Hogwarts: The Wizarding World's First Capitalist

"It's interesting how you make these things sound so simple."

Grindelwald smiled bitterly and looked at Carl helplessly.

"The economy of the British wizarding world is in a mess right now. There are almost no wizards in the market who can immediately take out 10 gold Galleons."

"Whether it's a robe shop, a wand shop, or a shop selling raw materials for potions, there are almost no customers coming in now."

"More wizards are willing to exchange their gold Galleons for pounds to buy daily necessities in the Muggle world."

Hearing this, Carl just looked at Grindelwald coldly, stretched out his hand expressionlessly, and motioned for him to continue.

Grindelwald didn't say anything more and continued speaking.

"Things aren't going well inside Hogwarts either, ever since you left. That red-haired brat called Ron Weasley."

"He just started jumping up and down for no apparent reason. He even spoke nonsense in the auditorium during lunch several times."

"It is claimed that the current chaos in the British Ministry of Magic and the crisis currently facing the British wizarding world are all caused by you."

"You are responsible for all this. His speech was very clever, packaging you as a greedy vampire, and vaguely calling you a "traitor to wizards" and a "running dog of Muggles."

"What are the specific results?" Carl smiled disdainfully, "I don't need these empty descriptions, I need some professional analysis."

"And express the specific situation. Tell me directly how many of my dear classmates believed these nonsense."

"Nonsense?" Grindelwald raised his eyebrows and looked at his child with a smile on his face.

"Except for the last two points, what the red-haired kid said is basically true. Besides, he did take advantage of some objective conditions at the moment."

"I have to say his method is quite clever. He has transferred all the objective contradictions of reality onto you."

"So, apart from your Hufflepuff house and some people from Slytherin house, Gryffindor and Ravenclaw houses basically believed this."

"The environment you were in when you returned to school must not have been very good. At the same time, I am somewhat curious about how you created a crisis out of thin air."

"There is never a crisis created out of thin air." Carl said with a serious expression and snapped his fingers.

With the sound of snapping fingers, the coffee machine at the bar counter behind him started working.

First, the grinder starts automatically and grinds the selected coffee beans into a fine powder.

Next, the clean water in the water tank is heated to a suitable temperature and then flows into the brewing chamber through the water pipe.

Under the impact of water flow, the coffee powder and hot water are fully mixed, releasing a rich aroma.

At the same time, the cup was moving slowly in the air, as if being pulled by an invisible force.

It floated out of the cupboard, through the air, and landed steadily under the water spout of the coffee machine.

When the coffee machine completes the brewing process, a cup of steaming, fragrant coffee flows through the pipe into the cup suspended in the air.

The disembodied waiter brought the cup of coffee to Carl again.

It was even thoughtfully provided with a silver spoon. Carl picked up the spoon and gently stirred the coffee.

The tone was as smooth as the grease floating on it.

"There is no crisis in this world that appears out of thin air, just like the magic I just used, even though I can control my magic power accurately."

“But it only replaces some of the energy. The entire coffee-making process still requires every step.”

“It wouldn’t be a perfect drink if it wasn’t like that.”

"You sound more like a Muggle scientist when you say that." Grindelwald stared at Carl who was tasting his coffee.

"But I still don't understand why it only takes you less than a year, given that the British wizarding world's monetary system has been in operation for hundreds of years."

"Can the situation become so dangerous just because of that bank?"

"Of course not." Carl frowned and gently put down the coffee cup in his hand. He didn't expect that this German coffee would be so bitter.

It was even more miserable than the life of some cattle and horses. Then he used magic in the same way to get two bottles of water.

After rinsing his mouth, he spoke directly.

"A bank can't change anything, just like the development of the Muggle world over thousands of years."

"Although some things may sound weird, this is the nature of the world. Let me give you a very simple example."

"A man took out a loan worth 1000 gold galleons at the First Savings Bank of the Wizarding World."

"There is an extra bill in the bank account with an annual interest rate of 8%, but it is to quickly recover the funds."

"The bank won't wait 12 months for the other party to pay off all the loans, so we can package it."

"This bill with an annual interest rate of 8% was packaged into a financial product with an annual interest rate of 5% and repayment of principal and interest after one year."

"Then we sell this financial product on the market. At the beginning, it won't cause much commotion, as if nothing has happened."

Carl conducted his own live demonstration on the table between the two of them, using a few dinner plates and coffee cups.

"But what happens after that? The wizards who initially received the loan basically used the money for consumption, or for investment, such as opening a small shop."

"Then this money will slowly flow into the market and start to circulate in the market, thereby boosting the market's prosperity."

"Goods are selling better, people's wages are rising, and everything seems to be thriving, but there are always some things that cannot keep up with the growth in a short period of time."

"You mean those shops?" Hearing this, Grindelwald seemed to be thinking about something.

Carl smiled, looked at the handsome old man in front of him and nodded.

"It seems that you are much smarter than the average person. In fact, there are not only shops, but also many rare items."

"For example, rare potion raw materials, ancient magic books, etc., but these are actually not important. What is important is never the product itself."

"It's the market's confidence in them. As transactions proceed, the value of these items will increase exponentially."

"A wizard who holds these items at the beginning can obtain huge wealth that he never thought of in this link."

"It will also arouse the greed of other wizards. What will they do? Reason tells them that this is just a temporary prosperity."

"But greed will drive them to join this crazy game, relying on their own wealth."

"And they are not worthy of joining the game, so they will think back to the previous loan."

"And the financial markets that have been waiting for a long time and can raise funds quickly."