Elara smiled faintly, a knowing look that suggested she welcomed the shift to a topic she understood intimately. She adjusted her white shawl, her movements graceful and began with a sigh.
"Hmmm, It's a war. A silent, constant war fought with numbers and policy, not blades. It is perhaps the most defining conflict on the continent, and it is entirely by design that we only see the ripples on the surface.On one side, you have the Trade Union. They are essentially the central bank and economic authority for Aerthos and Kemet."
"And on the other side," Alaric interjected, his tone carrying the weight of the Privy Council's endless frustration.
"You have the Free Guild. They are headquartered in Veridian, but their true power comes from their strong ties to Nordhelm."
"Two different systems and since they all want to be the topmost financial authority there is bound to be conflict, the conflict is in the conversion of currency. The Free Guild and the Trade Union are locked in a struggle to make their respective currency the most valuable, and to gain political and economic leverage over the other. The current exchange rate is clear: One Standard Pound is worth Five Crown Solars. That gap alone creates immense volatility." Elara said.
"But the true battle is waged on the backs of the populace," Alaric added, his voice hardening with political disgust.
"To discourage people from using the rival currency—to enforce loyalty—the Trade Union levied a penalty: any currency conversion, regardless of the amount, incurs a flat tax of One Silver Crown or Ten Copper per transaction. It's a calculated fee designed to keep the Solar at home."
"And the Free Guild's retaliation was swift and brutal," Elara continued, her eyes distant, recalling her diplomatic efforts with the northern merchants over disagreements over pricing because of this.
"They immediately increased the price of exports from their nations of influence, specifically Nordhelm. This ensured that the conversion tax didn't matter much in the grand scheme of international trade. Merchants were forced to convert constantly to move goods, regardless of their financial affiliation."
Roric nodded slowly, understanding the vicious economic cycle.
"So, the people suffer the double blow: they pay the Solar tax, and then they pay the inflated Pound price."
"Exactly," Elara confirmed.
"It's a volatile state of equilibrium that only deepens the financial and political divide. I've had to travel to the northern border several times in the past year, because of these financial wars. The constant fluctuation of prices causes riots and strikes—merchants can't price goods consistently, and the common folk can't afford basic supplies one day to the next. This affects our region in particular more greatly because we are the link to both Nordhelm and Kemet serving as a checkpoint of goods to and from Aerthos to either of them and also having some routes passing through our region and making us middlemen in some of their trade. Due to this we,as basically political negotiators suffer from the rivalry between the union and the guild."
"The trade war is draining us. These two factions being the highest authority are gaining more and more power. The Trade Union which has its headquarters here in Aerthos already has significant political power and its increasingly over time. Im sure the same can be said for the Guild as well." Alaric said, leaning back on the couch.
"Every time money flows out," he continued, "This ties directly into the larger problem: the King's declining health."
He leaned in, his voice conspiratorial.
"The Privy Council is terrified. They see the Free Guild's aggressive use of the Standard Pound to influence policies as a direct challenge to Aerthos's sovereignty. They are pushing for extreme measures—a draconian Monetary Stabilisation Act—that would essentially force absolute adherence to the Crown Solar and outlaw the Pound for domestic use entirely."
"That would destabilise the whole economy. Banning it so abruptly will lead to heavy losses not to mention riots from the people." Roric observed, his eyes wide with the sudden understanding of the larger stakes. "Worse, war.A financial declaration of war against Veridian and, by extension, Nordhelm." Alaric said.
"Precisely," Elara added, her voice dropping. "And in this precarious environment, the nobles are sniffing opportunities. If the PrivyCouncil is distracted by a looming trade war, and the King is frail, it's the perfect time for someone to make a high-stakes, strategic move."
Roric slowly looked back out the window towards the distant training grounds, his unfocused gaze on Lyle, and his mind on the pattern of Lyle's arrival. He mentally synthesised the new information with the old crime.
'The killer used former Azure Rose Knights.The shop was a front, a legitimate business used to facilitate the operation. S.K. was killed for his Characteristics to be used as powerful Artifacts. Could this somehow be tied to any of these financial factions? But even if I assume that that's true, the question is, to what end? What is the goal?'
"Roric?" Elara called,bringing him back from his thoughts. He looked at her and smiled.
" No its nothing, I was just thinking that the world, for its small size is really complicated."
Just then an explosion shook the room and all three turned to look out the window where Aina was in the process of attacking Lyle with Elias sighing in the background and shaking his head.