ARCHDEUS

COMPANIES(1)

Who could have guessed, their meeting with Alex actually began with the mockery and anger of the baron.

The entire board of directors could only shut up and listen to Alex's lecture with their heads bowed. No one dared to deny the noble's words on this one. Although all the board of directors are middle-aged but age-based seniority does not apply when they face Alex who is only a 19-year-old.

Meanwhile Justin just sat quietly and continued to observe the expression of every member of the board.

His expressionless face did not show the spirit he had in mind at all. He enjoyed it very much when he saw his master scolding others. Justin felt the satisfaction because finally there are people who can feel the pain he gets every time Alex is angry.

"... and you feel that your thoughts are correct so you dare not even follow my orders? This is the first time I've met all of you and this is what you've given me after all your years managing this company? If it wasn't for Young Master of Morhust, I'd have asked for your resignation one by one."

Alex scolded everyone so much that it made everyone ashamed of their reddened ears. Either it's because of embarrassment or maybe their ears are already overheating because they have to hear Alex's nagging that comes out like an assault bullet.

I don't know how much time has passed but in the end they can be a little relieved because Alex's anger has subsided.

Justin who had only been sitting quietly all this time quietly nodded proudly. He did not expect all directors to be able to withstand the nagging issued by Alex.

For a new kid, they don't look too bad, Justin thought.

He could see everyone was tired and no longer excited. It was likely that their mental state had already fallen when scolded by Alex. Naturally, who would not be afraid when a healthy young man with a height of 1.96 m and full of muscles was rampaging in front of them. Anyone would have been afraid let alone imagine a steel-hard bogem hovering on their faces.

But over time they will get used to it like Justin. Every time Alex scolded him, all that nagging would go into the right ear and out into the left ear. He may put on a sad and guilty look like a sinner but when all is done, he will come back cheerful and forget what just happened. So you could say Justin an 18-year-old with a height of 1.70 m is their senior in terms of receiving all Alex's jokes.

Alex is Alex. He also explained the meaning of his orders that were not carried out.

"I want you to know the reason why I want us to enter that sector is because there is still no company that moves there. It's a place of intermediation between people who have more funds and people who are underfunded."

What Alex wants to explain is his desire to create a banking industry.

During this time, the financial sector has always been played by large venture companies that are all owned by people with abundant funds. But not all of these funds managed to be channeled. That is because of the high costs and risks that sometimes have to be borne in the inclusion of capital.

Alex's argument is based on the old idea of the quantity theory of money with a simple equation that can be written as follows:

MV = PT ..................... (1)

If M can be interpreted as the money supply; V is the velocity of money (the velocity of money turnover); P is inflation or general price; and T is the volume of transactions, can be understood from equation (1), the magnitude of the inflation rate can be seen by changing the equation to:

P = MV/T ..................... (2)

Can be seen as a result of the state financial system that fails to meet the needs of the community for money causing price discrimination that occurs in some areas. The cause is a financial facility that fails to distribute money. Not to mention that the country's financial system has not been integrated at all. Some organizations have their own exclusive financial system. For example, adventurer guilds that store funds and distribute funds only in their own safe. As a result, the money turnover will only occur around the adventurer guild alone. Opportunity fees are too high where they can actually use the funds to inject funds into organizations or companies that are in need of funds but they actually let all their gold coins rot in the safe.

So arguably in addition to based on classical theory, Alex was also inspired from the view of Institutional Economics about effective institutions. The existence of institutional exclusivism of the state either in politics or in the economy, making the distribution of wealth uneven and gave birth to ineffective institutions.

That's why Alex realized the importance of banking institutions in conducting intermediation and channeling funds. Although Alex's foundation of thought looks very noble and impressed according to his nickname as Alex the Pious, in reality Alex is a true opportunist. Realizing that no one is bothering about the financial system's flaw in the country, Alex realizes that this is a great opportunity for him to make as much profit as possible. If he succeeds in creating the banking industry and becoming a monopolist, he will be able to enjoy maximum profits that are very abundant.

Everyone was speechless hearing Alex's lengthy explanation and sheet.

Neither Clark nor the entire board of directors has offered any objection or denial. All were speechless hearing Alex's explanations from A to Z.

What Alex said had hit their minds all along. All realized that Alex's initially unreasonable orders came from a very brilliant idea. By exploiting the weaknesses of the country's financial system, companies can produce a lot of money.

In addition, until now there are still no companies that make the industry so that means they do not have to worry about entering the industry because incumbents do not exist at all.

Although everyone was silent but their eyes glanced at each other and seemed to be sending a clear message. Even if they don't talk about it, they know all their business experience looks pointless and useless when hearing Alex's analytical acumen firsthand.

For some who had known or at least heard of Alex when the young master was less than fifteen years old, they would think that Alex was a trashy noble. When they know or at least hear Alex while participating in the Otilia-Canadia feudal war, they will think that Alex is a brave man.  When they know or at least hear Alex while on a mission in Canadia and get the title of godly, they will think that Alex is a pious person and full of divine blessings. And now, when they hear and see through their own eyes what Alex has just said has made everyone think that Alex is a true business man.