Sold Off

Another week passed, and the war intensified.

The naval forces of the Kingdom of Denmark and Lübeck had clashed three times, with both sides claiming victories and defeats.

Edward, though not fully versed in the intricacies of the war, watched as more and more prominent and retail investors were drawn to the Lübeck Stock Exchange by the allure of paper cannonballs, placing their bets.

Under the watch of Uncle Muller and the young Baron, the long positions in their accounts were entirely offset by short positions. The risk had been reduced to zero, completing the "daring leap" Marx had spoken of. In essence, the cannonballs had been sold off at their peak.

All of them were sold to the citizens of Lübeck, as well as other large investors.

Edward watched as their accounts balanced out—no positions remained, just cash.

Uncle Muller and Baron looked at the sum in their accounts, and in an unbelievably short time, it had nearly doubled, causing them to be overcome with joy.

Immediately, they were ready to give Edward the agreed-upon 20% profit.

Edward shook his head. "There's one more speculative move to make. The cannonball price is at a historic high, and once the war ends, it will inevitably crash. We need to take a two-pronged approach and start playing the role of the great short-seller."

Baron, full of admiration, asked, "Boss, you are truly brilliant. How did you price these contracts? Is there a formula?"

Edward smiled. "Well, if we're talking formulas, it's all about speculation versus investment."

"Speculation is pure gambling. It's about forcing the trade, driving the opponent to bankruptcy."

"Investment is the path of a long, steady climb—thinking long-term, envisioning what the world will be like ten or fifty years from now."

Baron hesitated. "It seems speculation is simpler. We've set up the exchange, we can see our opponent's cards, we know their liquidation points, so we manipulate the prices to hit those points and drive them to bankruptcy."

"Baron, you must look at things from a higher perspective. Right now, you're not just a common merchant; you're the Emperor of Germany. You need to think about Germany's future. Or ask Uncle Muller—if you run a casino and cheat constantly, would anyone still come to play?"

Uncle Muller quickly interjected, "I've never cheated in my casino business. This industry is built on trust. Please don't spread rumors."

Edward nodded sagely. "See? Whether in finance or in a casino, it's all about trust."

Baron now understood. "Investment is the right path."

"An investor's formula is the simplest: it's a comparison of profit and interest rate."

"I understand profit, but what's the interest rate?"

"When I open a bank, you'll understand what interest is. To put it simply, if the return on investment isn't greater than what you could earn in a bank, then you'd rather put your money in the bank."

"So, in short, it's all about making a bigger profit?"

"Yes, and on a macro level, when there is more loose capital in society, asset prices will rise. When there's less floating money, asset prices will fall. It's the principle of 'when the water rises, all boats rise; when the water falls, all boats fall.'"

Baron was astonished. "There are so many influencing factors!"

"That's why asset pricing is such a complex science. It's also a team sport. How do we make sure that every German citizen has money?"

"If every common citizen has money, there will be more floating capital, and asset prices will rise."

"Exactly. This is about the fortune of the nation. This is a team effort. From the perspective of the country and the nation, this is a team sport. When the team excels, the nation's assets will rise eternally. When the team fails, the nation's assets will eternally fall."

"If the assets are eternally falling, it's like cheating. No one will play anymore. If everyone is losing, the exchange will close."

"Exactly, Baron. You've nailed it. So, we'll establish a stock market in the future and ensure that stock prices always rise."

"So, cheating should be done in a way that pushes prices upwards. This will help build positive credit."

"But right now, my funds are still limited. I need to open both a bank and a stock market, so we'll only make one big harvest this time. In the future, we will still need to manage our credit carefully."

Uncle Muller nodded, "Edward, I think I finally understand. You're a genius. Right now, you need the funds, so you're willing to use any means necessary. In the future, as your interests align, you'll become more German than even the Emperor of Germany. I'm finally at ease."

Edward frowned. "At ease? Were you worried about me?"

"A genius who does great evil becomes a tragedy for the entire nation. I, a petty criminal, can at least provide work for the worst of my kind. But you, a genius, if you choose to do evil, Germany will be finished."

"I understand. The nation and the people mean everything to me…"

Later that night, Edward lay alone in bed.

He couldn't help but think back to his previous life, and a wave of sorrow washed over him.

As a factory owner, caught in extreme competition, he had reached a point where it seemed everyone was an enemy. Edward had nearly gone mad.

One day, while on Twitter, he found himself in an argument with someone criticizing entrepreneurs.

The pressure was immense, and he snapped, arguing back online.

Their reasons were simple: long hours, extreme self-interest.

Edward's reason? The factory was barely making a profit, so it had to cut costs and increase efficiency.

It was a battle of the lower class.

Only after Edward crossed into the 1370s and entered the Hanseatic League did he realize that the factory owner was also from the lower class.

The true upper class were the traders.

They dictated what goods the world needed.

Or rather, the market did, and the traders were the market itself.

And above them, the financiers.

They could manipulate the market through what seemed like magical operations.

The factory owner and the manor owner were at the same level—producers, always begging, in constant competition, and ultimately doomed to fail.

The manor owner had an army but couldn't find the enemy.

The factory owner had advanced productivity, but with overproduction, they went bankrupt.

Edward had felt that everyone was out to harm him. Overwhelmed by pressure, he had considered ending it all.

But now, in this new world, it took him months to regain his composure.

Who in their right mind would deliberately sell their goods at rock-bottom prices?

It wasn't the factories leading the way.

If you didn't lower prices, consumers would only buy cheap goods. If you didn't adjust, you were finished.

To survive, you had to lower prices.

Then came the vicious cycle... until you became the "crazy" one in everyone's eyes.

In the end, unable to pay the loan's interest, it all ended in disaster.

Now, in this life, Edward vowed to use every means necessary to prevent the appearance of an oversupply economy.

Free markets and free competition inevitably lead to an oversupply economy, so a market of order must be created.

To prevent the emergence of an oversupply economy by any means necessary.

Therefore, in this life, Edward must rise to a higher position to transform the world into one of order, not one of freedom.