"Well, let us be honest with each other: we are not going to stop borrowing money anytime soon," Jónás said, his expression serious as he explained the situation to the president. Although the financial situation had stabilised somewhat, the amount of money the government needed to invest in essential infrastructure remained enormous. Roads, bridges, and other public facilities still required substantial investment, and delaying those projects would only put the European Union further behind the rest of the world. Even with the new revenue from the secret realms, the government could not afford to stop borrowing without risking its ability to develop and maintain the country.
"The expectation within my department is that we will need to borrow another fifty billion silver coins at a minimum if we want to keep pace with the rest of the world," Jónás continued, making it clear that the problem was unlikely to disappear soon. The European Union had too many responsibilities and too much infrastructure to develop to rely entirely on the income it currently possessed. Although the money earned from the secret realms was a welcome addition to the treasury, it was not enough to change the government's long-term financial position. From his perspective, the most sensible approach was to treat the new income as an opportunity to build something that could benefit the country for decades rather than spend it immediately.
"That is why I suggest creating an investment fund with the money," Jónás explained, leaning forward slightly as he outlined his proposal. "We could let the fund invest in the market, generate returns, and gradually accumulate wealth for the country, much like the old Norwegian oil fund." His intention was to establish a financial asset that could continue generating income long after the current crisis had passed. If the fund were managed properly, it could eventually become a valuable source of revenue, reducing the government's dependence on loans and helping finance future development.
Jónás hoped that the fund would also contribute to the broader recovery of the European economy. Rather than allowing the profits from the secret realms to disappear into the government's ordinary expenses, the investment fund would preserve a substantial portion of that income and put it to productive use. Over time, its investments could support economic development while building up reserves for future generations. The country desperately needed a reliable source of wealth, and Jónás believed that establishing such a fund was one of the few realistic ways to create one under the current circumstances.
"That is a good idea, and it should be relatively easy to get it through parliament," Isaac replied after considering the proposal. He knew that he had the support of a parliamentary majority, which gave him a reasonable chance of passing the necessary legislation. However, having enough votes did not mean that every bill would be accepted without difficulty, especially when the public was already anxious about the country's financial situation. The government still needed to present its decisions carefully, because even a well-intentioned policy could create problems if it appeared to contradict the promises the ruling party had made.
Isaac had no interest in undermining his own party by introducing a proposal that could be portrayed as evidence of financial mismanagement. The government had already been forced to make difficult decisions, and the public needed reasons to believe that its leaders had a plan for the future. Fortunately, the investment fund offered an opportunity to present the new secret-realm revenue in a positive light. Instead of allowing people to focus solely on the government's enormous debts, the administration could explain that it was taking steps to turn a temporary source of income into a lasting national asset.
"Now, how are the preparations progressing with China and its Silk Road Initiative?" Isaac asked, turning his attention to another matter that interested him considerably. The proposed trade route had the potential to reshape the movement of goods across several regions, especially now that the changes to the world had made conventional transport and economic arrangements less reliable. India had also shown interest in the project and had contributed military personnel to secure the road through its territory. Even Russia, despite its strained relations with the European Union, had offered support because it wanted to secure a share of the economic opportunities the initiative could create.
The only major power that had not become involved in the project was the United States, although its absence was hardly surprising under the circumstances. The Americans had more immediate problems to deal with, and their government was already struggling to manage the upheaval taking place within its own borders. Meanwhile, the countries participating in the Silk Road Initiative had recognised that cooperation could provide economic benefits that none of them could easily achieve alone. For the European Union, the project offered a chance to strengthen its commercial position and establish new connections with markets that were becoming increasingly important.
"Things are moving in a positive direction," Jónás answered with a smile. "This month, the first caravans finally set out to travel to China and begin trading along the route." It had taken considerable time to organise the first expedition, since the participating countries needed to coordinate security, logistics, supplies, and the practical details of transporting goods over such long distances. Getting the first caravan underway was therefore an important milestone, even if it would take more time before the route could operate at its full potential. At least the project had finally moved beyond discussions and preparations into actual commercial activity.
"That is good news, but the Suez Canal should still be open, should it not?" Isaac asked, his expression becoming confused as he considered the alternatives. "If ships can still travel through the canal, why do we have so few vessels sailing all the way to China?" From his perspective, the sea route should have remained an obvious option for transporting goods between Europe and Asia. After all, ocean-going vessels had traditionally carried enormous quantities of cargo over long distances, and the continued availability of the canal should have made such journeys possible.
"That is largely the fault of the System marketplace, sir," Jónás replied with a pained smile. The marketplace had fundamentally changed the economics of international shipping by allowing people to trade goods with buyers and sellers across the world without requiring merchants to transport everything themselves. Under the current arrangements, it was often cheaper to pay the System's shipping fees than to send a vessel on a long voyage to China and back. Unless a merchant was dealing with something particularly valuable, rare, or otherwise difficult to obtain through the marketplace, there was little financial incentive to undertake such an expensive journey.
The result was that many merchants preferred to invest in caravans rather than organise long-distance maritime expeditions. A caravan could stop in every city and village along its route, buying and selling goods at each location while earning money throughout the journey. Those opportunities made overland trade attractive even when travelling by land was slower or more dangerous than transporting cargo by sea. Instead of earning money only when a ship reached its distant destination, merchants could generate revenue repeatedly as their caravans passed through different communities.
Ocean-going vessels, meanwhile, had found other routes that offered more immediate returns. Companies could earn substantial profits by transporting goods between Britain and the European mainland, as well as between the various European countries along their coastlines. Those shorter routes allowed ships to complete more journeys in less time, reducing the risks and costs associated with long voyages. The continent of Africa and the Middle East also lay relatively close to Europe, providing further opportunities for maritime commerce without requiring merchants to sail all the way to East Asia.
Naturally, those regions had their own difficulties, particularly when it came to piracy. However, pirates were generally not a serious problem for ships that were properly staffed and equipped to defend themselves. In some circumstances, the additional risks could even create opportunities for well-prepared merchants to earn more money by transporting goods that others were reluctant to carry. Jónás had personally tried to encourage merchants to consider longer voyages, but the System marketplace had made it difficult to convince them that such journeys were worth the investment.
"Well, it seems that a great deal needs to change before we can improve our economy," Isaac remarked, looking increasingly dissatisfied with the limitations imposed by the current system. The European Union could develop roads, establish new trade routes, and encourage private investment, but none of those measures would automatically restore the economic conditions that had existed before mana arrived. The System marketplace had changed the way goods moved around the world, making some traditional businesses less profitable while creating entirely new opportunities elsewhere. Governments therefore had to adapt their economic policies to circumstances that were still evolving, rather than simply attempting to restore the old arrangements.
"Still, it is better than relying on those coin mints that produce practically no real money," Isaac added with disgust. The machines had initially appeared to be an extraordinary solution to the shortage of currency, offering governments a way to produce coins when conventional financial systems could no longer meet the demand. On paper, they seemed almost miraculous, particularly when the alternative was allowing economic activity to grind to a halt because people lacked the money needed to buy essential goods. In practice, however, the benefits had been much more limited than many officials had hoped.
The coin mints also required protection, maintenance, and personnel, which meant that they were not nearly as inexpensive to operate as they had first appeared. In some cases, the money produced by a machine was not even enough to cover the cost of employing the local police officers needed to guard it. Although the machines had helped alleviate the currency shortage, they had not provided a sustainable solution to every financial problem facing the governments that relied on them. Their limitations had become increasingly obvious as the demands of the new world continued to grow.
"Yes, I know they are not the best things we have discovered," Jónás acknowledged, understanding the president's frustration. "However, they have helped us understand more about how the currency is formed, and they bought us time when we desperately needed it." The machines had provided governments with a temporary means of keeping money circulating while officials worked to understand the new economic conditions. They had also helped calm public anxiety during a period when people were uncertain whether their existing financial arrangements would continue to function at all. Even if the machines were not ideal, Jónás believed that their contribution during that difficult period should not be dismissed.
The government had also faced considerable criticism from economists who argued that the coin mints would never produce enough money to support a functioning economy. Those critics had not necessarily been wrong about the machines' limitations, but the government had still needed to do something when the shortage first became apparent. Telling the public that there was simply not enough money available would have done little to reassure people who needed to buy food, pay for services, and maintain their livelihoods. The machines had at least provided an immediate response while more sustainable solutions were being developed.
There was another problem that made the machines useful despite their shortcomings: the denominations they produced were not always suited to the everyday needs of ordinary people. A copper coin was worth too much for many small transactions, making it difficult for people to pay for inexpensive goods or services without overpaying. The economy needed smaller units of currency that could be used for daily purchases, and the wooden coins provided a practical way to fill that gap. Although those coins were less valuable individually, they allowed people to conduct ordinary transactions that would otherwise have been inconvenient or impossible.
Unfortunately, producing enough wooden coins to support a functioning economy had taken governments around the world years. The task required a substantial effort, especially as each country had to ensure that people possessed enough small-denomination currency to conduct everyday business. Until sufficient quantities were available, even communities that possessed larger coins could struggle to make ordinary purchases. The transition had therefore been slow and frustrating, but it was necessary for the recovery of daily commerce.
Fortunately, the governments had eventually managed to produce enough wooden coins to keep their economies functioning. The process had not solved every financial problem, nor had it made the coin mints an ideal long-term solution, but it had prevented the shortage of small denominations from becoming an even greater obstacle. For Jónás, that was the important point: the machines had served their purpose during a period when the government had few alternatives. Now, with revenue from the secret realms and plans for a national investment fund, the European Union could begin concentrating on more sustainable ways to strengthen its economy.