Kage no Jitsuryokusha ni Naritakute! 2nd Season Episode 5 Discussion

- Let's say a £1 note is worth 1 ounce of gold right?
- Now Let's say the public has put 100 ounces of gold into the bank.
- The public has been given 100 £1 notes.

- Right now the amount of gold = the amount of £1 notes, 100 ounces of gold and 100 notes.
- There is the equivalent of 100 onces of gold circulating in the economy.
- This is because the bank is holding the gold for safety and you have a note promising the equivalent vale as is stated on it.

- Now the bank has 100 ounces of gold but instead of only giving out 100 £1 notes they give out 200 £1 notes.
- This is equivalent to more gold than they have.

- This situation is fine because people don't want to have the physical gold as paper is more convenient.

- As long as the bank has enough gold to cover the expected withdrawals then nobody is the wiser.

- However, if everyone goes to the bank to withdraw all their gold at once then the bank will not have enough gold.
- Remember the bank has 100 ounces of gold but has given out 200 £1 notes.

This is basically what's happening. In the plot they're flooding fake notes into the economy. When people realise that the notes are fake they'll want to return to physical gold. However, when they all go to exchange their notes (called a run on the banks) the bank won't have enough gold to give out.

When one bank collapses, trust in all banks comes into question. Everyone will then go to the Shadow Garden bank (who also have less gold than the notes they've given out) and try to get their gold back.

As the £1 note only holds value because it is the equivalent 1 ounce of gold (back to the example above) when they realise there isn't enough gold the value of the note drops.

Hope this helps?

As a point of interest UK bank notes (at least The Bank of England bank notes) still say on them "I promise to pay the bearer on demand the sum of x pounds" as a recognition that the bank note itself is not actually money.

Exactly. Corporate Alliance goes down then as the domino's fall so does Mitsugoshi.

No problem man, happy to explain as I love this sort of thing. I could go on about this stuff for days so I'm just glad my explanation has helped you understand. Plus if you understand it more you'll probably enjoy the show a bit more. I think in the next episode they'll visualise the moving of the gold and stuff so that may have helped it click for you if I hadn't.

The below paragraph is just explaining the next step of the plan and then a below that I go into the real world a bit. So fell free to read it or not, I'm just glad I was able to help somewhat.

Now, what the Cult are planning to do (which is also what Cid is doing but Cid has acted first) is to trade out their notes for gold before the crash happens. That way they keep their assets safe as the bank no longer holds any of their gold.

This is basically how the real world works, except in the real world we have national banks who print the money instead. Also, when we have runs on the banks the State will usually step in and print more money to stop the collapses.
IRL we print more notes to get out of collapses because our money isn't linked ("pegged") to gold anymore like in this show. (UK since I think the 1920s and US in the 70s sometime) so we literally just print money and as long as our economies are stable or at least more stable than the rest of the world the currency keeps it's value.

We do still see bank runs however in the developing world, Venezuela had one I believe a few years back and Germany Post WWI had a horrific one, as just a couple of examples.

This is all basically what creates inflation. Inflation is essentially when more money is created than is backed by assets such as gold. As people no longer have faith that the £1 note is worth the 1 ounce of gold. They precieve that to get the 1 ounce of gold you will have to give more than just the £1 note.