(This chapter is still recommended to be read over and over again.)
The Prophet Daily, December 27, 1989:
"After November 9, 1989, in order to cope with the financial deficit caused by the fall of the Berlin Wall, Germany began to issue a large amount of national currency. This directly exacerbated Germany's domestic inflation. The huge inflationary pressure forced the Federal Bank of Germany to raise the national interest rate. However, under the cover of the economic crisis, we still have reason to suspect that the Black Wizard of Germany's magic world still has the idea of rescuing their former leader, Gelert Grindelwald, from Nurmengard."
Jon closed the newspaper in his hand and tapped his fingers on the table twice, which made the librarian, Mrs. Pings, roll her eyes.
After gently apologizing, Jon rolled up the newspaper in his hand and tucked it under his arm. He then turned and walked out of the library.
It had been a week since he came to Hogwarts. During this week, Helga would only see him once every two or three days. The two had a tacit understanding. Every time they went to class, they were very precise so that Jon would not be too tired the next day.
As for the Hogwarts homework, it was not difficult for Jon. With a little time, he could get a decent grade. Jon did not show extraordinary talent in flying class, so as long as he did not actively participate in the sport of Quidditch, he had nothing to do with it.
Helga gave him a lot of homework. For example, the Prophet Daily that he just read was the homework that Helga gave him after he told Helga his thoughts on Wednesday night.
Today was Saturday, and he would continue to enter Helga's portrait space in the evening. Before that, he had to sort out the content and tell it to Helga.
Then Helga would make some inferences, including various possible inferences, and Jon would be responsible for finding the most likely one.
Of course, this was not homework. This was part of Jon's learning.
Just as Helga had said, an excellent Wizard must have a keen sense of judgement to avoid danger as much as possible.
Jon had recently found a small corner on the eighth floor of the castle. The window there was at the corner of the castle, and one could see the entire Hogwarts. Because it was on the eighth floor, although students were not prohibited from going there, very few people would go there.
Jon often came here, and most of the time, he was meditating. The Hogwarts had a good environment for magic, and it was good to meditate here.
The rest of the time, Jon usually spent in a daze. His state was similar to that of meditation.
However, when Jon was in a daze, he was thinking about many more things than usual.
Just like the article he had just read, he knew that not everyone in the magic world was a fool. There were also people who could see the urgency of the situation.
However, choosing to publish this inference in the Prophet's Daily Newspaper was a huge mistake. The people in the Prophet's Daily Newspaper had already lost all their credibility over the years.
This newspaper was the mainstream media in the British Wizard world, but it had reached the point where no one would believe these inferences except for some factual news.
It was not a big problem that no one believed it. At least in Jon's mind, he did not react immediately. Who would have thought that the black Wizard who advocated violence also began to use his brain and tried to use the economic war in the Muggle world to hide his true purpose?
In the Wizard world, the biggest problem was that the Wizards were too conservative. On one hand, the pure-blood Wizards were hostile and contemptuous to the Muggle, and on the other hand, they thought too highly of themselves. However, they did not expect that today's Britain was no longer the powerful empire where the sun never set. The situation in the Wizard world was not much better than the Muggle world. New Wizards from various countries were popping up like bamboo shoots after the rain. Even though Dumbledore was still one of the most powerful Wizards in the world, after all, it was very difficult for him to maintain the British Wizard world's right to speak in the entire magic world. It was very difficult for him to maintain the British Wizard world's right to speak in the whole magic world.
Especially after the experience of World War II, the country in North America, under the many arrangements of the wheelchair-bound leader, had taken the biggest right to speak from the empire where the sun never set. Correspondingly, the status of the Wizard in this country had also risen, and they had more right to speak in the International Magic Conference.
It was precisely because of this that in 1990, the British Muggle government decided to join a new currency system created by Western European countries in order to get rid of the restrictions of the United States. And this currency system, the European Exchange Rate System, was actually a treaty that locked the monetary mechanisms of various countries together. To put it bluntly, every currency could only float within a certain exchange rate range. Once this range was exceeded, the central bank of each member country would need to intervene in the market to stabilize the currency exchange rate.
And all of this was done with the core operation of the German currency "mark" at that time.
This system quickly became a tool. The representative of the black Wizard, a businessman named George, took advantage of the weakness of this system and launched a currency "hunt" on the British Muggle society.
In Jon's memory, in his previous life, the United Kingdom was basically defeated by this George. In 1992, the United Kingdom's economy collapsed. At this time, the British Muggle society was facing rapid economic decline and deflation.
Just as the German Muggle society was facing inflation and had to raise interest rates, the British Muggle society needed to increase inflation because of the economic decline, so at this time, they urgently needed to reduce interest rates to stimulate the economic recovery of their own society.
At this time, the conflict arose. In order to maintain this "European Exchange Rate System," the British had to maintain an extremely high exchange rate and interest rate like Germany, which put the British in a dilemma.
According to Mondale's triple paradox (that is, in an open economy, the independence of a country's monetary policy, exchange rate policy, and the free flow of capital cannot be achieved at the same time. At most, two goals can be achieved at the same time, and the other goal needs to be given up to achieve the purpose of regulation). Under the premise of maintaining a stable exchange rate and free flow of capital, it was impossible for the British to maintain a high interest rate.
And Jon knew that the representative of the German black Wizard, George, was betting that the British Muggle government could not maintain the three at the same time, and had to give up the stability of the exchange rate and withdraw from the European Exchange Rate Mechanism. At that time, the British currency sterling would collapse.
Jon did not know much about economics, but one thing was obvious.
If the economy collapsed, it would inevitably cause social panic. At that time, the British Wizard society, which relied on the Muggle society, would become a large sieve, and would be infiltrated by the black Wizard and fall apart.
"That is the real disaster!"
Jon sat by the window and murmured.
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