I can upgrade the shelter-Chapter 134 - 132: How to Establish a Black Market

"Hehe, Little Brother Chen is indeed Little Brother Chen, he gets it right away, unlike my old man. It took me ages to explain what I wanted to do to him." Li Yulong complimented Chen Xin.

Qin Lan, who was beside them, understood what Li Yulong intended when she heard Chen Xin mention the black market. She frowned immediately, "Isn’t there already a black market in the city?"

Indeed, there already was a black market in the city, although it was formed spontaneously, it facilitated exchanges between various shelters.

The city government was aware of the black market but did not crack down on it.

From the city’s perspective, it was considered a channel for communication between shelters, allowing for mutual exchanges, so its existence was tacitly approved.

Li Yulong naturally knew this, but he laughed indifferently, "Sister Qin, what you’re talking about isn’t really a black market. That so-called black market in the city is just a place for a few shelters to swap things, far from a real black market. What I want to set up is a truly professional, standardized black market that can distribute goods and trade resources..."

"What you want to set up is essentially a trading platform under your control, right? Although you boast about it, I can see your intention at a glance," Chen Xin said. "You want to establish a base, meaning you need a venue that you control. You won’t participate directly in the transactions but will provide a platform for others to trade while charging a fee."

Being exposed by Chen Xin, Li Yulong couldn’t help but feel a bit embarrassed. "Look at what you’re saying, Brother Chen, I’m really just providing convenience for everyone while earning a little on the side..."

However, Chen Xin didn’t pay attention to him and continued, "To set up such a trading platform, you need significant capital and military protection, and you need to have enough credibility and prestige among those coming to trade. None of these would be an issue if your father steps in.

Additionally, for this trading platform to work, you can’t let people keep bartering, as you wouldn’t make money or provide services to others then.

For the traders, the existing black market suffices for barter, so you must offer valuations and equivalent items, meaning your real aim is to get hold of the currency issuance authority. Am I right?"

Chen Xin looked at Li Yulong, his eyes blazing with both intimidation and a little admiration for this rich second-generation.

To be able to think of these things at such times and plan to act on them, Li Yulong’s ambition and capability are noteworthy.

But Qin Lan, beside them, still frowned and confusedly asked Chen Xin, "If that’s the case, the city government won’t allow such a trading market to exist, as it completely escapes state control. Even if the city doesn’t intervene, what will he use as an equivalent medium, and why would anyone trust him? He can’t really use bottle caps like in the radioactive wasteland, can he?"

Faced with Qin Lan’s doubts, Chen Xin guessed Li Yulong’s thoughts but still shook his head and then turned to Li Yulong, "These questions, Sister Lan, you should ask him. But since Little Dragon came to me, I suppose someone advised him and a plan has been drafted?"

"No one is as wise as Brother Chen!" Li Yulong continued his playful compliment, but then explained seriously, "To start this black market or as Brother Chen referred to it, a trading platform, government approval is necessary, but there’s no need to worry about that as my dad will be able to persuade the city government."

Hearing Li Yulong mention his father, Chen Xin nodded in agreement, "Your father’s identity and connections should be enough to sway the city government. Although the city government is currently tolerating the black market, that doesn’t mean they won’t eventually manage it. Having someone establish a regulated market would also benefit the city.

As for the equivalent medium, that’s easy. The country is still around, and money isn’t unusable; it’s just that there’s nothing to buy at the moment. If the city government gets involved and promises to accept money, it would remove the market trust issue with your own equivalent medium."

"Brother Chen, you’re really insightful. That’s the same thing my dad said after understanding my ideas." This time, Li Yulong was genuinely impressed with Chen Xin and did not offer empty compliments.

By now, Qin Lan had largely understood the situation and began to have some belief in the establishment of the black market but still had unresolved doubts: "If that’s the case, the black market can indeed be initiated, but the issue is that you’re setting it up to make money, and your way to earn money is through transaction fees. Why would people pay you?"

Before Li Yulong could explain, Chen Xin began laughing.

He looked at Li Yulong meaningfully and smiled at Qin Lan, "Perhaps this is why he came looking for me. Geothermal heat pumps, as a heating device, are a necessity under the current circumstances. If he is the only one able to provide them in the market, it will naturally attract others to trade at his location.

Whether bartering or paying with cash, it is more than enough for him to accumulate his initial resources and build a reputation. With initial resources and as people learn about his place, he can add more daily necessities and naturally have a functioning market."

"Hehe, that’s what my dad said too, so Brother Chen, what do you think..." Li Yulong smiled awkwardly, trying to propitiate Chen Xin.

However, Chen Xin did not respond to him at that time but turned to Qin Lan and asked her, "Lan, how does the official shelter compensate people for work now? Do they pay cash, tokens, or directly distribute living supplies?"

"The official shelter currently registers identities and monthly work hours. Those with 25 work hours can receive full rations and better living supplies at the end of the month," Qin Lan explained, though she didn’t understand why Chen Xin was asking. "Ordinary people receive 30 portions of shelter food monthly, enough to sustain one person for a day, and those who work receive the same but have two energy bars, while those not working only have one."

"Just like the ones I traded from your SWAT team." Chen Xin nodded, understanding the situation, "It seems there’s still a missing condition to make this work."

Since the official shelter is still directly distributing supplies, it’s evident that the so-called currency, or general equivalent, hasn’t formed yet.

Without the emergence of a general equivalent, market transactions can only remain at the barter level.