Forging America: My Campaign Manager is Roosevelt

Chapter 339 - 164: The Alchemist 4

"Of course, this step carries the highest legal risk and is the most likely to be accused of illegally issuing currency," Arthur added. "So we must be extremely careful to define it in the legal documents as an employee benefit discount voucher, and never as part of their wages."

"Next is the matter of the municipal budget you were concerned about."

Arthur’s tone relaxed a little.

"When we create the budget, we will still denominate it in US Dollars. This is to comply with the state’s auditing standards."

"But in the revenue breakdown, we’ll list a separate line item for non-cash offset revenue."

"This revenue can’t be used to pay police officers’ salaries or cover Federal social security contributions. However, it has one specific purpose: to offset government procurement."

Arthur drew a giant equal sign on the whiteboard.

"For example, City Hall originally needed to spend ten million US Dollars in cash to buy steel from a mill in Erie. In the past, this would have been a hard cash expenditure."

"Now, we use ten million in discount vouchers to pay for the steel. The mill gets the vouchers and, in turn, uses them to offset the ten million in taxes they owe the city government."

"On the financial statements, this shows up as our tax revenue being down by ten million in cash, but at the same time, our capital expenditure is also down by ten million in cash."

"The balance sheet remains balanced."

"The deficit hasn’t increased, there’s no debt default, and yet the project is completed."

Leo wasn’t swept away by this perfect accounting loop.

He stared at the flowing lines on the whiteboard and pointed out the most vulnerable link in the system.

"So, Arthur. After going in such a big circle, the government still has to pay up in the end, right? After all, those offset taxes are, in essence, our fiscal revenue."

"Yes, the government must pay at some point."

Arthur capped his pen, a smile on his face.

"But you’re playing a game of timing and incremental gains."

"Pittsburgh has many factories on the verge of bankruptcy that owe the government millions in taxes and water fees. This was originally uncollectable bad debt."

"Now, they can earn vouchers by working for the government to offset these debts. This means the government completes infrastructure projects for only half the cost in US Dollars, all while cleaning up its balance sheet."

"And as the projects get fully underway, formerly unemployed workers will receive cash wages. They’ll start buying cars, eating out, and spending money. The sales tax and personal income tax the government receives will be a tangible increase in US Dollar revenue."

Arthur looked at Leo.

"The government will use this additional US Dollar tax revenue from the economic recovery to buy back and destroy those vouchers from the trust."

"When the last voucher is destroyed, the roads will be fixed, the workers will be fed, the factories will have survived, and the government’s books will still be balanced."

"This is financial alchemy, Mr. Mayor."

"We’re not printing money. We’re building a new set of books."

Leo sat in his chair, his mind racing.

Although the financial architecture Arthur described was ingenious, it was still a rough model. Many details needed to be ironed out.

How to ensure corporate compliance during tax offsets? How to prevent malicious speculation on the vouchers in a black market? How to handle a potential Federation investigation that could come at any time?

The specific financial model, the wording of the legal documents, the code for the risk-control system—all of it needed this team of professionals to work day and night to perfect.

But Leo only had one decision to make now: Did he dare to take this gamble?

If this system collapsed, if these so-called "equity certificates" flooded the market and devalued, or if they were deemed illegal currency by Federation Agencies, then what the city government collected in the future would no longer be US Dollars, but piles of worthless paper.

Pittsburgh’s finances would instantly go bankrupt, and he would go to prison for it.

But what was the alternative?

That five hundred million US Dollars in cash was burning up at an astonishing rate.

Once it was gone, construction would halt, the revival plan would be left unfinished, and everything would end all the same.

’Are you not ready yet?’

Roosevelt’s voice echoed in his mind.

’This is the only way, Leo.’

’Since you want to build a new order on these ruins, you must wield this kind of power.’

’Even if it’s a power disguised as a commercial voucher.’

Leo stood up and walked over to Arthur.

"Can this system run perfectly right now?"

"Technically, there’s no problem," Arthur answered quickly. "As long as you sign, the servers can be up and running tonight, and the steel mill in Erie will receive its credit line by tomorrow morning."

"No, I’m not talking about the technology."

Leo shook his head.

"I’m talking about the people."

He turned, walked to the window, and looked out at the sky.

"The success of this closed-loop system doesn’t just depend on Pittsburgh. It also depends on Erie, on Scranton, on Johnston."

"It depends on Ron Smith and Joe Byers, those old guys."

Leo’s gaze grew deep.

"If I just throw this radical system in front of them right now and tell them: ’Hey, fellas, to fight the State Government, we’re going to issue our own currency’..."

"What do you think they would do?"

Ethan, standing nearby, frowned. "They’d probably be scared to death. They’re Republicans. They might think this is an act of rebellion, and to save their own skins, they’d turn around and sell us out to the state attorney general."

"Exactly."

"If I act too hastily, this coalition will collapse from within."

"I need the right moment."

"A moment when they’ll have no choice but to accept it, when they’ll even be begging me to do it."

Leo looked back at Arthur.

"Arthur, listen."

"I need you and your team to keep working. I want you to polish the details of this system to perfection and minimize the legal risks."

"Even if you have to tear the Commercial Code apart, find me more legal justification for compliance."

"I understand, Mr. Mayor."

Arthur nodded.

Leo knew he was holding the nuclear button.

But he wasn’t going to press it now.

He would wait.

Wait for the wind to blow stronger, for the fire to burn hotter.

’Mr. President,’

Leo thought softly.

’I’m in no hurry.’

’Since we’re going to build a new order, we have to let the people of the old order get a taste of despair first.’

Roosevelt’s laughter echoed in his mind.

’That’s right, kid.’

’The most important quality for a hunter isn’t marksmanship, but patience.’

’Just watch.’

’They’ll walk right into the cage themselves.’