Before diplomatic relations were established between the Federation and Nagaryll, there were already voices in society claiming that the federal governnt was selling out national interests for the sake of so-called international image.
They argued that the governnt was providing abundant jobs and investing heavily in Nagaryll, aiding its developnt, while ignoring dostic issues.
Even today, so still believe this. They see vast amounts of money being wasted in Nagaryll, benefiting only capitalists and a select few dostically. anwhile, factory owners and capitalists have downsized businesses at ho, resulting in more people losing their jobs.
So remain deeply dissatisfied and resentful. If, at this mont, it were revealed that a large portion of the foreign exchange reserves had beco worthless, these people would likely erupt.
While strikes, protests, and demonstrations may be novel to the Kingdom of Nagaryll, for the Federation, they are part of everyday life—happening all the ti.
People were watching Mr. Truman. So reporters, especially foreign ones, seed to revel in the chaos. They enjoy seeing the Federation in trouble.
Faced with this tricky issue, Mr. Truman showed no emotion. In fact, a trace of disdain even flickered across his face.
He adjusted the microphone in front of him—a habitual gesture—and just as attention shifted to his hand, he began to speak.
“We signed a morandum on the Joint Developnt of Nagaryll’s Industry and Economy with the authorities in Nagaryll. Many of you might not be familiar with it, as we didn’t fully release it to the public. It’s not a governnt contract or a legal regulation—just a morandum.”
“But so parts of it are well known. For instance…” He chuckled, “our agreent to hold each other’s currency. This was ant to push the appreciation of the Valier, helping reduce Nagaryll’s trade deficit and allowing more money to flow into their broader society rather than being hoarded by interest groups.”
“The morandum stipulates that both the Baylor Federation and the Kingdom of Nagaryll will hold each other’s legal tender as fixed foreign exchange reserves. These funds are not to be arbitrarily altered or used.”
“We also placed restrictions on obligations. If the federal political system changes—for example, if so ambitious figure alters the current regi—or if Nagaryll’s ruling structure changes—say, the royal family is overthrown or sothing else happens…”
“If the sovereignty or political structure of either governnt becos unstable, the other party has the right to suspend all clauses in the morandum until stability is restored.”
Mr. Truman smiled, glanced at the docunt on the table, then tossed it aside. “So we’ll soon retrieve our funds stored in the newly established Nagaryll central bank, once the situation there stabilizes.”
After a mont of stunned silence, the reporters suddenly grasped what Truman ant—the money wasn’t lost. They could get it back.
Hands shot up everywhere, with reporters eager to ask follow-ups—was all of this preditated?
This reaction was understandable. Everything seed too perfect—almost as if the governnt had anticipated every outco and prepared accordingly.
This raised a new question in their minds: When did our governnt beco this efficient and precise?
Thus, conspiracy theories were born.
In fact, all institutions that had openly bought into the Valier had already pulled out. The Federation invested the most, but also had the most secure protections in place. The federal governnt even profited modestly through a series of safe trades.
The Valier had been widely used in the import of various materials. This was a key factor in the currency’s appreciation—ant to reduce trade deficits for foreign investors in Nagaryll.
So might ask: How does currency appreciation impact international trade?
It’s actually quite simple.
Previously, you needed 100 Sol to buy 100 parts. Now, thanks to currency appreciation, you only need 50 Sol to buy the sa 100 parts. That’s 50 Sol saved.
This freed-up capital gives you an advantage in trade—doing more with less. That’s the benefit of a stronger currency (assuming money supply remains constant).
Of course, there are downsides. While appreciation helps with imports, it hurts exports—since exporters receive less money for the sa goods.
These are just simplified examples. In reality, the relationship between currency, society, and trade is far more complex.
The federal governnt and rchants profited significantly from this deal. They paid Nagaryll’s already ager wages at half price and used the strong federal sol to purchase raw materials with Valier, cutting costs further.
In the end, even a reserve of several billion Valier likely yielded greater real benefits for the Federation, the Joint Developnt Company, and all its affiliated businesses than the nominal value of that reserve.
Now they could retrieve the money as well. The whole plan was so tight, it couldn’t be a coincidence.
Looking at the crowd of reporters practically crawling onto the table, shouting, Pick , damn it! Mr. Truman chose another dostic reporter.
Dostic reporters wouldn’t ask too many sensitive questions—they had to live and work here, after all. They knew their limits.
“Thank you, Mr. Truman. My question is: if the Nagaryll authorities request federal intervention in their current crisis—including, but not limited to, political or military support to help the royal family achieve real unification—would the Federation consider it?”
A sensitive question. Would the federal governnt intervene in another country’s internal affairs if invited?
Still sensitive, but less speculative than the previous question.
“Absolutely not. Once again, I declare to the public and the international community: the Federation is a peaceful, freedom-loving nation. We do not interfere in the internal affairs of other countries, even if requested to do so by the authorities…”
“We respect the sovereignty of all nations and the rights of all humanity. We will not use our political or military power to intervene in the internal affairs of other countries. That is our principle!”
Nagaryll was growing hotter by the day—both in temperature and political tension. Fueled by dia and public discourse, what began as a social issue had beco a matter of national survival.
More and more provincial governors were turning against the royal family, eroding its legitimacy. Scandals involving the royals erged:
Rape and murder of civilian won by royalty. Embezzlent and overseas transfers of public funds. Blasphemy.
In Nagaryll, nearly all rulers were guilty of sothing. With money, they could buy divine forgiveness and evade punishnt—creating a class of wealthy, powerful people who broke laws with impunity.
Rape, murder, abuse, and slave ownership were common among the elite.
One or two cases might not have caused a major uproar. People might get angry, but nothing would change.
Now, however, these scandals were like fuel poured onto a raging fire. Public outrage grew fiercer.
More citizens, organized by activists, began demonstrating around the royal palace. So hurled bricks over the palace walls in protest.
In a tall building near the palace, several n from the Federation watched the chaos.
“Did you hear? Lynch sent in another batch of n. I heard his Blackstone Security team now has over 2,000 staff here. How did he get the Defense Departnt to sign off on that?”
The surging crowd reminded one of them of a troubling issue, prompting the question.
With Nagaryll potentially slipping into chaos—or even war—Lynch had dispatched more trained, ard personnel to protect his assets and those of other federal investors.
A 2,000-man ard force is no small matter. With proper equipnt, they could launch a small-scale war at any ti.
Nagaryll is so important that deploying ard personnel there requires prior approval from the Ministry of Defense. The reason is that both the Ministry and the federal governnt refuse to send ard forces—of any kind—to any sovereign region, even if those forces are privately owned.
Applicants must submit personnel lists and undergo a review process. But Lynch seed to bypass all of that—his n arrived directly, in far greater numbers and with far better equipnt than anyone else’s. It left people puzzled.
A man sitting on the sofa reading a newspaper chuckled and said, “If your people are fresh out of the army and still under military-style managent, they’d let you do the sa.”
The one who first asked the question followed up, “Lynch has a good relationship with the army?”
“He’s close with Truman. And Truman has plenty of connections in the military…”
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