Assembly, the shockwaves might not have been so severe. That was their great regret.
[Counterfeit Currency Spread by Demon Worshippers Not Fully Recovered...]
[Agricultural Prices Rising Due to Famine in the East...]
[Raw Materials for Processed Goods Previously Handled by Dwarves are Piling Up.]
With various other incidents piling up, the Minerva Empire was left with nothing to say but "Fuck."
Each issue might have been manageable in isolation, but the revolution in Machina had triggered a chain reaction.
As if things weren't bad enough, there was something even worse: these were just the events within the Minerva Empire.
[The Squares of the Duchy of Bellua Grow Desolate. Guards Busy Clearing the Bodies of Investors and Merchant Lords Who Committed Suicide.]
[Kingdom of Ters: Monster Suppression Becoming Difficult Due to Lack of Military Supplies from Minerva and Machina. Human Casualties Mounting.]
[Animus: Introduction of Democracy Suspended for the Foreseeable Future Due to Sudden Price Hikes. Solving the Food Crisis is the Priority.]
[Albenheim: Expanding Land to Solve the Global Food Shortage. However, Concerns Grow Over the Devaluation of Currency...]
[Holy Nation 'Savior': Absolute Shortage of Medical Supplies. Supplies for the Grey Desert Expeditionary Force are Insufficient.]
As the Minerva Empire—the center of the world and its economic heart—began to crumble, a massive tsunami began to sweep across the globe.
It wasn't an exaggeration to say the situation mirrored the Great Depression triggered by the United States, which had caused the global economy to collapse.
People might find it strange. Sure, the economic structure is tightly woven, but isn't this a bit much? The Great Depression in America was the result of years of accumulated issues; how could this happen just days after a revolution started?
The impact was indeed comparable to the Great Depression, but the details were different.
The American Great Depression occurred because supply far outstripped demand. In contrast, this panic originating from the Minerva Empire was the exact opposite. Furthermore, the differences between "races" and the "fantasy" setting had birthed a malformed economic structure that led to an unimaginable national crisis.
[Machina Had Been Stable for 300 Years Since the Race War. But This Revolution Has Destroyed That Stability Entirely.]
[The Value of Dwarf Factories is Far Greater Than We Imagined.]
Usually, if "technology" is strong, "military power" tends to be strong as well. Conversely, while the Minerva Empire was strong in economic and military power, its technology lagged far behind that of the dwarves.
There was no real need for high technology when magic and mana existed. It was a malformed structure, typical of a fantasy world.
One might ask: why didn't the Minerva Empire just conquer Machina and take their technology?
To put it simply, they gave up because of the racial difference. Dwarves are a race of craftsmen. Even if dwarves were forced to teach their techniques, humans would likely just stare at them in confusion.
The same applied to the "mechanization" of magic, which only dwarves could achieve. Even among dwarves, it was a feat reserved for the "talented." For humans to learn this? It would be a waste of time and budget. Moreover, the dwarves were capable of "mass production," making them an irresistibly attractive option for the Minerva Empire.
To use a metaphor for better understanding, Machina was like a combination of China’s factories and German engineering. They churned out massive quantities, and the quality was top-tier. Who wouldn't buy from them? If you didn't, someone else would.
Machina had acted like a bully with that attitude for 300 years since the Race War, and the Minerva Empire had begrudgingly accepted it. Of course, this was strictly within the realm of "diplomacy"; they never provoked the Empire too much. Provoking them would only give the Empire a "justification" to invade, and they weren't that stupid.
If they had cut off the supply as abruptly as they had now, the Minerva Empire would have been furious enough to declare war. In fact, in simple raw material sectors like timber and stone, the Minerva Empire was far superior to Machina. That was only natural, given their population advantage.
[Should We Have Conquered Machina Even if it Meant Overextending?]
[They Would Have Just Cried for Independence Anyway.]
[What Was Bound to Happen Has Simply Happened.]
A malformed economic structure born from a unique fantasy world and racial differences. And the incidents that had shaken that structure to its core.
The Minerva Empire, Machina’s biggest customer, had developed its economic power to use its trade funds more efficiently, while Machina had continued to squeeze its dwarf factories as usual.
In my past life, someone once said that if China collapsed, South Korea’s economy would be destroyed.
In this context, it’s easier to think of South Korea as being the size of the United States. And that United States was now suffering from a supply shortage, causing the prices of all goods to skyrocket.
Stating it like that makes the impact hard to fully grasp. The structure was different, but the fallout was on the level of the Great Depression.
[The Revolution Broke Out in Machina, So Why are the Prices of General Goods Rising, Not Just Dwarven Ones?]
[An Item That Was 30 Silver Just a Few Days Ago is Now 50 Silver. The Price of Dwarven Goods Has Increased Tenfold.]
[Unemployment is Rising Due to Increased Interest Rates. The Unemployed Now Include High-Level Professionals...]
Starting with the revolution in Machina, the entire world began to groan under the weight of the panic. In the Duchy of Bellua, known as a merchant nation, guards cleared away the bodies of investors daily, while Animus suffered from food shortages. Albenheim was bleeding itself dry to solve the food crisis, but it was nearly impossible to do alone.
The country that suffered the least was Helium. Ironically, because they had been semi-forcibly isolated until now, they remained unscathed. They were trying to reach out and help, but it was nowhere near enough. It was a situation of absolute "supply" shortage, so there was little they could do.
Finally, the Minerva Empire, which had suffered the most...
"Hurry... tell me how to fix this... you irresponsible bastard..."
"There, there. Don't cry. Just calm down for a second..."
"How can I be calm?! Our Empire has never been broken like this before!"
Lina was a mess, sobbing uncontrollably. The stock market had crashed, investment capital had evaporated, prices and interest rates were skyrocketing without end, and the supply issue remained unresolved.
If this wasn't a Great Depression, what was?
Even the counterfeit currency spread by the demon worshippers hadn't been fully recovered. Currency value was dropping, and on top of that, prices were rising? It was like being punched in the back of the head twice in a row. It must have been incredibly painful for the usually haughty Lina to be clinging to me and crying like this.
The fact that she was even calling me a "bastard" showed that her mental state had completely collapsed.
"The New Deal! I saw it in your book! Can't we do something with that New Deal policy?! It looked like America recovered using that!"
Lina, who had been slamming the desk in a frenzy, suddenly seemed to remember something and looked at me with wide, sparkling eyes. Her sun-bright blonde hair was the same, but she had developed dark circles from the accumulated stress and lack of sleep.
Looking at her face, I felt a brief pang of guilt, but I couldn't help but give a bitter smile when she mentioned the New Deal. Seeing my expression, Lina’s face shifted from hope to despair.
"Why...? Why won't it work?"
"The Great Depression in America was a problem of demand, not supply. This, on the other hand, is a problem of supply."
"Has your world never experienced something like this?"
"It was exactly like this right before I came here."
The global resource shortage caused by Russia’s invasion of Ukraine. To make matters worse, the lingering effects of the pandemic that started in Wuhan, China, were still present. The United States had tried to stabilize the global economy by printing dollars, but Russia had stabbed everyone in the back. To top it off, the U.S. had raised interest rates daily to recover those printed dollars. South Korea had taken the full brunt of that impact as well.
"Normally, when prices rise, you should lower interest rates. But right now, they’re doing the opposite and raising them. Simply put, they’re telling people not to buy things."
"I know that. But people have to buy things. Between border issues and the immediate threat of monsters, we can't just stop."
"That is a bit of a problem."
As I explained at length earlier, the unique fantasy setting was once again a hindrance. The world was currently experiencing stagflation. In simple terms, the state was shouting, "Don't buy anything!" while the people were shouting back, "Are you telling us to just die to the monsters?"
They couldn't not buy things, but they had no money to buy them. It was a true dilemma.
"The solution is simple. It ends once the supply issue is resolved. For that to happen, either the revolution in Machina has to end, or..."
"We have to build our own independent supply chain, right?"
"Exactly. Maybe the New Deal policy could work in that sense. The idea of the state directly driving the economy is similar."
"Oh...!"
Perhaps relieved that there was a glimmer of hope, Lina’s eyes sparkled with expectation again.
"Of course, the New Deal wasn't a perfect solution. Like I said, the Great Depression was an absolute lack of demand. Domestic policies had their limits."
"Then what actually ended the Great Depression?"
"War."
"Holy sh—"
At the simple, blunt answer of "war," Lina’s beautiful face crumpled as she nearly let out a curse.
It made sense. In a time of absolute supply shortage, starting a war? A war, which had solved the Great Depression through "inexhaustible demand"?
I felt bad saying this to Lina, but Emperor Berit’s head would likely roll before they could even win a war.
"In other words, it’ll be hard to escape this panic for now. Unless the revolution in Machina ends quickly. Even if you try to fix the supply chain now, you’ll lack the supplies needed to build it."
"We won't know until we try. Fine, just tell me about this New Deal thing first."
"It’ll be difficult..."
"Just give it to me. Before I pull your 'roots' out."
She’s treating me like some kind of Golden Goblin—no, a penguin. But since I’m partly responsible for this mess, I suppose I should tell her.
As I said, the New Deal is a state-led economic project. I wasn't sure if it would fit a situation of absolute supply shortage, but perhaps the direction could be adjusted. I wasn't an economics expert, and this world’s economic structure was warped. There were bound to be people smarter than me who could figure it out.
So, I explained the New Deal. The term "New Deal" actually encompassed several constitutional amendments and laws. I only gave her the basic concepts and principles, not the specific details. That was knowledge I hadn't yet received from Mora.
"...That’s the gist of it. But remember what I said: the revolution in Machina has to end first. Keep that in mind."
"I got it. But you said war was what solved the Great Depression, right? Why exactly did America join the war? I’m curious about that."
"Are you actually planning to start a war?"
"I’d rather not have my head on a platter, thank you. But since the situations are similar, it wouldn't hurt to know. You’re not going to refuse to tell me this too, are you?"
Lina glared at me with sharp eyes. It was a silent threat: if I had any conscience left, I’d better talk.
I wasn't the type to sell out my conscience just to avoid spoilers. However, I didn't forget to warn her not to spoil it for others.
"The reason America joined the war was..."
I explained the entire context so she could understand.
"Wh-Why are you only telling me this now?! Are you actually an idiot?!"
"No. That situation is different from this one."
"Even if it’s different, the circumstances are similar! Who’s to say someone like Hitler won't appear in this world?! You really are a demon from another world, aren't you?! You’re trying to drive the world to its end even now!"
Lina, her face pale, accused me of being a demon. Adelia, who had been watching silently from the side, had an expression that said, 'Well, that's a bit much...'
"I need to solve the paper supply issue immediately. You, shut up and just write. Got it?"
"Aren't you overreacting?"
"Shut your mouth before I lock you in the palace and make you do nothing but write. I’m sure Lord Luminous would understand."
"..."
I could only scratch my head.
And a few days after the crisis comparable to the Great Depression erupted...
[Waves of Independence Growing Stronger in Stavirk.]
[They Emphasize Their Identity as a Sovereign People, Resisting to Escape the Grasp of the Minerva Empire.]
The Stavirk region began to cry out for independence. Fortunately, no one claiming to be the next Hitler had appeared yet.
'I’m about to explain National Self-Determination soon... should I tell Lina about that too?'
The problem was that another bomb was waiting to go off.